Berger Chevrolet, Inc. - Page 3

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                  Classic and Berger are Michigan motor vehicle dealerships,                            
            licensed as new motor vehicle dealerships by the Michigan                                   
            Department of State.  They are also licensed as "installment                                
            sellers" by the State of Michigan, Financial Institutions Bureau.                           
            An installment seller is authorized by the Michigan Motor Vehicle                           
            Sales Finance Act to enter into installment sales contracts with                            
            any of its customers who desire and qualify for financing.                                  
                  Installment sales contracts are written by dealers on behalf                          
            of a variety of financial institutions and assigned to the                                  
            financial institution without recourse against the dealer.                                  
            Dealers use the financial institution's forms when arranging the                            
            financing.  When a buyer of a motor vehicle finances the vehicle,                           
            the buyer completes a credit application.  After the buyer's                                
            credit is approved, the buyer enters into an installment sale                               
            purchase agreement for the vehicle.  The installment sale                                   
            purchase agreement is immediately assigned to the financial                                 
            institution through which the dealer has arranged financing.                                
            Upon assignment, the dealer receives payment from the financial                             
            institution for the installment sale purchase agreement that was                            
            assigned to it.                                                                             
                  During 1990, Classic sold a total of 3,112 new and used                               
            motor vehicles; 1,888 of those vehicles were financed with                                  
            dealer-arranged financing.  Classic received gross income from                              
            dealer-arranged financing of $280,529.  Berger sold a total of                              
            5,290 motor vehicles; 2,561 of those were financed with dealer-                             

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Last modified: May 25, 2011