PHOENIX — DriveTime Automotive Group posted gains in total
revenue, unit sales and originations in 2012, according to its reports filed
with the Securities and Exchange Commission this week.

Officials said DriveTime dealerships posted a 7-percent gain
in unit sales, turning 59,930 vehicles in 2012, up from 56,109 units in 2011.

The company's 2012 originations improved by an even larger
amount, increasing 11 percent to $917.1 million, compared to $829.2 million in
2011.

As a result, DriveTime's total revenue for 2012 jumped 9
percent to $1.2 billion, up from $1.1 billion in 2011.

Meanwhile, one of the company's subsidiaries, GO Financial,
which is its indirect lending division for non-DriveTime dealerships, increased its active dealer base to 191 stores
and funded $45.4 million in advances.

During the past year, DriveTime opened 10 stores in nine new
geographic regions including: Pensacola, Fla., Little Rock, Ark., Columbus,
Ohio, Montgomery, Ala., St. Louis, McAllen, Texas, Tallahassee, Fla.
Huntsville, Ala., and Myrtle Beach, S.C.

Furthermore, DriveTime completed two securitizations in
2012, issuing an aggregate of $482.2 million of asset backed securities.

Provision for Credit Losses

DriveTime went into more detail about its 2012 provision for
credit losses, which increased for the year. Officials said the rise was
primarily as a result of an increase in the principal balance of loans
outstanding in conjunction with an increase in allowance for credit losses as a
percentage of loan principal.

"Portfolio principal increased as a result of an increase in
originations, mostly driven from an increase in dealership growth," the company
said.

DriveTime's net charge-offs as a percent of average
outstanding principal increased to 13.9 percent in 2012, up from 13.1 percent a
year earlier. The uptick came as a result of an increase in gross charge-offs,
coupled with a decrease in the company's recovery rate.

The company's gross principal charged-off increased to 23.4
percent for 2012, up slightly from the previous year's level of 23.0 percent.

"Influencing gross loss rates are general economic
conditions including unemployment and underemployment rates and wholesale
vehicle prices, which have resulted in the sale of older, higher mileage
vehicles and longer financing terms to maintain customer payment affordability,"
company officials said.

DriveTime also noted that its 2012 recoveries as a
percentage of principal charged-off decreased to 40.3 percent from 42.8 percent
in 2011.

"However, auction values continue to be near historical
highs," the company said.

DriveTime's allowance as a percent of principal outstanding
increased from 15.1 percent at the end of 2011 to 15.7 percent at the close of 2012.

"The increase in the allowance rate is driven by our
expectation that recovery values will continue to decline during 2013, combined
with an increase in gross charge-off expectations as a result of an increase in
average term," officials said.

Legal Update

DriveTime also shared what legal matters the company encountered
both in 2012 and so far this year.

On April 12 of last year, the Consumer Financial Protection
Bureau delivered a Civil Investigative Demand to DTAG requesting that DTAG
produce certain documents and information and answer questions relating to
certain components of the business of DTAG and its affiliates.

"The CFPB has not alleged a violation by DTAG of any law and
DTAG is cooperating with the CFPB's requests for information," company
officials said. "We have provided the documents and information initially
requested by the CFPB.

On Feb. 21, DTAG also received a limited request to clarify
and supplement certain information provided to the CFPB.

"Such information has since been provided," officials said.

Also on March 4, officials noted Credit Acceptance Corp
filed a patent infringement complaint against DTAG, as well as DT Acceptance
Corp. and GO Financial in the U.S. District Court for the Central District of
California, Western Division.

"In its complaint, the plaintiff alleges infringement of its
U.S. Patent No. 6,950,897, entitled ‘System and Method for Providing Financing,'"
DTAG officials said. "The complaint seeks injunctive relief as well as awards
of damages and attorneys' fees.

"We have not yet answered the complaint but we believe we do
not have loss contingencies related to this matter," DTAG added.

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