Common use of PURCHASE PRICE AND COLLATERAL RATIOS Clause in Contracts

PURCHASE PRICE AND COLLATERAL RATIOS. A. The purchase price for a Contract must involve an initial payment to the Dealer which does not exceed the average retail value of a Financed Vehicle plus tax, title, license and warranty. Average retail value shall be measured by the MANNHEIM GOLD BOOK, NATIONAL AUTO RESEARCH BLACK BOOK or the NATIONAL AUTOMOBILE DEALERS USED CAR GUIDE used car market guides, or other nationally published used car market guides. If measured by the MANNHEIM GOLD BOOK, the retail value of a Financed Vehicle shall be adjusted upward to reflect the generally lower values provided by this publication when compared to other publications.