Dealer Reference Sheet 1

Daimler Truck Financial (DTF) finances millions of dollars of equipment each year to municipalities throughout the country. To effectively serve these municipal customers, it is important to understand the differences between traditional commercial and municipal financing.

Financing equipment for municipalities can be a complex process. However, much like traditional loans, there are three main events that lead to the eventual financing and funding of the equipment. This sheet is designed to identify the differences from a traditional application and help guide dealers through the municipal financing process.

Quoting a RateJust like your commercial customers, municipalities want to know the cost of different types of financing. DTF’s municipal team provides a fast turnaround on rate quotes once the requested information they need is provided.

• Using the Municipal Quote Request form TFFF2496 located in F&I Pro under “Blank Documents” in the category “Muni,” the dealer provides: o Municipality name o Type of equipment o Number of units o Finance amount o Term requested

• Dealer submits the completed quote request form via email to MunicipalFinance@daimler.com or by fax to 877-491-2135 • DTF will respond with a quote in as little as 4 hours or up to 1 business day, depending on the type and size of the transaction • Rate quote is valid for 15 days (not 30 days); expiration date is listed on the quote • Quote is NOT a credit approval • DTF does not follow up on quotes

Credit ApprovalIf, after reviewing the rate quote, the municipal customer requests DTF financing, then the next step is to obtain formal credit approval. • Dealer will meet with the municipal customer to obtain the following information needed for the credit application package: o Completed Municipal Credit Application (form TFFF1872 located in F&I Pro) o 2-year audited financial statements o Current budget o Estimated delivery date

• Dealer submits the completed package via email to MunicipalFinance@daimler.com or by fax to 877-491-2135 • This package must be submitted a minimum of 30 days prior to the vehicle delivery date to ensure there is enough time for the approval process, contract generation and contract funding • Once DTF receives a completed application package from the dealer, the municipal team will review it and provide the credit approval answer within 2 business days (48 hours) o Larger transactions (over $1 million), can take up to 3 business days (72 hours) • DTF will notify the dealer of the credit decision; however, DTF does not provide a commitment letter • Credit Approval is valid for 90 days (conditions may apply.)

o Payment frequency o Payment type o Dealer fee (if any) o Estimated delivery date

Municipal Process & TimelineDealer Reference Sheet

©2014 Daimler Truck Financial is a business unit of Mercedes-Benz Financial Services USA LLC. All Rights Reserved. DTF-F-TB-1043 (Feb/0)

Contract Funding ProcessOnce DTF offers its approval and the municipal customer agrees to the terms, then the funding process begins. • The contract package request must be submitted a minimum of 2 weeks prior to vehicle delivery to ensure adequate turnaround time • Dealer requests a customer contract package by submitting all forms necessary for the contract to DTF via email at MunicipalFinance@daimler.com or by fax to 877-491-2135: o Bill of Sale listing final finance amount o Copies of the front and back of each MSO o Copies of the title applications showing DTF lienholder information o Wire instructions o Firm delivery date - A firm delivery date must be obtained as this is the date of the contract package • Once DTF receives the completed contract package request, within 24 hours DTF will send a contract package to the customer or email the dealer about missing, incomplete or changed information. o If the terms or the quote have changed, DTF will contact the dealer to obtain a new quote • DTF then contacts the municipal customer directly o DTF confirms the details of the transaction, including cost, delivery date, etc. o DTF emails the complete contract to the customer o DTF remains in contact with the customer to ensure the proper documents are provided prior to the delivery date and funding date • Municipal customer signs all documents in the contract package and returns the documents to DTF o DTF must receive the entire contract package, less the Acceptance Certificate, prior to authorizing the dealer to deliver o Dealer should not deliver the units until they have been notified that DTF has either received or reviewed the required documents • DTF will then release the funds to the dealer o Funds release takes place within 24 hours of receiving a properly executed contract package including the Acceptance Certificate

©2014 Daimler Truck Financial is a business unit of Mercedes-Benz Financial Services USA LLC. All Rights Reserved. DTF-F-TB-1043 (Feb/0)

• Dealer provides:

1. Equipment list 2. Delivery date 3. Reserve, if any 4. Purchase price 5. Term 6. Advance/arrears

• Dealer provides:

1. Completed muni app. 2. 2-year audited financials 3. Current budget• Bond ratings will expedite

• No commitment letter provided

• Terms cannot change from credit approval• Dealer provides: 1. Bill of sale 2. Dealer wire information 3. Copies of MSO & Title App 4. Firm delivery date

• Contract package is emailed to customer

• Customer contact will be called to confirm details• Docs usually require board approval/signature which needs to be scheduled• Certificate of Authority is very important• Opinion of counsel typically needed

FundingQuoting

4-24 hours

Credit

48-72 hours

Contract Generation

24 hours

Contract Follow up

2 weeks minimum 24 hours

Municipal Process Timeline

Dealer Reference Sheet 2

Municipal Process & TimelineDealer Reference Sheet

Questions? We are here to help!The Daimler Truck Financial municipal team is always available to help our dealers navigate the municipal financing process. Please contact us with questions about municipal financing at MunicipalFinance@daimler.com or by calling 866-351-4672.