CARY, N.C. — A new residual-based financing program from the
creators of the CarMark Certified Pre-Owned program, called CarMark Auto
Finance, is hitting its stride just in time for dealers to take advantage of
the opportunity during the profitable first months of the new year, according
to company officials.

"The first few months of a new year represent an excellent
time for residual-based financing on pre-owned units," noted Bill Zadeits,
CarMark Auto Finance principal. "The recent drop in wholesale prices caused by
seasonal market readjustment provides a buying opportunity, with values
normally increasing going into the spring market."

CarMark Auto Finance is a fully insured, walk-away balloon
payment program created through a partnership with Auto Financial Group of
Houston. Available in terms from 24- to 72-month, the program allows buyers to
take advantage of monthly payments that are significantly lower than conventional
finance payments. When the final balloon payment is due, the buyer can pay off
the balloon through a trade-in, private sale or refinance, or they can simply walk
away.

Highlights of the CarMark Auto Finance program for dealers and
consumers include:

—Monthly payments up to 40 percent lower than
conventional financing

—Shortens terms and helps dealers do business
with their buyers more often because the consumer returns quicker to the
dealership

—Owner can trade, sell or refinance the vehicle
at any time

"We know that dealers don't do CarMark Auto Finance deals
just because they like us," said David Ruggles, CarMark Auto Finance sales
manager. "They do these deals because it makes sense to their buyers and to
their dealership. Dealers who ‘get it' are using CarMark Auto Finance balloon
payments to steal deals from competitors who are asleep at the wheel."

Ruggles added that pre-owned sales have been a consistent
sweet spot for the program, with dealers who use the program's residual-based
payments on pre-owned inventory finding that they have little or no competition
on vehicles that are the best fits with the program.

He also highlighted a number of those current "best fit" vehicles
for the CarMark Auto Finance program:
 

Year/Make/Model

Miles

Wholesale
+ $2,500

CarMark
Auto Finance

36 mo                  48 mo
Conv. Fin.
48/60/72

2012 Chevy Impala 4d Sedan LT V6

 22,400

 $16,200

 $206

 $190

 $303/$246/$208
2012 Chevy Malibu 4cyl. 4d Sedan 1LT

 25,000

 $15,700

 $173

 $173

 $292/$237/$201
2012 Chrysler 200 V6 Conv. FFV Touring

 13,000

 $19,500

 $225

 $221

 $376/$305/$258
2012 Chrysler 3.5L T&C Touring

 24,000

 $22,500

 $269

 $271

 $443/$359/$304
2012 Ford Mustang V6 Conv Premium

 19,000

 $20,700

 $203

 $213

 $403/$327/$277
2012 Ford Taurus V6 4d Sedan SEL

 21,000

 $20,000

 $209

 $213

 $387/$314/$266
2012 Hyundai Sonata GLS 4d Sedan

 26,000

 $17,300

 $196

 $190

 $328/$266/$225
2012 Subaru Legacy 4cyl. Premium

 15,000

 $20,000

 $171

 $177

 $387/$314/$266
2012 Toyota Camry LE 4cyl. 4d Sedan

 19,000

 $18,800

 $190

 $187

 $361/$293/$248

*Note: These examples
are approximate and are meant as a starting point. They are based on $2,500
gross profit and $2,500 down payment. No transportation or buy fees are
calculated. Conventional financing payments are based on a 3 percent interest
rate and the CMAF program rate is 4 percent. TT&L are not calculated. Miles
and purchase values are based on Manheim Market Report auction averages. Annual
allowable miles are calculated at 15,000.

In addition to working well for dealers, the CarMark Auto
Finance program has already proven successful for a number of financial
institutions, with 11 new credit unions signing on to the program in the past
five months. Together these credit unions manage more than $6 billion in assets
and serve more than 548,000 members.

Benefits of the program for credit unions and other
financial institutions include:

—Residual value insurance
—Compatibility with
existing indirect programs
—Automated quoting system
—Automated end-of-term
process
—Higher yielding loans
—Positions financial
institutions to recapture vehicle financing currently being lost to
competitive low-payment financing option. 

Zadeits noted that while both CarMark Auto Finance and the
CarMark Certified Pre-Owned program are both products of POADA LLC, dealers can
participate in the finance program without being a part of the certified
program and vice versa.  "However," he
said, "The two programs complement each other in numerous ways for both the
dealer and the consumer."

Dealers or financial institutions interested in finding out
more about the CarMark Auto Finance program can visit www.carmarkautofinance.com/demo
to access a monthly payment calculator that allows them to input any vehicle to
compare monthly payments with CarMark Auto Finance and conventional financing.

To request additional information about the CarMark Auto
Finance program, or to find out how your dealership or financial institution
can offer the CarMark Auto Finance program to your customers, call Bill Zadeits
at (800) 608-7500, ext. 117 or email info@carmarkautofinance.com.

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