Document:

<PAGE>

                                                                     EXHIBIT 4.4

                                                        FINANCIAL GUARANTY
                                                        INSURANCE POLICY

OBLIGOR:  Triad Automobile Receivables Trust 2006-B         Policy No.:  51731-N
OBLIGATIONS:  $915,500,000 Asset Backed Notes,
              Series 2006-B                                 Date of Issuance:
              As described in Endorsement No. 1 hereto      May 25, 2006

      FINANCIAL SECURITY ASSURANCE INC. ("Financial Security"), for
consideration received, hereby UNCONDITIONALLY AND IRREVOCABLY GUARANTEES to
each Holder, subject only to the terms of this Policy (which includes each
endorsement hereto), the full and complete payment by the Obligor of Scheduled
Payments of principal of, and interest on, the Obligations.

      For the further protection of each Holder, Financial Security irrevocably
and unconditionally guarantees:

      (a) payment of the amount of any distribution of principal of, or interest
   on, the Obligations made during the Term Of This Policy to such Holder that
   is subsequently avoided in whole or in part as a preference payment under
   applicable law (such payment to be made by Financial Security in accordance
   with Endorsement No. 1 hereto).

      (b) payment of any amount required to be paid under this Policy by
   Financial Security following Financial Security's receipt of notice as
   described in Endorsement No. 1 hereto.

      Financial Security shall be subrogated to the rights of each Holder to
receive payments under the Obligations to the extent of any payment by Financial
Security hereunder.

      Except to the extent expressly modified by an endorsement hereto, the
following terms shall have the meanings specified for all purposes of this
Policy. "Holder" means the registered owner of any Obligation as indicated on
the registration books maintained by or on behalf of the Obligor for such
purpose or, if the Obligation is in bearer form, the holder of the Obligation.
"Scheduled Payments" means payments which are scheduled to be made during the
Term Of This Policy in accordance with the original terms of the Obligations
when issued and without regard to any amendment or modification of such
Obligations thereafter; payments which become due on an accelerated basis as a
result of (a) a default by the Obligor, (b) an election by the Obligor to pay
principal on an accelerated basis or (c) any other cause, shall not constitute
"Scheduled Payments" unless Financial Security shall elect, in its sole
discretion, to pay such principal due upon such acceleration together with any
accrued interest to the date of acceleration. "Term Of This Policy" shall have
the meaning set forth in Endorsement No. 1 hereto.

      This Policy sets forth in full the undertaking of Financial Security, and
shall not be modified, altered or affected by any other agreement or instrument,
including any modification or amendment thereto, or by the merger, consolidation
or dissolution of the Obligor. Except to the extent expressly modified by an
endorsement hereto, the premiums paid in respect of this Policy are
nonrefundable for any reason whatsoever, including payment, or provision being
made for payment, of the Obligations prior to maturity. This Policy may not be
canceled or revoked during the Term Of This Policy. THIS POLICY IS NOT COVERED
BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76 OF THE
NEW YORK INSURANCE LAW.

      In witness whereof, FINANCIAL SECURITY ASSURANCE INC. has caused this
Policy to be executed on its behalf by its Authorized Officer.

                                               FINANCIAL SECURITY ASSURANCE INC.

                                               By /s/ M. Douglas Watson, Jr.
                                                  ------------------------------
                                                        Authorized Officer

A subsidiary of Financial Security Assurance Holdings Ltd.

31 West 52nd Street, New York, N.Y. 10019-6161                    (212) 826-0100
Form 100NY (5/89)

<PAGE>

                              ENDORSEMENT NO. 1 TO
                       FINANCIAL GUARANTY INSURANCE POLICY

FINANCIAL SECURITY                                           31 West 52nd Street
ASSURANCE INC.                                         New York, New York  10019

OBLIGOR: Triad Automobile Receivables Trust 2006-B

OBLIGATIONS:  $167,000,000 Class A-1  5.143684% Asset Backed Notes
              $257,000,000 Class A-2  5.36% Asset Backed Notes
              $327,500,000 Class A-3  5.41% Asset Backed Notes
              $164,000,000 Class A-4  5.52% Asset Backed Notes

Policy No.: 51731-N

Date of Issuance: May 25, 2006

      1. Definitions. For all purposes of this Policy, the terms specified below
shall have the meanings or constructions provided below. Capitalized terms used
herein and not otherwise defined herein shall have the meanings provided in the
Indenture or the Sale and Servicing Agreement unless otherwise specified.

      "Holder" shall have the meaning set forth in the Indenture; provided,
however that "Holder" shall not include the Obligor or any affiliates or
successors thereof in the event the Obligor, or any such affiliate or successor,
is a registered or beneficial owner of the Obligations.

      "Indenture" means the Indenture, dated as of May 25, 2006, between the
Obligor and the Indenture Trustee, as amended from time to time in accordance
with the terms thereof.

      "Indenture Trustee" means Citibank, N.A., in its capacity as Indenture
Trustee under the Indenture and any successor in such capacity.

      "Policy" means this Financial Guaranty Insurance Policy and includes each
endorsement.

      "Receipt" and "Received" mean actual delivery to Financial Security and to
the Fiscal Agent (as defined below), if any, prior to 12:00 noon, New York City
time, on a Business Day; delivery either on a day that is not a Business Day, or
after 12:00 noon, New York City time, shall be deemed to be received on the next
succeeding Business Day. If any notice or certificate given hereunder by the
Indenture Trustee is not in proper form or is not properly completed, executed
or delivered, it shall be deemed not to have been Received, and Financial
Security or its Fiscal Agent shall promptly so advise the Indenture Trustee and
the Indenture Trustee may submit an amended notice.

<PAGE>

Policy No.: 51731-N                               Date of Issuance: May 25, 2006

      "Sale and Servicing Agreement" means the Sale and Servicing Agreement
dated as of May 25, 2006, among the Obligor, Triad Financial Special Purpose
LLC, as Depositor, Triad Financial Corporation, as Custodian and as Servicer,
and Citibank, N.A., as Backup Servicer and as Indenture Trustee, as such
agreement may be amended, supplemented or otherwise modified from time to time
in accordance with the terms thereof.

      "Scheduled Payments" means, as to each Distribution Date, payments that
are required to be made to Holders in accordance with the original terms of the
Obligations when issued and without regard to any amendment or modification of
the Obligations or of the Indenture except amendments or modifications to which
Financial Security has given its prior written consent, which payments are (i)
the Class A Noteholders' Interest Distributable Amount with respect to the
related Distribution Date, (ii) the Class A Noteholders' Parity Deficit Amount
with respect to the related Distribution Date and (iii) with respect to the
Final Scheduled Distribution Date for any class of Obligations, the outstanding
principal amount of such class on such Final Scheduled Distribution Date, after
taking into account reductions on such date of such outstanding principal amount
from all sources other than this Policy. Scheduled Payments do not include
payments that become due on an accelerated basis as a result of (a) a default by
the Obligor, (b) an election by the Obligor to pay principal on an accelerated
basis, (c) the occurrence of an Event of Default under the Indenture or (d) any
other cause, unless Financial Security elects, in its sole discretion, to pay in
whole or in part such principal due upon acceleration, together with any accrued
interest to the date of acceleration. In the event Financial Security does not
so elect, this Policy will continue to guarantee payment on the Obligations in
accordance with their original terms. Scheduled Payments shall not include (x)
any portion of a Class A Noteholders' Interest Distributable Amount due to
Holders because the appropriate notice and certificate for payment in proper
form as required by paragraph 2 hereof was not timely Received by Financial
Security or (y) any portion of a Class A Noteholders' Interest Distributable
Amount due to Holders representing interest on any Class A Noteholders' Interest
Carryover Amount accrued from and including the date of payment of the amount of
such Class A Noteholders' Interest Carryover Amount, unless in each case,
Financial Security elects, in its sole discretion, to pay such amount in whole
or in part, pursuant hereto. Scheduled Payments shall not include any amounts
due in respect of the Obligations attributable to any increase in interest rate,
penalty or other sum payable by the Obligor by reason of any Default or Event of
Default in respect of the Obligations, or by reason of any deterioration of the
creditworthiness of the Obligor, nor shall Scheduled Payments include, nor shall
coverage be provided under this Policy in respect of, any taxes, withholding or
other charge with respect to any Holder imposed by any governmental authority
due in connection with the payment of any Scheduled Payment to a Holder.

      "Term Of This Policy" means the period from and including the Date of
Issuance to and including the date on which (i) all Scheduled Payments have been
paid that are required to be paid by the Obligor within the meaning of Section
4.1 of the Indenture; (ii) any period during which any Scheduled Payment could
have been avoided in whole or in part as a preference payment under applicable
bankruptcy, insolvency, receivership or similar law shall have expired and (iii)
if any proceedings requisite to avoidance as a

                                        2
<PAGE>

Policy No.: 51731-N                               Date of Issuance: May 25, 2006

preference payment have been commenced prior to the occurrence of (i) and (ii),
a final and nonappealable order in resolution of each such proceeding has been
entered.

      2. Notices and Conditions to Payment in Respect of Scheduled Payments.
Following Receipt by Financial Security of a notice and certificate from the
Indenture Trustee in the form attached as Exhibit A to this Endorsement,
Financial Security will pay any amount payable hereunder in respect of Scheduled
Payments on the Obligations out of the funds of Financial Security on the later
to occur of (a) 12:00 noon, New York City time, on the second Business Day
following such Receipt; and (b) 12:00 noon, New York City time, on the date on
which such payment is due on the Obligations. Payments due hereunder in respect
of Scheduled Payments will be disbursed to the Indenture Trustee by wire
transfer of immediately available funds.

      Financial Security shall be entitled to pay any amount hereunder in
respect of Scheduled Payments on the Obligations, including any amount due on
the Obligations on an accelerated basis, whether or not any notice and
certificate shall have been Received by Financial Security as provided above;
provided, however, that by acceptance of this Policy the Indenture Trustee
agrees to provide to Financial Security, upon Financial Security's request to
the Indenture Trustee, a notice and certificate in respect of any such payments
made by Financial Security. Financial Security shall be entitled to pay
hereunder any amount that becomes due on the Obligations on an accelerated basis
at any time or from time to time after such amount becomes due, in whole or in
part, prior to the scheduled date of payment thereof. Scheduled Payments insured
hereunder shall not include interest, in respect of principal paid hereunder on
an accelerated basis, accruing from and after the date of such payment of
principal. Financial Security's obligations hereunder in respect of Scheduled
Payments shall be discharged to the extent such amounts are paid by the Issuer
in accordance with the Sale and Servicing Agreement or disbursed by Financial
Security as provided herein whether or not such funds are properly applied by
the Indenture Trustee except as otherwise provided in paragraph 3 of this
Endorsement.

      3. Notices and Conditions to Payment in Respect of Scheduled Payments
Avoided as Preference Payments. If any Scheduled Payment is avoided as a
preference payment under applicable bankruptcy, insolvency, receivership or
similar law, Financial Security will pay such amount out of the funds of
Financial Security on the later of (a) the date when due to be paid pursuant to
the Order referred to below or (b) the first to occur of (i) the fourth Business
Day following Receipt by Financial Security from the Indenture Trustee of (A) a
certified copy of the order (the "Order") of the court or other governmental
body that exercised jurisdiction to the effect that the Holder is required to
return Scheduled Payments made with respect to the Obligations during the Term
Of This Policy because such payments were avoidable as preference payments under
applicable bankruptcy law, (B) a certificate of the Holder that the Order has
been entered and is not subject to any stay and (C) an assignment duly executed
and delivered by the Holder, in such form as is reasonably required by Financial
Security, and provided to the Holder by Financial Security, irrevocably
assigning to Financial Security all rights and claims of the Holder relating to
or arising under the Obligations against the estate of the Obligor or otherwise
with respect to such preference payment or (ii) the date of Receipt by Financial

                                        3
<PAGE>

Policy No.: 51731-N                               Date of Issuance: May 25, 2006

Security from the Indenture Trustee of the items referred to in clauses (A), (B)
and (C) above if, at least four Business Days prior to such date of Receipt,
Financial Security shall have Received written notice from the Indenture Trustee
that such items were to be delivered on such date and such date was specified in
such notice. Such payment shall be disbursed to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy named in the Order and not to the
Indenture Trustee or any Holder directly (unless a Holder has previously paid
such amount to the receiver, conservator, debtor-in-possession or trustee in
bankruptcy named in the Order, in which case such payment shall be disbursed to
the Indenture Trustee for distribution to such Holder upon proof of such payment
reasonably satisfactory to Financial Security). In connection with the
foregoing, Financial Security shall have the rights provided pursuant to Section
6.2 of the Sale and Servicing Agreement.

      4. Governing Law. This Policy shall be governed by and construed in
accordance with the laws of the State of New York without giving effect to the
conflict of laws principles thereof.

      5. Fiscal Agent. At any time during the Term Of This Policy, Financial
Security may appoint a fiscal agent (the "Fiscal Agent") for purposes of this
Policy by written notice to the Indenture Trustee at the notice address
specified in the Indenture specifying the name and notice address of the Fiscal
Agent. From and after the date of receipt of such notice by the Indenture
Trustee, (i) copies of all notices and documents required to be delivered to
Financial Security pursuant to this Policy shall be simultaneously delivered to
the Fiscal Agent and to Financial Security and shall not be deemed Received
until Received by both, and (ii) all payments required to be made by Financial
Security under this Policy may be made directly by Financial Security or by the
Fiscal Agent on behalf of Financial Security. The Fiscal Agent is the agent of
Financial Security only and the Fiscal Agent shall in no event be liable to any
Holder for any acts of the Fiscal Agent or any failure of Financial Security to
deposit, or cause to be deposited, sufficient funds to make payments due under
the Policy.

      6. Waiver of Defenses. To the fullest extent permitted by applicable law,
Financial Security agrees not to assert, and hereby waives, for the benefit of
each Holder, all rights (whether by counterclaim, setoff or otherwise) and
defenses (including, without limitation, the defense of fraud), whether acquired
by subrogation, assignment or otherwise, to the extent that such rights and
defenses may be available to Financial Security to avoid payment of its
obligations under this Policy in accordance with the express provisions of this
Policy. Nothing in this paragraph shall be construed to limit or otherwise
impair Financial Security's right to pursue recovery or claims (based on
contractual rights, securities law violations, fraud or other causes of action)
against any person or entity, or to require payment by Financial Security of any
amounts that have been previously paid or that are not otherwise due in
accordance with the express provisions of this Policy or the Obligations.
Nothing in this Policy shall be construed to require payment to the extent any
force majeure event or governmental act prevents Financial Security from
performing its obligations under this Policy or such performance is otherwise
rendered impossible, in which event Financial Security agrees to (i) use
commercially reasonable efforts to perform its obligations under this Policy

                                        4
<PAGE>

Policy No.: 51731-N                               Date of Issuance: May 25, 2006

notwithstanding such force majeure event, governmental act or impossibility of
performance and (ii) perform its obligations under this Policy promptly
following cessation of such force majeure event, governmental act or
impossibility of performance.

      7. Notices. All notices to be given hereunder shall be in writing (except
as otherwise specifically provided herein) and shall be mailed by registered
mail or personally delivered or telecopied to Financial Security as follows:

         Financial Security Assurance Inc.
         31 West 52nd Street
         New York, New York 10019
         Attention: Managing Director - Transaction Oversight
         Re: Triad Automobile Receivables Trust 2006-B
         Policy No.: 51731-N
         Telecopy No.: (212) 339-3518
         Confirmation: (212) 826-0100

      Financial Security may specify a different address or addresses by writing
mailed or delivered to the Indenture Trustee.

      8. Priorities. In the event that any term or provision of the face of this
Policy is inconsistent with the provisions of this Endorsement, the provisions
of this Endorsement shall take precedence and shall be binding.

      9. Exclusions From Insurance Guaranty Funds. This Policy is not covered by
the Property/Casualty Insurance Security Fund specified in Article 76 of the New
York Insurance Law. This Policy is not covered by the Florida Insurance Guaranty
Association created under Part II of Chapter 631 of the Florida Insurance Code.
In the event Financial Security were to become insolvent, any claims arising
under this Policy are excluded from coverage by the California Insurance
Guaranty Association, established pursuant to Article 14.2 of Chapter 1 of Part
2 of Division 1 of the California Insurance Code.

      10. Surrender of Policy. The Indenture Trustee shall surrender this Policy
to Financial Security for cancellation upon expiration of the Term Of This
Policy.

      IN WITNESS WHEREOF, FINANCIAL SECURITY ASSURANCE INC. has caused this
Endorsement No. 1 to be executed by its Authorized Officer.

                                      FINANCIAL SECURITY ASSURANCE INC.

                                      By /s/ M. Douglas Watson, Jr.
                                         -----------------------------
                                                Authorized Officer

                                        5
<PAGE>

Policy No.:  51731-N                             Date of Issuance:  May 25, 2006

                                                                       EXHIBIT A
                                                            To Endorsement No. 1

                         NOTICE OF CLAIM AND CERTIFICATE

                        (Letterhead of Indenture Trustee)

Financial Security Assurance Inc.
31 West 52nd Street
New York, New York 10019

      Re: Triad Automobile Receivables Trust 2006-B

            The undersigned, a duly authorized officer of Citibank, N.A. (the
"Indenture Trustee"), hereby certifies to Financial Security Assurance Inc.
("Financial Security"), with reference to Financial Guaranty Insurance Policy
No. 51731-N dated May 25, 2006, (the "Policy") issued by Financial Security in
respect of $167,000,000 Class A-1 5.143684% Asset Backed Notes, $257,000,000
Class A-2 5.36% Asset Backed Notes, $327,500,000 Class A-3 5.41% Asset Backed
Notes, $164,000,000 Class A-4 5.52% Asset Backed Notes of the above-referenced
Trust (the "Obligations"), that:

      (i) The Indenture Trustee is the Indenture Trustee for the Holders under
the Indenture.

      (ii) The sum of all amounts on deposit (or scheduled to be on deposit) in
the Note Distribution Account and available for distribution to the Holders
pursuant to the Section 5.8 of the Sale and Servicing Agreement will be
$_________ (the "Shortfall") less than the aggregate amount of Scheduled
Payments due on ___________________.

      (iii) The Indenture Trustee is making a claim under the Policy for the
Shortfall to be applied to the payment of Scheduled Payments.

      (iv) The Indenture Trustee agrees that, following receipt of funds from
Financial Security, it shall (a) hold such amounts in trust and apply the same
directly to the payment of Scheduled Payments on the Obligations when due; (b)
not apply such funds for any other purpose; (c) not commingle such funds with
other funds held by the Indenture Trustee and (d) maintain an accurate record of
such payments with respect to each Obligation and the corresponding claim on the
Policy and proceeds thereof, and, if the Obligation is required to be
surrendered or presented for such payment, shall stamp on each such Obligation
the legend "$[insert applicable amount] paid by Financial Security and the
balance hereof has been cancelled and reissued" and then shall deliver such
Obligation to Financial Security.

      (v) The Indenture Trustee, on behalf of the Holders, hereby assigns to
Financial Security the rights of the Holders with respect to the Obligations to
the extent of any payments under the Policy. Without limitation of the
foregoing, the Indenture Trustee, on behalf of the Holders, hereby assigns to
Financial Security any amounts due

                                       A-1
<PAGE>

Policy No.: 51731-N                               Date of Issuance: May 25, 2006

to the Holders in respect of securities law violations arising from the offer
and sale of the Obligations. The foregoing assignment is in addition to, and not
in limitation of, rights of subrogation otherwise available to Financial
Security in respect of such payments. Payments to Financial Security in respect
of the foregoing assignment shall in all cases be subject to and subordinate to
the rights of the Holders to receive all Scheduled Payments in respect of the
Obligations. The Indenture Trustee shall take such action and deliver such
instruments as may be reasonably requested or required by Financial Security to
effectuate the purpose or provisions of this clause (v).

      (vi) The Indenture Trustee, on behalf of the Holders, hereby appoints
Financial Security as agent and attorney-in-fact for the Indenture Trustee and
each such Holder in any legal proceeding with respect to the Obligations. The
Indenture Trustee hereby agrees that, so long as an Insurer Default (as defined
in the Indenture) shall not exist, Financial Security may at any time during the
continuation of any proceeding by or against the Obligor under the United States
Bankruptcy Code or any other applicable bankruptcy, insolvency, receivership,
rehabilitation or similar law (an "Insolvency Proceeding") direct all matters
relating to such Insolvency Proceeding, including without limitation, (A) all
matters relating to any claim in connection with an Insolvency Proceeding
seeking the avoidance as a preferential transfer of any payment made with
respect to the Obligations (a "Preference Claim"), (B) the direction of any
appeal of any order relating to any Preference Claim at the expense of Financial
Security but subject to reimbursement as provided in the Insurance Agreement and
(C) the posting of any surety, supersedeas or performance bond pending any such
appeal. In addition, the Indenture Trustee hereby agrees that Financial Security
shall be subrogated to, and the Indenture Trustee on its behalf and on behalf of
each Holder, hereby delegates and assigns, to the fullest extent permitted by
law, the rights of the Indenture Trustee and each Holder in the conduct of any
Insolvency Proceeding, including, without limitation, all rights of any party to
an adversary proceeding or action with respect to any court order issued in
connection with any such Insolvency Proceeding.

      (vii) Payment should be made by wire transfer directed to [SPECIFY
ACCOUNT].

      Unless the context otherwise requires, capitalized terms used in this
Notice of Claim and Certificate and not defined herein shall have the meanings
provided in the Policy.

                                       A-2
<PAGE>

Policy No.: 51731-N                               Date of Issuance: May 25, 2006

      IN WITNESS WHEREOF, the Indenture Trustee has executed and delivered this
Notice of Claim and Certificate as of the __th day of __________, 20__.

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

                                      By _______________________________________

                                      Title_____________________________________

For Financial Security or Fiscal Agent Use Only

Wire transfer sent on ____________ By ___________________________
Confirmation Number  _____________________

                                       A-3<PAGE>

                                                                    EXHIBIT 10.1

                               PURCHASE AGREEMENT

                                     BETWEEN

                           TRIAD FINANCIAL CORPORATION
                                   ORIGINATOR

                                       AND

                       TRIAD FINANCIAL SPECIAL PURPOSE LLC
                                    DEPOSITOR

                            DATED AS OF MAY 25, 2006

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                            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]..........................................................................     2
         Section 1.7  Material Adverse Effect.............................................................     2

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...........................................................................     6
         Section 4.1  Protection of Title of the Depositor................................................     6
         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...................................................     8
         Section 4.6  Indemnification by the Depositor....................................................     9

ARTICLE V. REPURCHASES....................................................................................     9
         Section 5.1  Repurchase of Receivables Upon Breach of Warranty...................................     9
         Section 5.2  Reassignment of Purchased Receivables...............................................    10
         Section 5.3  Waivers.............................................................................    10

ARTICLE VI. MISCELLANEOUS.................................................................................    10
         Section 6.1  Liability of the Originator and the Depositor.......................................    10
         Section 6.2  Merger or Consolidation of the Originator or the Depositor..........................    10
         Section 6.3  Limitation on Liability of the Originator, and the Depositor and Others.............    11
         Section 6.4  The Originator May Own Notes or the Certificates....................................    11
         Section 6.5  Amendment...........................................................................    12
         Section 6.6  Notices.............................................................................    12
         Section 6.7  Merger and Integration..............................................................    13
         Section 6.8  Severability of Provisions..........................................................    13
         Section 6.9  Intention of the Parties............................................................    13
         Section 6.10 Governing Law.......................................................................    14
         Section 6.11 Counterparts........................................................................    14
         Section 6.12 Conveyance of the Receivables and the Other Conveyed Property to the Issuer.........    14
</TABLE>

                                        i
<PAGE>

<TABLE>
<S>                                                                                                          <C>
Section 6.13 Nonpetition Covenant.........................................................................    14
Section 6.14 Payment Obligations of the Depositor Limited.................................................    14
</TABLE>

SCHEDULES

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

                                       ii

<PAGE>

                               PURCHASE AGREEMENT

            THIS PURCHASE AGREEMENT, dated as of May 25, 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 May 25, 2006 by and among the Depositor,
Triad Financial Corporation, in its individual capacity, as Custodian and as
Servicer, Triad Automobile Receivables Trust 2006-B, 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 May 25, 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-B.

            "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.

            "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

<PAGE>

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.

            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

                                        2
<PAGE>

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 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.

                                        3
<PAGE>

            (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 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.

                                        4
<PAGE>

            (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.

            (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

                                        5
<PAGE>

      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 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

                                        6
<PAGE>

      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 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

                                        7
<PAGE>

      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.

            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.

                                        8
<PAGE>

            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 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

                                        9
<PAGE>

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 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

                                       10
<PAGE>

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 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

                                       11
<PAGE>

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.

            (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

                                       12
<PAGE>

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, the Indenture
Trustee or the Insurer, 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.

            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

                                       13
<PAGE>

      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.

            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. 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 Controlling Party 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.

                                       14
<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: Senior Vice President and
                                                   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: Vice President

                     [Signature page to Purchase Agreement]

<PAGE>

                                                                      SCHEDULE A

                             SCHEDULE OF RECEIVABLES

               [Delivered to the Indenture Trustee at the Closing]

                                     SCH A-1

<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.

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

                                     SCH B-1

<PAGE>

      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 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

                                     SCH B-2
<PAGE>

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. 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.

                                     SCH B-3
<PAGE>

      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 $1,000 for
collision coverage and $1,000 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 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

                                     SCH B-4
<PAGE>

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 6.00% and not more
than 29.00%.

                                     SCH B-5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}]]