EXHIBIT 99 Premier Auto Trust 1998-2 Structural and Collateral Materials $850,000,000 Premier Auto Trust 1998-2 CHRYSLER FINANCIAL CORPORATION Seller and Servicer COMPUTATIONAL MATERIALS The following 11 pages only may be distributed to potential purchasers The Computational Materials form MUST accompany every Computational Materials package. BEAR, STEARNS & CO. INC. The information contained in the attached materials is referred to as the "Information". The attached Term Sheet has been prepared by Chrysler Financial Corporation ("CFC"). Neither Bear, Stearns & Co. Inc. ("Bear Stearns") nor any of its affiliates makes any representation as to the accuracy or completeness of the Information herein. The Information contained herein is preliminary and will be superseded by the applicable prospectus supplement and by any other information subsequently filed with the Securities and Exchange Commission. The Information contained herein will be superseded by the description of the collateral pool contained in the prospectus supplement relating to the securities. The Information addresses only certain aspects of the applicable security's characteristics and thus does not provide a complete assessment. As such, the Information may not reflect the impact of all structural characteristics of the security. The assumptions underlying the Information, including structure and collateral, may be modified from time to time to reflect changed circumstances. Although a registration statement (including the prospectus) relating to the securities discussed in this communication has been filed with the Securities and Exchange Commission and is effective, the final prospectus supplement relating to the securities discussed in this communication has not been filed with the Securities and Exchange Commission. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any offer or sale of the securities discussed in this communication in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Prospective purchasers are referred to the final prospectus and prospectus supplement relating to the securities discussed in this communication for definitive Information on any matter discussed in this communication. Any investment decision should be based only on the data in the prospectus and the prospectus supplement ("Offering Documents") and the then current version of the Information. Offering Documents contain data that is current as of their publication dates and after publication may no longer be complete or current. A final prospectus and prospectus supplement may be obtained by contacting the Bear Stearns Trading Desk at 212-272-4955. General Information: The data underlying the Information has been obtained from sources that we believe are reliable, but we do not guarantee the accuracy of the underlying data or computations based thereon. Bear Stearns and/or individuals thereof may have positions in these securities while the Information is circulating or during such period may engage in transactions with the issuer or its affiliates. We act as principal in transactions with you, and accordingly, you must determine the appropriateness for you of such transactions and address any legal, tax or accounting considerations applicable to you. Bear Stearns shall not be a fiduciary or advisor unless we have agreed in writing to receive compensation specifically to act in such capacities. If you are subject to ERISA, the Information is being furnished on the condition that it will not form a primary basis for any investment decision. The Information is not a solicitation of any transaction in securities which may be made only by prospectus when required by law, in which event you may obtain such prospectus from Bear Stearns by calling the telephone number listed above. [Bear Sterns Logo] The information contained in the attached materials is referred to as the "Information". The attached Term Sheet has been prepared by Chrysler Financial Corporation ("CFC"). Neither Merrill Lynch, Pierce Fenner & Smith Incorporated ("Merrill Lynch") nor any of its affiliates makes any representation as to the accuracy or completeness of the Information herein. The Information contained herein is preliminary and will be superseded by the applicable prospectus supplement and by any other information subsequently filed with the Securities and Exchange Commission. The Information contained herein will be superseded by the description of the collateral pool contained in the prospectus supplement relating to the securities. The Information addresses only certain aspects of the applicable security's characteristics and thus does not provide a complete assessment. As such, the Information may not reflect the impact of all structural characteristics of the security. The assumptions underlying the Information, including structure and collateral, may be modified from time to time to reflect changed circumstances. Although a registration statement (including the prospectus) relating to the securities discussed in this communication has been filed with the Securities and Exchange Commission and is effective, the final prospectus supplement relating to the securities discussed in this communication has not been filed with the Securities and Exchange Commission. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any offer or sale of the securities discussed in this communication in any state in which such offer, solicitati on or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Prospective purchasers are referred to the final prospectus and prospectus supplement relating to the securities discussed in this communication for definitive Information on any matter discussed in this communication. Any investment decision should be based only on the data in the prospectus and the prospectus supplement ("Offering Documents") and the then current version of the Information. Offering Documents contain data that is current as of their publication dates and after publication may no longer be complete or current. A final prospectus and prospectus supplement may be obtained by contacting the Merrill Lynch Trading Desk at 212-449-3659. [EXCLUSIVELY FOR SALOMON BROTHERS INC] Computational Materials Premier Auto Trust 1998-2 Retail Auto ABS ----------------------------------------- $850,000,000 Retail Auto Asset-Backed Notes Chrysler Financial Corporation Seller and Servicer $330,000,000 Class A-2 [ ]% Asset-Backed Notes $250,000,000 Class A-3 [ ]% Asset-Backed Notes $230,625,000 Class A-4 [ ]% Asset-Backed Notes $39,375,000 Class B [ ]% Asset-Backed Notes Computational Materials Neither the Issuer of the Notes nor any of its affiliates make any representation as to the accuracy or completeness of the information herein. The information herein is preliminary, and will be superseded by the applicable prospectus supplement and by any other information subsequently filed with the Securities and Exchange Commission. The information addresses only certain aspects of the applicable security's characteristics and thus does not provide a complete assessment. As such, the information may not reflect the impact of all structural characteristics of the security. The assumptions underlying the information, including structure and collateral, may be modified from time to time to reflect changed circumstances. The attached term sheet is not intended to be a prospectus and any investment decision with respect to the Notes should be made by you based solely upon all of the information contained in the final prospectus. Under no circumstances shall the information presented constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities may not be sold nor may an offer to buy be accepted prior to the delivery of a final prospectus relating to the securities. All information described herein is preliminary, limited in nature and subject to completion or amendment. No representation is made that the above referenced securities will actually perform as described in any scenario presented. The Depositors have not prepared, reviewed or participated in the preparation hereof, are not responsible for the accuracy hereof and have not authorized the dissemination hereof. A final prospectus and prospectus supplement may be obtained by contacting the Salomon Smith Barney Syndicate Desk at (212) 783-3727. 2 The information contained in the attached materials is referred to as the "Information". The attached Term Sheet has been prepared by Chrysler Financial Corporation ("CFC"). Neither Salomon Brothers Inc ("Salomon") nor any of its affiliates makes any representation as to the accuracy or completeness of the Information herein. The Information contained herein is preliminary and will be superseded by the applicable prospectus supplement and by any other information subsequently filed with the Securities and Exchange Commission. The Information contained herein will be superseded by the description of the collateral pool contained in the prospectus supplement relating to the securities. The Information addresses only certain aspects of the applicable security's characteristics and thus does not provide a complete assessment. As such, the Information may not reflect the impact of all structural characteristics of the security. The assumptions underlying the Information, including structure and collateral, may be modified from time to time to reflect changed circumstances. Although a registration statement (including the prospectus) relating to the securities discussed in this communication has been filed with the Securities and Exchange Commission and is effective, the final prospectus supplement relating to the securities discussed in this communication has not been filed with the Securities and Exchange Commission. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any offer or sale of the securities discussed in this communication in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Prospective purchasers are referred to the final prospectus and prospectus supplement relating to the securities discussed in this communication for definitive Information on any matter discussed in this communication. Any investment decision should be based only on the data in the prospectus and the prospectus supplement ("Offering Documents") and the then current version of the Information. Offering Documents contain data that is current as of their publication dates and after publication may no longer be complete or current. A final prospectus and prospectus supplement may be obtained by contacting the Salomon Smith Barney Syndicate Desk at 212-783-3727. Premier Auto Trust 1998-2 Chrysler Financial Corporation, Seller and Servicer Subject to Revision Term Sheet dated March 20, 1998 Issuer.................................... Premier Auto Trust 1998-2 (the "Trust" or the "Issuer"). The Notes................................. (i) Class A-1 _____% Asset Backed Notes (the "Class A-1 Notes") in the aggregate initial principal amount of $200,000,000. The Class A-1 Notes are not being offered hereby; (ii) Class A-2 ____% Asset Backed Notes (the "Class A-2 Notes") in the aggregate initial principal amount of $330,000,000; (iii) Class A-3 _____% Asset Backed Notes (the "Class A-3 Notes") in the aggregate initial principal amount of $250,000,000; (iv) Class A-4 _____% Asset Backed Notes (the "Class A-4 Notes" and, together with the Class A-1 Notes, Class A-2 Notes and Class A-3 Notes, the "Class A Notes") in the aggregate initial principal amount of $230,625,000; and (v) Class B __% Asset Backed Notes (the "Class B Notes" and, together with the Class A Notes, the "Notes") in the aggregate initial principal amount of $39,375,000. The Class B Notes are subordinated to the Class A Notes to the extent described herein. Terms of the Notes: A. Distribution Dates.................. Payments of interest and principal on the Notes will be made on the sixth day of each month or, if any such day is not a Business Day, on the next succeeding Business Day (each, a "Distribution Date"), commencing April 6, 1998. B. Interest Rates...................... The Notes will have fixed interest rates. C. Interest............................ Interest on the outstanding principal amount of any Class of Notes, other than the Class A-1 Notes, will accrue at the applicable Interest Rate from the Closing Date (in the case of the first Distribution Date) or from the sixth day of the month preceding the month of a Distribution Date to and including the fifth day of the month of such Distribution Date (each, an "Interest Accrual Period"). Interest on the outstanding principal amount of the Class A-1 Notes will accrue at the applicable Interest Rate from the Closing Date (in the case of the first Distribution Date) or from the most recent Distribution Date on which interest has been paid to but excluding the following Distribution Date (each, a "Class A-1 Interest Accrual Period"). Interest on each class of Notes, other than the Class A-1 Notes, will be calculated on the basis of a 360-day year consisting of twelve 30-day months. Interest on the Class A-1 Notes will be calculated on the basis of the actual number of days in the Class A-1 Interest Accrual Period divided by 360. The failure to pay interest on the Class B Notes will not be an Event of Default unless the Class A-4 Notes have been paid in full. D. Principal........................... Except during the Release Period described below under "Overcollateralization and Release of Initial Overcollateralization Amount", principal of the Notes will be payable on each Distribution Date in an amount equal to the Noteholders' Principal Distributable Amount for the calendar month (the "Collection Period") preceding such Distribution Date to the extent of funds available therefor. The "Noteholders' Principal Distributable Amount" will equal (i) the Regular Principal Distribution Amount plus (ii) the Accelerated Principal Distribution Amount. The "Regular Principal Distribution Amount" with respect to any Distribution Date will generally equal the amount of principal paid plus the principal balance of liquidated defaulted Receivables. The "Accelerated Principal Distribution Amount" with respect to a Distribution Date will equal the portion, if any, of the Total Distribution Amount for the related Collection Period that remains after payment of (a) the Servicing Fee (together with any portion of the Servicing Fee that remains unpaid from prior Distribution Dates), (b) the interest due on the Notes, (c) the Regular Principal Distribution Amount, and (d) the amount, if any, required to be deposited in the Reserve Account on such Distribution Date. During the Release Period, the principal of the Notes payable on each Distribution Date will equal the Release Period Noteholders' Principal Distributable Amount described below under "Overcollateralization and Release of Initial Overcollateralization Amount". No principal payments will be made (i) on the Class A-2 Notes until the Class A-1 Notes have been paid in full; (ii) on the Class A-3 Notes until the Class A-2 Notes have been paid in full; (iii) on the Class A-4 Notes until the Class A-3 Notes have been paid in full; or (iv) on the Class B Notes until the Class A-4 Notes have been paid in full. The outstanding principal amount of the Class A-1 Notes, to the extent not previously paid, will be payable on the December 1998 Distribution Date (the "Class A-1 Final Scheduled Distribution Date"); the outstanding principal amount of the Class A-2 Notes, to the extent not previously paid, will be payable on the December 2000 Distribution Date (the "Class A-2 Final Scheduled Distribution Date"); the outstanding principal amount of the Class A-3 Notes, to the extent not previously paid, will be payable on the January 2002 Distribution Date (the "Class A-3 Final Scheduled Distribution Date"); the outstanding principal amount of the Class A-4 Notes, to the extent not previously paid, will be payable on the December 2002 Distribution Date (the "Class A-4 Final Scheduled Distribution Date"); and the outstanding principal amount of the Class B Notes, to the extent not previously paid, 2 will be payable on the July 2004 Distribution Date (the "Class B Final Scheduled Distribution Date"). E. Optional Redemption................. The outstanding Class A-4 Notes and Class B Notes will be subject to redemption in whole, but not in part, on any Distribution Date by the Servicer when the Pool Balance shall have declined to 10% or less of the Initial Pool Balance (as defined below). Overcollateralization and Release of Initial Overcollateralization Amount.................................... The $1,097,269,604.07 initial aggregate principal balance of the Receivables (the "Initial Pool Balance") as of March 18, 1998 (the "Cutoff Date") will exceed the $1,050,000,000.00 initial aggregate principal amount of the Notes (the "Initial Note Principal Balance") by an amount equal to $47,269,604.07 (the "Initial Overcollateralization Amount"), which is approximately 4.5% of the Initial Note Principal Balance. Unless offset by losses on the Receivables or the release of cash during the Release Period as described below, the distribution of the Accelerated Principal Distribution Amount, if any, on a Distribution Date is expected to cause the aggregate principal amount of the Notes to decrease faster than the Pool Balance decreases, thereby increasing the Overcollateralization Amount. The "Overcollateralization Amount" in respect of a Distribution Date is equal to (a) the Pool Balance as of the end of the related Collection Period (the "Related Pool Balance") minus (b) the aggregate outstanding amount of Notes after giving effect to payments made on the Notes on such Distribution Date (the "Note Amount"). Subject to the conditions set forth below, on each Distribution Date during the Release Period (as defined below), the amount of principal distributable on the Notes will be the Release Period Noteholders' Principal Distributable Amount rather than the Noteholders' Principal Distributable Amount. The "Release Period Noteholders' Principal Distributable Amount" shall equal, on any Distribution Date during the Release Period, the excess of (a) the Note Amount on such Distribution Date (prior to giving effect to any distributions on such Distribution Date) over (b) the product of (1) 95.0% and (2) the Related Pool Balance. On each Distribution Date during the Release Period, any portion of the Total Distributable Amount which remains after payment of (a) the Servicing Fee, (b) the Noteholders' Interest Distributable Amount, (c) the Release Period Noteholders' Principal Distributable Amount and (d) any amount required to increase the amount in the Reserve Account to the Specified Reserve Account Balance will be released to the Trust and then to Premier Receivables L.L.C. (the "Company") (such released amount being the "Cash Release Amount" or "Cash Release"). The cumulative amount of all Cash Releases during the Release Period shall not exceed the Initial Overcollateralization Amount. The release of cash to the Trust, and then to the Company, as described above is subject to the satisfaction of all of the following conditions: 3 (1) no Cash Release will be permitted until the date (the "First Release Distribution Date") that is the later of: (i) the Distribution Date following the Distribution Date on which the Overcollateralization Amount is at least equal to the [Initial Overcollateralization Amount] plus [2% x (Related Pool Balance for such preceding Distribution Date minus Initial Overcollateralization Amount)]; and (ii) the Distribution Date following the Distribution Date on which the Class A-1 Notes have been repaid in full; (2) the amount in the Reserve Account shall be equal to the applicable Specified Reserve Account Balance; and (3) the cumulative amount of the Cash Releases will not exceed the Initial Overcollateralization Amount. On the Distribution Date (the "Last Release Distribution Date") on which the cumulative amount of the Cash Releases equals the Initial Overcollateralization Amount, the amount of principal distributable to the Noteholders will be the Noteholders' Principal Distributable Amount less the Cash Release Amount released on such Distribution Date. On each Distribution Date thereafter, the full Noteholders' Monthly Principal Distributable Amount will be distributable as principal to the Noteholders. The "Release Period" is the period from the First Release Distribution Date to the Last Release Distribution Date. Any Cash Release released to the Company will not be available to make payments on the Notes. Reserve Account........................... The "Reserve Account" will be created with an initial deposit by Chrysler Financial Corporation ("CFC") on the Closing Date of cash or Eligible Investments having a value at least equal to $10,500,000.00 (the "Specified Reserve Account Amount"), which is 1.00% of the Initial Note Principal Balance. If the Overcollateralization Percentage at any time on or after the Last Release Distribution Date equals at least 7.75%, the Specified Reserve Account Balance will be $7,875,000.00 which is 0.75% of the Initial Note Principal Balance. The "Overcollateralization Percentage" in respect of a Distribution Date is the percentage derived from a fraction, the numerator of which is the Overcollateralization Amount for such Distribution date and the denominator of which is the Related Pool Balance. Funds will be withdrawn from the Reserve Account to cover any shortfalls in the amounts due to the Noteholders. On each Distribution 4 Date, the Reserve Account will be reinstated up to the Specified Reserve Account Balance to the extent of the portion, if any, of the Total Distribution Amount remaining after payment of the Servicing Fee and the amounts due to the Noteholders. The "Pool Balance" at any time will represent the aggregate principal balance of the Receivables at the end of the preceding Collection Period, after giving effect to all payments received from Obligors and Purchase Amounts to be remitted by the Servicer or the Seller, as the case may be, all for such Collection Period, and all losses realized on Receivables liquidated during such Collection Period. Priority of Payments; Subordination of Class B Notes............ Collections in respect of the Receivables for each Collection Period will generally be applied in the following order of priority: (i) the Servicing Fee, together with any previously unpaid Servicing Fees, to the Servicer, (ii) interest on the Class A Notes, to the holders of the Class A Notes, (iii) interest on the Class B Notes, to the holders of the Class B Notes, (iv) the Regular Principal Distribution Amount (or, during the Release Period, the Release Period Noteholders' Principal Distributable Amount), in the priority set forth herein, to the applicable Noteholders, (v) amounts, if any, to the Reserve Account until it contains the Specified Reserve Account Balance, (vi) except during the Release Period, the Accelerated Principal Distribution Amount, to the applicable Noteholders, (vii) during the Release Period, the Cash Release Amount, to the Company, and (viii) the remaining balance, if any, to the Company. No principal payments will be made on the Class B Notes until the Class A Notes have been paid in full. Rating of the Notes....................... The Class A Notes will be rated in the highest investment rating category by at least two nationally recognized rating agencies. The Class B Notes will be rated at least in the "A" category or its equivalent by such rating agencies. 5 The Receivables Pool As of the Cutoff Date, each Receivable (i) had a principal balance of at least $300 and (ii) was not more than 30 days past due (an account is not considered past due if the amount past due is less than 10% of the scheduled monthly payment). As of the Cutoff Date, no Obligor on any Receivable was noted in the related records of the Seller as being the subject of a bankruptcy proceeding, and no Obligor on any Receivable financed a Financed Vehicle under the Seller's "New-Finance Buyer Plan" program. No selection procedures believed by the Seller to be adverse to Noteholders were used in selecting the Receivables. Set forth in the following tables is information concerning the composition, distribution by annual percentage rate ("APR") and the geographic distribution of the Receivables Pool as of the Cutoff Date. Premier Auto Trust 1998-2 Composition of the Receivables Pool Weighted Average Aggregate Number of Weighted Weighted Average APR of Receivables Principal Balance Receivables Average Average Principal Remaining Term Original Term Balance - --------------------- -------------------- ---------------- ---------------- ---------------- ----------------- 9.13% $1,097,269,604.07 68,652 57.35 months 58.75 months $15,983.07 Approximately 74.92% of the aggregate principal balance of the Receivables, constituting 67.18% of the number of the Receivables, represent new vehicles, and approximately 25.08% of the aggregate principal balance of the Receivables, constituting 32.82% of the number of the Receivables, represent used vehicles. Approximately 84.99% of the aggregate principal balance of the Receivables represent vehicles manufactured or distributed by Chrysler and approximately 15.01% of the Initial Pool Balance represents financing of vehicles manufactured or distributed by vehicle manufacturers other than Chrysler. All of the Receivables are Simple Interest Receivables. 6 Premier Auto Trust 1998-2 Distribution by APR of the Receivables Pool - ------------------------------------------- ------------- ----------------- --------------------- Number of Aggregate Percent of Aggregate APR Range Receivables Principal Balance Principal Balance(1) - ------------------------------------------- -------------- ----------------- -------------------- 0.00% to 5.00%.............................. 8,902 $146,195,801.76 13.3% 5.01% to 6.00%.............................. 5,693 129,528,556.81 11.8 6.01% to 7.00%.............................. 870 13,867,699.79 1.3 7.01% to 8.00%.............................. 7,603 118,289,284.44 10.8 8.01% to 9.00%.............................. 9,867 159,545,036.66 14.5 9.01% to 10.00%............................. 8,795 141,006,006.33 12.9 10.01% to 11.00%............................ 6,240 101,886,410.59 9.3 11.01% to 12.00%............................ 5,249 82,139,695.74 7.5 12.01% to 13.00%............................ 4,196 60,621,649.17 5.5 13.01% to 14.00%............................ 2,854 38,535,558.82 3.5 14.01% to 15.00%............................ 2,411 30,832,252.57 2.8 15.01% to 16.00%............................ 1,366 17,323,841.39 1.6 16.01% to 17.00%............................ 1,118 13,579,340.03 1.2 17.01% to 18.00%............................ 1,742 24,362,759.69 2.2 Greater than 18.00%......................... 1,746 19,555,710.28 1.8 ------ ----------------- ----- Totals................................. 68,652 $1,097,269,604.07 100.0% ====== ================= ===== <FN> - --------- (1) Percentages may not add to 100.0% because of rounding. Premier Auto Trust 1998-2 Geographic Distribution of the Receivables Pool(1) State Percent of State Percent of - ----- Aggregate ----- Aggregate Principal Principal Balance(2) Balance(2) ---------- ----------- Alabama............................ 1.3% Montana......................... 0.1% Alaska............................. 0.2 Nebraska........................ 0.7 Arizona............................ 1.2 Nevada.......................... 0.4 Arkansas........................... 0.8 New Hampshire................... 1.6 California......................... 6.0 New Jersey...................... 4.7 Colorado........................... 0.9 New Mexico...................... 0.6 Connecticut........................ 1.3 New York........................ 7.0 Delaware........................... 0.5 North Carolina.................. 3.1 District of Columbia............... 0.0 North Dakota.................... 0.3 Florida............................ 5.7 Ohio............................ 1.5 Georgia............................ 3.1 Oklahoma........................ 1.1 Hawaii............................. 0.2 Oregon.......................... 0.9 Idaho.............................. 0.1 Pennsylvania.................... 7.0 Illinois........................... 5.9 Rhode Island.................... 0.4 Indiana............................ 2.6 South Carolina.................. 1.2 Iowa............................... 1.1 South Dakota.................... 0.3 Kansas............................. 1.6 Tennessee....................... 1.3 Kentucky........................... 1.1 Texas........................... 7.4 Louisiana.......................... 1.1 Utah............................ 0.3 Maine.............................. 0.6 Vermont......................... 0.3 Maryland........................... 4.8 Virginia........................ 3.1 Massachusetts...................... 3.0 Washington...................... 1.2 Michigan........................... 4.1 West Virginia................... 0.6 Minnesota.......................... 2.3 Wisconsin....................... 1.6 Mississippi........................ 0.4 Wyoming......................... 0.1 Missouri........................... 3.5 ----- Totals....................... 100.0% ===== <FN> - --------- (1) Based on physical addresses of the dealers originating the receivables. (2) Percentages may not add to 100.0% because of rounding. Delinquencies, Repossessions and Net Losses Set forth below is certain information concerning the experience of CFC and its United States subsidiaries pertaining to retail new and used automobile and light duty truck receivables, including those previously sold which CFC continues to service. There can be no assurance that the delinquency, repossession and net loss experience on the Receivables will be comparable to that set forth below. 8 Delinquency Experience(1) (Dollars in Millions) At December 31, ---------------------------------------------------------------------------------------- 1997 1996 1995 ----------------------------- -------------------------- --------------------- Number of Amount Number of Amount Number of Amount Contracts Contracts Contracts ---------- ---------- ---------- ---------- ----------- ---------- Portfolio............. 1,697,755 $21,879 1,679,880 $21,197 1,653,533 $20,913 Period of Delinquency 31-60 Days.......... 58,421 $ 708 65,297 $ 843 55,507 $ 720 61 Days or More..... 7,360 102 8,175 118 6,792 100 ------------ -------------- ------------ -------------- ---------- ------------ Total Delinquencies... 65,781 $ 810 73,472 $ 961 62,299 $ 820 Total Delinquencies as a Percent of the Portfolio........... 3.87% 3.70% 4.37% 4.53% 3.77% 3.92% At December 31, ----------------------------------------------------------------------------------------- 1994 1993 1992 ---------------------------- ---------------------------- ------------------------- Number of Amount Number of Amount Number of Amount Contracts Contracts Contracts ----------- ----------- ----------- ----------- ----------- --------- Portfolio............. 1,444,736 $16,977 1,352,218 $14,116 1,344,799 $12,082 Period of Delinquency 31-60 Days.......... 25,888 $ 293 16,350 $ 153 15,964 $ 134 61 Days or More..... 2,085 27 1,383 15 1,376 13 ------------ -------------- ------------ -------------- ---------- ------------ Total Delinquencies... 27,973 $ 320 17,733 $ 168 17,340 $ 147 Total Delinquencies as a Percent of the Portfolio........... 1.94% 1.88% 1.31% 1.19% 1.29% 1.22% <FN> - --------- (1) All amounts and percentages are based on the gross amount scheduled to be paid on each contract, including unearned finance and other charges. The information in the table includes an immaterial amount of retail installment sale contracts on vehicles other than automobiles and light duty trucks and includes previously sold contracts which CFC continues to service. Credit Loss/Repossession Experience(1) (Dollars in Millions) Year Ended December 31, ------------------------------------------------------------------------- 1997 1996 1995 1994 1993 1992 -------- --------- ---------- ---------- --------- ----------- Average Amount Outstanding $ 21,485 $ 21,062 $ 19,486 $ 15,517 $ 12,882 $ 11,818 During the Period.......... Average Number of Contracts Outstanding During the Period..................... 1,688,525 1,671,405 1,572,963 1,396,497 1,341,084 1,382,898 Percent of Contracts Acquired During the Period with Recourse to the Dealer..... 10.91% 9.05% 14.8% 17.0% 16.2% 1 5.8% Repossessions as a Percent of Average Number of Contracts Outstanding................ 3.40% 3.82% 3.05% 2.36% 2.15% 2.31% Net Losses as a Percent of Liquidations (2)(3)....... 3.36% 3.17% 2.25% 1.38% 1.34% 1.71% Net Losses as a Percent of Average Amount Outstanding(2)............. 1.80% 1.68% 1.16% 0.73% 0.75% 0.97% <FN> - --------- (1) Except as indicated, all amounts and percentages are based on the gross amount scheduled to be paid on each contract, including unearned finance and other charges. The information in the table includes an immaterial amount of retail installment sales contracts on vehicles other than automobiles and light duty trucks and includes previously sold contracts that CFC continues to service. (2) Net losses are equal to the aggregate of the balances of all contracts which are determined to be uncollectible in the period, less any recoveries on contracts charged off in the period or any prior periods, including any losses resulting from disposition expenses and any losses resulting from the failure to recover commissions to dealers with respect to contracts that are prepaid or charged off. (3) Liquidations represent a reduction in the outstanding balances of the contracts as a result of monthly cash payments and charge-offs. During 1997, CFC experienced high credit losses on automotive retail receivables. CFC management attributes the credit losses to the combined effect of the credit mix of retail receivable originations and the increase in frequency of default and repossession necessitating an increase in the level of servicing and collection by CFC. While such credit loss experience may continue, actions have been taken to improve credit mix, collections and servicing of the retail receivable portfolio. However, no assurance can be given as to future results. The net loss figures above reflect the fact that the Seller had recourse to Dealers on a portion of its retail installment sale contracts. By aggregate principal balance, approximately 1.82% of the Receivables represent contracts with recourse to Dealers. 10