Finance receivables consist of the following (in thousands):



Consumer	March 31, 2013			December 31, 2012
Pre-acquisition consumer finance receivables - outstanding balance	$	1,758,629		$	2,161,863
Pre-acquisition consumer finance receivables - carrying value	$	1,579,955		$	1,958,204
Post-acquisition consumer finance receivables, net of fees	9,433,105			8,830,914
	11,013,060			10,789,118
Less: allowance for loan losses on post-acquisition consumer finance receivables	(382,455		)	(344,740		)
Total consumer finance receivables, net	10,630,605			10,444,378
Commercial
Commercial finance receivables, net of fees	882,736			559,999
Less: allowance for loan losses - collective	(9,039		)	(6,103		)
Less: allowance for loan losses - specific	(1,830		)
Total commercial finance receivables, net	871,867			553,896
Total finance receivables, net	$	11,502,472		$	10,998,274

Consumer Finance Receivables

A summary of the changes in our consumer finance receivables is as follows (in thousands):



	Three Months Ended
	March 31,
	2013			2012
Pre-acquisition consumer finance receivables - carrying value, beginning of period	$	1,958,204		$	4,027,361
Post-acquisition consumer finance receivables, net of fees - beginning of period	8,830,914			5,313,899
	10,789,118			9,341,260
Loans purchased	1,358,710			1,395,757
Charge-offs	(131,542		)	(51,058		)
Principal collections and other	(974,758		)	(919,865		)
Change in carrying value adjustment on the pre-acquisition consumer finance receivables	(28,468		)	(82,326		)
Balance at end of period	$	11,013,060		$	9,683,768

Finance receivables are collateralized by vehicle titles and we have the right to repossess the vehicle in the event the consumer defaults on the payment terms of the contract.

The accrual of finance charge income has been suspended on $403.3 million and $503.2 million of consumer finance receivables (based on contractual amount due) as of March 31, 2013 and December 31, 2012.

Consumer finance contracts are purchased by us from auto dealers without recourse, and accordingly, the dealer has no liability to us if the consumer defaults on the contract. Depending upon the contract structure and consumer credit attributes, we may pay dealers a participation fee or we may charge dealers a non-refundable acquisition fee when purchasing individual finance contracts. We also have manufacturer incentive programs with GM and other new vehicle manufacturers, typically known as subvention programs, under which the manufacturers provide us cash payments in order for us to offer lower interest rates on consumer finance contracts we purchase. We record the amortization of participation fees and subvention and accretion of acquisition fees to finance charge income using the effective interest method.

We review our pre-acquisition portfolio for differences between contractual cash flows and the cash flows expected to be collected from our pre-acquisition portfolio to determine if the difference is attributable, at least in part, to credit quality. During the three months ended March 31, 2013 and 2012, as a result of improvements in the credit performance of the pre-acquisition portfolio, which resulted in an increase of expected cash flows of $48.3 million and $166.6 million, we transferred this excess from the non-accretable difference to accretable yield. This excess will be amortized through finance charge income over the remaining life of the portfolio.

A summary of the changes in the accretable yield is as follows (in thousands):



	Three Months Ended
	March 31,
	2013			2012
Balance at beginning of period	$	404,006		$	737,464
Accretion of accretable yield	(81,561		)	(135,825		)
Transfer from non-accretable difference	48,284			166,621
Balance at end of period	$	370,729		$	768,260

A summary of the changes in the allowance for consumer loan losses is as follows (in thousands):



	Three Months Ended
	March 31,
	2013			2012
Balance at beginning of period	$	344,740		$	178,768
Provision for loan losses	88,840			48,554
Charge-offs	(131,542		)	(51,058		)
Recoveries	80,417			31,828
Balance at end of period	$	382,455		$	208,092

Credit Risk

A summary of the credit risk profile by FICO score band of the consumer finance receivables, determined at origination, is as follows (in thousands):



	March 31, 2013		Percent		December 31, 2012		Percent
FICO Score less than 540	$	3,177,979	28.4	%	$	3,010,927	27.4	%
FICO Score 540 to 599	5,164,094		46.1		5,013,812		45.6
FICO Score 600 to 659	2,455,437		21.9		2,513,153		22.9
FICO Score 660 and greater	394,224		3.6		454,885		4.1
Balance at end of period^(a)	$	11,191,734	100.0	%	$	10,992,777	100.0	%

_________________

(a) Balance at end of period is the sum of pre-acquisition consumer finance receivables - outstanding balance and post-acquisition consumer finance receivables, net of fees.

Delinquency

A consumer account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date such payment was contractually due. The following is a summary of the contractual amounts of consumer finance receivables, which is not materially different than recorded investment, that are (i) more than 30 days delinquent, but not yet in repossession, and (ii) in repossession, but not yet charged-off (dollars in thousands):



	March 31, 2013				March 31, 2012
	Amount		Percent of Contractual Amount Due		Amount		Percent of Contractual Amount Due
Delinquent contracts:
31 to 60 days	$	476,887	4.3	%	$	318,412	3.2	%
Greater than 60 days	169,140		1.5		124,561		1.2
	646,027		5.8		442,973		4.4
In repossession	32,165		0.3		24,896		0.3
	$	678,192	6.1	%	$	467,869	4.7	%

Impaired Finance Receivables - Troubled Debt Restructurings ("TDRs")

Consumer finance receivables in the post-acquisition portfolio that become classified as TDRs are separately assessed for impairment. A specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the loan's original effective interest rate. At March 31, 2013, the financial effects of the accounts in the post-acquisition portfolio that became classified as TDRs resulted in an impairment charge recorded as part of the provision for loan losses. Accounts that become classified as TDRs because of a payment deferral still accrue interest at the contractual rate and an additional fee is collected at each time of deferral and recorded as a reduction of accrued interest. No interest or fees are forgiven on a payment deferral to a customer and therefore, there are no additional financial effects of deferred loans becoming classified as TDRs. Accounts in Chapter 13 bankruptcy would have already been placed on non-accrual, therefore there are no additional financial effects of these loans becoming classified as TDRs.

The outstanding recorded investment for consumer finance receivables that are considered to be TDRs and the related allowance is presented below (in thousands):



	March 31, 2013			December 31, 2012
Outstanding recorded investment	$	335,512		$	228,320
Less: allowance for loan losses	(43,957		)	(32,575		)
Outstanding recorded investment, net of allowance	$	291,555		$	195,745
Unpaid principal balance	$	341,469		$	231,844

Finance charge income from loans classified as TDRs is accounted for in the same manner as other accruing loans. Cash collections on these loans are allocated according to the same payment hierarchy methodology applied to loans that are not classified as TDRs. Additional information about loans classified as TDRs is presented below (in thousands):



	Three Months Ended
	March 31,
	2013		2012
Average recorded investment	$	281,916	$	48,314
Interest income recognized	10,381		135

The following table provides information on consumer loans at the time they became classified as TDRs (dollars in thousands):



	Three Months Ended
	March 31,
	2013			2012
	Number of Accounts	Amount		Number of Accounts	Amount
Recorded investment	6,992	$	131,245	649	$	12,957

A redefault is when an account meets the requirements for evaluation under our charge-off policy (see Note 1 - "Summary of Significant Accounting Policies" in our Annual Report on Form 10-K ("Form 10-K") for the year ended December 31, 2012 for additional information). The following table presents the unpaid principal balance, net of recoveries, of loans that redefaulted during the reporting period and were within 12 months or less of being modified as a TDR (in thousands):



	Three Months Ended
	March 31,
	2013		2012
Net recorded investment charged-off on TDRs that subsequently defaulted	$	5,265	$	107

Commercial Finance Receivables

A summary of the changes in our commercial finance receivables is as follows (in thousands):



	Three Months Ended
	March 31, 2013
Balance at beginning of period	$	559,999
Loans funded	1,040,376
Principal collections and other	(717,639		)
Balance at end of period	$	882,736

The accrual of finance charge income has been suspended on $4.7 million of commercial finance receivables (based on contractual amount due) as of March 31, 2013.

A summary of the changes in the allowance for commercial loan losses is as follows (in thousands):



	Three Months Ended
	March 31, 2013
Balance at beginning of period	$	6,103
Provision for loan losses	4,766
Balance at end of period	$	10,869

Credit Risk

We extend wholesale credit to dealers primarily in the form of approved lines of credit to purchase new GM vehicles as well as used vehicles. Each commercial lending request is evaluated, taking into consideration the borrower's financial condition and the underlying collateral for the loan.

We use a proprietary model to assign each dealer a risk rating. This model uses historical performance data to identify key factors about a dealer that we consider significant in predicting a dealer's ability to meet its financial obligations. We also consider numerous other financial and qualitative factors including capitalization and leverage, liquidity and cash flow, profitability and credit history.

We regularly review our model to confirm the continued business significance and statistical predictability of the factors and update the model to incorporate new factors or other information that improves its statistical predictability. In addition, we verify the existence of the assets collateralizing the receivables by physical audits of vehicle inventories, which are performed with increased frequency for higher risk (i.e., Group III and Group IV) dealers. We perform a credit review of each dealer at least annually and adjust the dealer's risk rating, if necessary.

Dealers are assigned to five groups according to their risk rating as follows:

•Group I - Dealers with strong to superior financial metrics

•Group II - Dealers with fair to favorable financial metrics

•Group III - Dealers with marginal to weak financial metrics

•Group IV - Dealers with poor financial metrics

•Group V - Dealers with loans classified as uncollectible or impaired

The credit lines for Group V dealers are suspended, and no further funding is extended to these dealers.

Performance of our commercial finance receivables is evaluated based on our internal dealer risk rating analysis, as payment for wholesale receivables is generally not required until the dealer has sold the vehicle inventory. Wholesale and dealer loan receivables with the same dealer customer share the same risk rating.

A summary of the credit risk profile by dealer grouping of the commercial finance receivables is as follows (in thousands):



	March 31, 2013		December 31, 2012
Group I	$	120,728	$	98,417
Group II	447,155		278,403
Group III	288,197		171,008
Group IV	22,480		12,171
Group V	4,176
	$	882,736	$	559,999

Delinquency

An account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date such payment was contractually due.

At March 31, 2013, 99.5% of our commercial finance receivables were current with respect to payment status.

Impaired Commercial Finance Receivables

Commercial finance receivables are assessed for impairment and any required specific allowance for credit losses is recorded based on the present value of the expected future cash flows of the receivable discounted at the loan's original effective interest rate. For receivables where foreclosure is probable, the fair value of the collateral is used to estimate the specific impairment. At March 31, 2013 and December 31, 2012 there were no outstanding commercial finance receivables classified as TDRs.

The outstanding recorded investment for impaired commercial finance receivables and the related allowance is presented below (in thousands):



	March 31, 2013
Outstanding recorded investment	$	4,176
Less: allowance for loan losses	(1,830		)
Outstanding recorded investment, net of allowance	$	2,346
Unpaid principal balance	$	4,662

Finance charge income from commercial finance receivables classified as impaired is accounted for in the same manner as other accruing commercial finance receivables. Cash collections on these commercial finance receivables are allocated according to the same payment hierarchy methodology applied to commercial finance receivables that are not classified as impaired. Additional information about commercial finance receivables classified as impaired is presented below (in thousands):



	Three Months Ended
	March 31,
	2013
Average recorded investment	$	4,290
Interest income recognized	42

There were no charge-offs of commercial finance receivables during the three months ended March 31, 2013.