PHOENIX — DriveTime Automotive Group sent notice to the U.S.
Securities and Exchange Commission last week stating it terminated its definitive
selling agreements with Santander Consumer USA.

Officials indicated they made the decision about the selling
agreement first reached on Sept. 11 "due to certain unsatisfied conditions to
the closings of the transactions contemplated."

The company continued in its Form 8-K that "prior to the terminations,
DriveTime engaged in good faith discussions with the purchasers regarding
potential alternative transactions or transaction structures.

"An agreement has not been reached, however, and while the
parties may continue to engage in discussions regarding potential alternatives,
the transactions set forth in the definitive agreements will not be
consummated," DriveTime went on to say.

In connection with the terminations, DriveTime also used the
Form 8-K to announced the offer to purchase and consent solicitation commenced
on Sept. 24 with respect to the outstanding 12.625 percent Senior Secured Notes
due 2017 issued by DriveTime has been terminated and withdrawn in all respects.

"Notes tendered in connection with the offer to purchase
will not be accepted for payment and will be promptly returned to the holders
thereof by the depositary and information agent," DriveTime said.

When the original purchase agreement was announced back in
September, officials explained that DT Acceptance Corp. and its subsidiary, DT
Credit Co., would sell its finance receivable portfolio, which consists of
vehicle-related installment sales contracts, certificates representing its
residual interests in securitizations of finance receivables, and certain other
assets to Santander Consumer USA.

Immediately thereafter, officials indicated, a new entity
owned by third-party investors will purchase all of the outstanding stock of
DTAG (not to be confused with Dollar Thrifty Automotive Group) and DTAC,
effectively acquiring DTAG's dealership operations, currently consisting of 91
owned and leased stores and 16 reconditioning and other facilities throughout
the United States.

In respect of the purchase transactions, the filing showed
the shareholders of DTAG and DTAC will receive aggregate proceeds of
approximately $700 million and the purchasers will assume, refinance or repay
certain items of existing indebtedness of DriveTime.

The SEC document showed the definitive agreements provide
certain termination rights for each party, including in the event of a failure
by the purchasers to secure certain third-party financing necessary to
consummate the transaction. The agreement also provides that upon termination
of the purchase agreements under certain circumstances, each party may be
obligated to pay the other party a termination fee of $25 million that's
subject to adjustment as provided in the document.

DriveTime's termination news came during the same week the
company reported its third-quarter financial statement, which included a
decrease in net income despite a year-over-year rise in total revenue.

The company's third-quarter net income came in at $4.39
million, down from the year-ago figure of $12.37 million. DriveTime's total revenue
climbed to $304.9 million, up from $286.1 million in the third quarter of last
year.

DriveTime's level of delinquencies deteriorated
year-over-year during the third quarter. A total of 43.7 percent of the company's
portfolio fell into some category of delinquency as of the end of the quarter, which
was Sept. 30. The greatest concentration (31.1 percent) was 1 to 30 days past
due, consisting of $511.3 million in principal.

A year earlier, the company's delinquency accounts consisted
33.2 percent of its portfolio and $487.5 million in principal.