Common use of PURCHASE PRICE AND COLLATERAL RATIOS Clause in Contracts

PURCHASE PRICE AND COLLATERAL RATIOS. A. The purchase price for a Contract must involve an initial payment to the Dealer which does not exceed 140% of the average wholesale value of a Financed Vehicle plus tax, title, license and warranty (or, in the case of certain popular models, 140% of the Dealer's Cost plus tax, title, license and warranty). Average wholesale value shall be measured by the MANNHEIM GOLD BOOK, NATIONAL AUTO RESEARCH BLACK BOOK or the NATIONAL AUTOMOBILE DEALERS USED CAR GUIDE used car market guides, or other nationally published used car market guides. If measured by the MANNHEIM GOLD BOOK, the wholesale value of a Financed Vehicle shall be adjusted upward to reflect the generally lower values provided by this publication when compared to other publications. B. The purchase price for a Contract must involve an initial payment to the Dealer of no more than 90% of the principal plus accrued interest (pay-off balance) of such Contract. C. The age of each Financed Vehicle must be 7 years or less for automobiles or 8 years or less for trucks. D. Miles may not exceed 100,000 for automobiles or 125,000 for trucks, unless the Dealer guarantees payments under the applicable Contract.

PURCHASE PRICE AND COLLATERAL RATIOS. A. The purchase price for a Contract must involve an initial payment to the Dealer which does not exceed 140% of the average wholesale value of a Financed Vehicle plus tax, title, license and warranty (or, in the case of certain popular models, 140% of the Dealer's Cost plus tax, title, license and warranty). Average wholesale value shall be measured by the MANNHEIM GOLD BOOK, NATIONAL AUTO RESEARCH BLACK BOOK or the NATIONAL AUTOMOBILE DEALERS USED CAR GUIDE used car market guides, or other nationally published used car market guides. If measured by the MANNHEIM GOLD BOOK, the wholesale value of a Financed Vehicle shall be adjusted upward to reflect the generally lower values provided by this publication when compared to other publications. B. The purchase price for a Contract must involve an initial payment to the Dealer of no more than 90% of the principal plus accrued interest (pay-off balance) of such Contract. C. The age of each Financed Vehicle must be 7 years or less for automobiles or 8 years or less for trucks. D. Miles may not exceed 100,000 for automobiles or 125,000 for trucks, unless the Dealer guarantees payments under the applicable Contract.

PURCHASE PRICE AND COLLATERAL RATIOS. A. The purchase price for a Contract must involve an initial payment to the Dealer which does not exceed 140% of the average wholesale value of a Financed Vehicle plus tax, title, license and warranty (or, in the case of certain popular models, 140% of the Dealer's Cost plus tax, title, license and warranty). Average wholesale value shall be measured by the MANNHEIM GOLD BOOK, NATIONAL AUTO RESEARCH BLACK BOOK or the NATIONAL AUTOMOBILE DEALERS USED CAR GUIDE used car market guides, or other nationally published used car market guides. If measured by the MANNHEIM GOLD BOOK, the wholesale value of a Financed Vehicle shall be adjusted upward to reflect the generally lower values provided by this publication when compared to other publications. B. The purchase price for a Contract must involve an initial payment to the Dealer of no more than 90% of the principal plus accrued interest (pay-off balance) of such Contract. C. The age of each Financed Vehicle must be 7 years or less for automobiles or 8 years or less for trucks. . D. Miles may not exceed 100,000 for automobiles or 125,000 for trucks, unless the Dealer guarantees payments under the applicable Contract.