EFCAR, LLC Enters Asset-Backed Notes Securitization (Sept 28, 2026)

What Happened
EFCAR, LLC filed an 8‑K reporting that on September 28, 2026 (the Closing Date) it transferred certain sub‑prime automobile loan receivables to Exeter Select Automobile Receivables Trust 2026‑2, which then contributed those receivables to Exeter Select Holding Trust 2026‑2 in exchange for 100% of the holding trust’s beneficial interests. The Trust issued a series of asset‑backed notes with an aggregate original principal amount of $505,100,000. Citibank, N.A. acts as indenture trustee and received a security interest in the beneficial ownership interest. Key transaction documents (Purchase Agreement, Sale and Servicing Agreement, Contribution Agreement, Indenture, trust agreements, Custodian Agreement, Asset Representations Review Agreement, Accession Agreement, and related underwriting/depositor filings) were entered into and are filed as exhibits.

Key Details

• Closing Date: September 28, 2026 (several governing agreements dated August 31, 2026).
• Total original principal issued: $505,100,000 across Classes A‑1 through E and Class N (largest classes: A‑2 and A‑3 at $130.25M each).
• Parties: EFCAR (seller/purchaser roles), Exeter Finance LLC (seller and servicer), Citibank, N.A. (Indenture Trustee and backup servicer role), Wilmington Trust Company (owner trustee).
• Additional items: Accession Agreement ties the transaction into an existing Intercreditor and Deposit Account Control framework (lockbox bank: Wells Fargo).

Why It Matters
This is a securitization transaction that converts a pool of sub‑prime auto loans into funded, rated asset‑backed notes. For investors, the filing shows EFCAR moved receivables into a trust vehicle and created secured note classes totaling $505.1M — meaning creditor and cash‑flow priorities are governed by the filed Indenture and trust agreements. The notes are collateralized by the receivables and a security interest was granted to the Indenture Trustee; performance of the underlying sub‑prime loans (defaults, prepayments, recoveries) will drive payments to noteholders and can affect credit exposure. Review the Indenture and trust agreements (filed as exhibits) for the payment waterfall, credit protections, and servicing arrangements.