Chicago Auto Outlook TM Used Vehicle Market Edition Volume 2, Number 2 Released June 2007 RESULTS FOR THE CHICAGO AREA RETAIL USED LIGHT VEHICLE MARKET Area Retail Used Vehicle Market Down 2.9% thru April of ‘07; New Vehicle Market Off 6% The Chicago Area used light vehicle market got off CHICAGO AREA RETAIL USED LIGHT VEHICLE REGISTRATIONS to a mediocre start this year, with retail used regis- YTD 2006 and 2007 (thru April) trations falling 2.9% during the first four months of Registrations % Change Market Share this year versus a year earlier. Retail light truck registrations were down 1.5%, versus a 3.9% drop 2006 2007 '06 TO '07 2006 2007 for cars. TOTAL 142,147 138,013 -2.9% Cars 82,948 79,688 -3.9% 58.4% 57.7% What lies ahead for the used vehicle market dur- Light Trucks 59,199 58,325 -1.5% 41.6% 42.3% ing the rest of ‘07? Auto Outlook believes that used vehicle registrations in the area have a good Big Three 99,169 90,334 -8.9% 69.8% 65.5% chance to exceed year earlier levels during the Japanese 28,741 31,914 11.0% 20.2% 23.1% second half of this year. There are several reasons European 11,323 12,290 8.5% 8.0% 8.9% for this expected improvement. First, as explained Korean 2,914 3,475 19.3% 2.0% 2.5% in the Second Quarter ‘07 release of the new vehi- cle edition of Chicago Auto Outlook, household Figures exclude private party transactions. balance sheets are a little shaky, as consumers Chicago Area Quarterly Retail Used Light Vehicle Registrations deal with elevated debt levels, higher interest rates, and in some cases, falling home values. This 140,000 should lead many shoppers to seriously consider 120,000 the purchase of a used vehicle instead of a new one. In addition, although new vehicle incentives 100,000 were ramped up during the first half of 2007, used 80,000 vehicle wholesale values declined in several 60,000 months this year versus a year earlier, helping to 40,000 maintain the gap between new and used vehicle 20,000 prices. 0 Bottom line: Auto Outlook believes that dealer- 5.1 5.2 5.3 5.4 6.1 6.2 6.3 6.4 7.1 ships are likely to have more opportunities to ex- pand used vehicle sales than new vehicle sales for Quarters Source: AutoCount, an Experian Company the rest of this year. Area New Retail Light Vehicle Registrations as a % of Used Registrations Note: Due to processing delays at the Indiana Depart- ment of Motor Vehicles, new vehicle registration data is 90.0% unavailable for the two Indiana counties (Lake and Por- ter) beginning in July of 2006. Figures for these months were estimated by Auto Outlook. 80.0%

LIGHT TRUCK SHARE OF AREA USED VEHICLE MARKET 70.0% (YTD ‘07 THRU APRIL VS. YTD ‘06)

60.0% 45.0% 42.3% 41.6% 50.0% 40.0%

40.0% 35.0% 5.1 5.2 5.3 5.4 6.1 6.2 6.3 6.4 7.1

New as % of used 68.5%75.9%87.8%66.8%69.0%72.3%79.3%65.1%66.5% 30.0% Quarters 25.0% Source: AutoCount, an Experian Company ytd 2006 ytd 2007 Page 2 Chicago Auto Outlook Used Vehicle Market Edition

BRAND SALES PERFORMANCE IN USED AND NEW VEHICLE MARKETS Data Source Information

Brand Used Vehicle Market Share Versus New Vehicle Share Exclusive source for vehicle registration data presented in Auto Outlook is AutoCount, an Ex- The graph below presents a compari- rolet’s used vehicle market share, for perian Company. AutoCount provides detailed son of brand sales performance in the instance, was just below 16%, com- new and used vehicle sales and registration Chicago Area retail new and used vehi- pared to just under 11% on the new statistics. Data is available on a timely basis cle markets for the top 30 selling used vehicle side. As a result of recent gains and is conveniently accessible over the Internet. vehicle brands. For each brand, the in the new vehicle market, , For more information on Auto Count, call graph presents retail used and new Honda, Hyundai, and Lexus new vehi- 407.770.5900 or visit AutoCount’s web site: vehicle market share during the first cle market shares are well above their www.autocount.com four months of 2007. Brands are levels in the used vehicle market. ranked from top to bottom based on used vehicle market share. For many Bottom Line: Although struggling re- brands the variance in market share is cently on the new vehicle side, Chevro- significant and is highly reflective of let and Ford are strong sellers in the past and present market results. Chev- used vehicle market. Chicago Area Used and New Vehicle Market Share (YTD ‘07 thru April)

Chevrolet Ford Dodge Toyota/Scion Nissan Honda Chrysler Jeep Buick Cadillac Mercury GMC Volkswagen Lexus Used Mercedes New BMW Mitsubishi Hyundai Saturn Acura Lincoln Mazda Infiniti Audi Kia Volvo Subaru Land Rover Jaguar Suzuki

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Source: AutoCount, an Experian Company. Only includes retail used vehicle sales at new vehicle franchised and independent used vehicle dealers. Released June 2007 Page 3

IDENTIFYING HOT POCKETS OF AREA USED VEHICLE MARKET One and Two Year Old Vehicle Classes Grow in ’07; Near Luxury Car and SUV Segments Gain Share The two graphs on this page provide an informative view of Chicago Area Used Vehicle Segment Market Share the changing composition of YTD 2007 (thru April) vs. YTD 2006 the Chicago Area used vehicle market. The graph on the right Near Luxury Car shows the change in market share during the first four Mid Size SUV months of this year versus the Compact SUV same period a year earlier. The Near Luxury Car segment Mid Size Luxury SUV had the largest market share Full Size Luxury SUV gain during the first four months, up 1.2 share points. Sub Attractive used vehicle prices Mini Van undoubtedly gave a boost to Entry Car used SUV sales, with market share increasing for four SUV segments. Standard Mid Size Car The graph below shows mar- Mid Size SUV ket share by vehicle age range Full Size Van in the used vehicle market during the first four months of Full Size Pickup this year versus the same Sport Compact Car period last year. Market share for vehicles two years old or Compact Pickup newer increased this year. Luxury Car Full Size SUV Large Mid Size Car

-1.5 -1.0 -0.5 0.0 0.5 1.0 1.5

Chicago Area Used Vehicle Market Share By Age of Vehicle, YTD ‘07 vs. ‘06 (thru April) Only Includes Vehicles 8 Years Old or Newer 20.0% 18.0% 16.0% 14.0% 12.0% ytd '06 10.0% ytd '07 8.0% 6.0% 4.0% 2.0% 0.0% Current 8 years old 7 years old 6 years old 5 years old 4 years old 3 years old 2 years old 1 year old Model Year

ytd '06 7.6% 8.8% 9.4% 10.1% 13.7% 16.1% 12.9% 16.9% 4.5% ytd '07 7.6% 8.6% 8.4% 9.9% 13.9% 15.8% 14.2% 17.6% 4.0% Source: AutoCount, an Experian Company. Only includes retail used vehicle sales at new vehicle franchised and independent used vehicle dealers. Page 4 Chicago Auto Outlook Used Vehicle Market Edition

TOP SELLING MODELS IN AREA USED VEHICLE MARKET (VEHICLES NEWER THAN FIVE YEARS OLD) Impala Best Selling Vehicle in Five Years Old or Newer Age Class The two tables below rank the best sell- was the best selling Bottom Line: Dealers should not ignore ing used vehicles in the Chicago Area vehicle in the five year old or newer opportunities in the used vehicle market for all vehicles newer than five years old category, followed by Pontiac Grand that clearly exist for vehicles that have during the first four months of 2007. Prix, Chevrolet TrailBlazer, Ford Ex- struggled in the new vehicle market, i.e., The first table shows the top five sellers plorer, and . Totals in- Grand Prix, TrailBlazer, and Explorer. broken down by primary market seg- clude previous generation vehicles re- Toyota Camry is the best-selling car in ment. The second table shows the top placed by a new model. For example, the area new vehicle market, but ranks 30 sellers across all segments. includes Cavalier. fifth among used cars.

Top Selling Models in Each Segment - Chicago Area, Vehicles Less Than Five Years Old Used Retail Registrations, YTD 2007 (thru April) and Market Share of Segment Cars Entry Sub Compact Sporty Compact Standard Mid Size Model Regs. Share Model Regs. Share Model Regs. Share Model Regs. Share 198 28.5 Chevrolet Cobalt 1350 13.9 Ford Mustang 505 40.6 Chevrolet Malibu 1710 15.3 Hyundai Accent 138 19.9 Honda Civic 954 9.9 Mitsubishi Eclipse 196 15.8 Toyota Camry 1360 12.2 Kia Rio 117 16.9 Ford Focus 909 9.4 Scion tC 147 11.8 1262 11.3 Toyota Yaris 75 10.8 Toyota Corolla 853 8.8 Acura RSX 123 9.9 Nissan Altima 1229 11.0 Scion xA 56 8.1 Volkswagen Jetta 646 6.7 Pontiac GTO 89 7.2 Honda Accord 1149 10.3 Large Mid Size Near Luxury Luxury Sports Car Model Regs. Share Model Regs. Share Model Regs. Share Model Regs. Share Chevrolet Impala 2226 19.7 BMW 3-Series 597 12.1 Cadillac DTS 573 13.8 Nissan 350 ZX 162 21.9 1849 16.4 Acura TL 582 11.8 BMW 5-Series 343 8.3 155 21.0 Ford Taurus 1707 15.1 Infiniti G35 518 10.5 Audi A6 300 7.2 Porsche 911 80 10.8 723 6.4 Audi A4 498 10.1 Mercedes E-Class 282 6.8 Mazda RX8 66 8.9 Chrysler 300 667 5.9 Lexus ES 486 9.9 Lincoln Town Car 260 6.3 Audi TT 61 8.3 Light Trucks Compact Pickup Full Size Pick Up Mini Van Full Size Van Model Regs. Share Model Regs. Share Model Regs. Share Model Regs. Share 277 26.1 Ford F-Series 1214 37.8 Dodge Caravan 1496 26.5 408 41.8 Ford Ranger 252 23.8 730 22.7 Chrysler T & C 769 13.6 Ford E-Series 402 41.2 Dodge Dakota 222 20.9 Dodge Ram 581 18.1 Ford Freestar 670 11.9 GMC Savana 77 7.9 Toyota Tacoma 111 10.5 336 10.5 Honda Odyssey 590 10.4 Dodge Ram Van 49 5.0 Nissan Frontier 86 8.1 GMC Sierra 194 6.0 Toyota Sienna 539 9.5 Compact SUV Mid Size SUV/Crossover SUV Full Size SUV Mid & Full Size Luxury SUV Model Regs. Share Model Regs. Share Model Regs. Share Model Regs. Share Jeep Liberty 775 15.9 Chevrolet TrailBlazer 1765 15.0 585 22.8 Lexus RX 627 14.8 Ford Escape 749 15.4 Ford Explorer 1749 14.9 Ford Expedition 555 21.6 Cadillac Escalade 455 10.7 Honda CRV 468 9.6 Jeep Grand Cherokee 1400 11.9 386 15.0 Acura MDX 402 9.5 449 9.2 Chrysler Pacifica 870 7.4 GMC Yukon 314 12.2 Lincoln Navigator 288 6.8 Toyota RAV4 353 7.3 GMC Envoy 721 6.1 GMC Yukon XL 246 9.6 BMW X5 284 6.7

Top 30 Selling Models in Chicago Area, Vehicles Five Years Old or Newer Used Retail Registrations, YTD 2007 (thru April) Rank Model Registrations Rank Model Registrations Rank Model Registrations 1 Chevrolet Impala 2226 11 Pontiac G6 1262 21 Jeep Liberty 775 2 Pontiac Grand Prix 1849 12 Nissan Altima 1229 22 Chrysler T & C 769 3 Chevrolet TrailBlazer 1765 13 Ford F-Series 1214 23 Ford Escape 749 4 Ford Explorer 1749 14 Honda Accord 1149 24 Chevrolet Silverado 730 5 Chevrolet Malibu 1710 15 Honda Civic 954 25 Chevrolet Monte Carlo 723 6 Ford Taurus 1707 16 Chrysler Sebring 936 26 GMC Envoy 721 7 Dodge Caravan 1496 17 Ford Focus 909 27 Hyundai Sonata 714 8 Jeep Grand Cherokee 1400 18 Dodge Stratus 898 28 Dodge Durango 673 9 Toyota Camry 1360 19 Chrysler Pacifica 870 29 Ford Freestar 670 10 Chevrolet Cobalt 1350 20 Toyota Corolla 853 30 Chrysler 300 667

Source: AutoCount, an Experian Company. Only includes retail used vehicle sales at new vehicle franchised and independent used vehicle dealers. Released June 2007 Page 5

BRAND USED VEHICLE MARKET SHARE Chevrolet and Ford Market Share Leaders in Newer than Two Year Old Vehicle Category The graph below shows used vehicle old category. Brands are positioned on doubtedly given a boost by the relatively market share for all brands in the Chi- the graph from top to bottom based on high number of vehicles coming out of cago Area during the first four months of market share in the newer than two fleet service and hitting the retail used this year. Two data points are presented year old class, with Chevrolet and Ford market. Honda market share in the for each brand: market share in the ranked first and second, respectively. newer than two year old category was newer than two year old category, and Used vehicle market share in the nearly 3.1% versus 6.4% among three to five market share in the three to five year new category for the two brands is un- year old vehicles.

Chicago Area Used Vehicle Market Share (YTD 2007 thru April)

Chevrolet Ford Dodge Chrysler Toyota Pontiac Nissan Jeep Honda Hyundai Cadillac Lexus Buick Mercedes Mitsubishi Volkswagen Mercury GMC Newer than 2 Years Old BMW 3 to 5 Years Old Acura Mazda Kia Saturn Audi Lincoln Infiniti Suzuki Subaru Land Rover Hummer Volvo Porsche Saab MINI Jaguar Isuzu

0.0 5.0 10.0 15.0 20.0 Page 6 Chicago Auto Outlook Used Vehicle Market Edition TOP SELLERS 2006 Chevrolet Impala Best Selling Used Vehicle in Area Market So Far This Year The graph below shows the top 30 selling models (with specific model years) in the Chicago Area during the first four months of this year. (Note: only includes vehicles newer than five years old.) The 2006 Chevrolet Impala was at the top of the charts, fol- lowed by the 2006 Pontiac Grand Prix. Source: AutoCount, an Experian Company. TOP 30 SELLING MODELS IN CHICAGO AREA USED MARKET (BASED ON SPECIFIC MODEL YEARS) YTD ‘07 THRU APRIL (only includes vehicles five years old or newer)

2006 Chevrolet Impala 953

2006 Pontiac Grand Prix 679

2006 Dodge Caravan 625

2004 Pontiac Grand Prix 559

2006 Chevrolet Malibu 549

2006 Ford Taurus 511

2006 Hyundai Sonata 491

2006 Chrysler Sebring 490

2006 Dodge Stratus 478

2002 Ford Explorer 452

2005 Chevrolet Malibu 445

2006 Jeep Grand Cherokee 442

2006 Dodge Charger 442

2006 Chevrolet TrailBlazer 427

2004 Jeep Grand Cherokee 408

2007 Toyota Camry 399

2004 Chevrolet Impala 397

2006 Chevrolet Cobalt 390

2005 Nissan Altima 381

2006 Pontiac G6 364

2004 Ford F-Series 363

2004 Ford Explorer 359

2004 Chevrolet TrailBlazer 358

2005 Chevrolet Cobalt 357

2004 Honda Accord 355

2003 Chevrolet TrailBlazer 349

2003 Ford Explorer 347

2004 Chevrolet Malibu 340

2007 Ford Taurus 336

2005 Chrysler Pacifica 336

0 200 400 600 800 1000 1200 Released June 2007 Page 7 BRAND SALES PERFORMANCE IN USED VEHICLE MARKET Land Rover, Hyundai, Audi, and Infiniti Record Largest Gains in Area Used Vehicle Market

The graph below provides a comparative picture of brands that are gaining ground in the area market, and those that are declin- ing. The graph shows the percent change in retail used vehicle registrations during the first four months of this year versus the same period a year earlier.

Percent Change in Chicago Area Used Vehicle Registrations (YTD 2007 thru April versus year earlier)

Land Rover Hyundai Audi Infiniti Acura Honda Lexus Jaguar Nissan Chrysler Mercedes Subaru Volkswagen Toyota/Scion Kia Cadillac Saturn BMW Jeep Mazda Mitsubishi Dodge Pontiac Volvo Mercury Chevrolet GMC Buick Ford Lincoln

-20% -10% 0% 10% 20% 30% 40% Page 8 Chicago Auto Outlook Used Vehicle Market Edition

DEALERSHIP SALES ANALYSIS New Vehicle Dealerships Account for Increasing Share of Used Vehicle Market

As depicted by the trendline on the share fell below 50% in just one month dealerships, a market share of 53.5%. graph below, new vehicle dealerships (March of 2005), and reached a high of During the same period last year, new have increased their market share in nearly 58% in September of 2006. Dur- vehicle dealership share of the area the Chicago Area retail used vehicle ing the first four months of 2007, used vehicle market was 51.9%. market over the past 28 months. Be- 138,013 used vehicles were registered tween January of 2005 and April of this in the eight county Chicago Area, with Source: AutoCount, an Experian Company. year, new vehicle dealership market 73,807 vehicles sold by new vehicle

New Vehicle Dealership Market Share of Chicago Area Used Vehicle Market (Excludes Private Party Transactions)

60.0%

58.0%

56.0%

54.0%

52.0%

50.0%

48.0% Trendline 46.0%

44.0%

42.0%

40.0%

5 5 5 5 6 6 6 7 7 0 05 05 0 05 06 06 0 0 0 06 07 0 0 -0 ------06 - c- - r- an ar- ay- un Jul ov-0 an ar ay-06un-06 Jul an ar- J Feb-05M Apr-05M J Aug-05Sep Oct-05N Dec-05J Feb M Apr-06M J Aug- Sep-06Oct-06Nov- De J Feb-07M Ap

Source: AutoCount, an Experian Company. Only includes retail used vehicle sales at new vehicle franchised and independent used vehicle dealers.

Chicago Auto Outlook Used Vehicle Market Edition

Published by: Chicago Auto Outlook Used Vehicle Market Edition is Auto Outlook, Inc. printed, sponsored, and distributed by the Chicago Auto- 5 Great Valley Parkway, Suite 234 Malvern, PA 19355 Phone: 800-206-0102 EMail: [email protected] mobile Trade Association, and is provided free of charge Editor: Jeffrey A. Foltz to all members as an added benefit of Association Any material quoted must be attributed to Chicago Auto Outlook Used Vehicle Market Edition, published by Auto Outlook, Inc. on behalf of the Chicago Auto- membership. The Association is proud to provide this mobile Trade Association. Unforeseen events may affect the forecast projections presented. Consequently, Auto Outlook, Inc. is not responsible for valuable and practical information to members. management decisions based on the content of Chicago Auto Outlook Used Vehicle Market Edition. Copyright Auto Outlook, Inc., June, 2007