Fitch Rates WFS Financial 2005-3 Owner Trust 'AAA'

Business Wire, July 27, 2005

NEW YORK -- Fitch Ratings assigns the following ratings to the WFS Financial 2005-3 Owner Trust (WFS 2005-3) asset-backed notes:

-- $389,000,000 3.66838% class A-1'F1 ';

-- $713,000,000 4.11% class A-2 'AAA';

-- $325,000,000 4.25% class A-3A 'AAA';

-- $682,000,000 floating-rate class A-3B 'AAA';

-- $306,000,000 4.39% class A-4 'AAA';

-- $105,000,000 4.50% class B 'AA';

-- $112,000,000 4.54% class C 'A';

-- $91,000,000 4.76% class D 'BBB'.

The ratings on the notes, backed by a pool of new and used automobile and light-duty truck installment loans, are based on the enhancement provided by subordination, over-collateralization (OC) of 2.75% of the initial pool balance growing to 5.00%, with a floor of 1.00% (which may step down to 0.75% and 0.50% at month 30 and 36 if certain delinquency and cumulative net loss performance measures are met), and a fully funded, nondeclining reserve account of 0.25% of the initial pool balance. The ratings also reflect the high quality of retail auto receivables originated by WFS Financial Inc. (WFS), the company's servicing capabilities, and the sound legal and cash flow structures. Fitch's ratings address the likelihood of noteholders receiving full and timely payments of interest and principal according to the legal documents of the transaction. WFS 2005-3 represents the eleventh senior/subordinated structure offered by WFS. Other transactions have been supported through monoline insurance wraps.

Initial credit enhancement for the class A notes, equal to 14.00%, is comprised of 11.00% subordination, 2.75% initial OC, and a 0.25% reserve. The class B notes have 10.25% (7.25% subordination, 2.75% initial OC, and a 0.25% reserve), the class C notes have 6.25% (3.25% subordination, 2.75% initial OC, and a 0.25% reserve), and the class D notes have 3.00% initial enhancement (2.75% OC and a 0.25% reserve).

Additional structural protection is provided to senior noteholders through a shifting payment priority mechanism. In each distribution period, a test will be performed to calculate note collateralization amounts. If notes are undercollateralized, payments of interest to subordinate classes may be suspended and made available as principal to higher rated classes.

Based on the loss statistics of WFS' retail portfolio performance, prior securitizations, and the composition of the 2005-3 assets, Fitch expects consistent performance from the current pool. Through March 31, 2005, WFS' managed retail portfolio of approximately $11.9 billion had total delinquencies as a percentage of the amount of contracts outstanding of 1.53%, and net chargeoffs as a percentage of the amount of contracts outstanding were 1.66% (annualized).

Fitch's rating definitions are available on the agency's public web site, 'www.fitchratings.com'. Published ratings, criteria and methodologies and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.