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                                                                   EXHIBIT 10.18

                                 PROMISSORY NOTE


$50,000,000                                                      August  1, 1997

        FOR VALUE RECEIVED, the undersigned, WFS FINANCIAL INC, a California
corporation (the "Maker"), promises to pay to the order of WESTERN FINANCIAL
BANK, F.S.B., a federal Bank (the "Bank"), the principal sum of FIFTY MILLION
DOLLARS ($50,000,000) (the "Principal") on or before July 31, 2007.

        Interest on Principal. The Principal shall bear interest at a fixed rate
per annum of nine and forty-two hundredths percent (9 42/100%) (the "Rate of
Interest"). Such interest shall be payable quarterly in arrears, on the last day
of January, April, July and October of each year commencing on October 31, 1997;
provided, however, that in the event any such payment date is not a business
day, then on the next business day thereafter (and such extension of time shall
be excluded in the computation of interest). All interest payable pursuant to
this Section 2 and Section 8 hereof (i) is hereinafter collectively referred to
as "Interest", and (ii) shall be calculated on the basis of 30 day months on the
basis of a year of 360 days.

        Scheduled Payments of Principal. Subject to the acceleration provisions
of Section 5 hereof, the Principal shall be payable in two equal annual
installments of $25,000,000 commencing on July 31, 2001.

        Payments. The Principal, Interest and "Costs" (as defined herein) are
collectively referred to herein as the "Obligations". All payments of the
Obligations shall be payable in lawful money of the United States of America at:

                            16485 Laguna Canyon Road
                            Irvine, California 92618

or wherever otherwise designated in writing from time to time by the holder of
this Note. All payments made under this Note shall be credited first to Costs
(to the extent such Costs have not been paid in accordance with Section 5
hereof), then to Interest to the extent accrued and unpaid, and then to
Principal. All payments by the Maker under this Note (i) shall be made without
setoff or counterclaim, and (ii) shall be made under all circumstances,
irrespective of any restrictions then existing in any jurisdiction and without
requiring the fulfillment of any formality.

        Costs. The Maker shall pay to the Bank all Costs incurred by the Bank as
and when so incurred. "Costs" shall mean all costs and expenses incurred by or
on behalf of the Bank (including, without limitation, all reasonable attorneys'
fees and expenses) in connection with the collection and enforcement of this
Note.


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        Acceleration.

                5.1 As used herein, the term "Event of Default" shall mean the
        occurrence of any of the following events:

                A default in the payment when due and in the manner prescribed
        herein of any installment of Principal or Interest and such default
        shall not be cured within seven (7) business days after the Bank has
        given written notice to the Maker of such default.

                The failure, refusal or neglect of the Maker to observe or
        perform for any reason any of the covenants, conditions, agreements or
        provisions contained in this Note (other than the payment of any
        Obligation of which the failure to pay constitutes an Event of Default
        described in clause (i) immediately above) and such failure, refusal or
        neglect shall not be cured within forty-five (45) days after the Bank
        has given written notice to the Maker of such failure, refusal or
        neglect.

                Any representation or warranty made by the Maker in this Note
        shall prove to have been false or misleading in any material respect.

                The Maker shall be dissolved or shall sustain the loss,
        cancellation or forfeiture of its legal status or good standing by
        reason of any judicial, extra-judicial or administrative proceedings or
        otherwise, or shall (a) apply for or consent to the appointment of a
        receiver, trustee or liquidator of the Maker or of all or a substantial
        part of the Maker's assets; (b) be unable to, or admit in writing its
        inability to, pay its debts as they mature; (c) make a general
        assignment for the benefit of creditors; (d) be adjudicated a bankrupt
        or insolvent; (e) file a voluntary petition in bankruptcy or a petition
        or an answer seeking reorganization or an arrangement for the benefit of
        creditors or take advantage of any insolvency law in its capacity as a
        debtor; (f) interpose an answer admitting the material allegations of
        the petition filed against the Maker in any bankruptcy, reorganization
        or insolvency proceedings; (g) take any action which would have the
        effect of dissolving the Maker; or (h) take any action for the purpose
        of effecting any of the foregoing.

                Any (a) involuntary petition is filed against the Maker seeking
        to subject it to any bankruptcy, insolvency or similar laws and such
        petition shall remain unstayed or not be withdrawn for a period of
        forty-five (45) days; or (ii) order, judgment or decree shall be entered
        against the Maker by any court of competent jurisdiction approving a
        petition seeking its reorganization or appointment of a receiver,
        trustee or liquidator of the Maker or of all or a substantial part of
        its assets and such order, judgment or decree shall continue and stay in
        effect for a period of forty-five (45) days.

               5.2 Upon the occurrence of an Event of Default, the Bank may
        declare all of the Obligations to be forthwith due and payable,
        whereupon all such Obligations shall become immediately due and payable
        without presentment, demand or notice of any kind to the Maker;
        provided, however, that such acceleration shall be automatic upon the
        occurrence of an Event of Default specified in clauses (iv) or (v) of
        Section 5.1 hereof, and no declaration or other act of the Bank shall be
        necessary to effect such acceleration.

        Waiver of Notice. The Maker hereby waives diligence, demand, protest,
presentment for payment and notice of protest, dishonor and non-payment of and
formalities of any kind relative to this Note and agrees that the time of
payment hereunder may be extended by the Bank or this Note renewed by the Bank,
without notice and without releasing the Maker. The right to plead any and all
statutes of limitations as a defense to this Note is hereby waived to the
fullest extent permitted by law.

        Overdue Obligations. All Obligations not paid on or before the
applicable due date shall bear interest until paid at the Rate of Interest.

        Maximum Rate. No provision of this Note shall be deemed to establish or
require the payment of interest at a rate in excess of the maximum rate
permitted by applicable law. In the event that the interest required to be


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paid under this Note exceeds the maximum rate permitted by applicable law, the
interest required to be paid hereunder shall be automatically reduced to the
maximum rate permitted by applicable law. In the event any interest paid exceeds
the then applicable legal rate, the excess of such interest over the maximum
amount of interest permitted to be charged shall automatically be deemed to be
applied to reduce unpaid Costs, if any; then to reduce accrued and unpaid
interest, if any; and then to reduce Principal; the balance of any excess
interest remaining after application of the foregoing, if any, shall be refunded
to the Maker.

        Governing Law. This Note (i) shall be subject to, construed and governed
by, the laws of the State of California without giving effect to such state's
conflict of law provisions, (ii) shall be binding upon the successors and
assigns of the Maker, and (iii) shall inure to the benefit of the Bank and its
successors and assigns. Notwithstanding the foregoing, the Maker may not assign
its obligations under this Note without the prior written consent of the Bank.

        Severability of Provisions. Any provision of this Note which is invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability
without invalidating the remaining provisions hereof, and any such invalidity,
illegality or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provisions in any other jurisdiction.

        Enforceability. By its execution hereof, the Maker represents and
warrants to the Bank that this Note is its valid and binding obligation,
enforceable according to its terms, and agrees to be liable for all Obligations
hereunder.

        No Waiver. No waiver on the part of the Bank in exercising, or partial
exercise of, any right, power or privilege under this Note shall operate as a
waiver of any privilege or right hereunder of the Bank or preclude any other
further exercise of any right, power or privilege.

    14. Senior Indebtedness. Maker hereby covenants that until this Note is paid
in full, the Maker will not incur any indebtedness which is senior to the
obligations evidenced by this Note, other than (i) indebtedness under that
certain Promissory Note in the amount of $125,000,000 dated as of May 1, 1995,
between the Maker and the Bank; (ii) any indebtedness collateralized or secured
under that certain Revolving Line of Credit Agreement dated as of May 1, 1995,
between the Maker and the Bank; and (iii) other indebtedness for similar types
of warehouse credit.

    IN WITNESS WHEREOF, the Maker has caused this Note to be executed and
delivered by its duly authorized signatory as of the date and year first above
written.

                                        WFS FINANCIAL INC


                                        By:  /s/ JOY SCHAEFER
                                             -----------------------------------
                                             Joy Schaefer

                                        Its: President
                                             -----------------------------------

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