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You are purchasing secured quality used automobile notes, that is, a loan extended to an automobile buyer.
These notes are secured by the car that is sold. If a note is not being paid and becomes delinquent, we replace it with a good, paying car note.
25% of the notes we own are held in reserve to replace all default notes.
Simple Interest Receivables
The motor vehicle installment loan agreements or motor vehicle retail installment sale contracts will be secured by used automobiles.
These retail installment sale contracts are sold to you and you actually own them.
Each installment contracts provide for simple interest receivables. These are receivables that provide for the amortization of the amount financed under them over a series of fixed level monthly payments.
Each monthly payment consists of an installment of interest that is calculated on the basis of the outstanding principal balance of the receivable multiplied by the stated contract interest rate under the related Receivable and further multiplied by the period elapsed, as a fraction of a calendar year, since the preceding payment of interest was made.
As payments are received under a Simple Interest Receivable, the amount received generally is applied first to interest accrued to the date of payment and the balance is applied to reduce the unpaid principal balance. Accordingly, if an obligor pays a fixed monthly installment before its scheduled due date, the portion of the payment allocable to interest for the period since the preceding payment was made will be less than it would have been had the payment been made as scheduled, and the portion of the payment applied to reduce the unpaid principal balance will be correspondingly greater.
Conversely, if an obligor pays a fixed monthly installment after its scheduled due date, the portion of the payment allocable to interest for the period since the preceding payment was made will be greater than it would have been had the payment been made as scheduled, and the portion of the payment applied to reduce the unpaid principal balance will be correspondingly less. In either case, the obligor is obligated to pay a fixed monthly installment until the final scheduled payment date, at which time the amount of the final installment may be increased or decreased as necessary to repay the then outstanding principal balance.
Financed Vehicles
The extension of credit to an obligor on a Receivable is based on an
assessment of an applicant's ability to repay the amounts due on the
Receivable and the adequacy of the related Financed Vehicle. Additionally,
the extension of credit may exceed the value of the vehicle. The maximum
age of any used motor vehicle acceptable as collateral generally is ten
model years.
Standard General Risk Statement
As do all forms of investments, this note purchase has risks.
The purpose of this "Risk Statement" is to ensure that potential purchasers
understand that there are risks involved.
Not every type of investment is appropriate for every investor. Each
investor must analyze his/her goals and the appropriateness of this type of
investment. It is not appropriate for any investor to invest a large portion
of his/her assets in any single investment.
This company is a private company that does not publicly release financial
statements. No financial information or details are being provided to purchasers. The company
has no plans to release financial information to purchasers in the future.
The company's ability to repay these notes you purchase will depend upon
the quality of business decisions made by the company's management.
As with any company, it is possible that this company's business could fail.
The notes you purchase are based solely on the skill of company's
management and many other factors, none of which are in your control.
Other than insurance on the vehicles secured by
the notes and a guarantee by this company to replace all delinquent notes, your note purchase is
not guaranteed or insured.
The information contained herein, the various options and details of the
Terms, and all other information presented here is subject to change or correction at any time.
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