13.	Fair Value of Financial Instruments

Fair value estimates, methods, and assumptions are as follows:

	March 31, 2014				December 31, 2013
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Cash and cash equivalents (a)	$	112,835	$	112,835	$	10,531	$	10,531
Receivables held for sale (b)		171,466		176,425		82,503		83,344
Retail installment contracts held for investment, net (c)		21,087,173		21,644,945		20,219,609		21,465,236
Unsecured consumer loans, net (d)		1,000,545		1,071,108		954,189		1,187,286
Receivables from dealers held for investment (e)		108,200		108,200		94,745		94,745
Restricted cash (a)		1,830,392		1,830,392		1,563,613		1,563,613
Notes payable — credit facilities (f)		9,573,726		9,573,726		8,099,773		8,099,773
Notes payable — secured structured financings (g)		15,783,587		15,924,794		15,195,887		15,565,013

(a)	Cash and cash equivalents and restricted cash — The carrying amount of cash and cash equivalents, including restricted cash, approximated fair value at March 31, 2014 and December 31, 2013, due to the short maturity of these instruments and is considered a Level 1 measurement.

(b)	Receivables held for sale — Receivables held for sale are carried at the lower of cost or market, as determined on an aggregate basis. The estimated fair value is based on the prices obtained or expected to be obtained in the subsequent sales and is considered a Level 1 measurement.

(c)	Retail installment contracts held for investment — Retail installment contracts are carried at amortized cost, net of loan loss allowance. The estimated fair value is calculated based on estimated market rates for similar contracts with similar credit risks and is considered a Level 3 measurement.

(d)

Unsecured consumer loans, net — Unsecured consumer loans are carried at amortized cost, net of loan loss allowance. Carrying value approximates fair value for unsecured revolving loans because the loans are short term in duration, do not have a defined maturity date and/or are at a market-based interest rate. For unsecured amortizing loans, the estimated fair value is calculated based on estimated market rates for similar loans with similar credit risks and is considered a level 3 measurement.

(e)

Receivables from dealers held for investment — Receivables from dealers held for investment are carried at amortized cost, net of loan loss allowance. The estimated fair value is calculated based on estimated market rates for similar receivables with similar credit risks and is considered a Level 3 measurement.

(f)

Notes payable — credit facilities — The carrying amount of notes payable related to revolving credit facilities is estimated to approximate fair value as of March 31, 2014 and December 31, 2013. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements. The fair value of notes payable is considered a Level 3 measurement.

(g)

Notes payable — secured structured financings — The estimated fair value of notes payable related to secured structured financings is calculated based on market quotes for the Company’s publicly traded debt and estimated market rates currently available from recent transactions involving similar debt with similar credit risks, and is considered a Level 2 measurement.

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2014 and December 31, 2013, and are categorized using the fair value hierarchy. The fair value hierarchy includes three levels based on the reliability of the inputs used to determine the fair value:

	Fair Value Measurements at March 31, 2014
			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets — trading interest rate caps (a)	$	43,599	$	—	$	43,599	$	—
Assets — cash flow hedging interest rate swaps (a)	$	2,497	$	—	$	2,497	$	—
Assets — trading interest rate swaps (a)	$	570	$	—	$	570	$	—
Liabilities — trading options for interest rate caps (a)	$	43,680	$	—	$	43,680	$	—
Liabilities — cash flow hedging interest rate swaps (a)	$	4,727	$	—	$	4,727	$	—
Liabilities — trading interest rate swaps (a)	$	26,775	$	—	$	26,775	$	—
Total return swap (b)	$	—	$	—	$	—	$	—

	Fair Value Measurements at December 31, 2013
			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets — trading interest rate caps (a)	$	28,274	$	—	$	28,274	$	—
Assets — cash flow hedging interest rate swaps (a)	$	1,601	$	—	$	1,601	$	—
Liabilities — trading options for interest rate caps (a)	$	28,389	$	—	$	28,389	$	—
Liabilities — cash flow hedging interest rate swaps (a)	$	7,287	$	—	$	7,287	$	—
Liabilities — trading interest rate swaps (a)	$	31,360	$	—	$	31,360	$	—

(a)

The valuation of swaps and caps is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurement of its derivatives. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings and guarantees. Effective January 1, 2012, the Company made an election to use the exception in ASC 820-10-35-18D (commonly referred to as the “portfolio exception”) with respect to measuring counterparty credit risk for instruments (Note 7).

(b)	The total return swap is valued based on the estimated market value of the underlying bonds pledged to the associated credit facility.

No amounts were transferred in or out of Level 3 during 2014 or 2013.

The following table presents the Company’s assets and liabilities that are measured at fair value on a nonrecurring basis at March 31, 2014 and December 31, 2013, and are categorized using the fair value hierarchy:

	Fair Value Measurements at March 31, 2014
			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets — repossessed vehicle inventory	$	137,648	$	—	$	137,648	$	—
TDRs that have subsequently defaulted (Note 3)	$	49,502	$	—	$	—	$	49,502

	Fair Value Measurements at December 31, 2013
			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets — repossessed vehicle inventory	$	129,323	$	—	$	129,323	$	—
TDRs that have subsequently defaulted (Note 3)	$	40,619	$	—	$	—	$	40,619

The Company estimates the fair value of its repossessed vehicle inventory using historical auction rates and current market levels of used car prices. TDRs that have subsequently defaulted but are currently active are written down to estimated collateral value less cost to sell.