Exhibit 99.4
WEIGHTED AVERAGE LIFE OF THE NOTES
The weighted average life of the notes will generally be influenced by the rate at which the principal balances of the receivables are paid, which payment may be in the form of scheduled amortization or prepayments. For this purpose, the term “prepayment” includes charge-offs, liquidations due to defaults and repurchases by the depositor or the seller or purchases by the servicer pursuant to the servicing agreement, as well as receipt of proceeds from credit life and casualty insurance policies. All of the receivables are prepayable at any time without penalty to the obligor. The rate of prepayment of automotive receivables is influenced by a variety of economic, social and other factors, including the fact that an obligor generally may not sell or transfer the financed vehicle securing a receivable without the consent of the servicer. Any reinvestment risk resulting from prepayment of receivables is borne entirely by the holders of the notes. See also “Legal Aspects of the Receivables—Transfer of Vehicles” in the prospectus.
Prepayments on automotive receivables can be measured relative to a prepayment standard or model. The model used in this private placement memorandum to present the projected weighted average life of the notes, the Absolute Prepayment Model, or “ABS,” assumes a rate of prepayment each month relative to the original number of receivables in a pool of receivables. ABS further assumes that all the receivables are uniform as to size and maturity and amortize at the same rate and that each receivable in each month of its life will either be paid as scheduled or be prepaid in full. For example, in a pool of receivables assumed to originally contain 10,000 uniform receivables, a 1% ABS rate means that 100 receivables prepay each month. ABS does not purport to be a historical description of prepayment experience or a prediction of the anticipated rate of prepayment of any pool of receivables, including the receivables owned by the trust.
As the rate of payment of principal of the notes will depend on the rate of payment, including prepayments, of the principal balance of the receivables, final payment of the offered notes could occur significantly earlier than the final scheduled distribution date for the offered notes.
The tables below under the heading “—Percent of Initial Note Principal Balance Outstanding at Various ABS Percentages” have been prepared on the basis of indicated ABS percentages. The indicated ABS percentages have been applied to the hypothetical pool of receivables.
The“hypothetical pool of receivables” is a pool of receivables equal to those receivables owned by the issuing entity on August 31, 2018. The table below represents a pool of receivables that have been further disaggregated into 50 smaller hypothetical pools having the characteristics set forth in the table below. The level scheduled monthly payment for each of the hypothetical pools is based on aggregate principal balance, annual percentage rate and remaining term to maturity as of the updated pool date such that each hypothetical pool set forth below will be fully amortized by the end of its remaining term to maturity.
| | | | | | | | | | | | | | | | |
Hypothetical Pool | | Aggregate Principal
Balance | | | Annual
Percentage
Rate | | | Weighted Average
Remaining Term
to Maturity (in
Months) | | | Weighted
Average
Age (in Months) | |
1 | | $ | 5,616,021.32 | | | | 0.000 | % | | | 18 | | | | 42 | |
2 | | $ | 2,616,054.82 | | | | 0.000 | % | | | 28 | | | | 35 | |
3 | | $ | 4,635,948.89 | | | | 0.000 | % | | | 45 | | | | 27 | |
4 | | $ | 2,205,909.75 | | | | 0.000 | % | | | 51 | | | | 21 | |
5 | | $ | — | | | | 0.000 | % | | | 0 | | | | 0 | |
6 | | $ | 147,440.15 | | | | 0.915 | % | | | 14 | | | | 40 | |
7 | | $ | 216,238.15 | | | | 0.992 | % | | | 30 | | | | 41 | |
8 | | $ | 354,043.75 | | | | 0.907 | % | | | 46 | | | | 26 | |
9 | | $ | 342,126.24 | | | | 0.905 | % | | | 51 | | | | 21 | |
10 | | $ | — | | | | 0.000 | % | | | 0 | | | | 0 | |
11 | | $ | 610,459.31 | | | | 1.906 | % | | | 17 | | | | 41 | |
12 | | $ | 1,144,291.74 | | | | 1.951 | % | | | 31 | | | | 32 | |
13 | | $ | 699,535.89 | | | | 1.949 | % | | | 41 | | | | 23 | |
14 | | $ | 201,897.47 | | | | 1.869 | % | | | 51 | | | | 21 | |
