<PAGE>

                                                                  EXECUTION COPY

                                                                    EXHIBIT 10.6

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                            ADMINISTRATION AGREEMENT

                                      among

                        WFS FINANCIAL 2004-3 OWNER TRUST,
                                   as Issuer,

                               WFS FINANCIAL INC,
                                as Administrator,

                         WFS RECEIVABLES CORPORATION 3,
                                   as Seller,

                                       and

                      DEUTSCHE BANK TRUST COMPANY AMERICAS,
                              as Indenture Trustee

                           Dated as of August 5, 2004

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                     Page
                                                                                     ----
<S>                                                                                  <C>
Section 1.  Duties of the Administrator...........................................    1

Section 2.  Records...............................................................    7

Section 3.  Compensation..........................................................    8

Section 4.  Additional Information to be Furnished to the Issuer..................    8

Section 5.  Independence of the Administrator.....................................    8

Section 6.  No Joint Venture......................................................    8

Section 7.  Other Activities of Administrator.....................................    8

Section 8.  Term of Agreement; Resignation and Removal of Administrator...........    8

Section 9.  Action upon Termination, Resignation or Removal.......................    9

Section 10.  Notices..............................................................    9

Section 11.  Amendments...........................................................   10

Section 12.  Successors and Assigns...............................................   11

Section 13.  Governing Law........................................................   11

Section 14.  Headings.............................................................   11

Section 15.  Counterparts.........................................................   11

Section 16.  Severability.........................................................   11

Section 17.  Not Applicable to WFS in Other Capacities............................   11

Section 18.  Limitation of Liability of Owner Trustee and Indenture Trustee.......   11

Section 19.  Third-Party Beneficiary..............................................   12

Section 20.  Capitalized Terms....................................................   12

Section 20.  Usage of Terms.......................................................   12

Exhibit A  Form of Power of Attorney..............................................  A-1
</TABLE>

                                       i

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     This ADMINISTRATION AGREEMENT, dated as of August 5, 2004 (the
"Agreement"), is among WFS FINANCIAL 2004-3 OWNER TRUST (the "Issuer"), WFS
FINANCIAL INC ("WFS" or, in its capacity as administrator, the "Administrator"),
WFS RECEIVABLES CORPORATION 3, as seller (the "Seller"), and DEUTSCHE BANK TRUST
COMPANY AMERICAS, not in its individual capacity but solely as indenture trustee
(the "Indenture Trustee").

                              W I T N E S S E T H :

     WHEREAS, the Issuer is issuing 1.72515% Class A-1 Notes, 2.55% Class A-2
Notes, 3.30% Class A-3 Notes, 3.93% Class A-4 Notes, 3.51% Class B Notes, 3.60%
Class C Notes and 4.07% Class D Notes (collectively, the "Notes"), pursuant to
the indenture, dated as of the date hereof (the "Indenture"), between the Issuer
and the Indenture Trustee;

     WHEREAS, the Issuer has entered into certain agreements in connection with
the issuance of the Notes and of certain beneficial ownership interests of the
Issuer, including (i) the Indenture, (ii) a sale and servicing agreement, dated
as of the date hereof (the "Sale and Servicing Agreement"), among the Issuer,
the Seller, WFS Financial Inc, as master servicer (the "Master Servicer"), and
(iii) a Letter of Representations, dated August 5, 2004 (the "Depository
Agreement" and, together with the Basic Documents, the "Related Agreements"),
among the Issuer, the Indenture Trustee and The Depository Trust Company ("DTC")
relating to the Notes;

     WHEREAS, pursuant to the Related Agreements, the Issuer and Chase Manhattan
Bank USA, National Association, as owner trustee (the "Owner Trustee"), are
required to perform certain duties in connection with (i) the Notes and the
collateral therefor pledged pursuant to the Indenture and (ii) the beneficial
ownership interests in the Issuer;

     WHEREAS, the Issuer and the Owner Trustee desire to have the Administrator
perform certain of the duties of the Issuer and the Owner Trustee referred to in
the preceding clause and to provide such additional services consistent with the
terms of this Agreement and the Related Agreements as the Issuer and the Owner
Trustee may from time to time request; and

     WHEREAS, the Administrator has the capacity to provide the services
required hereby and is willing to perform such services for the Issuer and the
Owner Trustee on the terms set forth herein.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein,
and other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto agree as follows:

     Section 1. Duties of the Administrator.

     (a)  Duties with Respect to the Depository Agreement and the Indenture.

          (i)  The Administrator agrees to perform all its duties as
     Administrator and the duties of the Issuer and the Owner Trustee under the
     Depository Agreement. In addition, the Administrator shall consult with the
     Owner Trustee regarding the duties of the Issuer or the Owner Trustee under
     the Indenture and the Depository Agreement. The

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     Administrator shall monitor the performance of the Issuer and shall advise
     the Owner Trustee when action is necessary to comply with the respective
     duties of the Issuer and the Owner Trustee under the Indenture and the
     Depository Agreement. The Administrator shall prepare for execution by the
     Issuer, or shall cause the preparation by other appropriate persons, of all
     such documents, reports, filings, instruments, certificates and opinions
     that it shall be the duty of the Issuer or the Owner Trustee to prepare,
     file or deliver pursuant to the Indenture and the Depository Agreement. In
     furtherance of the foregoing, the Administrator shall take (or, in the case
     of the immediately preceding sentence, cause to be taken) all appropriate
     action that the Issuer or the Owner Trustee is required to take pursuant to
     the Indenture including such of the foregoing as are required with respect
     to the following matters under the Indenture (references are to Sections of
     the Indenture):

               (A)  the preparation of or obtaining of the documents and
          instruments required for execution and authentication of the Notes and
          delivery of the same to the Indenture Trustee (Section 2.02);

               (B)  the duty to cause the Note Register to be kept and to give
          the Indenture Trustee notice of any appointment of a new Note
          Registrar and the location, or change in location, of the Note
          Register (Section 2.04);

               (C)  the notification of Noteholders and the Rating Agencies of
          the final principal payment on the Notes (Section 2.07(b));

               (D)  the fixing or causing to be fixed of any special record date
          and the notification of the Indenture Trustee and Noteholders with
          respect to special payment dates, if any (Section 2.07(d));

               (E)  the preparation of Definitive Notes in accordance with the
          instructions of the Clearing Agency (Section 2.11);

               (F)  the preparation, obtaining or filing of the instruments,
          opinions and certificates and other documents required for the release
          of Collateral (Section 2.12);

               (G)  the maintenance of an office in the Borough of Manhattan,
          The City of New York, for registration of transfer or exchange of
          Notes (Section 3.02);

               (H)  the duty to cause newly appointed Paying Agents, if any, to
          deliver to the Indenture Trustee the instrument specified in the
          Indenture regarding funds held in trust (Section 3.03);

               (I)  the direction to the Indenture Trustee to deposit monies
          with Paying Agents, if any, other than the Indenture Trustee (Section
          3.03);

               (J)  the obtaining and preservation of the Issuer's qualification
          to do business in each jurisdiction in which such qualification is or
          shall be necessary to

                                       2

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          protect the validity and enforceability of the Indenture, the Notes,
          the Collateral and each other instrument and agreement included in the
          Trust Estate (Section 3.04);

               (K)  the preparation of all supplements and amendments to the
          Indenture and all financing statements, continuation statements,
          instruments of further assurance and other instruments and the taking
          of such other action as is necessary or advisable to protect the Trust
          Estate (Section 3.05);

               (L)  the delivery of the Opinion of Counsel on the Closing Date
          and the annual delivery of Opinions of Counsel as to the Trust Estate,
          and the annual delivery of the Officer's Certificate and certain other
          statements as to compliance with the Indenture (Sections 3.06 and
          3.09);

               (M)  the identification to the Indenture Trustee in an Officer's
          Certificate of a Person with whom the Issuer has contracted to perform
          its duties under the Indenture (Section 3.07(b));

               (N)  the notification of the Indenture Trustee and each Rating
          Agency of a Servicer Default under the Sale and Servicing Agreement
          and, if such Servicer Default arises from the failure of the Master
          Servicer to perform any of its duties or obligations under the Sale
          and Servicing Agreement with respect to the Contracts, the taking of
          all reasonable steps available to remedy such failure (Section
          3.07(d));

               (O)  the preparation and obtaining of documents and instruments
          required for the release of the Issuer from its obligations under the
          Indenture (Section 3.10(b));

               (P)  the duty to cause the Master Servicer to comply with the
          Sale and Servicing Agreement, including Section 5.08 and Articles Four
          and Seven thereof (Section 3.14);

               (Q)  the delivery of written notice to the Indenture Trustee and
          each Rating Agency of each Event of Default under the Indenture and
          each default by the Master Servicer or the Seller under the Sale and
          Servicing Agreement (Section 3.18);

               (R)  the monitoring of the satisfaction and discharge of the
          Indenture and the preparation of an Officer's Certificate and the
          obtaining of the Opinion of Counsel and the Independent Certificate
          relating thereto (Section 4.01);

               (S)  the notification of the Rating Agencies of any waiver of a
          Default or an Event of Default (Section 5.13);

               (T)  the preparation and delivery of notice to Noteholders of the
          removal of the Indenture Trustee and the appointment of a successor
          Indenture Trustee (Section 6.08);

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               (U)  the preparation of any written instruments required to
          confirm more fully the authority of any co-trustee or separate trustee
          and any written instruments necessary in connection with the
          resignation or removal of the Indenture Trustee or any co-trustee or
          separate trustee (Sections 6.08 and 6.10);

               (V)  maintaining the effectiveness of the sales finance company
          licenses required under the Maryland Code Annotated, Financial
          Institutions Section 11-401 et seq. and the licenses required under
          the Pennsylvania Motor Vehicle Sales Finance Act (Section 6.14);

               (W)  the furnishing of the Indenture Trustee with the names and
          addresses of Noteholders during any period when the Indenture Trustee
          is not the Note Registrar (Section 7.01);

               (X)  the preparation and, after execution by the Issuer, the
          filing with the Commission, any applicable state agencies and the
          Indenture Trustee of documents required to be filed on a periodic
          basis with, and summaries thereof as may be required by rules and
          regulations prescribed by, the Commission and any applicable state
          agencies and the transmission of such summaries, as necessary, to the
          Noteholders (Section 7.03);

               (Y)  the opening of one or more accounts in the Issuer's name,
          the preparation and delivery of Issuer Orders, Officer's Certificates
          and Opinions of Counsel and all other actions necessary with respect
          to investment and reinvestment of funds in the Trust Accounts
          (Sections 8.02 and 8.03);

               (Z)  the preparation of an Issuer Request and Officer's
          Certificate and the obtaining of an Opinion of Counsel and Independent
          Certificates, if necessary, for the release of the Trust Estate
          (Sections 8.04 and 8.05);

               (AA) the preparation of Issuer Orders and the obtaining of
          Opinions of Counsel with respect to the execution of supplemental
          indentures and the mailing to the Noteholders of notices with respect
          to such supplemental indentures (Sections 9.01, 9.02 and 9.03);

               (BB) the execution, authentication and delivery of new Notes
          conforming to any supplemental indenture (Section 9.06);

               (CC) the duty to notify Noteholders and the Rating Agencies of
          redemption of the Notes or to cause the Indenture Trustee to provide
          such notification (Section 10.02);

               (DD) the preparation and delivery of all Officer's Certificates,
          Opinions of Counsel and Independent Certificates with respect to any
          requests by the Issuer to the Indenture Trustee to take any action
          under the Indenture (Section 11.01(a));

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               (EE) the preparation and delivery of Officer's Certificates and
          the obtaining of Independent Certificates, if necessary, for the
          release of property from the lien of the Indenture (Section 11.01(b));

               (FF) the notification of the Rating Agencies, upon the failure of
          the Issuer, the Owner Trustee or the Indenture Trustee to give such
          notification, of the information required pursuant to Section 11.04 of
          the Indenture (Section 11.04);

               (GG) the preparation and delivery to Noteholders and the
          Indenture Trustee of any agreements with respect to alternate payment
          and notice provisions (Section 11.06); and

               (HH) the recording of the Indenture, if applicable (Section
          11.15).

          (ii) The Administrator will:

               (A)  pay the Indenture Trustee from time to time reasonable
          compensation for all services rendered by the Indenture Trustee under
          the Indenture (which compensation shall not be limited by any
          provision of law in regard to the compensation of a trustee of an
          express trust);

               (B)  except as otherwise expressly provided in the Indenture,
          reimburse the Indenture Trustee upon its request for all reasonable
          expenses, disbursements and advances incurred or made by the Indenture
          Trustee in accordance with any provision of the Indenture (including
          the reasonable compensation, expenses and disbursements of its agents
          and counsel), except any such expense, disbursement or advance as may
          be attributable to its negligence or bad faith;

               (C)  indemnify the Indenture Trustee and its agents for, and hold
          them harmless against, any loss, liability or expense incurred without
          negligence or bad faith on their part, arising out of or in connection
          with the acceptance or administration of the transactions contemplated
          by the Indenture, including the reasonable costs and expenses of
          defending themselves against any claim or liability in connection with
          the exercise or performance of any of their powers or duties under the
          Indenture; and

               (D)  indemnify the Owner Trustee and its agents for, and hold
          them harmless against, any loss, liability or expense incurred without
          negligence or bad faith on their part, arising out of or in connection
          with the acceptance or administration of the transactions contemplated
          by the Trust Agreement, including the reasonable costs and expenses of
          defending themselves against any claim or liability in connection with
          the exercise or performance of any of their powers or duties under the
          Trust Agreement.

     (b)  Additional Duties.

          (i)  In addition to the duties set forth in Section 1(a)(i), the
     Administrator shall perform such calculations and shall prepare or cause to
     be prepared by other appropriate

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     persons, and shall execute on behalf of the Issuer or the Owner Trustee,
     all such documents, reports, filings, instruments, certificates and
     opinions that the Issuer or the Owner Trustee are required to prepare, file
     or deliver pursuant to the Related Agreements or Section 5.05 of the Trust
     Agreement, and at the request of the Owner Trustee shall take all
     appropriate action that the Issuer or the Owner Trustee are required to
     take pursuant to the Related Agreements. In furtherance thereof, the Owner
     Trustee (A) shall, on behalf of the Issuer, execute and deliver to the
     Administrator and to each successor Administrator appointed pursuant to the
     terms hereof, one or more powers of attorney substantially in the form of
     Exhibit A hereto, appointing the Administrator the attorney-in-fact of the
     Issuer for the purpose of executing on behalf of the Issuer all such
     documents, reports, filings, instruments, certificates and opinions and (B)
     will either execute on its behalf, or execute and deliver to the
     Administrator and to each successor Administrator appointed pursuant to the
     terms hereof, one or more powers of attorney appointing the Administrator
     the attorney-in-fact of the Owner Trustee for the purpose of executing on
     behalf of the Owner Trustee, all such documents, reports, filings,
     instruments, certificates and opinions to the extent deemed necessary by
     the Administrator and at the request of the Administrator. Subject to
     Section 5, and in accordance with the directions of the Owner Trustee, the
     Administrator shall administer, perform or supervise the performance of
     such other activities in connection with the Collateral (including the
     Related Agreements) as are not covered by any of the foregoing provisions
     and as are expressly requested by the Owner Trustee and are reasonably
     within the capability of the Administrator.

          (ii) Notwithstanding anything in this Agreement or the Related
     Agreements to the contrary, the Administrator shall be responsible for
     promptly notifying the Owner Trustee in the event that any withholding tax
     is imposed on the Trust's payments (or allocations of income) to an Owner
     as contemplated in Section 5.02(c) of the Trust Agreement. Any such notice
     shall specify the amount of any withholding tax required to be withheld by
     the Owner Trustee pursuant to such provision.

          (iii) Notwithstanding anything in this Agreement or the Related
     Agreements to the contrary, the Administrator shall be responsible for
     performance of the duties of the Owner Trustee set forth in Section 5.05 of
     the Trust Agreement with respect to, among other things, accounting and
     reports to Owners; provided, however, that the Owner Trustee shall retain
     responsibility for the distribution of any Schedule K-1s necessary to
     enable each Owner to prepare its federal and state income tax returns.

          (iv) The Administrator shall satisfy its obligations with respect to
     clauses (ii) and (iii) above by retaining, at the expense of the Trust
     payable by the Administrator, a firm of independent public accountants (the
     "Accountants") acceptable to the Owner Trustee, which shall perform the
     obligations of the Administrator thereunder. In connection with paragraph
     (ii) above, the Accountants will provide prior to December 31, 2004, a
     letter in form and substance satisfactory to the Owner Trustee if any tax
     withholding is then required and the procedures to be followed with respect
     thereto to comply with the requirements of the Code. The Accountants shall
     be required to update the letter in each instance that any additional tax
     withholding is subsequently required or any previously required tax
     withholding shall no longer be required.

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<PAGE>

          (v)  The Administrator shall perform the duties of the Administrator
     specified in Section 10.02 of the Trust Agreement required to be performed
     in connection with the resignation or removal of the Owner Trustee and any
     other duties expressly required to be performed by the Administrator under
     the Trust Agreement.

          (vi) In carrying out the foregoing duties or any of its other
     obligations under this Agreement, the Administrator may enter into
     transactions or otherwise deal with any of its Affiliates; provided,
     however, that the terms of any such transactions or dealings shall be in
     accordance with any directions received from the Issuer and shall be, in
     the Administrator's opinion, no less favorable to the Issuer than would be
     available from unaffiliated parties.

     (c)  Non-Ministerial Matters.

          (i)  With respect to matters that in the reasonable judgment of the
     Administrator are non-ministerial, the Administrator shall not take any
     action unless within a reasonable time before the taking of such action,
     the Administrator shall have notified the Owner Trustee of the proposed
     action and the Owner Trustee shall not have withheld consent or provided an
     alternative direction. For the purpose of the preceding sentence,
     "non-ministerial matters" shall include:

               (A)  the amendment of or any supplement to the Indenture;

               (B)  the initiation of any claim or lawsuit by the Issuer and the
          compromise of any action, claim or lawsuit brought by or against the
          Issuer (other than in connection with the collection of the
          Contracts);

               (C)  the amendment, change or modification of the Related
          Agreements;

               (D)  the appointment of successor Note Registrars, successor
          Paying Agents and successor Indenture Trustees pursuant to the
          Indenture or the appointment of successor Administrators or a
          successor Master Servicer, or the consent to the assignment by any of
          the Note Registrar, the Paying Agent or the Indenture Trustee of its
          obligations under the Indenture; and

               (E)  the removal of the Indenture Trustee.

          (ii) Notwithstanding anything to the contrary in this Agreement, the
     Administrator shall not be obligated to, and shall not, (A) make any
     payments to the Noteholders under the Related Agreements, (B) take any
     other action that the Issuer directs the Administrator not to take on its
     behalf or (C) take any other action which may be construed as having the
     effect of varying the investment of the Holders.

     Section 2. Records. The Administrator shall maintain appropriate books of
account and records relating to services performed hereunder, which books of
account and records shall be accessible for inspection by the Issuer and the
Company at any time during normal business hours.

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     Section 3. Compensation. As compensation for the performance of the
Administrator's obligations under this Agreement and as reimbursement for its
expenses related thereto, the Administrator shall be entitled to an annual
payment of compensation which shall be solely an obligation of the Company.

     Section 4. Additional Information to be Furnished to the Issuer. The
Administrator shall furnish to the Issuer from time to time such additional
information regarding the Collateral as the Issuer shall reasonably request.

     Section 5. Independence of the Administrator. For all purposes of this
Agreement, the Administrator shall be an independent contractor and shall not be
subject to the supervision of the Issuer or the Owner Trustee with respect to
the manner in which it accomplishes the performance of its obligations
hereunder. Unless expressly authorized by the Issuer, the Administrator shall
have no authority to act for or represent the Issuer or the Owner Trustee in any
way and shall not otherwise be deemed an agent of the Issuer or the Owner
Trustee.

     Section 6. No Joint Venture. Nothing contained in this Agreement shall (i)
constitute the Administrator and either of the Issuer or the Owner Trustee as
members of any partnership, joint venture, association, syndicate,
unincorporated business or other separate entity, (ii) be construed to impose
any liability as such on any of them or (iii) be deemed to confer on any of them
any express, implied or apparent authority to incur any obligation or liability
on behalf of the others.

     Section 7. Other Activities of Administrator. Nothing herein shall prevent
the Administrator or its Affiliates from engaging in other businesses or, in its
sole discretion, from acting in a similar capacity as an administrator for any
other Person or entity even though such person or entity may engage in business
activities similar to those of the Issuer, the Owner Trustee or the Indenture
Trustee.

     Section 8. Term of Agreement; Resignation and Removal of Administrator.
This Agreement shall continue in force until the dissolution of the Issuer, upon
which event this Agreement shall automatically terminate.

     (a)  Subject to Section 8(e), the Administrator may resign its duties
hereunder by providing the Issuer with at least 60 days' prior written notice.

     (b)  Subject to Section 8(e), the Issuer may remove the Administrator
without cause by providing the Administrator with at least 60 days' prior
written notice.

     (c)  Subject to Section 8(e), at the sole option of the Issuer, the
Administrator may be removed immediately upon written notice of termination from
the Issuer to the Administrator if any of the following events shall occur:

          (i)  the Administrator shall default in the performance of any of its
     duties under this Agreement and, after notice of such default, shall not
     cure such default within ten days (or, if such default cannot be cured in
     such time, shall not give within ten days such assurance of cure as shall
     be reasonably satisfactory to the Issuer);

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          (ii) a court having jurisdiction in the premises shall enter a decree
     or order for relief, and such decree or order shall not have been vacated
     within 60 days, in respect of the Administrator in any involuntary case
     under any applicable bankruptcy, insolvency or other similar law now or
     hereafter in effect or appoint a receiver, liquidator, assignee, custodian,
     trustee, sequestrator or similar official for the Administrator or any
     substantial part of its property or order the winding-up or liquidation of
     its affairs; or

          (iii) the Administrator shall commence a voluntary case under any
     applicable bankruptcy, insolvency or other similar law now or hereafter in
     effect, shall consent to the entry of an order for relief in an involuntary
     case under any such law, or shall consent to the appointment of a receiver,
     liquidator, assignee, trustee, custodian, sequestrator or similar official
     for the Administrator or any substantial part of its property, shall
     consent to the taking of possession by any such official of any substantial
     part of its property, shall make any general assignment for the benefit of
     creditors or shall fail generally to pay its debts as they become due.

     The Administrator agrees that if any of the events specified in clauses
(ii) or (iii) above shall occur, it shall give written notice thereof to the
Issuer and the Indenture Trustee within seven days after the occurrence of such
event.

     (d)  No resignation or removal of the Administrator pursuant to this
Section shall be effective until (i) a successor Administrator shall have been
appointed by the Issuer and (ii) such successor Administrator shall have agreed
in writing to be bound by the terms of this Agreement in the same manner as the
Administrator is bound hereunder.

     (e)  The appointment of any successor Administrator shall be effective only
after satisfaction of the Rating Agency Condition with respect to the proposed
appointment.

     (f)  Subject to Sections 8(d) and 8(e), the Administrator acknowledges that
upon the appointment of a Successor Master Servicer pursuant to the Sale and
Servicing Agreement, the Administrator shall immediately resign and such
Successor Master Servicer shall automatically become the Administrator under
this Agreement; provided, however, that this subsection (f) shall not apply at
such times as the Indenture Trustee shall be the Successor Master Servicer.

     Section 9. Action upon Termination, Resignation or Removal. Promptly upon
the effective date of termination of this Agreement pursuant to the first
sentence of Section 8 or the resignation or removal of the Administrator
pursuant to Section 8(a), (b) or (c), respectively, the Administrator shall be
entitled to be paid all fees and reimbursable expenses accruing to it to the
date of such termination, resignation or removal. The Administrator shall
forthwith upon such termination pursuant to the first sentence of Section 8
deliver to the Issuer all property and documents of or relating to the
Collateral then in the custody of the Administrator. In the event of the
resignation or removal of the Administrator pursuant to Section 8(a), (b) or
(c), respectively, the Administrator shall cooperate with the Issuer and take
all reasonable steps requested to assist the Issuer in making an orderly
transfer of the duties of the Administrator.

     Section 10. Notices. Any notice, report or other communication given
hereunder shall be in writing and addressed as follows:

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<PAGE>

     (a)  if to the Issuer or the Owner Trustee, to:

          WFS Financial 2004-3 Owner Trust
          Chase Manhattan Bank USA, National Association
          c/o JPMorgan Chase
          500 Stanton Christiana Rd., OPS4 /3rd Floor
          Newark, Delaware 19713
          Attention: Institutional Trust Services

     (b)  if to the Administrator, to:

          WFS Financial Inc
          23 Pasteur
          Irvine, California 92618
          Attention: Patricia Stout, Esq.

     (c)  if to the Indenture Trustee, to:

          Deutsche Bank Trust Company Americas
          60 Wall Street, 26th Floor
          MS NYC60-2606
          New York, New York 10005
          Attention: Corporate Trust & Agency Services - Structured Finance
          Services

or to such other address as any party shall have provided to the other parties
in writing. Any notice required to be in writing hereunder shall be deemed given
if such notice is mailed by certified mail, postage prepaid, or hand-delivered
to the address of such party as provided above.

     Section 11. Amendments. This Agreement may be amended from time to time by
a written amendment duly executed and delivered by the parties hereto, with the
written consent of the Owner Trustee but without the consent of the Noteholders
and the Certificateholders, for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement or
of modifying in any manner the rights of the Noteholders or Certificateholders;
provided that such amendment will not, in the Opinion of Counsel satisfactory to
the Indenture Trustee, materially and adversely affect the interest of any
Noteholder or Certificateholder. This Agreement may also be amended by the
parties hereto with the written consent of the Owner Trustee and the holders of
Notes evidencing at least a majority of the Outstanding Amount of the Notes and
the holders of Certificates evidencing at least a majority of the Certificate
Percentage for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of this Agreement or of modifying in any
manner the rights of Noteholders or the Certificateholders; provided, however,
that no such amendment may (i) increase or reduce in any manner the amount of,
or accelerate or delay the timing of, collections of payments on the Contracts
or distributions that are required to be made for the benefit of the Noteholders
or Certificateholders or (ii) reduce the aforesaid percentage of the holders of
Notes and Certificates which are required to consent to any such amendment,
without the consent of the holders of all outstanding Notes and Certificates.

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Notwithstanding the foregoing, the Administrator may not amend this Agreement
without the permission of the Seller, which permission shall not be unreasonably
withheld.

     Section 12. Successors and Assigns. This Agreement may not be assigned by
the Administrator unless such assignment is previously consented to in writing
by the Issuer and the Owner Trustee and subject to the satisfaction of the
Rating Agency Condition in respect thereof. An assignment with such consent and
satisfaction, if accepted by the assignee, shall bind the assignee hereunder in
the same manner as the Administrator is bound hereunder. Notwithstanding the
foregoing, this Agreement may be assigned by the Administrator without the
consent of the Issuer or the Owner Trustee to a corporation or other
organization that is a successor (by merger, consolidation or purchase of
assets) to the Administrator; provided that such successor organization executes
and delivers to the Issuer, the Owner Trustee and the Indenture Trustee an
agreement, in form and substance reasonably satisfactory to the Owner Trustee
and the Indenture Trustee, in which such corporation or other organization
agrees to be bound hereunder by the terms of said assignment in the same manner
as the Administrator is bound hereunder. Subject to the foregoing, this
Agreement shall bind any successors or assigns of the parties hereto.

     Section 13. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF CALIFORNIA AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS, EXCEPT THAT THE DUTIES OF THE INDENTURE TRUSTEE SHALL BE GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK.

     Section 14. Headings. The section and subsection headings hereof have been
inserted for convenience of reference only and shall not be construed to affect
the meaning, construction or effect of this Agreement.

     Section 15. Counterparts. This Agreement may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same agreement.

     Section 16. Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall be ineffective to the
extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

     Section 17. Not Applicable to WFS in Other Capacities. Nothing in this
Agreement shall affect any obligation WFS may have in any other capacity.

     Section 18. Limitation of Liability of Owner Trustee and Indenture Trustee.

     (a)  Notwithstanding anything contained herein to the contrary, this
instrument has been countersigned by Chase Manhattan Bank USA, National
Association not in its individual capacity but solely in its capacity as Owner
Trustee of the Issuer and in no event shall Chase Manhattan Bank USA, National
Association in its individual capacity or any beneficial owner of the Issuer
have any liability for the representations, warranties, covenants, agreements or
other obligations of the Issuer hereunder, as to all of which recourse shall be
had solely to the assets of

                                       11

<PAGE>

the Issuer. For all purposes of this Agreement, in the performance of any duties
or obligations of the Issuer hereunder, the Owner Trustee shall be subject to,
and entitled to the benefits of, the terms and provisions of Articles Six, Seven
and Eight of the Trust Agreement.

     (b)  Notwithstanding anything contained herein to the contrary, this
Agreement has been countersigned by Deutsche Bank Trust Company Americas not in
its individual capacity but solely as Indenture Trustee and in no event shall
Deutsche Bank Trust Company Americas have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer hereunder
or in any of the certificates, notices or agreements delivered pursuant hereto,
as to all of which recourse shall be had solely to the assets of the Issuer.

     (c)  In no event shall the Indenture Trustee be liable for any indirect,
special, punitive or consequential loss or damage of any kind whatsoever,
including lost profits, even if the Indenture Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action.

     (d)  In no event shall the Indenture Trustee be liable for any failure or
delay in the performance of its obligations hereunder because of circumstances
beyond its control, including, but not limited to, acts of God, flood, war
(whether declared or undeclared), terrorism, fire, riot, embargo, government
action, including any laws, ordinances, regulations, governmental action or the
like which delay, restrict or prohibit the providing of the services
contemplated by this Agreement.

     Section 19. Third-Party Beneficiary. The Owner Trustee is a third-party
beneficiary to this Agreement and is entitled to the rights and benefits
hereunder and may enforce the provisions hereof as if it were a party hereto.

     Section 20. Capitalized Terms. Except as otherwise specified herein or as
the context may otherwise require, capitalized terms used herein that are not
otherwise defined shall have the meanings ascribed thereto in the Indenture or
the Sale and Servicing Agreement, as the case may be.

     Section 21. Usage of Terms. With respect to all terms in this Agreement,
unless the context otherwise requires, (i) a term has the meaning assigned to
it; (ii) an accounting term not otherwise defined has the meaning assigned to it
in accordance with generally accepted accounting principles as in effect from
time to time in the United States; (iii) "or" is not exclusive; (iv) "including"
means including without limitation; (v) words in the singular include the plural
and words in the plural include the singular; (vi) any agreement, instrument or
statute defined or referred to herein or in any instrument or certificate
delivered in connection herewith means such agreement, instrument or statute as
from time to time amended, modified or supplemented and includes (in the case of
agreements or instruments) references to all attachments thereto and instruments
incorporated therein; (vii) references to a Person are also to its successors
and permitted assigns; (viii) the words "hereof," "herein" and "hereunder" and
words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement ;
(ix) Section, subsection, Schedule and Exhibit, as applicable, references
contained in this Agreement are references to Sections, subsections, Schedules
and Exhibits in or to this Agreement unless otherwise specified; and

                                       12

<PAGE>

(x) references to "writing" include printing, typing, lithography and other
means of reproducing words in a visible form.

                                       13

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered as of the day and year first above written.

                                   WFS FINANCIAL 2004-3 OWNER TRUST

                                   By: CHASE MANHATTAN BANK USA, NATIONAL
                                       ASSOCIATION,
                                       not in its individual capacity but solely
                                       as Owner Trustee

                                   By: _________________________________________
                                       Name:
                                       Title:

                                   WFS FINANCIAL INC,
                                          as Administrator

                                   By: _________________________________________
                                       Name:
                                       Title:

                                   WFS RECEIVABLES CORPORATION 3,
                                          as Seller

                                   By: _________________________________________
                                       Name:
                                       Title:

                                   DEUTSCHE BANK TRUST COMPANY AMERICAS, not in
                                   its individual capacity but solely as
                                   Indenture Trustee

                                   By: _________________________________________
                                       Name:
                                       Title:

                                                        Administration Agreement

<PAGE>

                                                                       EXHIBIT A

                           [FORM OF POWER OF ATTORNEY]

STATE OF DELAWARE       }
                        }
COUNTY OF NEW CASTLE    }

     KNOW ALL MEN BY THESE PRESENTS, that WFS FINANCIAL 2004-3 OWNER TRUST (the
"Issuer"), does hereby make, constitute and appoint WFS Financial Inc, in its
capacity as administrator under the administration agreement, dated as of August
5, 2004 (the "Administration Agreement"), among the Issuer, the Administrator,
WFS Receivables Corporation 3, as seller, and Deutsche Bank Trust Company
Americas, as indenture trustee, as the same may be amended from time to time,
and its agents and attorneys, as Attorneys-in-Fact to execute on behalf of the
Issuer all such documents, reports, filings, instruments, certificates and
opinions as it should be the duty of the Issuer to prepare, file or deliver
pursuant to the Related Agreements, or pursuant to Section 5.05 of the Trust
Agreement, including to appear for and represent the Issuer in connection with
the preparation, filing and audit of federal, state and local tax returns
pertaining to the Issuer, and with full power to perform any and all acts
associated with such returns and audits that the Issuer could perform, including
the right to distribute and receive confidential information, defend and assert
positions in response to audits, initiate and defend litigation, and to execute
waivers of restrictions on assessments of deficiencies, consents to the
extension of any statutory or regulatory time limit, and settlements.

     All powers of attorney for this purpose heretofore filed or executed by the
Issuer are hereby revoked.

     Capitalized terms that are used and not otherwise defined herein shall have
the meanings ascribed thereto in the Administration Agreement.

                                      A-1

<PAGE>

EXECUTED this ___ day of __________, _____.

                                   WFS FINANCIAL 2004-3 OWNER TRUST

                                   By: Chase Manhattan Bank USA, National
                                       Association, not in its individual
                                       capacity but solely as Owner Trustee

                                   By:_____________________________________
                                      Name:
                                      Title:

STATE OF DELAWARE       }
                        }
COUNTY OF NEW CASTLE    }

     Before me, the undersigned authority, on this day personally appeared
______________, known to me to be the person whose name is subscribed to the
foregoing instruments, and acknowledged to me that he/she signed the same for
the purposes and considerations therein expressed.

Sworn to before me this ____
day of __________, _____.

Notary Public - State of Delaware

                                      A-2