Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Summary of Fair Value Estimates, Methods and Assumptions

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

	June 30, 2014				December 31, 2013
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Cash and cash equivalents (a)	$	45,913	$	45,913	$	10,531	$	10,531
Receivables held for sale (b)	123,791		124,120		82,503		83,344
Retail installment contracts held for investment, net (c)	21,444,601		21,961,413		20,219,609		21,465,236
Unsecured consumer loans, net (d)	1,233,637		1,321,051		954,189		1,187,286
Receivables from dealers held for investment (e)	85,194		85,194		94,745		94,745
Restricted cash (a)	2,007,946		2,007,946		1,563,613		1,563,613
Notes payable — credit facilities (f)	7,762,950		7,762,950		8,099,773		8,099,773
Notes payable — secured structured financings (g)	18,391,660		18,544,914		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 June 30, 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 2 measurement.

(c) Retail installment contracts held for investment — Retail installment contracts 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 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, net — 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 June 30, 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.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 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 June 30, 2014
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets — trading interest rate caps (a)	$	46,631	$	—	$	46,631	$	—
Assets — cash flow hedging interest rate swaps (a)	$	537	$	—	$	537	$	—
Assets — trading interest rate swaps (a)	$	—	$	—	$	—	$	—
Liabilities — trading options for interest rate    caps (a)	$	46,677	$	—	$	46,677	$	—
Liabilities — cash flow hedging interest rate    swaps (a)	$	8,129	$	—	$	8,129	$	—
Liabilities — trading interest rate swaps (a)	$	23,041	$	—	$	23,041	$	—
Total return swap (b)	$	—	$	—	$	—	$	—

	Fair Value Measurements at December 31, 2013
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (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. The Company utilizes 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.

Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

The following table presents the Company’s assets and liabilities that are measured at fair value on a nonrecurring basis at June 30, 2014 and December 31, 2013, and are categorized using the fair value hierarchy:

	Fair Value Measurements at June 30, 2014
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets — repossessed vehicle inventory	$	140,792	$	—	$	140,792	$	—

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