Document:

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                                                                    EXHIBIT 10.1

                               PURCHASE AGREEMENT

                                     BETWEEN

                           TRIAD FINANCIAL CORPORATION
                                   ORIGINATOR

                                       AND

                       TRIAD FINANCIAL SPECIAL PURPOSE LLC
                                    DEPOSITOR

                          DATED AS OF JANUARY 26, 2006

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                                TABLE OF CONTENTS

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                                                                            Page
                                                                            ----
<S>                                                                         <C>
ARTICLE I.   DEFINITIONS.................................................     1
   Section 1.1  General..................................................     1
   Section 1.2  Specific Terms...........................................     1
   Section 1.3  Usage of Terms...........................................     2
   Section 1.4  [Reserved]...............................................     2
   Section 1.5  No Recourse..............................................     2
   Section 1.6  [Reserved]...............................................     3
   Section 1.7  Material Adverse Effect..................................     3

ARTICLE II.  CONVEYANCE OF THE RECEIVABLES  AND THE OTHER
             CONVEYED PROPERTY...........................................     3
   Section 2.1  Conveyance of the Receivables and the Other
                Conveyed Property........................................     3

ARTICLE III. REPRESENTATIONS AND WARRANTIES..............................     3
   Section 3.1  Representations and Warranties
                of the Originator........................................     3
   Section 3.2  Representations and Warranties
                of the Depositor.........................................     5

ARTICLE IV.  COVENANTS OF SELLER.........................................     7
   Section 4.1  Protection of Title of the Depositor.....................     7
   Section 4.2  [Reserved]...............................................     8
   Section 4.3  Other Liens or Interests.................................     8
   Section 4.4  Costs and Expenses.......................................     8
   Section 4.5  Indemnification by the Originator........................     9
   Section 4.6  Indemnification by the Depositor.........................     9

ARTICLE V.   REPURCHASES.................................................    10
   Section 5.1  Repurchase of Receivables Upon
                Breach of Warranty.......................................    10
   Section 5.2  Reassignment of Purchased Receivables....................    10
   Section 5.3  Waivers..................................................    11

ARTICLE VI.  MISCELLANEOUS...............................................    11
   Section 6.1  Liability of the Originator and the Depositor............    11
   Section 6.2  Merger or Consolidation of the Originator
                or the Depositor.........................................    11
   Section 6.3  Limitation on Liability of the Originator,
                and the Depositor and Others.............................    12
   Section 6.4  The Originator May Own Notes or the
                Certificates.............................................    12
   Section 6.5  Amendment................................................    12
   Section 6.6  Notices..................................................    13
   Section 6.7  Merger and Integration...................................    13
   Section 6.8  Severability of Provisions...............................    14
   Section 6.9  Intention of the Parties.................................    14
   Section 6.10 Governing Law............................................    15
   Section 6.11 Counterparts.............................................    15
</TABLE>

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<TABLE>
<S>                                                                         <C>
   Section 6.12 Conveyance of the Receivables and the Other
                Conveyed Property to the Issuer..........................    15
   Section 6.13 Nonpetition Covenant.....................................    15
   Section 6.14 Payment Obligations of the Depositor Limited.............    15
</TABLE>

SCHEDULES

Schedule A -- Schedule of Receivables

Schedule B -- Representations and Warranties from the Originator
              as to the Receivables

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<PAGE>
                               PURCHASE AGREEMENT

          THIS PURCHASE AGREEMENT, dated as of January 26, 2006 is between Triad
Financial Corporation, a California corporation, as the Originator (the
"Originator"), and Triad Financial Special Purpose LLC, a Delaware limited
liability company, as the Depositor (the "Depositor").

          The Depositor has agreed to purchase from the Originator, and the
Originator, pursuant to this Agreement, is selling to the Depositor the
Receivables and Other Conveyed Property.

          In consideration of the premises and the mutual agreements hereinafter
contained, and for other good and valuable consideration, the receipt of which
is acknowledged, the Originator and the Depositor, intending to be legally
bound, hereby agree as follows:

                                   ARTICLE I.

                                   DEFINITIONS

          Section 1.1 General. Capitalized terms used herein without definition
will have the respective meanings assigned to such terms in the Sale and
Servicing Agreement dated as of January 26, 2006 by and among the Depositor,
Triad Financial Corporation, in its individual capacity, as Custodian and as
Servicer, Triad Automobile Receivables Trust 2006-A, as Issuer, and Citibank,
N.A., as Backup Servicer and Indenture Trustee.

          Section 1.2 Specific Terms. Whenever used in this Agreement, the
following words and phrases, unless the context otherwise requires, will have
the following meanings:

          "Agreement" means this Purchase Agreement and all amendments hereof
and supplements hereto.

          "Closing Date" means January 26, 2006.

          "Indenture Trustee" means Citibank, N.A., as Indenture Trustee and any
successor Indenture Trustee appointed and acting pursuant to the Indenture.

          "Issuer" means Triad Automobile Receivables Trust 2006-A.

          "Other Conveyed Property" means all property described in Section
2.1(a), (b), (c), (d), (e), (f) and (h) of the Sale and Servicing Agreement
conveyed by the Originator to the Depositor pursuant to this Agreement other
than the Receivables, including all monies paid on or after the Cut-Off Date.

          "Owner Trustee" means Wilmington Trust Company, as Owner Trustee
appointed and acting pursuant to the Trust Agreement.

          "Receivables" means the Receivables listed on the Schedule of
Receivables attached hereto.

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          "Related Documents" means the Notes, the Certificates, the Sale and
Servicing Agreement, the Indenture, the Trust Agreement, the Note Policy, the
Insurance Agreement and the Underwriting Agreement. The Related Documents to be
executed by any party are referred to herein as "such party's Related
Documents," "its Related Documents" or by a similar expression.

          "Repurchase Event" means the occurrence of a breach of any of the
Originator's representations and warranties hereunder including the
representations and warranties set forth in Schedule B or any other event which
requires the repurchase of a Receivable by the Originator under the Sale and
Servicing Agreement.

          "Residual Holder" means Triad Financial Residual Special Purpose LLC.

          "Sale and Servicing Agreement" means the Sale and Servicing Agreement
referred to in Section 1.1.

          "Schedule of Representations" means the Schedule of Representations
and Warranties attached hereto as Schedule B.

          "Schedule of Receivables" means the schedule of Receivables sold and
transferred pursuant to this Agreement which is attached hereto as Schedule A.

          "Taxes" means any sales, gross receipts, personal property, tangible
or intangible personal property, privilege or license taxes (but not including
any (x) federal, state or other taxes, arising out of the ownership of the Notes
or the Certificates, (y) transfer taxes arising in connection with the transfer
of the Notes or the Certificates or (z) federal, state or other taxes arising
out of any fees paid to the indemnified parties pursuant to the Basic
Documents).

          Section 1.3 Usage of Terms. With respect to all terms used in this
Agreement, the singular includes the plural and the plural the singular; words
importing any gender include the other gender; references to "writing" include
printing, typing, lithography, and other means of reproducing words in a visible
form; references to agreements and other contractual instruments include all
subsequent amendments thereto or changes therein entered into in accordance with
their respective terms and not prohibited by this Agreement or the Sale and
Servicing Agreement; references to Persons include their permitted successors
and assigns; and the terms "include" or "including" mean "include without
limitation" or "including without limitation." The words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Agreement as a whole
and not to any particular Article, Section or other subdivision, and Article,
Section, Schedule and Exhibit references, unless otherwise specified, refer to
Articles and Sections of and Schedules and Exhibits to this Agreement.

          Section 1.4 [Reserved].

          Section 1.5 No Recourse. Without limiting the obligations of the
Originator or the Depositor hereunder, no recourse may be taken, directly or
indirectly, under this Agreement or any certificate or other writing delivered
in connection herewith or therewith, against any stockholder, officer or
director, as such, of the Originator or the Depositor, or of any predecessor or
successor of the Originator or the Depositor.

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          Section 1.6 [Reserved].

          Section 1.7 Material Adverse Effect. Whenever a determination is to be
made under this Agreement as to whether a given event, action, course of conduct
or set of facts or circumstances could or would have a material adverse effect
on the Noteholders or the Insurer (or any similar or analogous determination),
such determination will be made without taking into account the funds available
from claims under the Note Policy.

                                  ARTICLE II.

                          CONVEYANCE OF THE RECEIVABLES
                         AND THE OTHER CONVEYED PROPERTY

          Section 2.1 Conveyance of the Receivables and the Other Conveyed
Property.

          (a) Subject to the terms and conditions of this Agreement, the
     Originator hereby sells, transfers, assigns and otherwise conveys to the
     Depositor without recourse (but without limitation of its obligations in
     this Agreement), and the Depositor hereby purchases, all right, title and
     interest of the Originator in and to the Receivables and the Other Conveyed
     Property, including all moneys received after the Cutoff Date. It is the
     intention of the Originator and the Depositor that the sale and assignment
     contemplated by this Agreement constitutes a sale and contribution of the
     Receivables and the Other Conveyed Property from the Originator to the
     Depositor, conveying good title thereto free and clear of any liens, and
     the beneficial interest in and title to the Receivables and the Other
     Conveyed Property will not be part of the Originator's estate in the event
     of the filing of a bankruptcy petition by or against the Originator under
     any bankruptcy or similar law.

          (b) Simultaneously with the sale of the Receivables and the Other
     Conveyed Property to the Depositor, the Depositor has paid or caused to be
     paid to or upon the order of the Originator a purchase price equal to the
     aggregate Principal Balance of the Receivables. An amount equal to the net
     proceeds of the Class A Notes (less the initial deposit to the Spread
     Account) shall be paid by wire transfer of immediately available funds and
     the remaining balance of the purchase price will be paid with a portion of
     the proceeds from the sale of the Certificate by the Depositor to the
     Residual Holder.

                                  ARTICLE III.

                         REPRESENTATIONS AND WARRANTIES

          Section 3.1 Representations and Warranties of the Originator. The
Originator makes the following representations and warranties as of the date
hereof, on which the Depositor relies in purchasing the Receivables and the
Other Conveyed Property, on which the Issuer will rely in purchasing the
Receivables and the Other Conveyed Property and on which the Insurer will rely
in issuing the Note Policy. Such representations are made as of the execution
and delivery of this Agreement, but will survive the sale, transfer and
assignment of the Receivables and the Other Conveyed Property hereunder, and the
sale, transfer and assignment thereof by the

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Depositor to the Issuer. The Originator and the Depositor agree that the
Depositor will assign to Issuer all the Depositor's rights under this Agreement
and that the Indenture Trustee will thereafter be entitled to enforce this
Agreement against the Originator in the Indenture Trustee's own name on behalf
of the Noteholders.

          (a) Schedule of Representations. The representations and warranties
     set forth on the Schedule of Representations with respect to the
     Receivables as of the date hereof, are true and correct.

          (b) Organization and Good Standing. The Originator has been duly
     organized and is validly existing as a corporation in good standing under
     the laws of the State of California, with power and authority to own its
     properties and to conduct its business as such properties are currently
     owned and such business is currently conducted, and had at all relevant
     times, and now has, corporate power, authority and legal right to acquire,
     own, transfer and sell the Receivables and the Other Conveyed Property to
     the Depositor.

          (c) Due Qualification. The Originator is duly qualified to do business
     as a foreign corporation in good standing, and has obtained all necessary
     licenses and approvals in all jurisdictions in which the ownership or lease
     of its property or the conduct of its business with respect to the
     Receivables requires such qualification.

          (d) Power and Authority. The Originator has the corporate power and
     authority to execute and deliver this Agreement and its Related Documents
     and to carry out its terms and their terms, respectively; the Originator
     has full power and authority to sell and assign the Receivables and the
     Other Conveyed Property to be sold and assigned to the Depositor hereunder
     and has duly authorized such sale and assignment to the Depositor by all
     necessary corporate action; and the execution, delivery and performance of
     this Agreement and the Originator's Related Documents have been duly
     authorized by the Originator by all necessary corporate action.

          (e) Valid Sale; Binding Obligations. This Agreement and the
     Originator's Related Documents have been duly executed and delivered, will
     effect a valid sale, transfer and assignment of the Receivables and the
     Other Conveyed Property to the Depositor, enforceable against the
     Originator and creditors of and purchasers from the Originator; and this
     Agreement and the Originator's Related Documents constitute legal, valid
     and binding obligations of the Originator enforceable in accordance with
     their respective terms, except as enforceability may be limited by
     bankruptcy, insolvency, reorganization or other similar laws affecting the
     enforcement of creditors' rights generally and by equitable limitations on
     the availability of specific remedies, regardless of whether such
     enforceability is considered in a proceeding in equity or at law.

          (f) No Violation. The consummation of the transactions contemplated by
     this Agreement and the Related Documents, and the fulfillment of the terms
     of this Agreement and the Related Documents, will not conflict with, result
     in any breach of any of the terms and provisions of, or constitute (with or
     without notice, lapse of time or both) a default under, the articles of
     incorporation or bylaws of the Originator, or any indenture, agreement,
     mortgage, deed of trust or other instrument to which the Originator

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     is a party or by which it is bound, or result in the creation or imposition
     of any Lien upon any of its properties pursuant to the terms of any such
     indenture, agreement, mortgage, deed of trust or other instrument, other
     than this Agreement, the Sale and Servicing Agreement and the Indenture, or
     violate any law, order, rule or regulation applicable to the Originator of
     any court or of any federal or state regulatory body, administrative agency
     or other governmental instrumentality having jurisdiction over the
     Originator or any of its properties.

          (g) No Proceedings. There are no proceedings or investigations pending
     or, to the Originator's best knowledge, threatened against the Originator,
     before any court, regulatory body, administrative agency or other tribunal
     or governmental instrumentality having jurisdiction over the Originator or
     its properties (i) asserting the invalidity of this Agreement or any of the
     Related Documents, (ii) seeking to prevent the issuance of the Notes or the
     consummation of any of the transactions contemplated by this Agreement or
     any of the Related Documents, (iii) seeking any determination or ruling
     that might materially and adversely affect the performance by the
     Originator of its obligations under, or the validity or enforceability of,
     this Agreement or any of the Related Documents or (iv) seeking to affect
     adversely the federal income tax or other federal, state or local tax
     characterization of, or seeking to impose any excise, franchise, transfer
     or similar tax upon, the transfer and acquisition of the Receivables and
     the Other Conveyed Property hereunder or under the Sale and Servicing
     Agreement.

          (h) True Sale. The Receivables are being transferred with the
     intention of removing them from the Originator's estate pursuant to Section
     541 of the Bankruptcy Code, as the same may be amended from time to time.

          Section 3.2 Representations and Warranties of the Depositor. The
Depositor makes the following representations and warranties as of the date
hereof, on which the Originator relies in transferring the Receivables and the
Other Conveyed Property to the Depositor, on which the Issuer will rely in
purchasing the Receivables and on which the Insurer will rely in issuing the
Note Policy. Such representations are made as of the execution and delivery of
this Agreement, but will survive the sale, transfer and assignment of the
Receivables and the Other Conveyed Property hereunder, and the sale, transfer
and assignment thereof to the Issuer under the Sale and Servicing Agreement.

          (a) Organization and Good Standing. The Depositor has been duly
     organized and is validly existing as a limited liability company in good
     standing under the laws of the State of Delaware, with power and authority
     to own its properties and to conduct its business as such properties are
     currently owned and such business is currently conducted, and had at all
     relevant times, and now has, power, authority and legal right to acquire,
     own and sell the Receivables and the Other Conveyed Property to be
     transferred to the Issuer.

          (b) Due Qualification. The Depositor is duly qualified to do business
     as a foreign limited liability company in good standing, and has obtained
     all necessary licenses and approvals in all jurisdictions in which the
     ownership or lease of its property or the conduct of its business requires
     such qualification.

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          (c) Power and Authority. The Depositor has the power and authority to
     execute and deliver this Agreement and its Related Documents and to carry
     out its terms and their terms, respectively; and the execution, delivery
     and performance of this Agreement and the Depositor's Related Documents
     have been duly authorized by the Depositor by all necessary action.

          (d) Valid Sale; Binding Obligations. This Agreement and the
     Depositor's Related Documents have been duly executed and delivered, and
     this Agreement and the Depositor's Related Documents constitute legal,
     valid and binding obligations of the Depositor enforceable in accordance
     with their respective terms, except as enforceability may be limited by
     bankruptcy, insolvency, reorganization or other similar laws affecting the
     enforcement of creditors' rights generally and by equitable limitations on
     the availability of specific remedies, regardless of whether such
     enforceability is considered in a proceeding in equity or at law.

          (e) No Violation. The consummation of the transactions contemplated by
     this Agreement and the Related Documents, and the fulfillment of the terms
     of this Agreement and the Related Documents, will not conflict with, result
     in any breach of any of the terms and provisions of, or constitute (with or
     without notice, lapse of time or both) a default under, the limited
     liability company agreement of the Depositor, or any indenture, agreement,
     mortgage, deed of trust or other instrument to which the Depositor is a
     party or by which it is bound, or result in the creation or imposition of
     any Lien upon any of its properties pursuant to the terms of any such
     indenture, agreement, mortgage, deed of trust or other instrument, other
     than this Agreement, the Sale and Servicing Agreement and the Indenture, or
     violate any law, order, rule or regulation applicable to the Depositor of
     any court or of any federal or state regulatory body, administrative agency
     or other governmental instrumentality having jurisdiction over the
     Depositor or any of its properties.

          (f) No Proceedings. There are no proceedings or investigations pending
     or, to the Depositor's knowledge, threatened against the Depositor, before
     any court, regulatory body, administrative agency or other tribunal or
     governmental instrumentality having jurisdiction over the Depositor or its
     properties (i) asserting the invalidity of this Agreement or any of the
     Related Documents, (ii) seeking to prevent the issuance of the Notes or the
     consummation of any of the transactions contemplated by this Agreement or
     any of the Related Documents, (iii) seeking any determination or ruling
     that might materially and adversely affect the performance by the Depositor
     of its obligations under, or the validity or enforceability of, this
     Agreement or any of the Related Documents or (iv) seeking to affect
     adversely the federal income tax or other federal, state or local tax
     characterization of, or seeking to impose any excise, franchise, transfer
     or similar tax upon, the transfer and acquisition of the Receivables and
     the Other Conveyed Property hereunder or under the Sale and Servicing
     Agreement.

          In the event of any breach of a representation and warranty made by
the Depositor hereunder, the Originator covenants and agrees that it will not
take any action to pursue any remedy that it may have hereunder, in law, in
equity or otherwise, until a year and a day have passed since the date on which
all notes, certificates, pass-through certificates or other similar

                                       6

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securities issued by the Depositor, or a trust or similar vehicle formed by the
Depositor, have been paid in full. The Originator and the Depositor agree that
damages will not be an adequate remedy for such breach and that this covenant
may be specifically enforced by Issuer or by the Indenture Trustee on behalf of
the Noteholders and Owner Trustee on behalf of the Certificateholders.

                                  ARTICLE IV.

                               COVENANTS OF SELLER

          Section 4.1 Protection of Title of the Depositor.

          (a) At or prior to the Closing Date, the Originator will have filed or
     caused to be filed UCC-1 financing statements, (i) naming the Originator as
     seller or debtor and naming the Depositor as purchaser or secured party,
     (ii) naming the Depositor as seller or debtor and the Issuer as purchaser
     or secured party and (iii) naming Issuer as debtor and Indenture Trustee as
     secured party and describing the Receivables and the Other Conveyed
     Property being transferred as collateral, in such locations as are required
     in order to perfect the transfers and pledges thereof under the Basic
     Documents. From time to time thereafter, the Originator will execute and
     file such financing statements and cause to be executed and filed such
     continuation statements, all in such manner and in such places as may be
     required by law fully to preserve, maintain and protect the interest of the
     Depositor under this Agreement, of the Issuer under the Sale and Servicing
     Agreement and of the Indenture Trustee under the Indenture in the
     Receivables and the Other Conveyed Property and in the proceeds thereof.
     The Originator will deliver (or cause to be delivered) to the Depositor,
     the Indenture Trustee and the Insurer file-stamped copies of, or filing
     receipts for, any document filed as provided above, as soon as available
     following such filing. In the event that the Originator fails to perform
     its obligations under this subsection, the Depositor, Issuer or the
     Indenture Trustee may do so, at the expense of the Originator. In
     furtherance of the foregoing, the Originator hereby authorizes the
     Depositor, the Issuer or the Indenture Trustee to file a record or records
     (as defined in the applicable UCC), including financing statements, in all
     jurisdictions and with all filing offices as each may determine, in its
     sole discretion, are necessary or advisable to perfect the security
     interest granted to the Depositor pursuant to Section 6.9. Such financing
     statements may describe the collateral in the same manner as described
     herein or may contain an indication or description of collateral that
     describes such property in any other manner as such party may determine, in
     its sole discretion, is necessary, advisable or prudent to ensure the
     perfection of the security interest in the collateral granted to the
     Depositor herein.

          (b) The Originator will not change its name, identity, state of
     incorporation or corporate structure in any manner that would, could or
     might make any financing statement or continuation statement filed by the
     Originator (or by the Depositor, Issuer or the Indenture Trustee on behalf
     of the Originator) in accordance with Section 4.1(a) seriously misleading
     within the meaning of Section 9-506 of the applicable UCC, unless the
     Originator will have given the Depositor, Issuer, Insurer and the Indenture
     Trustee at

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     least 60 days' prior written notice thereof, and will promptly file
     appropriate amendments to all previously filed financing statements and
     continuation statements.

          (c) The Originator shall at all times maintain each office from which
     it services Receivables and its principal executive office within the
     United States of America.

          (d) Prior to the Closing Date, the Originator has maintained accounts
     and records as to each Receivable accurately and in sufficient detail to
     permit (i) the reader thereof to know at any time as of or prior to the
     Closing Date, the status of such Receivable, including payments and
     recoveries made and payments owing (and the nature of each) and (ii)
     reconciliation between payments or recoveries on (or with respect to) each
     Receivable and the Principal Balance as of the Cutoff Date. The Originator
     will maintain its computer systems so that, from and after the time of
     transfer under this Agreement of the Receivables to the Depositor and the
     conveyance of the Receivables by the Depositor to the Issuer, the
     Originator's master computer records (including archives) that will refer
     to a Receivable indicate clearly that such Receivable has been transferred
     to the Depositor and has been conveyed by the Depositor to Issuer.
     Indication of the Issuer's ownership of a Receivable will be deleted from
     or modified on the Originator's computer systems when, and only when, the
     Receivable will become a Purchased Receivable or will have been paid in
     full.

          (e) If at any time the Originator proposes to sell, grant a security
     interest in, or otherwise transfer any interest in any motor vehicle
     receivables to any prospective purchaser, lender or other transferee, the
     Originator will give to such prospective purchaser, lender or other
     transferee computer tapes, records or print-outs (including any restored
     from archives) that, if they refer in any manner whatsoever to any
     Receivable (other than a Purchased Receivable), will indicate clearly that
     such Receivable has been sold by the Originator and is owned by the Issuer.

          Section 4.2 [Reserved].

          Section 4.3 Other Liens or Interests. Except for the conveyances
hereunder and under the other Basic Documents, the Originator will not sell,
pledge, assign or transfer to any other Person or grant, create, incur, assume
or suffer to exist any Lien on the Receivables or the Other Conveyed Property or
any interest herein and the Depositor will not sell, pledge, assign or transfer
to any other Person, or grant, create, incur, assume or suffer to exist any Lien
on the Receivables or the Other Conveyed Property or any interest therein, and
the Originator will defend the right, title, and interest of the Depositor and
the Issuer in and to the Receivables and the Other Conveyed Property against all
claims of third parties claiming through or under the Originator and the
Depositor will defend the right, title, and interest of the Issuer in and to the
Receivables and the Other Conveyed Property against all claims of third parties
claiming through or under the Depositor.

          Section 4.4 Costs and Expenses. Each of the Originator and the
Depositor will pay all reasonable costs and disbursements in connection with the
performance of its obligations hereunder and under its Related Documents.

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          Section 4.5 Indemnification by the Originator. (a) The Originator will
defend, indemnify and hold harmless the Depositor, the Issuer, the Indenture
Trustee, the Backup Servicer, the Owner Trustee, the Noteholders, the
Certificateholders and the Insurer from and against any and all costs, expenses,
losses, damages, claims, and liabilities, arising out of or resulting from: (i)
any breach of any of the Originator's representations and warranties contained
herein, (ii) the use, ownership or operation by the Originator or any affiliate
thereof of a Financed Vehicle, (iii) any action taken, or failed to be taken, by
it in respect of the Receivables other than in accordance with this Agreement or
the Sale and Servicing Agreement or (iv) the negligence (except for errors in
judgment), willful misfeasance, or bad faith of the Originator in the
performance of its duties under this Agreement or by reason of reckless
disregard of the Originator's obligations and duties under this Agreement.

          (b) The Originator will defend, indemnify and hold harmless the
Issuer, the Indenture Trustee, the Backup Servicer, the Owner Trustee, the
Depositor, the Noteholders, the Certificateholders and the Insurer from and
against any and all costs, expenses, losses, damages, claims, and liabilities,
arising out of or resulting from any Taxes which may at any time be asserted
against such Persons with respect to (i) the conveyance or ownership of the
Receivables or the Other Conveyed Property hereunder, (ii) the conveyance or
ownership of the Receivables under the Sale and Servicing Agreement and (iii)
the issuance and original sale of the Notes and the issuance of the
Certificates, and costs and expenses in defending against the same, arising by
reason of the acts to be performed by the Originator under this Agreement or
imposed against such Persons.

          Indemnification under this Section 4.5 will include reasonable fees
and expenses of counsel and expenses of litigation and will survive payment of
the Notes and the Certificates and termination of this Agreement. The indemnity
obligations hereunder will be in addition to any obligation that the Originator
may otherwise have.

          Section 4.6 Indemnification by the Depositor. (a) The Depositor will
defend, indemnify and hold harmless the Originator, the Issuer, the Indenture
Trustee, the Backup Servicer, the Owner Trustee, the Noteholders, the
Certificateholders and the Insurer from and against any and all costs, expenses,
losses, damages, claims, and liabilities, arising out of or resulting from: (i)
any breach of any of the Depositor's representations and warranties contained
herein, (ii) the use, ownership or operation by the Depositor or any affiliate
thereof of a Financed Vehicle, (iii) any action taken, or failed to be taken, by
it in respect of the Receivables other than in accordance with this Agreement or
the Sale and Servicing Agreement or (iv) the negligence (except for errors in
judgment), willful misfeasance, or bad faith of the Depositor in the performance
of its duties under this Agreement or by reason of reckless disregard of the
Depositor's obligations and duties under this Agreement.

          (b) The Depositor will defend, indemnify and hold harmless the Issuer,
the Indenture Trustee, the Backup Servicer, the Owner Trustee, the Noteholders,
the Certificateholders and the Insurer from and against any and all costs,
expenses, losses, damages, claims, and liabilities, arising out of or resulting
from any Taxes which may at any time be asserted against such Persons with
respect to the transactions contemplated by this Agreement, including (i) the
conveyance or ownership of the Receivables or the Other Conveyed Property
hereunder, (ii) the conveyance or ownership of the Receivables under the Sale
and Servicing

                                       9

<PAGE>

Agreement and (iii) the issuance and original sale of the Notes and the issuance
of the Certificates, and costs and expenses in defending against the same,
arising by reason of the acts to be performed by the Depositor under this
Agreement or imposed against such Persons.

          Indemnification under this Section 4.6 will include reasonable fees
and expenses of counsel and expenses of litigation and will survive payment of
the Notes and the Certificates and termination of this Agreement. The indemnity
obligations hereunder will be in addition to any obligation that the Depositor
may otherwise have.

                                   ARTICLE V.

                                   REPURCHASES

          Section 5.1 Repurchase of Receivables Upon Breach of Warranty. Upon
the occurrence of a Repurchase Event, the Originator will, unless the breach
which is the subject of such Repurchase Event will have been cured in all
material respects, repurchase the Receivable relating thereto from the Issuer
and, simultaneously with the repurchase of the Receivable, the Originator will
deposit the Purchase Amount in full, without deduction or offset, to the
Collection Account, pursuant to Section 3.2 of the Sale and Servicing Agreement.
It is understood and agreed that, except as set forth in Section 4.5(a)(i) and
Section 6.1, the obligation of the Originator to repurchase any Receivable, as
to which a breach occurred and is continuing, will, if such obligation is
fulfilled, constitute the sole remedy against the Originator for such breach
available to the Depositor, the Issuer, the Insurer, the Backup Servicer, the
Noteholders, the Certificateholders, the Indenture Trustee on behalf of the
Noteholders or the Owner Trustee on behalf of the Certificateholders. This
Section 5.1 is intended to grant the Issuer and the Indenture Trustee on behalf
of the Noteholders and the Insurer a direct right against the Originator to
demand performance hereunder, and in connection therewith, the Originator waives
any requirement of prior demand against the Depositor with respect to such
repurchase obligation. Any such repurchase will take place in the manner
specified in Section 3.2 of the Sale and Servicing Agreement. Notwithstanding
any other provision of this Agreement or the Sale and Servicing Agreement to the
contrary, the obligation of the Originator under this Section 5.1 will not
terminate upon a termination of the Originator as Servicer under the Sale and
Servicing Agreement and will be performed in accordance with the terms hereof
notwithstanding the failure of the Servicer or the Depositor to perform any of
their respective obligations with respect to such Receivable under the Sale and
Servicing Agreement.

          Without limitation of the foregoing and notwithstanding whether the
related Receivable will have been purchased by the Originator, the Originator
will indemnify the Depositor, the Issuer, the Indenture Trustee, the Backup
Servicer, the Owner Trustee, the Insurer, the Noteholders and the
Certificateholders from and against all costs, expenses, losses, damages, claims
and liabilities, including reasonable fees and expenses of counsel, which may be
asserted against or incurred by any of them as a result of third party claims
arising out of the events or facts giving rise to such Repurchase Events.

          Section 5.2 Reassignment of Purchased Receivables. Upon deposit in the
Collection Account of the Purchase Amount of any Receivable repurchased by the
Originator under Section 5.1, the Issuer and the Indenture Trustee will take
such steps as may be reasonably

                                       10

<PAGE>

requested by the Originator in order to assign to the Originator all of the
Issuer's right, title and interest in and to such Receivable and all security
and documents and all Other Conveyed Property conveyed to the Issuer directly
relating thereto, without recourse, representation or warranty, except as to the
absence of Liens created by or arising as a result of actions of the Issuer.
Such assignment will be a sale and assignment outright, and not for security.
If, following the reassignment of a Purchased Receivable, in any enforcement
suit or legal proceeding, it is held that the Originator may not enforce any
such Receivable on the ground that it will not be a real party in interest or a
holder entitled to enforce the Receivable, the Issuer and the Indenture Trustee
will, at the expense of the Originator, take such steps as the Originator deems
reasonably necessary to enforce the Receivable, including bringing suit in the
Issuer's name.

          Section 5.3 Waivers. No failure or delay on the part of the Depositor,
or the Issuer as assignee of the Depositor, in exercising any power, right or
remedy under this Agreement will operate as a waiver thereof, nor will any
single or partial exercise of any such power, right or remedy preclude any other
or future exercise thereof or the exercise of any other power, right or remedy.

                                   ARTICLE VI.

                                  MISCELLANEOUS

          Section 6.1 Liability of the Originator and the Depositor. Each of the
Originator and the Depositor will be liable in accordance herewith only to the
extent of the obligations in this Agreement specifically undertaken by each of
the Originator, and the Depositor, respectively and the representations and
warranties of each of the Originator and the Depositor, respectively.

          Section 6.2 Merger or Consolidation of the Originator or the
Depositor. Any corporation, limited liability company or other entity (i) into
which the Originator or the Depositor may be merged or consolidated, (ii)
resulting from any merger or consolidation to which the Originator or the
Depositor is a party or (iii) succeeding to the business of the Originator or
the Depositor, in the case of the Depositor, which corporation, limited
liability company or other entity has a certificate of incorporation or limited
liability company agreement containing provisions relating to limitations on
business and other matters substantively identical to those contained in the
Depositor's limited liability company agreement, provided that in any of the
foregoing cases such corporation or other entity will execute an agreement of
assumption to perform every obligation of the Originator or the Depositor, as
the case may be, under this Agreement and, whether or not such assumption
agreement is executed, will be the successor to the Originator or the Depositor,
as the case may be, hereunder (without relieving the Originator or the Depositor
of their responsibilities hereunder, if it survives such merger or
consolidation) without the execution or filing of any document or any further
action by any of the parties to this Agreement. Notwithstanding the foregoing,
so long as no Insurer Default has occurred and is continuing, the Depositor will
not merge or consolidate with any other Person or permit any other Person to
become the successor to the Depositor's business without the prior written
consent of the Insurer. The Originator or the Depositor will promptly inform the
other party hereto, the Issuer, the Indenture Trustee, the Owner Trustee and, so
long as no Insurer Default

                                       11

<PAGE>

has occurred and is continuing, the Insurer, of such merger, consolidation or
purchase and assumption. Notwithstanding the foregoing, as a condition to the
consummation of the transactions referred to in clauses (i), (ii) and (iii)
above, (x) immediately after giving effect to such transaction, no
representation or warranty made pursuant to Sections 3.1 (other than subsection
(e) thereof in connection with a change in control as provided in the Insurance
Agreement) and 3.2 will have been breached (for purposes hereof, such
representations and warranties must be true and correct as of the date of the
consummation of such transaction) and with respect to a transaction involving
the Depositor, no event that, after notice or lapse of time, or both, would
become an event of default under the Insurance Agreement, has occurred and is
continuing, (y) with respect to a transaction involving the Depositor, the
Depositor will have delivered written notice of such consolidation, merger or
purchase and assumption to the Rating Agencies prior to the consummation of such
transaction and will have delivered to the Issuer, the Insurer and the Indenture
Trustee an Officer's Certificate and an Opinion of Counsel each stating that
such consolidation, merger or succession and such agreement of assumption comply
with this Section 6.2 and that all conditions precedent, if any, provided for in
this Agreement relating to such transaction have been complied with, and (z) the
Originator or the Depositor, as applicable, will have delivered to the Issuer
and the Indenture Trustee an Opinion of Counsel, stating, in the opinion of such
counsel, either (A) all financing statements and continuation statements and
amendments thereto have been executed and filed that are necessary to preserve
and protect the interest of the Issuer and the Indenture Trustee in the
Receivables and the Other Conveyed Property and reciting the details of the
filings or (B) no such action will be necessary to preserve and protect such
interest.

          Section 6.3 Limitation on Liability of the Originator, and the
Depositor and Others. The Originator, the Depositor and any director, officer,
employee or agent thereof may rely in good faith on the advice of counsel or on
any document of any kind prima facie properly executed and submitted by any
Person respecting any matters arising under this Agreement. Neither the
Originator nor the Depositor will be under any obligation to appear in,
prosecute or defend any legal action that is not incidental to its obligations
under this Agreement or its Related Documents and that in its opinion may
involve it in any expense or liability.

          Section 6.4 The Originator May Own Notes or the Certificates. Subject
to the provisions of the Basic Documents, the Originator and any Affiliate of
the Originator may in their individual or any other capacity become the owner or
pledgee of Notes or the Certificates with the same rights as they would have if
they were not the Originator or an Affiliate thereof.

          Section 6.5 Amendment.

          (a) This Agreement may be amended by the Originator and the Depositor
     with the prior written consent of the Insurer (so long as no Insurer
     Default has occurred and is continuing) but without the consent of the
     Indenture Trustee, the Owner Trustee, the Certificateholders or any of the
     Noteholders (i) to cure any ambiguity or (ii) to correct any provisions in
     this Agreement; provided, however, that such action will not, as evidenced
     by an Opinion of Counsel delivered to the Issuer, the Owner Trustee and the
     Indenture Trustee, adversely affect in any material respect the interests
     of any Certificateholder or Noteholder.

                                       12

<PAGE>

          (b) This Agreement may also be amended from time to time by the
     Originator and the Depositor, with the prior written consent of the
     Controlling Party, for the purpose of adding any provisions to or changing
     in any manner or eliminating any of the provisions of this Agreement.

          (c) Prior to the execution of any such amendment or consent, the
     Originator will have furnished written notification of the substance of
     such amendment or consent to each Rating Agency.

          Section 6.6 Notices.

          All demands, notices and communications hereunder will be in writing
and will be deemed to have been duly given to the addressee if mailed, by
first-class registered mail, postage prepaid service, confirmed facsimile
transmission, or a nationally recognized express courier, as follows:

          If to the Originator:

               Triad Financial Corporation
               7711 Center Avenue
               Suite 100
               Huntington Beach, California 92647
               Attention: Chief Financial Officer

          With a separate copy to:

               Attention: General Counsel

          If to the Depositor:

               Triad Financial Special Purpose LLC
               7711 Center Avenue
               Suite 390
               Huntington Beach, California 92647
               Attention: Chief Financial Officer

or such other address as will be designated by a party in a written notice
delivered to the other party or to the Issuer, the Owner Trustee or the
Indenture Trustee, as applicable. Any such demand, notice or communication
hereunder will be deemed to have been received on the date delivered to or
received at the premises of the addressee as evidenced by the date noted on the
return receipt.

          Section 6.7 Merger and Integration. Except as specifically stated
otherwise herein, this Agreement and Related Documents set forth the entire
understanding of the parties relating to the subject matter hereof, and all
prior understandings, written or oral, are superseded by this Agreement and the
Related Documents. This Agreement may not be modified, amended, waived or
supplemented except as provided herein.

                                       13

<PAGE>

          Section 6.8 Severability of Provisions. If any one or more of the
covenants, provisions or terms of this Agreement will be for any reason
whatsoever held invalid, then such covenants, provisions or terms will be deemed
severable from the remaining covenants, provisions or terms of this Agreement
and will in no way affect the validity or enforceability of the other provisions
of this Agreement.

          Section 6.9 Intention of the Parties.

          (a) The execution and delivery of this Agreement will constitute an
     acknowledgment by the Originator and the Depositor that they intend that
     the assignments and transfers herein contemplated constitute sales and
     assignments outright, and not for security, of the Receivables and the
     Other Conveyed Property, conveying good title thereto free and clear of any
     Liens, from the Originator to the Depositor and that the Receivables and
     the Other Conveyed Property will not be a part of the Originator's estate
     in the event of the bankruptcy, reorganization, arrangement, insolvency or
     liquidation proceeding, or other proceeding under any federal or state
     bankruptcy or similar law, or the occurrence of another similar event, of,
     or with respect to, the Originator. If such conveyance is determined to be
     made as security for a loan made by the Depositor, the Issuer, the
     Noteholders or the Certificateholders to the Originator the parties intend
     that the Originator will have granted to the Depositor a security interest
     in all of the Originator's right, title and interest, respectively, whether
     now owned or existing or hereafter acquired or arising, in and to:

               (1) the Receivables and all moneys received thereon after the
     Cutoff Date,

               (2) the Other Conveyed Property conveyed to the Depositor by the
     Originator pursuant to this Agreement including (a) an assignment of the
     security interests in the Financed Vehicles granted by Obligors pursuant to
     the Receivables, and any other interest of the Originator or the Depositor
     in such Financed Vehicles, (b) any proceeds and the right to receive any
     proceeds with respect to the Receivables from claims on any physical
     damage, credit life or disability insurance policies covering Financed
     Vehicles or Obligors and any proceeds from the liquidation of the
     Receivables, (c) the right to cause the related Dealer or a Third-Party
     Lender to repurchase Receivables pursuant to a Dealer Agreement or an Auto
     Loan Purchase and Sale Agreement, respectively, as a result of the breach
     of representation or warranty in the related Dealer Agreement or Auto Loan
     Purchase and Sale Agreement, respectively, (d) all rights, if any, to
     refunds for the costs of any Service Contracts on the related Financed
     Vehicles, (e) the related Receivables Files and (f) the proceeds of any and
     all of the foregoing, and

               (3) all proceeds and investments with respect to items (1) and
     (2) above.

          (b) This Agreement will constitute a security agreement under
     applicable law.

                                       14

<PAGE>

          Section 6.10 Governing Law. This Agreement will be construed in
accordance with the laws of the State of New York without regard to the
principles of conflicts of laws thereof and the obligations, rights and remedies
of the parties under this Agreement will be determined in accordance with such
laws.

          Section 6.11 Counterparts. For the purpose of facilitating the
execution of this Agreement and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts will be deemed to be an original, and all of which counterparts
will constitute but one and the same instrument.

          Section 6.12 Conveyance of the Receivables and the Other Conveyed
Property to the Issuer. The Originator acknowledges that the Depositor intends,
pursuant to the Sale and Servicing Agreement, to convey the Receivables and the
Other Conveyed Property, together with its rights under this Agreement, to the
Issuer on the date hereof. The Originator acknowledges and consents to such
conveyance and pledge and waives any further notice thereof and covenants and
agrees that the representations and warranties of the Originator contained in
this Agreement and the rights of the Depositor hereunder are intended to benefit
the Insurer, the Issuer, the Owner Trustee, the Indenture Trustee, the
Noteholders and the Certificateholders. In furtherance of the foregoing, the
Originator covenants and agrees to perform its duties and obligations hereunder,
in accordance with the terms hereof for the benefit of the Insurer, the Issuer,
the Owner Trustee, the Indenture Trustee, the Noteholders and the
Certificateholders and that, notwithstanding anything to the contrary in this
Agreement, the Originator will be directly liable to the Issuer, the Owner
Trustee, the Indenture Trustee, the Noteholders and the Certificateholders
(notwithstanding any failure by the Servicer or the Backup Servicer to perform
its respective duties and obligations hereunder or under the Related Documents)
and that the Indenture Trustee may enforce the duties and obligations of the
Originator under this Agreement against the Originator for the benefit of the
Insurer, the Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders
and the Certificateholders.

          Section 6.13 Nonpetition Covenant. The Originator will not, prior to
the date that is one year and one day after the termination of this Agreement,
petition or otherwise invoke the process of any court or government authority
for the purpose of commencing or sustaining a case against the Depositor or the
Issuer under any federal or state bankruptcy, insolvency or similar law or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or
other similar official of the Depositor or the Issuer or any substantial part of
their respective property, or ordering the winding up or liquidation of the
affairs of the Depositor or the Issuer.

          Section 6.14 Payment Obligations of the Depositor Limited.
Notwithstanding anything to the contrary herein, the payment obligations of the
Depositor are limited to the extent it has funds available to make such payment.

                                       15

<PAGE>

          IN WITNESS WHEREOF, the parties have caused this Purchase Agreement to
be duly executed by their respective officers as of the day and year first above
written.

                                        TRIAD FINANCIAL CORPORATION,
                                        as Originator

                                        By: /s/ Mike L. Wilhelms
                                            ------------------------------------
                                        Name: Mike L. Wilhelms
                                        Title: Chief Financial Officer

                                        TRIAD FINANCIAL SPECIAL PURPOSE LLC,
                                        as Depositor

                                        By /s/ Mike L. Wilhelms
                                           -------------------------------------
                                        Name: Mike L. Wilhelms
                                        Title: Chief Financial Officer

Accepted:

CITIBANK, N.A.,
not in its individual capacity but solely as Indenture Trustee

By: /s/ John Hannon
    ------------------------------------
Name: John Hannon
Title: Assistant Vice President

                     [Signature page to Purchase Agreement]

<PAGE>

                                                                      SCHEDULE A

                             SCHEDULE OF RECEIVABLES

               [Delivered to the Indenture Trustee at the Closing]

<PAGE>

                                                                      SCHEDULE B

                         REPRESENTATIONS AND WARRANTIES
                                OF THE ORIGINATOR

     1. Characteristics of Receivables. Each Receivable (A) was originated (i)
by the Originator, (ii) by a Dealer and purchased by the Originator from such
Dealer under an existing Dealer Agreement or pursuant to a Dealer Assignment
with the Originator and was validly assigned by such Dealer to the Originator
pursuant to a Dealer Assignment, or (iii) by a Third-Party Lender and purchased
by the Originator from such Third-Party Lender under an existing Auto Loan
Purchase and Sale Agreement or pursuant to a Third-Party Lender Assignment with
the Originator and was validly assigned by such Third-Party Lender to the
Originator pursuant to a Third-Party Lender Assignment, (B) was originated by
the Originator, such Dealer or such Third-Party Lender for the retail sale or
refinancing of a Financed Vehicle in the ordinary course of the Originator's,
the Dealer's or the Third-Party Lender's business, in each case, in accordance
with the Originator's credit policies and was fully and properly executed by the
parties thereto, and the Originator, each Dealer and each Third-Party Lender had
all necessary licenses and permits to originate Receivables in the state where
the Originator, each such Dealer or each such Third-Party Lender was located,
(C) contains customary and enforceable provisions such that the rights and
remedies of the holder thereof are adequate for realization against the
collateral security, (D) is a Receivable which provides for level monthly
payments (provided that the period in the first Collection Period and the
payment in the final Collection Period of the Receivable may be minimally
different from the normal period and level payment) that, if made when due, will
fully amortize the Amount Financed over the original term and (E) has not been
amended or collections with respect to which waived, other than as evidenced in
the Receivable File relating thereto.

     2. Fraud or Misrepresentation. Each Receivable was originated (i) by the
Originator, (ii) by a Dealer and was sold by the Dealer to the Originator, or
(iii) by a Third-Party Lender and was sold by the Third-Party Lender to the
Originator, and was transferred by the Originator to the Depositor and by the
Depositor to the Issuer without any fraud or misrepresentation on the part of
the Originator, the Depositor, such Dealer or Third-Party Lender in any case.

     3. Compliance with Law. All requirements of applicable federal, state and
local laws, and regulations thereunder (including, without limitation, usury
laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the
Fair Credit Billing Act, the Fair Credit Reporting Act, the Fair Debt Collection
Practices Act, the Federal Trade Commission Act, the Moss-Magnuson Warranty Act,
the Federal Reserve Board's Regulations "B" and "Z" (including amendments to the
Federal Reserve's Official Staff Commentary to Regulation Z, effective October
1, 1998, concerning negative equity loans), the Servicemembers Civil Relief Act,
each applicable state Motor Vehicle Retail Installment Sales Act, and state
adaptations of the National Consumer Act and of the Uniform Consumer Credit Code
and other consumer credit laws and equal credit opportunity and disclosure laws)
in respect of the Receivables and the Financed Vehicles, have been complied with
in all material respects, and each Receivable and the sale of the Financed
Vehicle evidenced by each Receivable complied at the time it was originated or
made and now complies in all material respects with all applicable legal
requirements.

<PAGE>

     4. Origination. Each Receivable was originated in the United States and the
related Obligor is a resident of the United States.

     5. Binding Obligation. Each Receivable represents the genuine, legal, valid
and binding payment obligation of the Obligor thereon, enforceable by the holder
thereof in accordance with its terms, except (A) as enforceability may be
limited by bankruptcy, insolvency, reorganization or similar laws affecting the
enforcement of creditors' rights generally and by equitable limitations on the
availability of specific remedies, regardless of whether such enforceability is
considered in a proceeding in equity or at law and (B) as such Receivable may be
modified by the application after the applicable Cutoff Date of the
Servicemembers Civil Relief Act, as amended; and all parties to each Receivable
had full legal capacity to execute and deliver such Receivable and all other
documents related thereto and to grant the security interest purported to be
granted thereby.

     6. No Government Obligor. No Obligor is the United States of America or any
State or any agency, department, subdivision or instrumentality thereof.

     7. Obligor Bankruptcy. At the Cutoff Date no Obligor had been identified on
the records of the Originator as being the subject of a current bankruptcy
proceeding.

     8. Schedule of Receivables. The information set forth in the Schedule of
Receivables has been produced from the Electronic Ledger and was true and
correct in all material respects as of the close of business on the Cutoff Date.

     9. Marking Records. By the Closing Date, the Originator will have caused
the portions of the Electronic Ledger relating to the Receivables to be clearly
and unambiguously marked to show that the Receivables have been sold to the
Depositor by the Originator and sold by the Depositor to the Issuer in
accordance with the terms of the Sale and Servicing Agreement.

     10. Computer Tape. The Computer Tape made available by the Originator to
the Issuer on the Closing Date, was complete and accurate as of the Cutoff Date
and includes a description of the same Receivables that are described in the
Schedule of Receivables.

     11. Adverse Selection. No selection procedures adverse to the Noteholders
or the Insurer were utilized in selecting the Receivables from those receivables
owned by the Originator which met the selection criteria contained in the Sale
and Servicing Agreement.

     12. Tangible Chattel Paper. The Receivables constitute "tangible chattel
paper" within the meaning of the UCC as in effect in the States of California,
New York and Delaware.

     13. One Original. There is only one original executed copy of each
Receivable.

     14. Receivable Files Complete. There exists a Receivable File pertaining to
each Receivable and such Receivable File contains (a) a fully executed original
of the Receivable, (b) in the case of retail installment sale contracts, the
original executed credit application, or a paper or electronic copy thereof and
(c) the original Lien Certificate or application therefor. Each of such
documents which is required to be signed by the Obligor has been signed by the
Obligor in the appropriate spaces. All blanks on any form have been properly
filled in and each form has

                                    SCH B-2

<PAGE>

otherwise been correctly prepared. The complete Receivable File for each
Receivable currently is in the possession of the Custodian or in the possession
of a third-party vendor.

     15. Receivables in Force. No Receivable has been satisfied, subordinated or
rescinded, and the Financed Vehicle securing each such Receivable has not been
released from the lien of the related Receivable in whole or in part. No terms
of any Receivable have been waived, altered or modified in any respect since its
origination, except by instruments or documents identified in the Receivable
File. No Receivable has been modified as a result of application of the
Servicemembers Civil Relief Act, as amended. All funds payable to or on behalf
of the Obligors with respect to the Receivables have been fully disbursed.

     16. Lawful Assignment; No Consent Required. No Receivable was originated
in, or is subject to the laws of, any jurisdiction the laws of which would make
unlawful, void or voidable the sale, transfer and assignment of such Receivable
and the Other Conveyed Property under this Agreement. For the validity of the
sale, transfer and assignment of the Receivables and Other Conveyed Property to
the Originator, the Depositor, and the Issuer, no consent by any Dealer,
Third-Party Lender or Obligor is required under any agreement or applicable law.

     17. Good Title. No Receivable has been sold, transferred, assigned or
pledged by the Dealer or Third-Party Lender, the Originator or the Depositor, as
the case may be, to any Person other than the Originator, the Depositor and the
Issuer, as the case may be. Immediately prior to the conveyance of the
Receivables to the Depositor pursuant to this Agreement, as applicable, the
Originator was the sole owner thereof and had good title thereto, free of any
Lien and, upon execution and delivery of this Agreement by the Originator, the
Depositor will have good title to and will be the sole owner of such
Receivables, free of any Lien, and upon execution and delivery of the Sale and
Servicing Agreement by the Depositor, the Issuer will have good title to and
will be the sole owner of the Receivables, free and clear from any Lien (other
than the Lien of the Indenture). No Dealer or Third-Party Lender has an unpaid
participation in, or other right to receive, proceeds of any Receivable. Neither
the Originator nor the Depositor has taken any action to convey any right to any
Person that would result in such Person having a right to payments received
under the related Insurance Policies or the related Dealer Agreements, Auto Loan
Purchase and Sale Agreements, Dealer Assignments or Third-Party Lender
Assignments or to payments due under such Receivables.

     18. Security Interest in Financed Vehicle. Each Receivable created or will
create a valid, binding and enforceable first priority security interest in
favor of the Originator in the Financed Vehicle. The Lien Certificate and
original certificate of title for each Financed Vehicle show, or if a new or
replacement Lien Certificate is being applied for with respect to such Financed
Vehicle the Lien Certificate will be received within 180 days of the Closing
Date, as applicable, and will show the Originator as the original secured party
under each Receivable, or that such Receivable has been assigned to the
Originator, as the holder of a first priority security interest in such Financed
Vehicle. With respect to each Receivable for which the Lien Certificate has not
yet been returned from the Registrar of Titles, the Originator has applied for
or received written evidence from the related Dealer or Third-Party Lender that
such Lien Certificate showing the Originator as first lienholder has been
applied for and the Originator's security interest has been validly assigned by
the Originator to the Depositor pursuant to this Agreement and by the Depositor
to the Issuer pursuant to the Sale and Servicing Agreement.

                                     SCH B-3

<PAGE>

Immediately after the sale, transfer and assignment thereof by the Originator to
the Depositor and by the Depositor to the Issuer, each Receivable will be
secured by an enforceable and perfected first priority security interest in the
Financed Vehicle in favor of the Indenture Trustee as secured party, which
security interest is prior to all other Liens upon and security interests in
such Financed Vehicle which now exist or may hereafter arise or be created
(except, as to priority, for any lien for taxes, labor or materials affecting a
Financed Vehicle). As of the Cutoff Date there were no Liens or claims for
taxes, work, labor or materials affecting a Financed Vehicle which are or may be
Liens prior or equal to the Liens of the related Receivable.

     19. All Filings Made. All filings (including, without limitation, UCC
filings) required to be made by any Person, and actions required to be taken or
performed by any Person in any jurisdiction to give the Issuer a first priority
perfected lien on, or ownership interest in, the Receivables and the proceeds
thereof and the Other Conveyed Property have been made, taken or performed.

     20. No Impairment. Neither the Originator nor the Depositor has done
anything to convey any right to any Person that would result in such Person
having a right to payments due under the Receivable or otherwise to impair the
rights of the Issuer, the Insurer, the Indenture Trustee and the Noteholders in
any Receivable or the proceeds thereof.

     21. Receivable Not Assumable. No Receivable is assumable by another Person
in a manner which would release the Obligor thereof from such Obligor's
obligations to the Originator with respect to such Receivable.

     22. No Defenses. No Receivable is subject to any right of rescission,
setoff, counterclaim or defense and no such right has been asserted or
threatened with respect to any Receivable.

     23. No Default. There has been no default, breach, violation or event
permitting acceleration under the terms of any Receivable (other than payment
delinquencies of not more than 30 days and other defaults that will not have a
material adverse effect on the ability of the Obligor to make, nor the
enforceability of Obligor's obligation to make, Scheduled Receivables Payments
and will not have a material adverse effect on the validity or priority of the
Originator's lien on the Financed Vehicle), and no condition exists or event has
occurred and is continuing that with notice, the lapse of time or both would
constitute a default, breach, violation or event permitting acceleration under
the terms of any Receivable, and there has been no waiver of any of the
foregoing. As of the Cutoff Date no Financed Vehicle had been repossessed by or
at the direction of the Originator.

     24. Insurance. At the time of an origination of a Receivable by the
Originator or a purchase of a Receivable by the Originator from a Dealer or
Third-Party Lender, each Financed Vehicle was covered by a comprehensive and
collision insurance policy (i) subject to maximum deductibles of $1000 for
collision coverage and $1000 for comprehensive coverage, (ii) naming the
Originator as loss payee and (iii) insuring against loss and damage due to fire,
theft, transportation, collision and other risks generally covered by
comprehensive and collision coverage. Each Receivable requires the Obligor to
maintain physical loss and damage insurance, naming the Originator and its
successors and assigns as additional insured parties, and each

                                     SCH B-4

<PAGE>

Receivable permits the holder thereof to obtain physical loss and damage
insurance at the expense of the Obligor if the Obligor fails to do so. No
Financed Vehicle is insured under a policy of force-placed insurance on the
Cutoff Date.

     25. Past Due. At the Cutoff Date no Scheduled Receivable Payment was more
than 30 days past due.

     26. Remaining Principal Balance. At the Cutoff Date the Principal Balance
of each Receivable set forth in the Schedule of Receivables is true and accurate
in all material respects.

     27. Certain Characteristics of Receivables. (A) Each Receivable had a
remaining maturity, as of the Cutoff Date, of not more than 73 months and not
less than 4 months; (B) each Receivable had an original maturity of not more
than 73 months; (C) not more than 75% of Receivables (calculated by Aggregate
Principal Balance) will have an original term to maturity of 73 months; (D) each
Receivable had a remaining Principal Balance as of the Cutoff Date of at least
$1,000 and not more than $50,000; and (E) each Receivable has an Annual
Percentage Rate of at least 4.55% and not more than 29.00%.

                                     SCH B-5<PAGE>
                                                                    EXHIBIT 10.2

                        INSURANCE AND INDEMNITY AGREEMENT
                          Dated as of January 26, 2006

                          AMBAC ASSURANCE CORPORATION,
                                   as Insurer,

                   TRIAD AUTOMOBILE RECEIVABLES TRUST 2006-A,
                                   as Issuer,

                          TRIAD FINANCIAL CORPORATION,
                             as Seller and Servicer,

                      TRIAD FINANCIAL SPECIAL PURPOSE LLC,
                                  as Depositor,

                                       and

                                 CITIBANK, N.A.
                              as Indenture Trustee

                    Triad Automobile Receivables Trust 2006-A
                           Class A Asset Backed Notes

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
                                   ARTICLE I

                                   DEFINITIONS

Section 1.1 Defined Terms................................................     1
Section 1.2 Other Definitional Provisions................................     9

                                  ARTICLE II

                   REPRESENTATIONS, WARRANTIES AND COVENANTS

Section 2.1 Representations and Warranties of the Seller and Servicer....    10
Section 2.2 Affirmative Covenants of Seller and Servicer.................    10
Section 2.3 Negative Covenants of the Seller and Servicer................    14
Section 2.4 Representations and Warranties of the Insurer................    15
Section 2.5 Representations and Warranties of the
            Depositor and the Issuer.....................................    16
Section 2.6 Affirmative Covenants of the Depositor and the Issuer........    16
Section 2.7 Negative Covenants of the Depositor and the Issuer...........    20

                                   ARTICLE III

                         THE AMBAC POLICY; REIMBURSEMENT

Section 3.1 Issuance of the Ambac Policy.................................    21
Section 3.2 Payment of Fees and Premium..................................    23
Section 3.3 Reimbursement Obligation.....................................    24
Section 3.4 Indemnification..............................................    24
Section 3.5 Payment Procedure............................................    27
Section 3.6 Subrogation..................................................    28

                                   ARTICLE IV

                               FURTHER AGREEMENTS

Section 4.1 Effective Date; Term of the Insurance Agreement..............    28
Section 4.2 Further Assurances and Corrective Instruments................    28
Section 4.3 Obligations Absolute.........................................    29
Section 4.4 Assignments; Reinsurance; Third-Party Rights.................    30
Section 4.5 Liability of the Insurer.....................................    31
Section 4.6 Consent to Corporate Changes of Triad........................    31
Section 4.7 Rights and Remedies..........................................    31
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                         <C>
                                    ARTICLE V

                              DEFAULTS AND REMEDIES

Section 5.1 Defaults.....................................................    33
Section 5.2 Remedies; No Remedy Exclusive................................    34
Section 5.3 Waivers......................................................    34

                                   ARTICLE VI

                                  MISCELLANEOUS

Section 6.1 Amendments, Etc..............................................    35
Section 6.2 Notices......................................................    35
Section 6.3 Severability.................................................    36
Section 6.4 Governing Law................................................    37
Section 6.5 Consent to Jurisdiction......................................    37
Section 6.6 Consent of the Insurer.......................................    38
Section 6.7 Counterparts.................................................    38
Section 6.8 Headings.....................................................    38
Section 6.9 Trial by Jury Waived.........................................    38
Section 6.10 Limited Liability...........................................    38
Section 6.11 Entire Agreement: Facsimile Signatures......................    38
Section 6.12 Indenture Trustee...........................................    39
Section 6.13 Third-Party Beneficiary.....................................    39
Section 6.14 No Proceedings..............................................    39
Section 6.15 Limitation of Owner Trustee Liability.......................    39

EXHIBITS

EXHIBIT A Form of Ambac Policy...........................................   A-1
EXHIBIT B Triad Automobile Receivables Trust 2006-A Consolidated
             Tangible Net Worth Calculation Pro-forma [________] [2005]..   B-1
EXHIBIT C Triad Automobile Receivables Trust 2006-A Consolidated
             Tangible Net Worth Calculation as of [_______] [2005].......   C-1
EXHIBIT D Triad Automobile Receivables Trust 2006-A
             Tangible Net Worth Floor....................................   D-1

SCHEDULES
SCHEDULE A...............................................................   Schedule A-1
SCHEDULE B...............................................................   Schedule B-1
SCHEDULE C...............................................................   Schedule C-1
SCHEDULE D...............................................................   Schedule D-1
</TABLE>

                                       ii

<PAGE>

          INSURANCE AND INDEMNITY AGREEMENT (as it may be amended, modified or
supplemented from time to time, this "Insurance Agreement"), dated as of January
26, 2006, by and among AMBAC ASSURANCE CORPORATION, as Insurer (the "Insurer"),
TRIAD AUTOMOBILE RECEIVABLES TRUST 2006-A, as Issuer (the "Issuer"), TRIAD
FINANCIAL CORPORATION ("Triad"), as Seller and Servicer (the "Seller" and
"Servicer", respectively), TRIAD FINANCIAL SPECIAL PURPOSE LLC, as Depositor
(the "Depositor") and CITIBANK, N.A. as Indenture Trustee (the "Indenture
Trustee").

                             PRELIMINARY STATEMENTS

          A. The Indenture, dated as of January 26, 2006, by and between the
Issuer and the Indenture Trustee (the "Indenture"), provides for, among other
things, the issuance of the Triad Automobile Receivables Trust 2006-A Class A
Asset Backed Notes.

          B. The parties hereto desire that the Insurer issue the Ambac Policy
to the Indenture Trustee for the benefit of the Holders and to, among other
things, specify the conditions precedent thereto, the premium in respect thereof
and the indemnity, reimbursement, reporting and other obligations of the parties
hereto other than the Insurer in consideration thereof.

          NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein contained, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

          Section 1.1 Defined Terms. Capitalized terms used in this Insurance
Agreement shall have the meanings set forth below. Unless the context clearly
requires otherwise, all capitalized terms used but not defined herein shall have
the respective meanings assigned to them in the Ambac Policy or, if not defined
therein, in the Indenture or, if not defined therein, in the Sale and Servicing
Agreement, or, if not defined therein, in the Purchase Agreement, each as
described below.

          "Affiliate" means, with respect to any specified Person, any other
Person controlling or controlled by or under common control with such specified
Person. For the purposes of this definition, "control" when used with respect to
any Person means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise; and the terms "controlling" and "controlled" have
meanings correlative to the foregoing.

          "Ambac" means Ambac Assurance Corporation, a Wisconsin domiciled stock
insurance corporation.

          "Ambac Policy" means the Note Guaranty Insurance Policy No. AB0969BE
dated January 26, 2006, including any endorsements thereto, issued by the
Insurer to the Indenture Trustee with respect to the Class A Notes, for the
benefit of the Holders, in the form attached as Exhibit A to this Insurance
Agreement.

                                       1

<PAGE>

          "Certificate" means the trust certificate evidencing the beneficial
interest of the Certificateholder in the Trust.

          "Charter Documents" means, with respect to any Transaction Party, such
entity's organizational documents, including its trust agreement, certificate of
trust, memorandum of association, articles of organization, certificate or
articles of incorporation, by-laws and/or operating agreement.

          "Class A Notes" means the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes and the Class A-4 Notes.

          "Class A-1 Notes" means the Class A-1 4.573628% Asset Backed Notes,
issued pursuant to the Indenture and substantially in the form attached as an
Exhibit to the Indenture.

          "Class A-2 Notes" means the Class A-2 4.82% Asset Backed Notes, issued
pursuant to the Indenture and substantially in the form attached as an Exhibit
to the Indenture.

          "Class A-3 Notes" means the Class A-3 4.77% Asset Backed Notes, issued
pursuant to the Indenture and substantially in the form attached as an Exhibit
to the Indenture.

          "Class A-4 Notes" means the Class A-4 4.88% Asset Backed Notes, issued
pursuant to the Indenture and substantially in the form attached as an Exhibit
to the Indenture.

          "Closing Date" means January 26, 2006.

          "Collection Period" means, (i) with respect to the first Distribution
Date, the period beginning on the close of business on December 31, 2005 and
ending on the close of business on January 31, 2005, and (ii) with respect to
each subsequent Distribution Date, the period beginning on the opening of
business on the first day of the immediately preceding calendar month and ending
on the close of business on the last day of the immediately preceding calendar
month. Any amount stated "as of the close of business on the last day of a
Collection Period" shall give effect to the following calculations as determined
as of the end of the day on such last day: (i) all applications of collections
and (ii) all distributions.

          "Consolidated Tangible Net Worth" means, at any date, the consolidated
Stockholders' Equity of an entity and its consolidated subsidiaries less their
consolidated Intangible Assets, all determined as of such date, and calculated
in accordance with the example set forth as Exhibit B. For purposes of this
definition "Intangible Assets" means the amount (to the extent reflected in
determining such consolidated stockholders' equity) of (i) all write-ups (other
than write-ups resulting from mark-to-market adjustments for foreign currency or
derivative contract positions and write-ups of assets of a going concern
business made within twelve months after the acquisition of such business)
subsequent to April 28, 2005 in the book value of any asset owned by an entity
or a consolidated subsidiary, and (ii) all unamortized debt discount and
expense, unamortized deferred charges, goodwill added to balance sheet
subsequent to April 28, 2005, patents, trademarks, service marks, trade names,
copyrights, organization or developmental expenses and other intangible items.
Intangible Assets shall not include any residual interest in any sales of
receivables or securitization, or any certificate or instrument representing
such residual interest, the values of which, calculated in accordance with GAAP,

                                       2

<PAGE>

shall be included in Stockholders' Equity. For purposes of this definition
"Stockholders' Equity" shall include GAAP retained earnings and any equity
securities such as common stock or common stock equivalents, including, but not
limited to, any non-coupon bearing instruments (other than in a liquidation
preference) such as preferred stock, convertible stock or convertible preferred
stock of Triad or its Successor. In addition, any coupon bearing stock
equivalent (cash, Pay-In-Kind security or combination thereof), preferred or
otherwise, will receive equity treatment (not to exceed 30% of total
consolidated Stockholders' Equity) so long as such instrument provides for the
ability to defer cash coupon payments for a period not to exceed five years and
the holder thereof is not entitled to commence bankruptcy, insolvency or similar
proceedings against Triad or its Successor. In the event of any dispute among
the parties, or any of them, regarding the calculation of Consolidated Tangible
Net Worth or the valuation of any assets included in such calculation, which
cannot be resolved by such parties, in good faith, within thirty (30) days of
all relevant requested information being supplied, the disputing parties shall,
within ten (10) Business Days, agree on a third party (such as an accounting or
investment banking firm) to furnish the results of such calculation within
thirty (30) days, such conclusion to be final and binding on the parties.
Notwithstanding any provision in this Agreement to the contrary, if the
valuation or other calculation made by such third party is 10% or more higher
than the number put forth by the party promoting the lower valuation or other
calculation, then the party promoting the lower valuation shall pay the costs of
the third party, provided that, notwithstanding the foregoing, if the valuation
or other calculation made by such third party is 10% or more higher than the
number put forth by the party promoting the lower valuation or other calculation
and is still less than the greater of (x) 7.25% of such entity's Total Assets
and (y) Tangible Net Worth Floor, then the party promoting such lower valuation
shall not be required to pay the costs of the third party. If the valuation or
other calculation by such third party is 10% or more lower than the number put
forth by the party promoting the higher valuation, then that party shall pay the
costs of the third party, even in the circumstance where such calculation
results in a valuation or other calculation greater than the greater of (x)
7.25% of such entity's Total Assets and (y) Tangible Net Worth Floor. In all
other cases, the costs of the third party shall be shared equally by the
disputing parties.

          "Cram Down Loss" means, for any Receivable (other than a Purchased
Receivable or a Liquidated Receivable), if a court of appropriate jurisdiction
in an insolvency proceeding issued an order reducing the amount owed on the
Receivable or otherwise modifying or restructuring the scheduled payments to be
made on the Receivable, an amount equal to the excess of the Receivable's
Principal Balance immediately prior to the order over the Receivable's Principal
Balance as reduced.

          "Cumulative Net Loss Ratio" means the ratio, expressed as a
percentage, computed by dividing: (a) the Cumulative Net Losses by (b) the
Original Pool Balance.

          "Cumulative Net Losses" means the aggregate principal balance of all
Net Liquidation Losses for each Collection Period from the Closing Date to and
including the then-current Collection Period.

          "Cut-off Date" means December 31, 2005.

                                       3

<PAGE>

          "Deemed Cured" means, as of a Determination Date, that no Spread Cap
Event shall have occurred and be continuing as of such Determination Date and
with respect to the two consecutively preceding Determination Dates.

          "Default" means any occurrence that is, or with notice or the lapse of
time or both would become, an Event of Default.

          "Delinquency Rate" means, with respect to any Determination Date, a
fraction, expressed as a percentage, (a) the numerator of which is equal to the
aggregate Principal Balance of all Receivables, other than Liquidated
Receivables, for which all or more than 10% of a Scheduled Receivables Payment
was 60 or more days delinquent as of the last day of the related Collection
Period and (b) the denominator of which is equal to the Aggregate Principal
Balance as of the last day of the related Collection Period.

          "Depositor" has the meaning specified in the initial paragraph hereof.

          "Determination Date" means, with respect to any Collection Period, the
3rd Business Day preceding the Distribution Date in the next Collection Period.

          "Distribution Date" means, with respect to each Collection Period, the
12th day of the following Collection Period, of, if such day is not a Business
Day, the immediately following Business Day, commencing February 13, 2006.

          "Event of Default" has the meaning specified in Section 5.1 hereof

          "Fee Letter" means that certain letter agreement dated as of the date
hereof between the Issuer and the Insurer and acknowledged by the Indenture
Trustee setting forth certain fees and other matters referred to herein, as the
same may be amended or supplemented from time to time in accordance therewith
and with this Insurance Agreement.

          "Financed Vehicle" means an automobile or light-duty truck, together
with all accessions thereto, securing an Obligor's indebtedness under the
respective Receivable.

          "Holder" has the meaning given thereto in the Ambac Policy.

          "Indemnified Party" has the meaning specified in Section 3.4 hereof.

          "Indemnifying Party" has the meaning specified in Section 3.4 hereof.

          "Indenture" means the Indenture dated as of January 26, 2006 between
the Issuer and Citibank, N.A. as Indenture Trustee, as the same may be amended
or supplemented from time to time.

          "Information" has the meaning specified in Section 2.1(c) hereof.

          "Insolvency Proceeding"  means any proceeding by or against any person
under any applicable reorganization, bankruptcy, liquidation, rehabilitation,
insolvency or other similar law now or hereafter in effect or any proceeding in
which a receiver, liquidator, conservator,

                                       4

<PAGE>

trustee or similar official shall have been, or may be, appointed or requested
for a person or any of its assets.

          "Insurance Agreement" has the meaning given such term in the initial
paragraph hereof.

          "Insurance Agreement Repurchase Event" means, with respect to any
Collection Period following six (6) months from the Closing Date, the repurchase
of more than five (5) Receivables.

          "Insurer" means Ambac and any successor thereto, as issuer of the
Ambac Policy.

          "Insurer Information" means the information furnished by the Insurer
in writing expressly for use in the Offering Document and is limited to the
information included under the headings "The Insurer" and "The Policy" in the
Preliminary Prospectus Supplement and the Prospectus Supplement.

          "Investment Company Act" means the Investment Company Act of 1940,
including, unless the context otherwise requires, the rules and regulations
thereunder, as amended from time to time.

          "Late Payment Rate" means the lesser of (a) the greater of (i) the per
annum rate of interest publicly announced from time to time by Citibank, N.A. as
its prime or base lending rate (any change in such rate of interest to be
effective on the date such change is announced by Citibank, N.A.), plus 2% per
annum and (ii) the then applicable highest rate of interest on the Class A Notes
and (b) the maximum rate permissible under applicable usury or similar laws
limiting interest rates. The Late Payment Rate shall be computed on the basis of
the actual number of days elapsed over a year of 360 days.

          "Liquidated Receivable" means, with respect to any Collection Period,
any Receivable with respect to which any of the following has occurred: (i) 10%
or more of any Scheduled Receivable Payment is 120 days or more past due, except
Receivables with respect to which the related Financed Vehicles have been
repossessed within such 120 days; (ii) the earlier of (A) 90 days have elapsed
since the Servicer repossessed the Financed Vehicle and (B) the sale of the
related Financed Vehicle; or (iii) the Servicer has determined in good faith
that all amounts it expects to be recovered have been received.

          "Material Adverse Effect" means, with respect to any event or
circumstance, a material adverse effect on (a) the business, financial
condition, operations or assets of the Issuer (considered separately) or the
Issuer, the Seller, the Servicer and the Depositor (taken as a whole), (b) the
ability of any Triad Party to perform its obligations under any Transaction
Document to which it is a party, (c) the validity, enforceability of, or
collectibility of, amounts payable by any Triad Party under any Transaction
Document to which it is a party, (d) the status, existence, perfection or
priority of the interest of the Issuer or of the Indenture Trustee in the Trust
Estate, (e) the validity, enforceability or collectibility of all or any portion
of the Trust Estate with an aggregate value of at least $500,000 or (f) the
ability of the Insurer to monitor the performance of the Receivables and
compliance of the Triad Parties with the Transaction Documents unless such
impediment results from an action or omission on the part of the Insurer.

                                       5

<PAGE>

          "Moody's" means Moody's Investors Service, Inc. and any successor
thereto.

          "Net Liquidation Losses" means, with respect to any Determination
Date, the amount, if any, by which (a) the sum of (i) the Principal Balance of
all Receivables which became Liquidated Receivables during the related
Collection Period, and (ii) the aggregate of all Cram Down Losses that occurred
during such Collection Period, exceeds (b) the Net Liquidation Proceeds received
during the related Collection Period in respect of all Liquidated Receivables.

          "Net Liquidation Proceeds" means, with respect to a Liquidated
Receivable, (1) proceeds from the disposition of the underlying Financed
Vehicle; plus (2) any related insurance proceeds; plus (3) other monies received
from the Obligor that are allocable to principal and interest due under the
Receivable, minus (4) the Servicer's reasonable out-of-pocket costs, including
repossession and resale expenses not already deducted from the proceeds, and any
amounts required to be remitted to the Obligor by law.

          "Net Loss Rate" means, with respect to a Collection Period, the
fraction, expressed as a percentage, the numerator of which is equal to the
aggregate of the Net Liquidation Losses for such Collection Period and the
denominator of which is the Aggregate Principal Balance as of the first day of
such Collection Period.

          "Obligor" on a Receivable means the purchaser or co-purchaser(s) of
the Financed Vehicle and any other Person who owes payments under the
Receivable.

          "Offering Document" means, taken together, the Preliminary Prospectus
Supplement, dated January 18, 2006 (the "Preliminary Prospectus Supplement"),
the Preliminary Prospectus, dated January 18, 2006, the Prospectus Supplement,
dated January 20, 2006 (the "Prospectus Supplement"), and the Prospectus, dated
January 20, 2006, of the Issuer, in respect of the offering and sales of the
Class A Notes, any amendment or supplement thereto, and any other offering
document in respect of the Class A Notes that makes reference to the Ambac
Policy.

          "Overcollateralization" means an amount equal to the difference
between (i) the total aggregate amount of the outstanding balances of all
previous, current and future receivables sold by Triad or its Successor that are
not recognized for accounting purposes on a GAAP balance sheet of Triad or its
Successor, less (ii) the total aggregate amount of outstanding balances of all
"AAA" rated insured securities and securities rated "BBB" or above issued for a
senior subordinate asset backed securitization transaction previously, currently
or hereafter issued by Triad or its Successor, that are not recognized for
accounting purposes on a GAAP balance sheet of Triad or its Successor.

          "Person" means an individual, corporation, estate, partnership, joint
venture, association, joint stock company, trust (including any beneficiary
thereof), unincorporated organization or government or any agency or political
subdivision thereof.

          "Premium" means the premium payable in accordance with the Fee Letter.

          "Principal Balance" means, for any Receivable as of any date of
determination, (i) the Amount Financed; minus (ii) the sum of (a) that portion
of all amounts received on or prior to

                                       6

<PAGE>

that date and allocable to principal according to the Receivable's terms, and
(b) any Cram Down Losses for the Receivable accounted for as of that date.

          "Purchase Agreement" means the Purchase Agreement among Triad
Financial Special Purpose LLC and Triad, dated as of January 26, 2006, as such
Purchase Agreement may be amended or supplemented from time to time.

          "Purchased Receivable" means, with respect to any Collection Period, a
Receivable purchased as of the close of business on the last day of the
Collection Period by Triad or the servicer, as long as Citibank, N.A. is not
acting as successor servicer, as the result of a breach of a covenant or as an
exercise of its optional redemption right.

          "Rating Agencies" means Moody's and S&P.

          "Receivables" means each motor vehicle retail installment sale
contract, installment loan contract or note and security agreement listed on the
Schedule of Receivables attached as an Exhibit to the Sale and Servicing
Agreement.

          "Responsible Officer" means any Vice President, Assistant Vice
President, Assistant Treasurer, Assistant Secretary or any other officer of the
relevant Transaction Party responsible for the performance of such Transaction
Party's obligations under the Transaction Documents and also, with respect to a
particular matter, any other officer to whom such matter is referred because of
such officer's knowledge of and familiarity with the particular subject.

          "Sale and Servicing Agreement" means the Sale and Servicing Agreement,
dated as of January 26, 2006, among the Issuer, the Depositor, Triad as Servicer
and Custodian, and the Indenture Trustee and Backup Servicer, as the same may be
amended or supplemented from time to time.

          "Scheduled Receivables Payment" means, with respect to any Collection
Period for any Receivable, the amount set forth in the Receivable as required to
be paid by the Obligor in the Collection Period. If, after the Closing Date, the
Obligor's obligation under a Receivable with respect to a Collection Period is
modified so as to differ from the amount specified in the Receivable as a result
of (i) the order of a court in an insolvency proceeding involving the Obligor,
(ii) pursuant to the Servicemembers Civil Relief Act or (iii) modifications or
extensions of the Receivable permitted by Section 4.2(b) of the Sale and
Servicing Agreement, the Scheduled Receivables Payment with respect to such
Collection Period will refer to the Obligor's payment obligation with respect to
the Collection Period as so modified.

          "Schedule of Receivables" means the schedule of all motor vehicle
retail installment sale contracts, installment loan contracts and note and
security agreements originally held as part of the Trust which is attached as a
Schedule to the Sale and Servicing Agreement.

          "Securities Act" means the Securities Act of 1933, including, unless
the context otherwise requires, the rules and regulations promulgated
thereunder, as amended from time to time.

                                        7

<PAGE>

          "Securities Exchange Act" means the Securities Exchange Act of 1934,
including, unless the context otherwise requires, the rules and regulations
promulgated thereunder, as amended from time to time.

          "Seller" has the meaning specified in the initial paragraph hereof.

          "Servicer" has the meaning specified in the recitals hereof.

          "Servicer Termination Event" has the meaning specified in Section 9.1
of the Sale and Servicing Agreement.

          "Servicing Policy and Procedures" means the policies and procedures
set forth on Schedule C to the Sale and Servicing Agreement, and any amendments
thereto.

          "S&P" means Standard & Poor's, a division of The McGraw-Hill
Companies, Inc., and any successor thereto.

          "Spread Cap Event" means, with respect to any Determination Date, the
occurrence of any of the following:

          (a) the Delinquency Rate with respect to such Determination Date shall
     exceed the rate provided for the related Collection Period as set forth in
     Schedule A; or

          (b) the Cumulative Net Loss Ratio with respect to such Determination
     Date shall exceed the rate provided for the related Collection Period as
     set forth in Schedule B;

provided that if the Spread Cap Event is Deemed Cured as of such Determination
Date, there shall be no Spread Cap Event on such Determination Date.

          "Successor" means, following the merger or a consolidation of Triad
with any other Person, or the conveyance, transfer or lease by Triad of all or
substantially all of its assets to another Person, or Triad's permitting any
other Person to become the successor to Triad's business, in each case, such
other Person.

          "Tangible Net Worth Floor" means, with respect to Triad, the
calculation set forth in Exhibit D attached hereto.

          "Total Assets" means, as of any date, the GAAP assets of Triad,
including any sold receivables not recognized for accounting purposes on a GAAP
balance sheet but serviced by Triad, less Overcollateralization, and excluding
Intangible Assets (as that term is defined in the definition of Consolidated
Tangible Net Worth).

          "Transaction" means the transactions contemplated by the Transaction
Documents.

          "Transaction Documents" means this Agreement, the Underwriting
Agreement, the Sale and Servicing Agreement, the Certificate of Trust, the Trust
Agreement, the Purchase

                                        8

<PAGE>

Agreement, the Indenture and all other documents and certificates delivered in
connection therewith except for the Ambac Policy.

          "Transaction Parties" means the Triad Parties and the Indenture
Trustee.

          "Triad" has the meaning specified in the recitals hereof.

          "Triad Party" means any of the Issuer, Triad, the Servicer, the
Depositor and the Holder of the Residual Certificate (collectively, the "Triad
Parties"); provided, however, that solely with respect to the definition of
"Triad Party" as such term is used in the Ambac Policy, "Triad Party" shall have
the meaning as specified therein.

          "Trigger Event" means, with respect to any Determination Date, the
occurrence of any of the following:

          (a) the Delinquency Rate with respect to such Determination Date shall
     exceed the rate provided for the related Collection Period, as set forth in
     Schedule C;

          (b) the Cumulative Net Loss Ratio with respect to such Determination
     Date shall exceed the rate provided for the related Collection Period, as
     set forth in Schedule D; or

          (c) the Consolidated Tangible Net Worth of Triad, or its Successor, is
     less than the greater of (x) 7.25% of its Total Assets and (y) the Tangible
     Net Worth Floor, as set forth in Exhibit D.

          "Trust Agreement" means the Trust Agreement dated as of December 13,
2005, among Triad, as Administrator, the Depositor and the Owner Trustee, as
amended and restated as of January 26, 2006 as the same may be amended and
supplemented from time to time.

          "Underwriter Information" means the information furnished by any
Underwriter in writing expressly for use in the Offering Document and included
in the third, fourth, sixth, seventh, eighth or ninth paragraphs under the
heading "Underwriting" in the Prospectus Supplement.

          "Underwriters" shall mean Citigroup Global Markets Inc. and Goldman,
Sachs & Co. as representatives of the several underwriters named in the
Underwriting Agreement.

          "Underwriting Agreement" means the Underwriting Agreement, dated
January 20, 2006 among the Underwriters and the Depositor with respect to the
offer and sale of the Class A Notes, as amended, modified or supplemented from
time to time.

          Section 1.2 Other Definitional Provisions. The words "hereof,"
"herein" and "hereunder" and words of similar import when used in this Insurance
Agreement shall refer to this Insurance Agreement as a whole and not to any
particular provision of this Insurance Agreement, and Section, subsection,
Schedule and Exhibit references are to this Insurance Agreement unless otherwise
specified. The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms. The words
"include" and

                                        9

<PAGE>

"including" shall be deemed to be followed by the phrase "without limitation."
Where a representation, warranty or covenant herein begins with the words "as to
a Person only," such representation, warranty or covenant is given by and as to
such Person only.

                                   ARTICLE II

                    REPRESENTATIONS, WARRANTIES AND COVENANTS

          Section 2.1 Representations and Warranties of the Seller and Servicer.
Triad hereby makes, to and for the benefit of the Insurer, each of the
representations and warranties made by it in each of the Transaction Documents
to which it is a party, including Section 3.1 of the Purchase Agreement and
Sections 4.6 and 8.1 of the Sale and Servicing Agreement. Such representations
and warranties are incorporated herein by this reference as if fully set forth
herein, and may not be amended except by an amendment complying with the terms
of the last sentence of Section 6.1 hereof. In addition, Triad represents and
warrants as of the Closing Date as follows:

          (a) The offer and sale of the Class A Notes by the Issuer comply in
all material respects with all requirements of law, including all registration
requirements of applicable securities laws and, without limiting the generality
of the foregoing, the Offering Document (other than the Underwriter Information
and the Insurer Information) does not contain any untrue statement of a material
fact and does not omit to state a material fact necessary to make the statements
made therein, in light of the circumstances under which they were made, not
misleading.

          (b) The Indenture has been duly qualified under the Trust Indenture
Act of 1939, as amended; the Issuer is not required to be registered as an
"investment company" under the Investment Company Act; and neither the offer nor
the sale of the Class A Notes by the Issuer will be in violation of the
Securities Act or any other federal or state securities law. Triad shall satisfy
any of the information reporting requirements of the Securities Exchange Act
arising out of the Transaction to which it, the Depositor or the Issuer is
subject.

          (c) Neither the Transaction Documents nor any other information
relating to the Receivables, the Other Conveyed Property or any other asset in
the Trust Estate, the operations or financial condition of any of the Triad
Parties (collectively, the "Information"), as amended, supplemented or
superseded, furnished to the Insurer by such Triad Party contains any statement
of a material fact which was untrue or misleading in any material respect when
made. None of the Triad Parties has any knowledge of any circumstances that
could reasonably be expected to have a Material Adverse Effect. Since the
furnishing of the Information, there has been no change nor any development or
event involving a prospective change known to any of the Triad Parties that
would render any of the Transaction Documents untrue or misleading in any
material respect.

          Section 2.2 Affirmative Covenants of Seller and Servicer. Triad hereby
makes, to and for the benefit of the Insurer, all of the covenants made by it in
the Transaction Documents to which it is a party, including Section 4.5 of the
Purchase Agreement and Section 4.6 of the Sale and Servicing Agreement. Such
covenants are hereby incorporated herein by this

                                       10

<PAGE>

reference as if fully set forth herein, and may not be amended except by an
amendment complying with the terms of the last sentence of Section 6.1. In
addition, Triad hereby agrees that during the term of this Insurance Agreement,
unless the Insurer shall otherwise expressly consent in writing:

          (a) Compliance with Agreements and Applicable Laws. It shall comply
with the terms and conditions of and perform its obligations under the
Transaction Documents to which it is a party and shall comply with any law, rule
or regulation applicable to it, except where the failure to comply with any such
law, rule or regulation is not reasonably likely to have a Material Adverse
Effect.

          (b) Existence. Except as otherwise expressly provided by the
Transaction Documents, it shall maintain its corporate existence and shall at
all times continue to be duly organized under the laws of the place of its
organization and duly qualified and duly authorized thereunder. Additionally, it
shall conduct its business in accordance with the terms of its Charter Documents
and shall maintain all licenses, permits, charters and registrations, except for
any such license, permit, charter or registration the failure of which to
maintain is not reasonably likely to have a Material Adverse Effect.

          (c) Notice of Material Events. It shall promptly (and, with respect to
item (ii) below, in any event not later than two (2) Business Days, and, with
respect to all other items not later than five (5) Business Days) following
receipt of actual knowledge by a Responsible Officer thereof inform the Insurer
in writing of the occurrence of any of the following:

          (i) the submission of any claim or the initiation of any legal
     process, litigation or administrative or judicial investigation, or
     disciplinary proceeding by or against it that would be reasonably likely to
     have a Material Adverse Effect or the promulgation of any proceeding or any
     proposed or final ruling in connection with any such litigation,
     investigation or proceeding which would reasonably likely to have a
     Material Adverse Effect;

          (ii) the occurrence of any Event of Default hereunder, any Default or
     Event of Default under the Indenture, any Servicer Termination Event, any
     Trigger Event or any Spread Cap Event;

          (iii) the commencement of any Insolvency Proceeding against any
     Transaction Party;

          (iv) any Person becoming a Successor; and

          (v) the receipt of written notice that (a) any license, permit,
     charter, registration or approval necessary and material for the conduct of
     its business is to be, or may be, suspended or revoked and such suspension
     or revocation would be reasonably likely to have a Material Adverse Effect
     or (b) it is to cease and desist any practice, procedure or policy employed
     by it in the conduct of its business, and such cessation would be
     reasonably likely to have a Material Adverse Effect.

                                       11

<PAGE>

          (d) Notice of Change. It shall give the Insurer not less than thirty
(30) days' prior written notice of any proposed change in its name, principal
place of business or jurisdiction of organization.

          (e) Access to Records; Discussions with Officers and Accountants. As
long as upon reasonable prior written notice of the Insurer, at any time, it
shall permit the Insurer or its authorized agents:

          (i) to inspect its books and its records as they may relate to the
     Transaction, the Receivables, the Other Conveyed Property or any other
     assets in the Trust Estate, as the case may be, or its obligations under
     the Transaction Documents;

          (ii) to discuss its affairs, finances and accounts with its principal
     executive officer and its principal financial officer; and

          (iii) to discuss its affairs, finances and accounts with its
     independent accountants, provided that one of its officers shall have the
     right to be present during such discussions.

          Such inspections and discussions shall be conducted during normal
business hours at Triad's cost and expense and shall not unreasonably disrupt
the business of the Seller or the Servicer. Absent an Event of Default
hereunder, any Default or Event of Default under the Indenture, a Servicer
Termination Event, a Trigger Event or an Insurance Agreement Repurchase Event,
the Insurer shall not conduct such inspections or discussions more often than
annually, unless otherwise mutually agreed by the Insurer and Triad. If,
however, an Event of Default hereunder or under the Indenture, a Servicer
Termination Event, a Trigger Event, a Spread Cap Event or an Insurance Agreement
Repurchase Event has occurred and is continuing, the Insurer may increase the
frequency of such audits to semi-annual, quarterly, or otherwise as it deems
appropriate. Without limiting the foregoing, upon the occurrence of a Trigger
Event an Event of Default hereunder or under the Indenture, a Servicer
Termination Event, a Spread Cap Event or an Insurance Agreement Repurchase
Event, Triad shall make its principal officers available to discuss the
Transaction with representatives of the Insurer within 15 days of receipt by
Triad of such a request from the Insurer.

          (f) Closing Documents. It shall provide or cause to be provided to the
Insurer an executed original copy of each Transaction Document executed by it in
connection with the closing of the Transaction within thirty (30) days of the
Closing Date.

          (g) Field Examination by Independent Public Accountants. Upon
reasonable prior written notice of the Insurer at any time, it shall permit
independent public accountants designated by the Insurer, from time to time to
conduct a field examination(s), and in connection therewith shall permit such
independent public accountants without limitation:

          (i) to inspect its books and records as they may relate to the
     Transaction, the Receivables, the Other Conveyed Property or any other
     assets in the Trust Estate, as the case may be, or its obligations under
     the Transaction Documents;

                                       12

<PAGE>

          (ii) to discuss its affairs, finances and accounts with its principal
     executive officer and its principal financial officer; and

          (iii) to discuss its affairs, finances and accounts with its
     independent accountants, provided that one of its officers shall have the
     right to be present during such discussions.

          Such inspections and discussions shall be conducted during normal
business hours at Triad's cost and expense and shall not unreasonably disrupt
the business of the Seller or the Servicer. Absent an Event of Default hereunder
or under the Indenture, a Servicer Termination Event, a Trigger Event, a Spread
Cap Event or an Insurance Agreement Repurchase Event, the Insurer shall not
conduct such inspections and discussion more often than annually, unless
otherwise mutually agreed by the Insurer and Triad. If, however, an Event of
Default hereunder or under the Indenture, a Servicer Termination Event, a
Trigger Event, a Spread Cap Event or an Insurance Agreement Repurchase Event has
occurred and is continuing, the Insurer may increase the frequency of such
audits to semi-annual, quarterly, or otherwise as it deems appropriate.

          (h) Financial Reporting. Triad shall provide or cause to be provided
to the Insurer the following:

          (i) Annual and Periodic Financial Statements; Other Reporting. Copies
     of the "Accountant's Report" required to be delivered pursuant to Section
     4.11 of the Sale and Servicing Agreement and such notices, certificates,
     reports and other information delivered by Triad under the Transaction
     Documents, as and when required pursuant to such sections or agreements,
     and any other reporting or financial information required to be provided to
     the Insurer pursuant to the terms of the Transaction Documents, including,
     without limitation, financial projections, as and when required pursuant to
     such terms. Such statements will be provided no later than thirty (30) days
     following each fiscal quarter.

          (ii) Compliance Certificate. Together with the "Accountant's Report"
     required under Section 4.11 of the Sale and Servicing Agreement, a
     compliance certificate signed by its principal financial officer stating
     that to the best of such person's knowledge, (a) each Triad Party is in
     compliance with its obligations hereunder and under the other Transaction
     Documents, and (b) no Event of Default hereunder or under the Indenture or
     Servicer Termination Event exists and no event which but for the lapse of
     time or the giving of notice, or both, would constitute an Event of Default
     hereunder or under the Indenture or Servicer Termination Event or Trigger
     Event exists, or if an Event of Default hereunder or under the Indenture or
     Servicer Termination Event or other such event exists, stating the nature
     and status thereof (including all relevant financial and other information
     and amounts used in determining whether such Event of Default hereunder or
     under the Indenture or Servicer Termination Event or Trigger Event or other
     such event exists).

          (iii) S.E.C. Filings. Promptly after the filing thereof; copies of all
     registration statements and annual, quarterly or other regular reports
     which Triad or any subsidiary files with the Securities and Exchange
     Commission.

                                       13

<PAGE>

          (iv) Shareholders Statements and Reports. Promptly after the
     furnishing thereof to its shareholders, copies of all financial statements,
     reports and proxy statements so furnished.

          (v) Amendments to Servicing Policy and Procedure. Within ten (10)
     Business Days after the date of any material change or amendment to its
     Servicing Policy and Procedure, a true and complete copy of such change or
     amendment, and if requested by the Insurer, a copy of the Servicing Policy
     and Procedure then in effect. No such change or amendment shall become
     effective if the Insurer determines, in its sole discretion, that such
     change or amendment will have a Material Adverse Effect; provided that such
     change or amendment shall become effective and continue to be effective if
     the Insurer has not objected to such change or amendment within ten (10)
     Business Days of receipt of written notice thereof.

          (vi) Servicing Policy and Procedure. Within ninety (90) days after the
     end of each of its fiscal years, a true and complete copy of its Servicing
     Policy and Procedure then in effect.

          (i) Public Debt Ratings. Promptly, but in any event within five (5)
Business Days after the date of any change in its public debt ratings, if any, a
written certification of its public debt ratings after giving effect to such
change.

          (j) Compliance with Securities Laws. It shall comply with the
Securities Act and the Securities Exchange Act and the regulations thereunder so
as to permit the completion of the offer and sale of the Class A Notes as
contemplated by the Underwriting Agreement.

          (k) Disclosure Document. Each Offering Document delivered with respect
to the Class A Notes shall clearly disclose that the insurance provided by the
Ambac Policy is not covered by the property/casualty insurance security fund
specified in Article 76 of the New York Insurance Law.

          (l) Other Information. It shall provide to the Insurer such other
information (including non-financial information) in respect of the Receivables,
the Other Conveyed Property or the other assets in the Trust Estate, as the case
may be, the Transaction and the Transaction Documents and such other financial
or operating information in respect of itself, the Depositor, the Issuer or any
of their Affiliates, in each case, which the Insurer may from time to time
reasonably request.

          Section 2.3 Negative Covenants of the Seller and Servicer. Triad
hereby agrees that during the term of this Insurance Agreement, unless the
Insurer shall otherwise expressly consent in writing:

          (a) Impairment of Rights. It shall not take any action, or fail to
take any action, if such action or failure to take action (x) is reasonably
likely to have a Material Adverse Effect or (y) is reasonably likely to
interfere with the enforcement of any rights of the Insurer under or with
respect to any of the Transaction Documents. It shall give the Insurer written
notice of any such action or failure to act promptly prior to the date of
consummation of such

                                       14

<PAGE>

action or failure to act. It shall furnish to the Insurer all information
requested by it that is reasonably necessary to determine compliance with this
paragraph.

          (b) Amendments, Etc. It shall not modify, amend or waive, or consent
to any modification or amendment of, any of the terms, provisions or conditions
of the Transaction Documents to which it is a party without the prior written
consent of the Insurer thereto.

          (c) Change in Processing Bank. Except as provided in a Blocked Account
Agreement, it shall not permit a change in the Lockbox Account or any Processing
Bank designated in a Blocked Account Agreement without the prior written consent
of the Insurer, which consent shall not be unreasonably withheld; provided,
however, that without limiting the foregoing, it shall be deemed reasonable for
the Insurer to withhold its consent if the long term senior unsecured debt of
any new Processing Bank is not rated at least "A" by S&P and "A2" by Moody's.

          Section 2.4 Representations and Warranties of the Insurer. The Insurer
represents and warrants to the Indenture Trustee (on behalf of the Holders), the
Issuer and each other Transaction Party as follows:

          (a) Organization and Licensing. The Insurer is a stock insurance
corporation duly organized, validly existing and in good standing under the laws
of the State of Wisconsin.

          (b) Corporate Power. The Insurer has the corporate power and authority
to issue the Ambac Policy and execute and deliver this Insurance Agreement and
to perform all of its obligations hereunder and thereunder.

          (c) Authorization; Approvals. All proceedings legally required for the
issuance of the Ambac Policy and the execution, delivery and performance of this
Insurance Agreement have been taken and all licenses, orders, consents or other
authorizations or approvals of the Insurer's Board of Directors or stockholders
or any governmental boards or bodies legally required for the enforceability of
the Ambac Policy have been obtained or are not material to the enforceability of
the Ambac Policy.

          (d) Enforceability. The Ambac Policy, when issued, will constitute,
and this Insurance Agreement constitutes, legal, valid and binding obligations
of the Insurer, enforceable in accordance with their respective terms, subject
to insolvency, reorganization, moratorium, receivership and other similar laws
affecting creditors' rights generally and by general principles of equity and
subject to principles of public policy limiting the right to enforce the
indemnification provisions contained therein and herein, insofar as such
provisions relate to indemnification for liabilities arising under federal
securities laws.

          (e) No Conflict. The execution by the Insurer of this Insurance
Agreement will not, and the satisfaction of the terms hereof will not, conflict
with or result in a breach of any of the terms, conditions or provisions of the
Certificate of Incorporation or By-Laws of the Insurer, or any restriction
contained in any contract, agreement or instrument to which the Insurer is a
party or by which it is bound or constitute a default under any of the foregoing
which would materially and adversely affect its ability to perform its
obligations under the Ambac Policy or this Insurance Agreement.

                                       15

<PAGE>

          (f) Accuracy of Information. The Insurer Information included in the
Offering Document is limited and does not purport to provide the scope of
disclosure required to be included in a prospectus with respect to a registrant
in connection with the offer and sale of securities of such registrant
registered under the Securities Act. Within such limited scope of disclosure,
however, as of the date of the Offering Document, the Insurer Information does
not contain an untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in light of the circumstances in
which they were made, not misleading.

          Section 2.5 Representations and Warranties of the Depositor and the
Issuer. Each of the Depositor and the Issuer hereby makes, to and for the
benefit of the Insurer, each of the representations and warranties made by the
Depositor or the Issuer, as the case may be, in the Transaction Documents to
which it is a party, including Section 3.2 of the Purchase Agreement and Section
7.1 of the Sale and Servicing Agreement (in the case of the Depositor). Such
representations and warranties are incorporated herein by this reference as if
fully set forth herein, and may not be amended except by an amendment complying
with the terms of Section 6.1 hereof. In addition, the Issuer represents and
warrants as of the Closing Date as follows:

          (a) Accuracy of Information. The information or statements contained
in the Transaction Documents furnished to the Insurer by it, as amended,
supplemented or superseded on or prior to the date hereof, taken as a whole,
does not, if restated at and as of the date hereof, contain any untrue statement
of a material fact or omit to state a material fact necessary to make such
information or statements not misleading in any material respect.

          (b) Compliance with Securities Laws. The Depositor will comply with
the Securities Act and the Securities Exchange Act and the regulations
thereunder so as to permit the completion of the offer and sale of the Class A
Notes as contemplated by the Underwriting Agreement. The offer and sale of the
Class A Notes by the Issuer will comply in all material respects with all
requirements of law, including all registration requirements of applicable
securities laws. Without limiting the foregoing, the Offering Document (other
than the Insurer Information and the Underwriter Information) does not contain
any untrue statement of a material fact and does not omit to state a material
fact necessary to make the statements made therein, in light of the
circumstances under which they were made, not misleading. Neither the offer nor
the sale of the Class A Notes by the Issuer has been or will be in violation of
the Securities Act or any other federal or state securities laws. The Depositor
will satisfy all applicable information reporting requirements of the Securities
Exchange Act arising out of the Transaction to which it or the Trust Estate are
subject. The Indenture has been duly qualified under the Trust Indenture Act of
1939, as amended.

          Section 2.6 Affirmative Covenants of the Depositor and the Issuer.
Each of the Depositor and the Issuer hereby makes, to and for the benefit of the
Insurer, all of the covenants of the Depositor or the Issuer, as the case may
be, set forth in the Transaction Documents to which it is a party, including the
covenants contained in Article IV of the Purchase Agreement and Section 7.2 of
the Sale and Servicing Agreement (in the case of the Depositor) and in Article
III of the Indenture (in the case of the Issuer). Such covenants are
incorporated herein by this reference, and may not be amended except by an
amendment complying with the terms of Section 6.1 hereof. In addition, each of
the Depositor and the Issuer hereby agrees that

                                       16

<PAGE>

during the term of this Insurance Agreement, unless the Insurer shall otherwise
expressly consent in writing:

          (a) Compliance with Agreements and Applicable Laws. It shall comply
with the terms and conditions of and perform its obligations under the
Transaction Documents to which it is a party and shall comply with any law, rule
or regulation applicable to it, except where the failure to comply with any such
law, rule or regulation is not reasonably likely to have a Material Adverse
Effect.

          (b) Existence. It shall maintain its existence as a limited liability
company or a statutory trust, as the case may be, under the laws of the State of
Delaware and shall at all times continue to be duly formed and validly existing
in good standing under the laws of the State of Delaware and duly qualified and
duly authorized thereunder and shall conduct its business in accordance with the
terms of its Charter Documents. The Issuer shall cause the Receivables Files to
be located at such location as specified in Section 3.3(c) of the Sale and
Servicing Agreement.

          (c) Access to Records; Discussions with Officers and Accountants. Upon
reasonable prior written notice of the Insurer, at any time, it shall permit the
Insurer or its authorized agents:

          (i) to inspect its books and records;

          (ii) to discuss its affairs, finances and accounts with its principal
     executive officer and its principal financial officer; and

          (iii) to discuss its affairs, finances and accounts with its
     independent accountants, provided that one of its officers and an officer
     of Triad shall have the right to be present during such discussions.

          Such inspections and discussions shall be conducted during normal
business hours at the cost and expense of Triad and shall not unreasonably
disrupt the Depositor's or Issuer's business, as the case may be. Absent an
Event of Default hereunder or under the Indenture, a Servicer Termination Event,
a Trigger Event, a Spread Cap Event or an Insurance Agreement Repurchase Event,
the Insurer shall not conduct such inspections or discussions more often than
annually, unless otherwise mutually agreed by the Insurer and Triad. If,
however, an Event of Default hereunder or under the Indenture, a Servicer
Termination Event, a Trigger Event, a Spread Cap Event or an Insurance Agreement
Repurchase Event has occurred and is continuing, the Insurer may increase the
frequency of such audits to semi-annual, quarterly, or otherwise as it deems
appropriate. Without limiting the foregoing, upon the occurrence of an Event of
Default hereunder or under the Indenture, a Servicer Termination Event, a
Trigger Event, a Spread Cap Event or an Insurance Agreement Repurchase Event,
the Depositor and the Issuer shall make their respective principal officers
available to discuss the Transaction with representatives of the Insurer within
15 days of receipt by the Depositor and the Issuer, as the case may be, of such
a request from the Insurer.

          (d) Notice of Material Events. It shall be obligated promptly (and,
with respect to item (ii) below, in any event not later than two (2) Business
Days, and with respect to

                                       17

<PAGE>

all other items below, not later than five (5) Business Days) following receipt
of actual knowledge by a Responsible Officer thereof to inform the Insurer in
writing of the occurrence of any of the following:

          (i) the submission of any claim or the initiation of any legal
     process, litigation or administrative or judicial investigation, or
     disciplinary proceeding by or against it that would be reasonably likely to
     have a Material Adverse Effect or the promulgation of any proceeding or any
     proposed or final ruling in connection with any such litigation,
     investigation or proceeding which would reasonably likely to have a
     Material Adverse Effect;

          (ii) the occurrence of an Event of Default hereunder, a Default or
     Event of Default under the Indenture, a Servicer Termination Event, a
     Trigger Event or a Spread Cap Event;

          (iii) the commencement of any Insolvency Proceeding against any
     Transaction Party; and

          (iv) the receipt of written notice that (a) any license, permit,
     charter, registration or approval necessary for the conduct of its business
     is to be, or may be, suspended or revoked and such suspension or revocation
     would be reasonably likely to have a Material Adverse Effect or (b) it is
     to cease and desist any practice, procedure or policy employed by it in the
     conduct of its business, and such cessation would be reasonably likely to
     have a Material Adverse Effect.

          (e) It shall give the Insurer not less than thirty (30) days' prior
written notice of any proposed change in its name, principal place of business
or jurisdiction of organization.

          (f) Field Examination by Independent Public Accountants. Upon
reasonable prior written notice of the Insurer at any time, it shall permit
independent public accountants designated by the Insurer, from time to time to
conduct a field examination(s), and in connection therewith shall permit such
independent public accountants, without limitation:

          (i) to inspect its books and records;

          (ii) to discuss its affairs, finances and accounts with its principal
     executive officer and its principal financial officer; and

          (iii) to discuss its affairs, finances and accounts with its
     independent accountants; provided that one of its officers and an officer
     of the Depositor or the Issuer, as the case may be, and one officer of
     Triad (if Triad is then the Servicer) shall have the right to be present
     during such discussions.

          Such inspections and discussions shall be conducted during normal
business hours at the cost and expense of Triad and shall not unreasonably
disrupt the business of the Depositor or the Issuer, as the case may be. Absent
an Event of Default hereunder or under the Indenture, a Servicer Termination
Event, a Trigger Event, a Spread Cap Event or an Insurance Agreement Repurchase
Event, the Insurer shall not conduct field examinations more often than
annually,

                                       18

<PAGE>

unless otherwise mutually agreed by the Insurer and Triad. If, however, an Event
of Default hereunder or under the Indenture, a Servicer Termination Event, a
Trigger Event, a Spread Cap Event or an Insurance Agreement Repurchase Event has
occurred and is continuing, the Insurer may increase the frequency of such
audits to semi-annual, quarterly, or otherwise as it deems appropriate.

          (g) Maintenance of Licenses. It shall maintain all licenses, permits,
charters and registrations, except for licenses, permits, charters and
registrations the failure of which to maintain is not reasonably likely to have
a Material Adverse Effect.

          (h) Financial Reporting. It shall provide or cause to be provided to
the Insurer, as soon as practicable and in any event within 90 days after the
end of each of its fiscal years, an annual balance sheet as at the end of such
fiscal year and the notes thereto, and the related statements of income and cash
flows and the respective notes thereto for such fiscal year, certified by its
principal financial officer.

          (i) Financial Statements. Its financial statements and books and
records will reflect its separate existence and will present fairly its
financial position.

          (j) Other Information. It shall provide to the Insurer such other
information (including non-financial information) in respect of the Receivables,
the Other Conveyed Property or the other assets in the Trust Estate, as the case
may be, the Transaction and the Transaction Documents and such other financial
or operating information in respect of itself and the Receivables which the
Insurer may from time to time reasonably request.

          (k) Operation. It shall:

          (i) manage its day-to-day business without the involvement of any
     other Transaction Party except as required or permitted by the Transaction
     Documents or in connection with certain administrative services provided to
     the Depositor by the Seller;

          (ii) act solely in its own name in the conduct of its business,
     including business correspondence and other communications, and shall
     conduct its business so as not to mislead others as to the identity of the
     entity with which they are concerned;

          (iii) ensure that, to the extent that it shares the same officers or
     other employees as any of its Affiliates, the salaries of and the expenses
     related to providing benefits to such officers and other employees shall be
     fairly allocated among such entities, and each such entity shall bear its
     fair share of the salary and benefit costs associated with all such common
     officers and employees;

          (iv) ensure that, to the extent that it jointly contracts with any of
     its Affiliates to do business with vendors or service providers or to share
     overhead expenses, the costs incurred in doing so shall be allocated fairly
     among such entities, and each such entity shall bear its fair share of such
     costs. To the extent that it contracts or does business with vendors or
     service providers when the goods and services provided are partially for
     the benefit of any other Person, the costs incurred in so doing shall be
     fairly allocated to or among such entities for whose benefit the goods and
     services are provided, and each such

                                       19

<PAGE>

     entity shall bear its fair share of such costs. All material transactions
     between the other Transaction Parties and its Affiliates shall only be on
     an arm's-length basis;

          (v) require that all of its full-time employees identify themselves as
     such and not as employees of Triad or any other Triad Party (including,
     without limitation, by means of providing appropriate employees with
     business or identification cards identifying such employees as its
     employees); and

          (vi) compensate all employees, consultants and agents directly, from
     its bank accounts, for services provided to it by such employees,
     consultants and agents, and, to the extent any of its employees,
     consultants or agents is also an employee, consultant or agent of Triad (or
     any Affiliate thereof), allocate the compensation of such employee,
     consultant or agent between itself and Triad (or any Affiliate thereof) on
     a basis which reflects the services rendered to itself and Triad (or such
     Affiliate thereof).

          (l) Special Purpose Entity. In addition, the Depositor shall:

          (i) ensure that its capital is adequate for the business and
     undertakings of the Depositor;

          (ii) other than activities in connection with the Transaction, be
     restricted from undertaking any activities other than purchasing automobile
     loans receivables and transferring the proceeds to other special-purpose
     entities in connection with the issuance of other asset-backed securities;

          (iii) have at least one director, manager or member that is a person
     who is not, and will not be, a director, officer, employee or holder of any
     equity securities of Triad or any of its affiliates or subsidiaries;

          (iv) not commingle its funds and assets with the funds of any other
     person; and

          (v) maintain (A) correct and complete minute books and records of
     account, and (B) minutes of the meetings and other proceedings of its board
     of managers, as provided in its limited liability company agreement.

          Section 2.7 Negative Covenants of the Depositor and the Issuer. Each
of the Depositor and the Issuer hereby agrees that during the term of this
Insurance Agreement, unless the Insurer shall otherwise expressly consent in
writing:

          (a) Impairment of Rights. It shall not take any action, or fail to
take any action, if such action or failure to take action (x) is reasonably
likely to have a Material Adverse Effect or (y) is reasonably likely to
interfere with the enforcement of any rights of the Insurer under or with
respect to any of the Transaction Documents. It shall give the Insurer written
notice of any such action or failure to act promptly prior to the date of
consummation of such action or failure to act. It shall furnish to the Insurer
all information requested by the Insurer that is reasonably necessary to
determine compliance with this paragraph.

                                       20

<PAGE>

          (b) Amendments, Etc. It shall not modify, amend or waive, or consent
to any modification, amendment or waiver of, any of the terms, provisions or
conditions of the Transaction Documents to which it is a party, or any of its
Charter Documents without the prior written consent of the Insurer.

          (c) Limitation on Mergers, Etc. It shall not consolidate with or merge
with or into any Person or liquidate or dissolve, or transfer all or
substantially all of its assets to any Person except, in the case of the Issuer,
by way of the grant of a lien to the Indenture Trustee pursuant to the
Transaction Documents, or, except as expressly permitted by the Transaction
Documents, transfer any of its assets to any Person.

          (d) Certain Other Limitations. It shall

          (i) not be named as an insured on the insurance policy held by another
     Triad Party or covering the property of any other Triad Party, except to
     the extent it shall bear its allocable share of the expense thereof, or
     enter into an agreement with the holder of such policy whereby in the event
     of a loss in connection with property not owned by the Issuer or the
     Depositor, as the case may be, proceeds are paid to it.

          (ii) be restricted from undertaking activities in connection with the
     issuance of the Class A Notes other than activities as set forth in its
     Charter Documents;

          (iii) not be involved in the day-to-day management of any of the other
     Triad Parties except as required by or permitted by the Transaction
     Documents or in connection with certain administrative services provided to
     the Depositor by the Seller;

          (iv) not incur, assume or guarantee any indebtedness except for such
     indebtedness as may be incurred by the Issuer in connection with the
     issuance of the Class A Notes, or as otherwise expressly permitted by the
     Insurer or the Transaction Documents;

          (v) not commingle its deposit accounts (and funds therein) or other
     assets with the deposit accounts (and funds therein) or other assets of any
     other entity;

          (vi) not act as an agent of any other Triad Party; and

          (vii) not form, or cause to be formed, any subsidiaries; provided that
     the Depositor may form other special purpose entities in connection with
     the issuance of other asset-backed securities to the extent the Insurer
     acts as an insurer in connection with such transactions.

                                   ARTICLE III

                         THE AMBAC POLICY; REIMBURSEMENT

          Section 3.1 Issuance of the Ambac Policy. The Insurer agrees to issue
the Ambac Policy on the Closing Date subject to satisfaction of the conditions
precedent set forth below:

                                       21

<PAGE>

          (a) Payment of Expenses. The applicable parties shall have been paid
their related fees and expenses payable in accordance with Sections 3.2(a) and
(b);

          (b) Receipt of Certain Documents. The Insurer shall have received a
complete copy of the Servicing Policy and Procedures then in effect certified by
the principal financial officer of Triad and of each Transaction Document fully
executed and delivered by each applicable Transaction Party;

          (c) Representations and Warranties; Certificate. The representations
and warranties of the Triad Parties set forth or incorporated by reference in
this Insurance Agreement and the representations and warranties set forth by the
Indenture Trustee in the Indenture are true and correct on and as of the Closing
Date as if made on the Closing Date, and the Insurer has received a certificate
of appropriate officers of the related Triad Party to that effect;

          (d) No Litigation, Etc. No suit, action or other proceeding,
investigation or injunction, or final judgment relating thereto, is pending or,
to any Transaction Party's knowledge, threatened before any court, governmental
or administrative agency or arbitrator in which it is sought to restrain or
prohibit or to obtain damages or other relief in connection with any of the
Transaction Documents or the consummation of the Transaction;

          (e) Legality. No statute, rule, regulation or order has been enacted,
entered or deemed applicable by any government or governmental or administrative
agency or court that would make the Transaction illegal or otherwise prevent the
consummation thereof,

          (f) No Event of Default. No Event of Default hereunder, Default or
Event of Default under the Indenture, Trigger Event, Servicer Termination Event,
Spread Cap Event or Insurance Agreement Repurchase Event has occurred;

          (g) Satisfaction of Conditions of the Underwriting Agreement. All
conditions in the Underwriting Agreement relating to the Underwriters'
obligation to offer and sell the Class A Notes have been fulfilled to the
satisfaction of the Insurer, with such satisfaction deemed to have occurred upon
issuance of the Ambac Policy. The Insurer has received copies of each of the
documents, and shall be entitled to rely on each of the documents, required to
be delivered to the Underwriters pursuant to the Underwriting Agreement;

          (h) Issuance of Ratings. The Insurer has received confirmation that
the Class A-1 Notes will be rated in the highest short-term rating category by
at least two nationally recognized statistical rating agencies, that the Class
A-2 Notes, the Class A-3 Notes and the Class A-4 Notes will be rated in the
highest long-term rating category by at least two nationally recognized
statistical rating agencies and that, without the benefit of the Ambac Policy,
the Class A Notes will have a shadow rating of at least "BBB" from S&P and
"Baa2" from Moody's;

          (i) Approvals, Etc. The Insurer has received true and correct copies
of all approvals, licenses and consents, if any, required in connection with the
Transaction;

          (j) Fee Letter. The Insurer, the Indenture Trustee and the Issuer have
executed the Fee Letter;

                                       22

<PAGE>

          (k) Certified Copies. The Insurer has received an executed copy of
each Transaction Document;

          (l) Opinions. The Insurer has received opinions of counsel to the
Issuer and Triad concerning the perfection of the Indenture Trustee's security
interest in the Trust Estate and other matters under the laws of the United
States, and has received copies of any opinions delivered to the Rating
Agencies, the Noteholders and the Indenture Trustee, in each case addressed to,
and in form and substance satisfactory to, the Insurer;

          (m) Satisfactory Documentation. The Insurer and its counsel have
determined that all documents, the Class A Notes and opinions to be delivered in
connection with the Class A Notes conform to the terms of the Indenture, the
Offering Document, the Underwriting Agreement, the Sale and Servicing Agreement,
the Purchase Agreement and this Insurance Agreement; and

          (n) Additional Items. The Insurer has received such other documents,
instruments, approvals or opinions in form and substance reasonably satisfactory
to the Insurer as are reasonably requested by the Insurer, including evidence
reasonably satisfactory to the Insurer that the conditions precedent, if any, in
the Transaction Documents have been satisfied.

          Section 3.2 Payment of Fees and Premium.

          (a) Legal and Accounting Fees. Triad shall pay or cause to be paid on
the Closing Date all reasonable legal fees, auditors' fees and disbursements
incurred by the Insurer in connection with the issuance of the Ambac Policy and
the Transaction Documents through the Closing Date. Additional fees of the
Insurer's counsel or auditors payable in connection with the Transaction
Documents incurred after the Closing Date shall be paid by Triad as provided in
Section 3.3 below.

          (b) Rating Agency Fees. Triad shall promptly pay the initial fees of
the Rating Agencies with respect to the Class A Notes and the transactions
contemplated hereby following receipt of a statement with respect thereto, and
shall pay or cause to be paid any subsequent fees of the Rating Agencies with
respect to, and directly allocable to, the Class A Notes. The Insurer shall not
be responsible for any fees or expenses of the Rating Agencies. The fees for any
other rating agency shall be paid by the party requesting such other rating
agency's rating.

          (c) Premium. In consideration of the issuance by the Insurer of the
Ambac Policy, the Issuer shall pay or cause to be paid the Premiums to the
Insurer as set forth in the Fee Letter in accordance with the Indenture and this
Insurance Agreement and from the funds specified by Section 5.7 of the Sale and
Servicing Agreement, commencing on the day the Ambac Policy is issued, until the
Ambac Policy has been terminated in accordance with its terms. The Premium paid
pursuant to the Indenture and the Sale and Servicing Agreement shall be
nonrefundable without regard to whether any Notice (as defined in the Ambac
Policy) is delivered to the Insurer requiring the Insurer to make any payment
under the Ambac Policy or any other circumstances relating to the Class A Notes
or provision being made for payment of the Class A Notes prior to maturity.

                                       23

<PAGE>

          Section 3.3 Reimbursement Obligation. (a) The Issuer agrees absolutely
and unconditionally to reimburse the Insurer for any amounts paid by the Insurer
under the Ambac Policy, plus the amount of any other due and payable and unpaid
Reimbursement Amounts (as defined in the Ambac Policy), which reimbursement
shall be due and payable, on the date that any such amount is paid thereunder in
an amount equal to the amounts so paid and all amounts previously paid that
remain unreimbursed, together (without duplication) with interest on any and all
amounts remaining unreimbursed (to the extent permitted by law, if in respect of
any unreimbursed amounts representing interest) from the date such amounts
became due until paid in full (after as well as before judgment), at a rate of
interest equal to the Late Payment Rate.

          (b) Each of the Issuer and Triad agrees, jointly and severally, to pay
to the Insurer, promptly, but in no event later than 30 days after demand
thereof, as follows: any and all charges, fees, costs and expenses, including
reasonable attorneys' and accountants' fees and expenses, that the Insurer may
pay or incur in connection with the Transaction Documents, including (i) the
enforcement, defense or preservation of any rights in respect of any of the
Transaction Documents, defending, monitoring or participating in any litigation
or proceeding (including any insolvency proceeding in respect of any Triad Party
or any Affiliate thereof) relating to any of the Transaction Documents, any
party to any of the Transaction Documents (in its capacity as such a party) or
the Transaction, the costs and fees of inspections by the Insurer or audits or
field examinations by accountants and the ongoing administration of the
Transaction pursuant to the Transaction Documents, or (ii) any amendment, waiver
or other similar action with respect to, or related to, any Transaction
Document, whether or not executed or completed.

          (c) Each of the Issuer and Triad agrees, jointly and severally, to pay
to the party to whom such amounts are owed on demand interest at the Late
Payment Rate on any and all amounts described in Sections 3.3(b) and 3.4 after
the date such amounts become due and payable until payment thereof in full.

          (d) The Insurer acknowledges that any amounts payable by the Issuer
pursuant to Sections 3.3(a), 3.3(b), 3.3(c) or 3.4(b) herein, are payable solely
from amounts that are available to make such payments pursuant to clause FOURTH
of Section 5.6(a) of the Indenture and Sections 5.7(a)(vi),(vii) or (x) of the
Sale and Servicing Agreement, as applicable.

          Section 3.4 Indemnification. (a) In addition to any and all of the
Insurer's rights of reimbursement, indemnification or subrogation, and to any
other rights of the Insurer pursuant hereto or under law or in equity, each of
Triad and the Depositor agrees, jointly and severally, to pay, and to protect,
indemnify and save harmless, the Insurer and its officers, directors,
shareholders, employees, agents and each Person, if any, who controls the
Insurer within the meaning of either Section 15 of the Securities Act or Section
20 of the Securities Exchange Act from and against, any and all claims, losses,
liabilities (including penalties), actions, suits, judgments, demands, damages,
costs or expenses (including reasonable fees and expenses of attorneys,
consultants and auditors and reasonable costs of investigations) of any nature
arising out of or relating to the transactions contemplated by the Transaction
Documents by reason of:

          (i) any statement, omission or action (other than of the Insurer with
     respect to the Insurer Information, or of the Underwriters with respect to
     the Underwriter

                                       24

<PAGE>

     Information) in connection with the offering, issuance, sale or delivery of
     any of the Class A Notes;

          (ii) the negligence, bad faith, willful misconduct, misfeasance,
     malfeasance or theft committed by any director, officer, employee or agent
     of any Triad Party in connection with the Transaction;

          (iii) the violation by any Triad Party of any domestic or foreign law,
     rule or regulation, or any judgment, order or decree applicable to them;

          (iv) the breach by any Triad Party of any representation, warranty or
     covenant under any of the Transaction Documents (without giving effect to
     any materiality qualifier or limitation therein);

          (v) the occurrence, in respect of Triad's duties as the Servicer,
     under any of the Transaction Documents of any Servicer Termination Event or
     any event which, with the giving of notice or the lapse of time or both,
     would constitute any Servicer Termination Event; or

          (vi) any untrue statement or alleged untrue statement of a material
     fact contained in the Offering Document or any omission or alleged omission
     to state therein a material fact required to be stated therein or necessary
     to make the statements therein, in light of the circumstances under which
     they were made, not misleading, except insofar as such claims, losses,
     liabilities (including penalties), actions, suits, judgments, demands,
     damages, costs or expenses (including reasonable fees and expenses of
     attorneys, consultants and auditors and reasonable costs of investigations)
     arise out of or are based upon any untrue statement or omission in the
     Offering Document in the information with respect to (x) the Insurer
     Information and (y) the Underwriter Information.

          (b) In addition to any and all of the Insurer's rights of
reimbursement, indemnification or subrogation, and to any other rights of the
Insurer pursuant hereto or under law or in equity, the Issuer agrees to pay, and
to protect, indemnify and save harmless, the Insurer and its officers,
directors, shareholders, employees, agents and each Person, if any, who controls
the Insurer within the meaning of either Section 15 of the Securities Act or
Section 20 of the Securities Exchange Act from and against, any and all claims,
losses, liabilities (including penalties), actions, suits, judgments, demands,
damages, costs or expenses (including reasonable fees and expenses of attorneys,
consultants and auditors and reasonable costs of investigations) of any nature
arising out of or relating to the transactions contemplated by the Transaction
Documents, including by reason of:

          (i) any statement, omission or action (other than of the Insurer with
     respect to the Insurer Information, or of the Underwriter with respect to
     the Underwriter Information) in connection with the offering, issuance,
     sale or delivery of any of the Class A Notes;

                                       25

<PAGE>

          (ii) the negligence, bad faith, willful misconduct, misfeasance,
     malfeasance or theft committed by any director, officer, employee or agent
     of any Transaction Party in connection with the Transaction;

          (iii) the violation by any Transaction Party of any domestic or
     foreign law, rule or regulation, or any judgment, order or decree
     applicable to them;

          (iv) the breach by any Transaction Party of any representation,
     warranty or covenant under any of the Transaction Documents (without giving
     effect to any materiality qualifier or limitation therein); or

          (v) any untrue statement or alleged untrue statement of a material
     fact contained in the Offering Document or any omission or alleged omission
     to state therein a material fact required to be stated therein or necessary
     to make the statements therein, in light of the circumstances under which
     they were made, not misleading, except insofar as such claims, losses,
     liabilities (including penalties), actions, suits, judgments, demands,
     damages, costs or expenses (including reasonable fees and expenses of
     attorneys, consultants and auditors and reasonable costs of investigations)
     arise out of or are based upon any untrue statement or omission in the
     Offering Document in the information with respect to (x) the Insurer
     Information and (y) the Underwriter Information.

          (c) The Insurer agrees to pay, and to protect, indemnify and save
harmless each of Triad, the Depositor and the Issuer, and their respective
officers, directors, shareholders, employees, agents and each Person, if any,
who controls Triad, the Depositor and the Issuer, within the meaning of either
Section 15 of the Securities Act or Section 20 of the Securities Exchange Act
from and against, any and all claims, losses, liabilities (including penalties),
actions, suits, judgments, demands, damages, costs or expenses (including
reasonable fees and expenses of attorneys, consultants and auditors and
reasonable costs of investigations) of any nature arising out of or by reason of
any untrue statement or alleged untrue statement of a material fact contained in
the Insurer Information or any omission or alleged omission to state in the
Insurer Information a material fact required to be stated therein or necessary
to make the statements in the Insurer Information, in light of the circumstances
under which they were made, not misleading.

          (d) If any action or proceeding (including any governmental
investigation) shall be brought or asserted against any Person (each, an
"Indemnified Party") in respect of which the indemnity provided in Section
3.4(a), (b) or (c) may be sought from Triad, the Depositor, the Issuer or the
Insurer, as the case may be (the "Indemnifying Party"), each such Indemnified
Party shall promptly notify the Indemnifying Party in writing, and the
Indemnifying Party shall assume the defense thereof, including the employment of
counsel reasonably satisfactory to the Indemnified Party and the payment of all
expenses and legal fees; provided that failure to notify the Indemnifying Party
shall not relieve it from any liability it may have to such Indemnified Party
except to the extent that it shall be actually prejudiced thereby. The
Indemnified Party shall have the right to employ separate counsel in any such
action and to participate in the defense thereof at the expense of the
Indemnified Party and may assume the defense of any such action or claim in
reasonable cooperation with, and with the reasonable

                                       26

<PAGE>

cooperation of, the Indemnifying Party; provided, however, that the fees and
expenses of separate counsel to the Indemnified Party in any such proceeding
shall be at the expense of the Indemnifying Party if (i) the Indemnifying Party
has agreed to pay such fees and expenses, (ii) the Indemnifying Party shall have
failed to assume the defense of such action or proceeding or employ counsel
reasonably satisfactory to the Indemnified Party in any such action or
proceeding within a reasonable time after the commencement of such action or
(iii) the named parties to any such action or proceeding (including any
impleaded parties) include both the Indemnified Party and the Indemnifying
Party, and the Indemnified Party shall have been advised by counsel that there
may be one or more legal defenses available to it which are different from or
additional to those available to the Indemnifying Party (in which case, if the
Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the
Indemnifying Party shall not have the right to assume the defense of such action
or proceeding on behalf of such Indemnified Party, it being understood, however,
that the Indemnifying Party shall not, in connection with any one such action or
proceeding or separate but substantially similar or related actions or
proceedings in the same jurisdiction arising out of the same general allegations
or circumstances, be liable for the reasonable fees and expenses of more than
one separate firm of attorneys at any time for the Indemnified Parties, which
firm shall be designated in writing by the Indemnified Party). The Indemnifying
Party shall not be liable for any settlement of any such action or proceeding
effected without its written consent to the extent that any such settlement
shall be prejudicial to the Indemnifying Party, which consent shall not be
unreasonably withheld or delayed, but, if settled with its written consent, or
if there is a final judgment for the plaintiff in any such action or proceeding
with respect to which the Indemnifying Party shall have received notice in
accordance with this subsection (d), the Indemnifying Party agrees to indemnify
and hold the Indemnified Parties harmless from and against any loss or liability
by reason of such settlement or judgment.

          (e) To provide for just and equitable contribution if the
indemnification provided by the Indemnifying Party is determined to be
unavailable or insufficient to hold harmless any Indemnified Party (other than
due to application of this Section), each Indemnifying Party shall contribute to
the losses incurred by the Indemnified Party on the basis of the relative fault
of the Indemnifying Party, on the one hand, and the Indemnified Party, on the
other hand. The relative fault of each Indemnifying Party, on the one hand, and
each Indemnified Party, on the other, shall be determined by reference to, among
other things, whether the breach or alleged breach is within the control of the
Indemnifying Party or the Indemnified Party, and the parties relative intent,
knowledge, access to information and opportunity to correct or prevent such
breach. No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.

          Section 3.5 Payment Procedure. In the event of any payment by the
Insurer for which reimbursement is sought under Section 3.3, the Issuer, Triad
and the Indenture Trustee agree to accept the voucher or other evidence of
payment as prima facie evidence of the propriety thereof and the liability, if
any, described in Section 3.3 therefor to the Insurer; provided, that with
respect to claims for reimbursement of amounts other than amounts paid by the
Insurer under the Ambac Policy and any interest thereon made to Triad under
Section 3.3(b), the Insurer will also provide appropriate supporting documents
to Triad for such claims. All

                                       27

<PAGE>

payments to be made to the Insurer under this Insurance Agreement shall be made
to the Insurer (to such account as shall be specified by the Insurer in writing)
by no later than 3:00 p.m. (New York time) on the date when due in lawful
currency of the United States of America in immediately available funds or as
the Insurer shall otherwise direct by written notice to the party making such
payment. In the event that the date of any payment to the Insurer or the
expiration of any time period hereunder occurs on a day that is not a Business
Day, then such payment or expiration of time period shall be made or occur on
the next succeeding Business Day with the same force and effect as if such
payment was made or time period expired on the scheduled date of payment or
expiration date.

          Section 3.6 Subrogation. The parties hereto acknowledge that, to the
extent of any payment made by the Insurer pursuant to the Ambac Policy, the
Insurer shall be fully subrogated to the extent of such payment and any interest
due thereon, to the rights of the Noteholders to any moneys paid or payable in
respect of the Class A Notes under the Transaction Documents or otherwise
subject to applicable law. The parties hereto agree to such subrogation and
further agree to execute such instruments and to take such actions as, in the
sole and reasonable judgment of the Insurer, are necessary to evidence such
subrogation and to perfect the rights of the Insurer to receive any such moneys
paid or payable in respect of the Class A Notes, under the Transaction Documents
or otherwise.

                                   ARTICLE IV

                               FURTHER AGREEMENTS

          Section 4.1 Effective Date; Term of the Insurance Agreement. This
Insurance Agreement shall take effect on the Closing Date and shall remain in
effect until the later of (a) such time as the Insurer is no longer subject to a
claim under the Ambac Policy and such policy has been surrendered to the Insurer
for cancellation and (b) such time as all amounts payable to the Insurer by the
Triad Parties hereunder or under the Transaction Documents and the Class A Notes
have been irrevocably paid and redeemed in full and such Class A Notes have been
cancelled; provided, however, that the provisions of Sections 3.2, 3.3 and 3.4
hereof shall survive any termination of this Insurance Agreement.

          Section 4.2 Further Assurances and Corrective Instruments. (a) Unless
an Insurer Event of Default has occurred and is continuing, or except as the
Indenture otherwise provides, none of the Indenture Trustee and none of the
other Transaction Parties shall grant any waiver of rights under any of the
Transaction Documents to which any of them is a party without the prior written
consent of the Insurer and any such waiver without prior written consent of the
Insurer shall be null and void and of no force or effect.

          (b) Each of the parties hereto agrees that it will, from time to time,
execute, acknowledge and deliver, or cause to be executed, acknowledged and
delivered, such supplements hereto and such further instruments and agreements
and take such further actions as the Insurer may reasonably request and as may
be required in the Insurer's reasonable judgment to effectuate the intent and
purpose of this Insurance Agreement and the other Transaction Documents. Without
limiting the foregoing, to the extent such authorization shall be required by
law, each Triad Party hereby authorizes the Indenture Trustee and the Insurer,
at the expense of

                                       28

<PAGE>

the Issuer, in the event the Issuer has failed to do so upon request (provided
that no such request shall be required if there exists any Insolvency
Proceeding), to execute and file financing statements covering the assets
covered by any purchase or transfer pursuant to the Transaction Documents or
owned by the Issuer in such jurisdictions as may be required to confirm title
thereto and perfect and maintain the lien thereon. In addition, each of the
parties hereto agrees to cooperate with the Rating Agencies in connection with
any review of the Transaction conducted during normal business hours and in a
manner that does not unreasonably disrupt the business of the Transaction
Parties, that may be undertaken by the Rating Agencies after the date hereof
upon prior written notice.

          (c) None of the Transaction Parties shall cause or permit the Issuer
to issue any notes or other evidences of indebtedness, or to otherwise incur any
indebtedness, other than the indebtedness represented by the Class A Notes or
other indebtedness expressly permitted under the Transaction Documents.

          (d) Each Transaction Party shall concurrently provide the Insurer, as
and when delivery thereof is required to be made pursuant to the Transaction
Documents, with copies of all reports, notices, requests and demands delivered
or required to be delivered by it pursuant to the Transaction Documents.

          Section 4.3 Obligations Absolute. (a) The obligations of the
Transaction Parties hereunder shall be absolute and unconditional and shall be
paid or performed strictly in accordance with this Insurance Agreement and the
other Transaction Documents under all circumstances irrespective of:

          (i) any lack of validity or enforceability of, or any amendment or
     other modifications of, or waiver with respect to, any of the Transaction
     Documents or the Class A Notes;

          (ii) any exchange or release of any other obligations hereunder;

          (iii) the existence of any claim, setoff, defense, reduction,
     abatement or other right that a Transaction Party which is a party to any
     of the Transaction Documents may have at any time against the Insurer or
     any other Person;

          (iv) any document presented in connection with the Ambac Policy
     proving to be forged, fraudulent, invalid or insufficient in any respect or
     any statement therein being untrue or inaccurate in any respect;

          (v) any payment by the Insurer under the Ambac Policy against
     presentation of a certificate or other document that does not strictly
     comply with the terms of the Ambac Policy;

          (vi) any failure of the Transaction Parties to receive the proceeds
     from the sale of the Class A Notes;

          (vii) any Insolvency Event with respect to any Transaction Party; and

                                       29

<PAGE>

          (viii) any other circumstances, other than payment in full, that might
     otherwise constitute a defense available to, or discharge of, such party in
     respect of any Transaction Document.

          (b) The Transaction Parties and any and all others who are now or may
become liable for all or any part of the obligations of the Transaction Parties
under this Insurance Agreement agree to be bound by this Insurance Agreement and
(i) to the extent permitted by law, waive and renounce any and all redemption
and exemption rights and the benefit of all valuation and appraisement
privileges against the indebtedness and obligations evidenced by any Transaction
Document or by any extension or renewal thereof; (ii) waive presentment and
demand for payment, notices of nonpayment and of dishonor, protest of dishonor
and notice of protest; (iii) waive all notices in connection with the delivery
and acceptance hereof and all other notices in connection with the performance,
default or enforcement of any payment hereunder, except as required by the
Transaction Documents; (iv) waive all rights of abatement, diminution,
postponement or deduction, all defenses, other than payment, and all rights of
setoff or recoupment arising out of any breach under any of the Transaction
Documents, by any party thereto or any beneficiary thereof, or out of any
obligation at any time owing to any of the Transaction Parties; (v) agree that
their liabilities hereunder shall be unconditional and without regard to any
setoff, counterclaim or the liability of any other Persons for the payment
hereof; (vi) agree that any consent, waiver or forbearance hereunder with
respect to an event shall operate only for such event and not for any subsequent
event; (vii) consent to any and all extensions of time that may be granted by
the Insurer with respect to any payment hereunder or other provisions hereof and
to the release of any security at any time given for any payment hereunder, or
any part thereof, with or without substitution, and to the release of any Person
or entity liable for any such payment; and (viii) consent to the addition of any
and all other makers, endorsers, guarantors and other obligors for any payment
hereunder, and to the acceptance of any and all other security for any payment
hereunder, and agree that the addition of any such obligors or security shall
not affect the liability of the parties hereto for any payment hereunder.

          (c) Nothing herein shall be construed as prohibiting any party hereto
from pursuing any rights or remedies it may have against any Person in a
separate legal proceeding.

          Section 4.4 Assignments; Reinsurance; Third-Party Rights. (a) This
Insurance Agreement shall be a continuing obligation of the parties hereto and
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. None of the Transaction Parties may
assign its rights under this Insurance Agreement, or delegate any of its duties
hereunder, without the prior written consent of the Insurer. Any assignments
made in violation of this Insurance Agreement shall be null and void.

          (b) The Insurer shall have the right to give participations in its
rights under this Insurance Agreement and to enter into contracts of reinsurance
with respect to the Ambac Policy upon such terms and conditions as the Insurer
may in its discretion determine; provided, however, that no such participation
or reinsurance agreement or arrangement shall relieve the Insurer of any of its
obligations hereunder or under the Ambac Policy, and provided, further, that any
reinsurer or participant will not have any rights against the Transaction
Parties or the Holders and that none of the Transaction Parties or the Holders
shall have any obligation to have

                                       30

<PAGE>

any communication or relationship with any reinsurer or participant in order to
enforce the obligations of the Insurer hereunder and under the Ambac Policy.

          (c) The Insurer shall be entitled to assign or pledge to any bank,
other lender or reinsurer providing liquidity or credit with respect to the
Transaction or the obligations of the Insurer in connection therewith, any
rights of the Insurer under the Transaction Documents or with respect to any
real or personal property or other interests pledged to the Insurer or in which
the Insurer has a security interest, in connection with the Transaction, subject
in each case to the liens granted pursuant to the Transaction Documents;
provided that no such bank or other lender shall thereby obtain any direct right
against Transaction Parties or the Holders, and further, provided; that no such
assignment or pledge shall give any assignee the right to exercise any
discretionary authority that the Transaction Documents provide shall be
exercisable by the Insurer or relieve the Insurer of any of its obligations
hereunder or under the Ambac Policy.

          (d) Except as provided herein with respect to participants and
reinsurers, nothing in this Insurance Agreement shall confer any right, remedy
or claim, express or implied, upon any Person not a party hereto, including any
Holders, other than the rights of the Insurer against the Transaction Parties
and all the terms, covenants, conditions, promises and agreements contained
herein shall be for the sole and exclusive benefit of the parties hereto and
their successors and permitted assigns. Neither the Indenture Trustee nor any
Holders shall have any right to payment from any Premiums paid or payable
hereunder or under the Indenture or from any amounts paid by the Issuer or Triad
pursuant to Sections 3.2, 3.3 or 3.4 hereof.

          Section 4.5 Liability of the Insurer. Neither the Insurer nor any of
its officers, directors or employees shall be liable or responsible for: (a) the
use that may be made of the Ambac Policy by the Indenture Trustee or any other
party or for any acts or omissions of the Indenture Trustee or any other party
in connection therewith; or (b) the validity, sufficiency, accuracy or
genuineness of documents delivered to the Insurer in connection with any claim
under the Ambac Policy, or of any signatures thereon, even if such documents or
signatures should in fact prove to be in any or all respects invalid,
insufficient, fraudulent or forged (unless the Insurer shall have actual
knowledge thereof.). In furtherance and not in limitation of the foregoing, the
Insurer may accept documents that appear on their face to be in order, without
responsibility for further investigation.

          Section 4.6 [Reserved].

          Section 4.7 Rights and Remedies. Each party to this Insurance
Agreement has acknowledged and agreed to, and hereby confirms its
acknowledgement and agreement to, the collateral sale and assignment by the
Seller to the Depositor, by the Depositor to the Issuer, and the pledge by the
Issuer to the Indenture Trustee, of all of its right, title and interest in, to
and under the Trust Estate, and the Transaction Documents and all of the
Issuer's rights, remedies, powers and privileges and all claims of the Issuer or
the Depositor, as the case may be, against the Seller, of the Issuer against the
Depositor and of the Issuer against the Depositor or the Seller, under or with
respect to the Transaction Documents (whether arising pursuant to the terms
thereof or otherwise available at law or in equity), including without
limitation (whether or not any of a Default or Event of Default under the
Indenture, an Event of Default hereunder, a Servicer Termination Event, a
Trigger Event or a Spread Cap Event has occurred and is

                                       31

<PAGE>

continuing) (i) the right of the Issuer at any time to enforce the Transaction
Documents against the Servicer, the Depositor or the Seller and the obligations
of the Servicer, the Seller and the Depositor thereunder and (ii) the right at
any time to give or withhold any and all consents, requests, notices,
directions, approvals, demands, extensions or waivers under or with respect to
any Transaction Document or the obligations in respect of the Issuer, the
Servicer, the Depositor or the Seller thereunder, all of which rights, remedies,
powers, privileges and claims may, notwithstanding any provision to the contrary
by any of the Transaction Documents, be exercised and/or enforced by the
Indenture Trustee in lieu of and in the place and stead of the Depositor and the
Issuer to the same extent as the Depositor or the Issuer would otherwise do, and
except to the extent a Transaction Document provides that the Insurer shall not
have such a right upon an Insurer Default that has occurred and is continuing,
neither the Depositor nor the Issuer may exercise any of the foregoing rights
without the prior written consent of the Insurer. Each party hereto further
acknowledges and agrees that, unless an Insurer Default has occurred and is
continuing, the Indenture Trustee will take or refrain from taking any action,
and exercise or refrain from exercising any rights under the Transaction
Documents in its capacity as Indenture Trustee pursuant to the written direction
of the Insurer; provided, however, that the obligations of the Indenture Trustee
to take or refrain from taking, or to exercise or refrain from exercising, any
such action or rights shall not apply to routine administrative tasks required
to be performed by the Indenture Trustee pursuant to the Transaction Documents
and shall be limited to those actions and rights that can be exercised or taken
(or not exercised or taken, as the case may be) in full compliance with the
provisions of the Transaction Documents and with applicable law.

                                       32

<PAGE>

                                   ARTICLE V

                              DEFAULTS AND REMEDIES

          Section 5.1 Defaults. The occurrence of any of the following events
shall constitute an "Event of Default" hereunder:

          (a) Any representation or warranty made by any of the Transaction
Parties hereunder or under the Transaction Documents, or in any certificate
furnished hereunder or under the Transaction Documents, prove to be untrue or
misleading in any material respect; provided, however, that if such Transaction
Party effectively cures any such defect in any representation or warranty under
any Transaction Document or certificate or report furnished under any
Transaction Document, within the time period specified in the related
Transaction Document as the cure period therefor, such defect shall not in and
of itself constitute an Event of Default;

          (b) (i) Any Transaction Party fails to pay or deposit when due any
amount required to be paid or deposited by it hereunder or under any other
Transaction Document and such failure has continued for a period of at least two
(2) Business Days or, if so specified in the applicable Transaction Document,
the applicable grace period set forth therein, or (ii) a legislative body has
enacted any law that declares or a court of competent jurisdiction finds or
rules that this Insurance Agreement or any other Transaction Document is not
valid and binding on the Transaction Parties hereto or thereto;

          (c) The occurrence and continuance of an Event of Default under the
Indenture or Servicer Termination Event under the Sale and Servicing Agreement;

          (d) Any failure on the part of any Transaction Party duly to observe
or perform in any material respect any other of the covenants or agreements on
the part of such Transaction Party contained in this Insurance Agreement or in
any other Transaction Document which continues unremedied beyond any cure period
provided therein, or, in the case of this Insurance Agreement, for a period of
30 days after the earlier of the date on which written notice of such failure,
requiring the same to be remedied, has been given to Triad by the Insurer (with
a copy to the Indenture Trustee) or by the Indenture Trustee (with a copy to the
Insurer), or a Responsible Officer of such Transaction Party has actual
knowledge thereof;

          (e) The entry of a decree or order by a court or agency or supervisory
authority having jurisdiction in the premises for appointment of a conservator,
receiver or liquidator or similar official for any Transaction Party which is a
party to any Transaction Document in any bankruptcy, insolvency, readjustment of
debt, marshaling of assets and liabilities or similar proceedings or for the
winding up or liquidation of its respective affairs, and the continuance of any
such decree or order unstayed and in effect for a period of 30 consecutive days;
or

          (f) The consent by any Transaction Party to the appointment of a
conservator or receiver or liquidator or similar official in any bankruptcy,
insolvency, readjustment of debt, marshaling of assets and liabilities, or
similar proceedings of or relating to such Transaction

                                       33

<PAGE>

Party or relating to all or substantially all of its respective property; or any
such Transaction Party admits in writing its inability to pay its debts
generally as they become due, files a petition to take advantage of any
applicable bankruptcy, insolvency or reorganization statute, make an assignment
for the benefit of its creditors or voluntarily suspends payment of its
obligations.

          Section 5.2 Remedies; No Remedy Exclusive. (a) Upon the occurrence of
an Event of Default hereunder, the Insurer may take whatever action at law or in
equity as may appear necessary or desirable in its judgment to collect the
amounts, if any, then due under this Insurance Agreement or any other
Transaction Document or to enforce performance and observance of any obligation,
agreement or covenant of the Transaction Parties under this Insurance Agreement
or any other Transaction Document, either in its own capacity or as Controlling
Party.

          (b) Unless otherwise expressly provided, no remedy herein conferred or
reserved is intended to be exclusive of any other available remedy, but each
remedy shall be cumulative and shall be in addition to other remedies given
under this Insurance Agreement or any other Transaction Document, or existing at
law or in equity. No delay or omission to exercise any right or power accruing
under this Insurance Agreement or any other Transaction Document upon the
happening of any event set forth in Section 5.1 shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power
may be exercised from time to time and as often as may be deemed expedient. In
order to entitle the Insurer to exercise any remedy reserved to the Insurer in
this Article, it shall not be necessary to give any notice, other than such
notice as may be required by this Article.

          (c) Each party to this Insurance Agreement hereby agrees that, in
addition to any other rights or remedies existing in its favor, it shall be
entitled to specific performance and/or injunctive relief in order to enforce
any of its rights or any obligation owed to it under the Transaction Documents.

          Section 5.3 Waivers. (a) No failure by the Insurer to exercise, and no
delay by the Insurer in exercising, any right hereunder shall operate as a
waiver thereof. The exercise by the Insurer of any right hereunder shall not
preclude the exercise of any other right, and the remedies provided herein to
the Insurer are declared in every case to be cumulative and not exclusive of any
remedies provided by law or equity.

          (b) The Insurer shall have the right, to be exercised in its complete
discretion, to waive any Event of Default hereunder, by a writing setting forth
the terms, conditions and extent of such waiver signed by the Insurer and
delivered to Triad and the Indenture Trustee. Unless such writing expressly
provides to the contrary, any waiver so granted shall extend only to the
specific event or occurrence which gave rise to the Event of Default so waived
and not to any other similar event or occurrence which occurs subsequent to the
date of such waiver.

                                       34

<PAGE>

                                   ARTICLE VI

                                  MISCELLANEOUS

          Section 6.1 Amendments, Etc. This Insurance Agreement may be amended,
modified, supplemented or terminated only by written instrument or written
instruments signed by the parties hereto. No consent of any reinsurer or
participant contracted with by the Insurer pursuant to Section 4.4(b) hereof
shall be required for any amendment, modification, supplement or termination
hereof. Triad agrees to provide a copy of any amendment to this Insurance
Agreement promptly to the Rating Agencies. No act or course of dealing shall be
deemed to constitute an amendment, modification, supplement or termination
hereof. Unless an Insurer Event of Default has occurred and is continuing, the
other Transaction Documents may be amended, modified or supplemented only with
the prior written consent of the Insurer and any amendment, modification or
supplement without such consent shall be null and void and of no force and
effect.

          Section 6.2 Notices. All demands, notices and other communications to
be given hereunder shall be in writing (except as otherwise specifically
provided herein) and shall be (i) mailed by prepaid registered or certified
mail, return receipt requested, or (ii) personally delivered by messenger or
overnight courier (with confirmation of receipt) and in either case telecopied
to the recipient as follows:

          (a)  To the Insurer:

               Ambac Assurance Corporation
               One State Street Plaza
               New York, New York 10004
               Attention: Structured Finance Department -- ABS
               Telecopy No.: 212-208-3547
               Confirmation: 212-668-0340
               with a copy to the attention of: Michael Babick,
                                                First Vice President
                                                Telecopy No.: 212-363-1459
                                                Confirmation: 212-208-3407

               (in each case in which notice or other communication to the
               Insurer refers to a Servicer Termination Event, an Event of
               Default hereunder, a Default or Event of Default under the
               Indenture, a Trigger Event or a Spread Cap Event, a claim on the
               Ambac Policy or any event with respect to which failure on the
               part of the Insurer to respond shall be deemed to constitute
               consent or acceptance, then a copy of such notice or other
               communication shall also be sent to the attention of the general
               counsel of each of the Insurer and the Indenture Trustee and
               shall be marked to indicate "URGENT MATERIAL ENCLOSED.")

                                       35

<PAGE>

          (b)  To Triad:

               Triad Financial Corporation
               7711 Center Avenue, Suite 100
               Huntington Beach, CA 92647
               Attention: Mike L. Wilhelms, Chief Financial Officer
               Telephone: 714-373-3800, extension 22284
               Facsimile: 714-894-8617
               with a copy to the attention of: Timothy O'Connor,
                                                General Counsel
                                                Telecopy No.: 714-934-6062

          (c)  To the Issuer:

               Triad Automobile Receivables Trust 2006-A
               in care of: Wilmington Trust Company, as Owner
                           Trustee
                           Rodney Square North
                           1100 North Market Street
                           Wilmington, DE 19890
                           Attention: Corporate Trust
                                      Administration
                           Telephone: (302) 651-1000
                           Facsimile: (302) 636-4140

               with a copy to the
               attention of: Triad Financial Corporation
                             7711 Center Avenue, Suite 100
                             Huntington Beach, CA 92647
                             Attention: Timothy O'Connor
                                        General Counsel
                             Telecopy No.: 714-934-6062

          (d)  To the Indenture Trustee:

               Citibank, N.A.
               388 Greenwich Street
               14th Floor
               New York, NY 10013
               Attention: Structure Finance Agency and Trust - Triad
               Triad 2006-A
               Phone: 1-800-422-2066
               Facsimile: 1-212-816-5527

A party may specify an additional or different address or addresses by writing
mailed or delivered to the other parties as aforesaid. All such notices and
other communications shall be effective upon receipt.

          Section 6.3 Severability. In the event that any provision of this
Insurance Agreement is held invalid or unenforceable by any court of competent
jurisdiction, the parties

                                       36

<PAGE>

hereto agree that such holding shall not invalidate or render unenforceable any
other provision hereof. The parties hereto further agree that the holding by any
court of competent jurisdiction that any remedy pursued by any party hereto is
unavailable or unenforceable shall not affect in any way the ability of such
party to pursue any other remedy available to it.

          Section 6.4 Governing Law. This Insurance Agreement shall be governed
by and construed in accordance with the laws of the State of New York without
regard to conflicts of laws provisions.

          Section 6.5 Consent to Jurisdiction. (a) THE PARTIES HERETO HEREBY
IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK AND ANY COURT IN THE STATE OF NEW YORK LOCATED
IN THE CITY AND COUNTY OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN
ANY ACTION, SUIT OR PROCEEDING BROUGHT AGAINST IT AND TO OR IN CONNECTION WITH
ANY OF THE TRANSACTION DOCUMENTS OR THE TRANSACTION OR FOR RECOGNITION OR
ENFORCEMENT OF ANY JUDGMENT RELATING THERETO, AND THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY AGREE THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING SHALL BE HEARD OR DETERMINED IN SUCH NEW YORK STATE COURT
OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. THE PARTIES AGREE
THAT A FINAL NONAPPEALABLE JUDGMENT IN ANY SUCH ACTION, SUIT OR PROCEEDING SHALL
BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT
OR IN ANY OTHER MANNER PROVIDED BY LAW. TO THE EXTENT PERMITTED BY APPLICABLE
LAW, THE PARTIES HEREBY WAIVE AND AGREE NOT TO ASSERT BY WAY OF MOTION, AS A
DEFENSE OR OTHERWISE IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT
IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURTS, THAT THE SUIT,
ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE
SUIT, ACTION OR PROCEEDING IS IMPROPER OR THAT THE RELATED DOCUMENTS OR THE
SUBJECT MATTER THEREOF MAY NOT BE LITIGATED IN OR BY SUCH COURTS.

          (b) To the extent permitted by applicable law, the parties shall not
seek and hereby waive the right to any review of the judgment of any such court
by any court of any other nation or jurisdiction which may be called upon to
grant an enforcement of such judgment.

          (c) Service on any party hereto may be made by mailing or delivering
copies of the summons and complaint and other process which may be served in any
suit, action or proceeding to such party at its address listed in Section 6.2
herein. Such address may be changed by the applicable party or parties by
written notice to each of the other parties hereto.

          (d) Nothing contained in this Insurance Agreement shall limit or
affect any party's right to serve process in any other manner permitted by law
or to start legal proceedings relating to any of the Transaction Documents
against any other party or its properties in the courts of any jurisdiction.

                                       37

<PAGE>

          Section 6.6 Consent of the Insurer. In the event that the consent of
the Insurer is required under any of the Transaction Documents, the
determination whether to grant or withhold such consent shall be made by the
Insurer in writing and in its sole discretion except to the extent such consent
of the Insurer pursuant to the terms of the applicable Transaction Document may
not be unreasonably withheld, and without any implied duty towards any other
Person.

          Section 6.7 Counterparts. This Insurance Agreement may be executed in
counterparts by the parties hereto, and all such counterparts shall constitute
one and the same instrument.

          Section 6.8 Headings. The headings of Articles and Sections and the
Table of Contents contained in this Insurance Agreement are provided for
convenience only. They form no part of this Insurance Agreement and shall not
affect its construction or interpretation.

          Section 6.9 Trial by Jury Waived. Each party hereby waives, to the
fullest extent permitted by law, any right to a trial by jury in respect of any
litigation arising directly or indirectly out of, under or in connection with
any of the Transaction Documents or any of the transactions contemplated
thereunder. Each party hereto (a) certifies that no representative, agent or
attorney of any party hereto has represented, expressly or otherwise, that it
would not, in the event of litigation, seek to enforce the foregoing waiver and
(b) acknowledges that it has been induced to enter into the Transaction
Documents to which it is a party by, among other things, this waiver.

          Section 6.10 Limited Liability. No recourse under any Transaction
Document shall be had against, and no personal liability shall attach to, any
officer, employee, director, affiliate or shareholder of the Insurer or any
other party hereto, as such, by the enforcement of any assessment or by any
legal or equitable proceeding, by virtue of any statute or otherwise in respect
of any of the Transaction Documents (including the Class A Notes and the Ambac
Policy), it being expressly agreed and understood that each Transaction Document
is solely a corporate obligation of each party hereto, and that any and all
personal liability, either at common law or in equity, or by statute or
constitution, of every such officer, employee, director, affiliate or
shareholder for breaches of any party hereto of any obligations under any
Transaction Document is hereby expressly waived as a condition of and in
consideration for the execution and delivery of this Insurance Agreement.

          Section 6.11 Entire Agreement: Facsimile Signatures. This Insurance
Agreement, the Fee Letter and the Ambac Policy set forth the entire agreement
between the parties with respect to the subject matter hereof and thereof, and
supersede and replace any agreement or understanding that may have existed
between the parties prior to the date hereof in respect of such subject matter.
Execution and delivery of this Insurance Agreement by facsimile signature shall
constitute execution and delivery of this Insurance Agreement for all purposes
hereof with the same force and effect as execution and delivery of a manually
signed copy hereof.

                                       38

<PAGE>

          Section 6.12 Indenture Trustee. The Indenture Trustee hereby
acknowledges and agrees to perform all its obligations and duties pursuant to
the Transaction Documents to which it is a party thereto.

          Section 6.13 Third-Party Beneficiary. Subject to the provisions of the
Transaction Documents, each of the parties hereto agrees that the Insurer shall
have all rights of an intended third-party beneficiary in respect of each of the
Transaction Documents, including the right to enforce the respective obligations
of the parties thereunder.

          Section 6.14 No Proceedings. Each of the parties hereto agrees that it
will not institute against the Issuer or the Depositor any involuntary
proceeding or otherwise institute any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceeding or other proceeding under any federal or
state bankruptcy or similar law until the date which is one year and one day or,
if longer, the then applicable preference period plus one day, since the last
day on which any Class A Notes shall have been outstanding and all amounts
payable to the Insurer hereunder shall have been paid in full.

          Section 6.15 Limitation of Owner Trustee Liability. It is expressly
understood and agreed by the parties hereto that (a) this document is executed
and delivered by Wilmington Trust Company, not individually or personally, but
solely as Owner Trustee, in the exercise of the powers and authority conferred
and vested in it, pursuant to the Trust Agreement for Triad Automobile
Receivables Trust 2006-A, (b) each of the representations, undertakings and
agreements herein made on the part of the Issuer is made and intended not as
personal representations, undertakings and agreements by Wilmington Trust
Company but is made and intended for the purpose for binding only the Issuer,
(c) nothing herein contained shall be construed as creating any liability on
Wilmington Trust Company, individually or personally, to perform any covenant
either expressed or implied contained herein, all such liability, if any, being
expressly waived by the parties hereto and by any person claiming by, through or
under the parties hereto, and (d) under no circumstances shall Wilmington Trust
Company be personally liable for the payment of any indebtedness or expenses of
the Issuer or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Issuer under this
Agreement or any other related documents.

          ANY PERSON WHO KNOWINGLY AND WITH INTENT TO DEFRAUD ANY INSURANCE
COMPANY OR OTHER PERSON FILES AN APPLICATION FOR INSURANCE OR STATEMENT OF CLAIM
CONTAINING ANY MATERIALLY FALSE INFORMATION, OR CONCEALS FOR THE PURPOSE OF
MISLEADING, INFORMATION CONCERNING ANY FACT MATERIAL THERETO, COMMITS A
FRAUDULENT INSURANCE ACT, WHICH IS A CRIME AND SHALL ALSO BE SUBJECT TO A CIVIL
PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS AND THE STATED VALUE OF THE CLAIM
FOR EACH SUCH VIOLATION.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       39

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have executed this Insurance
Agreement, all as of the day and year first above mentioned.

                                        AMBAC ASSURANCE CORPORATION, as Insurer

                                        By: /s/ Michael Babkick
                                            ------------------------------------
                                        Name: Michael Babick
                                        Title: Managing Director

                                        TRIAD AUTOMOBILE RECEIVABLES TRUST
                                        2006-A, as Issuer

                                        By: WILMINGTON TRUST COMPANY,
                                            not in its individual capacity,
                                            but solely as Owner Trustee

                                        By: /s/ Michele C. Harra
                                            ------------------------------------
                                        Name: Michele C. Harra
                                        Title: Financial Services Officer

                                        TRIAD FINANCIAL SPECIAL PURPOSE LLC,
                                        as Depositor

                                        By: /s/ Mike L. Wilhelms
                                            ------------------------------------
                                        Name: Mike L. Wilhelms
                                        Title: Chief Financial Officer

                                        TRIAD FINANCIAL CORPORATION, as Seller
                                        and Servicer

                                        By: /s/ Mike L. Wilhelms
                                            ------------------------------------
                                        Name: Mike L. Wilhelms
                                        Title: Chief Financial Officer

                                       40

<PAGE>

                                        CITIBANK, N.A.
                                        not in its individual capacity, but
                                        solely as Indenture Trustee

                                        By: /s/ John Hannon
                                            ------------------------------------
                                        Name: John Hannon
                                        Title: Assistant Vice President

                                       41

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