Vol. 15, Issue 1 January 2015

Scott Ehrlich, Ehrlich & Scion Colorado Dealer of the Year ROUTE TO: Colorado Nominee for ___ Owner/GM ___ Controller TIME Dealer of the Year ___ GSM ___ Fixed Ops ___ New Car Manager ___ Used Car Manager Chair’s Column

Dear Colorado Dealer:

Welcome to “The 101” – that’s the theme for CADA in 2015. It’s the 101st year that we’ve been an association. It’s a new era and a New Year, always a good time for starting fresh, considering new ideas and strategies and setting some goals. As the new chairman of the Colorado Automobile Dealers Association, I’ve been putting quite a bit of thought into it. Last year was tremendous for both the automobile business and for our association, but there’s always plenty more to do.

My name is Thom Buckley. I’m co-owner of Red Noland -Infniti-Jaguar-Land Rover in Colorado Springs. I am honored to be the 2015 chairman of CADA and hope to build on outgoing chairman Bill Hellman’s successful record. I hope for lots of input from the member Thom Buckley dealers because the strength of our organization lies in your willingness to be active in pushing our goals and agenda. CADA Chair A little bit about me: In contrast to many automobile dealers, I came up through the ranks on the service side of the business. I’m a Colorado Springs native. A year after I graduated from high school, and realizing I needed more education about newer vehicles, I went back to my high school auto shop teacher and asked for some advice. He directed me to a program at Arapahoe Community College, the Automotive Service Education Program. Participation required working at a dealership, and in 1984 I was accepted for a job at Red Noland Cadillac. I went full time there as a line tech when I got my associate’s degree in automotive technology.

With excellent opportunities and advice I worked my way through the service department to be the service manager and when our Land Rover store opened in 1994 I was given a chance to be the general manager. In 1999 I became a partner in the business and started overseeing all the import . Last year my business partner, Mike Jorgenson and I completed our buy-out of Red Noland. I continue to manage the international nameplate lines and Mike manages Cadillac, our Collision Center, Pre-Owned Center as well as our Business offce.

I’ve been married 23 years to Lisalynn and we have a daughter in college at the University of North Texas and a son in high school. They’re both competitive swimmers, and we spend a lot of our free time following their activities. I also volunteer at the high school and with the American Heart and Alzheimer’s Associations.

I’ve been lucky enough to be in the right place at the right time, although I’ve worked hard and always showed an interest in something beyond the normal scope of my job. I hope to bring those same qualities to my year as CADA chairman.

My top goal for “The 101” is to continue improving service to our members and better communicating the value of membership in CADA. Our great staff is doing an excellent job, and I want to focus on the benefts of our association – including the many hidden benefts and work that gets done every day that’s funded by income not related to members’ dues. One way we hope to do this is with a regular blog that include these monthly letters to the membership along with any other direct communications important to you and/or the public.

I’m looking forward to working with you on CADA’s activities this year and meeting the members that I don’t already know, beginning with the legislative session and our grassroots meetings with state lawmakers. I also hope you’ll mark your calendars now so you can participate in some of the outstanding CADA events this year:

• Show Week Denver – Colorado Convention Center • Innovative Dealer Summit: April 7-8 • Charity Preview Party: April 7 • Denver Auto Show: April 8-12 • CADA Annual Member Golf Event – Rolling Hills Country Club, Golden: July 27 • CADA Project DC and NADA Washington Conference: September 27-30 (for Board Members) • CADA 101 Annual Meeting and Gala: Dates & Location TBD

If you have suggestions during this year that you think might improve the association, please contact me directly. I’m always interested in what you have to say. My direct cell phone number is 719.494.5350 and my email is [email protected].

Best regards,

Thom Buckley, 2015 CADA Chairman

2 Colorado Automobile Dealers Association January 2015 Colorado Dealer Breakfast

Join us for the

Cost Dealers & ATAE—Complimentary Sunday, January 25, 2015 All other attendees—$75 7:15 a.m. – 9 a.m. W San Francisco Hotel Great Room 1 and 2 181 3rd St., San Francisco, CA 94103-3107

About the keynote speaker, Sponsored by Colorado State Senator Ellen Stuart Roberts

Ellen Stuart Roberts is an attorney and Republican legislator in the state of Colorado. From 2006– 2010, Roberts served as the state representative for House District 59. In 2010, she was elected to Senate District 6 and is the current senator for that district, which encompasses Archuleta, RSVP Today! Dolores, La Plata, Montezuma, Montrose, Kim Harrison | [email protected] | 303.831.1722 Ouray, San Juan, and San Miguel counties. To register online, visit www.coloradodealers.org/registration

January 2015 Colorado Automobile Dealers Association 3 President’s Page You Spoke, We Listened

In the lead-up to CADA’s Annual Meeting and 100th Anniversary Gala Celebration, we asked member dealers to participate in a member satisfaction survey, to help the CADA staff and leadership better serve its member dealers.

We were pleased with the extraordinary response the survey received. Your feedback – your voice – is essential to shaping CADA’s efforts and priorities. The key to our success is 260 actively engaged member dealers – and this survey proved that CADA has a well-informed and highly engaged membership.

As we refect on 2014 and look ahead to 2015, we’re using this column to share the results and key takeaways from the survey. If any of these fndings strike a chord or spur some ideas on how to make your association even better, please get in touch and Tim Jackson let us know how we can make 2015 CADA’s best year ever! CADA President

• More than 95% of respondents were either satisfed or very satisfed (a spectacular 82%) with their CADA membership. • 98% described the work CADA does for the industry as extremely or very meaningful. • Of respondents 64% felt their participation makes an impact in the larger CADA picture. • 84% said that CADA does a great job of recognizing members for contributions to the association and our industry. • We learned that your top expectations of CADA is to provide legislative advocacy, regulatory advocacy and general industry support and guidance, with 98% of respondents indicating that they feel we are meeting those expectations. • On the marketing and communications front, 96% of our members believe CADA communications are timely, 93% said they were also effective. • As far as how you prefer to get your news, 96% said email, followed by 22% saying good old-fashioned snail mail. Sadly only 7% would like to receive communications by carrier pigeon. Somewhat surprisingly, zero percent of respondents said they’d like a personal phone call from me (where’s the love?). • With regards to social media, our member dealers appear to be quite active, with 75% of respondents saying that their store is active on social media sites. Facebook was by far the leader of the pack, with nearly 96% of those who are active reporting they utilize the site. This was followed by Google+ at 53%, Twitter at 51%, and LinkedIn at 40%. It was a surprise that popular sites like YouTube (the world’s second largest search engine), Pinterest and Instagram all came in under 11%, • We also found that 66% of our members would be interested in joining a private CADA LinkedIn group as a means of obtaining event information and networking with industry colleagues. • Several of CADA’s members have suggested that we start doing regular, short video updates on key issues, legislation and regulation, so we asked the larger group and the results were very similar with 93% of respondents having some level of interest in us producing video content. • With regards to CADA’s education and training programs, 100% of respondents fnd some level of value in our programs, with 48% reporting that they fnd webinars to be the most effective learning method followed closely by in-person seminars, which found 40% support. We’ve just recently started a CADA webinar program, hosting our frst two webinars over the last two months. • Looking ahead to this year, we asked you to tell us what topics you’d like to see covered in 2015 and overwhelming legal/regulatory/compliance issues ranked number one. We asked about eight different topics and the remaining seven were all virtually tied. • 72% of respondents told us it was easy to participate in CADA events, with 65% saying that they utilize our online registration platform. Of those individuals, 89% found the registration process easy and straightforward.

4 Colorado Automobile Dealers Association January 2015 Clear the Air Foundation

• About 80% said they were very or extremely likely to attend CADA events in the future. • Of the programs and services that CADA provides, we learned that regulatory advocacy (87%) and legislative advocacy (76%) were the most important to you, followed by general business support (53%), hosting the Denver Auto Show (43%) and media outreach and public relations (39%) WE DID IT IN • 80% told us that CADA priorities, legislative results, programs and services make a great difference to their business. 2014! • 93% indicated that their priorities as dealers were the same as CADA’s legislative priorities. And 1300 about 90% are aware that CADA regularly hosts Legislative Grassroots Meetings with state and federal policy-makers. Further, 68% said that what RECYCLED CARS they value most about these meetings is that they help pass critical legislation in support of the industry. And 67% said they’d like to participate in future meetings. Top 2015 YTD

Finally we asked for general comments and here’s a Donation Leaders: snapshot: Longmont Ford: 6 Dellenbach Motors: 4 “Keep up the great work. Your ability to clearly Land Rover Flatirons: 4 communicate with the dealer body is exceptional.” Christopher’s World: 2 “Tim and the entire staff do a great job! No complaints Public Donations: 1 or issues here!” Planet : 1 “You all do an awesome job, Colorado dealers are Planet Hyundai: 1 a very lucky group to have such a great team and Perkins Motors: 1 leadership.” Summit Ford: 1 “Get me more active!!!”

“More dealer involvement!” A very heartfelt thank And my favorite, “simplify the next survey.” you to every dealer that

Many thanks again to everyone who participated in the helped make 2014 our survey. Like I said earlier, your input is critical to our success. And with regards to the last comment, we will best year yet! be asking you to complete a legislative survey in the next week or two, and we will be sure to simplify it. We look forward to an even better 2015! Tim Donating high-emitting cars is easy! Contact George Billings for details at 303.775.8896 or email [email protected]

January 2015 Colorado Automobile Dealers Association 5 Regulatory & Legal Issues REMINDER: UNIFORM CONSUMER CREDIT CODE (UCCC) - • Denver (3.62% to 3.65%) ANNUAL FILING * DUE JANUARY 31ST * • Brush (3.6% to 4%)

Most all dealers in Colorado need to make this annual fling with the Attorney • Idaho Springs (3% to 4%) General’s offce. The few exceptions include dealerships that do not assign any retail • La Veta (3% to 3.5%) paper (installment contracts), do not arrange fnancing, or do not make any consumer credit transactions. • Larimer County (.6% to .65%)

The annual notice fee for 2015 is $150.00 (same as last year). LATE FEES: the annual • Windsor (3.2% to 3.95%) fee is due each year by January 31st (with a 30-day grace period; late fees of $5.00 per day start to accrue on March 1st). Visit www.cadaopenroad.org Dec. 30 issue to learn more about sales tax rate changes. Visit www.cadaopenroad.org Jan. 13 issue for more details on the 2015 annual notice fee. ADVERTISING RULE CHANGES EFFECTIVE 12/30/14: Recent changes are minor TITLE CHANGES - COMPLETED The Auto Industry Division, like other state agencies, is under a requirement by the The 2014 General Assembly passed legislation that addressed some key issues in Governor to review all existing rules for needed changes (20% per year is the goal). Colorado title branding. The computer system programming and changes required Advertising rules were recently reviewed and fairly minor changes were proposed. within the Department of Revenue (DOR) are now completed so that dealers should The changes became effective Dec. 30, 2014. A few highlights include: begin seeing these changes on newly issued Colorado titles. CADA was actively engaged in both the task force leading up to this legislation as well as in the • Rule 7 regarding types of prior history that must be disclosed in advertising legislative process. was modifed to remove taxi cabs and police vehicles – primarily due to the diffculty of being able to determine this information with certainty. Colorado A driving factor behind the primary bill, HB14-1100, was that Colorado had and many states do not have brands on these uses and new services like Uber, developed a reputation as a “title washing state” – especially in the aftermath of for example, will make such use even more diffcult to determine. The initial fooding around the country. Key changes include: proposal was to add “prior rental vehicle” which would have created many of • Provided authority for DOR to carry forward other state title brands. the same issues. NOTE: Salvage, rebuilt from salvage, and food remain the three types of prior history that must be included in an advertisement if the • Created a new food brand. dealer has knowledge. • The defnition of “salvage” was expanded to also include food-damaged • Rule 14 covering rebates was modifed to include a statement specifcally vehicles as well a “salvage” brand by any other state. Additionally, the targeting ads that combined rebates that are not all attainable (an issue previous six-year exemption was also removed. the FTC has targeted in recent actions): When advertising rebates, incentives, or other offers, a dealer shall not combine such • Establishes a new title classifcation of “non-repairable title” - these vehicle will offers or give the impression that such offers are obtainable, be taken off-highway and used only for scrap or as a source of parts. when in fact they are not. • NEW: Rule 18. • A specifc defnition of “junk” was added. Statements, such as “Everybody Financed,” “No Credit Rejected,” “We Finance Anyone,” and other statements Visit www.cadaopenroad.org Jan. 6 issue to representing or implying that no prospective credit purchaser will be rejected because of his inability to qualify for credit, are read the full article. prohibited, unless such statements are true.

JANUARY 1ST SALES TAX RATE CHANGES CADA will be working further with the Division and the dealer board on the development of industry guidelines to help convey and provide clarity to dealers how The state Department of Revenue – Division of Taxation posts sales and use tax all of the advertising rules apply in various contexts and mediums. The advantage changes prior to January 1st and July 1st each year. Dealerships should be aware of such guidelines is that detailed examples can be provided and be more easily of these changes and be on the lookout to ensure the tax database being utilized updated to address new technologies and practices. refects these changes. There may be a time-lag between the effective date and the update of these data sources. Visit www.cadaopenroad.org Dec. 30 issue for IMPORTANT ALERT: SALES TAX INCREASES ARE EFFECTIVE FOR THE FOLLOWING: the details on all changes. • Boulder City (3.56% to 3.86%) • Boulder County (.8% to .985%)

6 Colorado Automobile Dealers Association January 2015 TIME Dealer of the Year TIME AND HONOR GREELEY DEALER

Scott Ehrlich Wins National Recognition for Community Service and Industry Accomplishments at NADA Convention Colorado recipients of the Scott Ehrlich is one of a select group of 55 dealer nominees from across the country TIME award: who will be honored at the 98th annual National Automobile Dealers Association 2015 Scott Ehrlich (NADA) Convention & Exposition in San Francisco, California, on January 23, 2015. 2014 Bob Ghent The announcement of this year’s nominees was made by Jed Hartman, group 2013 Jay Cimino publisher, worldwide, TIME, and Tim Russi, president of Auto Finance for Ally 2011 Doug Moreland Financial. 2010 Jack TerHar 2009 John Medved “The dealers nominated for this award are dedicated business owners, auto lovers and, most importantly, champions for their local 2008 Don Hicks communities, with a willingness to give back on a grand scale,” said Russi. “Ally is proud to honor and support these dealers as they 2007 Lisa Schomp work today and tomorrow to build better places to live, work and do business.” 2006 Barbara Vidmar 2005 Jeffrey Carlson The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. Recipients are among 2004 Jim Morehart the nation’s most successful auto dealers who also demonstrate a long-standing commitment to community service. Ehrlich, 52, was 2003 Lee Payne chosen to represent the Colorado Automobile Dealers Association in the national competition – one of only 55 auto dealers from 17,000 2002 John Schenden nationwide – nominated for the 46th annual award. 2001 Dean Dowson 2000 Kent Stevinson “We take great pride in our commitment to our customers and to our neighbors,” nominee Ehrlich said. “We have honored our motto of 1998 Fred Emich ‘We are ladies and gentlemen serving ladies and gentlemen’ for more than 50 years.” 1997 John Clatworthy 1996 Lloyd Chavez Ehrlich is a 1980 graduate of Greeley West High School in Greeley and attended Western State Colorado University in Gunnison, 1995 Jim Reilly Colorado, for two years. He started his automotive career selling cars and trucks for his father, Reuben “Swede” Ehrlich, at the 1994 Herrick Garnsey family’s Ehrlich Motors, becoming general manager at age 25 and dealer principal two years later. 1993 Roland Purifoy 1992 Jim Suss “Since then, I have successfully completed nine buy-sells and have been awarded two open points, as well as completing three 1991 Doug McDonald renovations and new construction on fve dealerships,” Ehrlich said. “This is challenging but rewarding work that requires major 1990 Bob Markley decisions in managing real estate, capital and staffng.” He now oversees fve Colorado dealerships located in Greeley, Longmont 1989 Bob Fisher and Fort Morgan. “In 1987, we had 25 employees and today we have as many as 230,” he added. “I have asked key managers to be 1988 Harry Dowson partners, which allows them to grow within our organization.” 1987 Joe Luby 1986 R.W. Dellenbach Ehrlich also put his management skills to work for the good of his community. In 2008, he created the College Promise, a scholarship 1985 Hugh Tighe program that pays the frst year’s tuition for Greeley students who want to continue their education at Greeley’s Aims Community 1984 Florian Barth College. With an initial gift from Ehrlich and participation from other business people and the Monfort Foundation, the program has 1983 R.S. Doenges helped more than 400 students since its inception. 1982 Jack Maffeo 1981 Nate Burt “We are now looking to expand this program to the entire Weld County and pay for four years of college,” he said. “To have a vision 1980 Dwight Ghent that every child in my hometown could have the opportunity to attend college and further his or her education – and see it become a 1979 Tony Fortino reality – is my most important achievement, personally and professionally. Then to see the community also join forces in this endeavor 1978 George McCaddon is incredibly rewarding.” 1977 Gene Wilcoxson 1976 Ralph Schomp In addition to his position as chairman of the College Promise Foundation, Ehrlich is also chairman of the board of Upstate Colorado 1975 Al O’Meara Economic Development. He has also served the Weld County School District (volunteer and mentor), Boys & Girls Clubs of America, and 1974 Charlie Williams the United Way, earning numerous awards for his entrepreneurship and community involvement. Additionally, Ehrlich has twice 1973 Vern Hagestad served on the board of the Greeley Chamber of Commerce. 1972 Dick Deane 1971 Gene Markley His most important honor was receiving the prestigious “Sonny” Mapelli humanitarian award from the Boy Scouts of America’s Longs 1970 Russ Lyon Peak Council, which is given to an individual who embodies the ideals of scouting and makes the community a better place. “This award is special to me because the recipient is chosen by past honorees and that list is quite impressive,” Ehrlich said. “And it’s given by the Boy Scouts of America to great leaders in all areas of our community who fnd ways to support our youth.”

Ehrlich was nominated for the TIME Dealer of the Year award by Tim Jackson, president of the Colorado Automobile Dealers Association. He and his wife, Holly, have three children.

January 2015 Colorado Automobile Dealers Association 7 Colorado Auto Outlook

Released: December 2014 Covering data thru November 2014

Sponsored by: Colorado Auto Outlook TM

Comprehensive information on the Colorado automotive market

Quick Facts Percent Change in Colorado New and Used Retail Light Vehicle Registrations Colorado new (Used registrations only include vehicles seven years old or newer) vehicle registrations 20.0% fell 4% in Novem- ber ‘14 vs. 2013. 15.0% 10.0% 7.2% 6.2% New registrations 2.8% 3.3% in the state during 5.0% the frst eleven 0.0% New months of this year increased 6.2% -5.0% -4.0% Used compared to a year -10.0% -7.5% earlier. -15.0% Used vehicle mar- -20.0% ket was off 7.5% Nov '14 v. Sep '14 thru Nov '14 v. YTD '14 thru Nov v. in November 2014 Nov '13 Sep '13 thru Nov '13 YTD '13 thru Nov (vehicles seven years old or newer), Colorado New and Used Vehicle Markets Summary and improved (Used registrations only include vehicles seven years old or newer) 3.3%, year-to-date. Previous Three Months Three year old Retail New Vehicle Registrations Retail Used Vehicle Registrations vehicle market Sep '13 thru Sep '14 thru Percent Sep '13 thru Sep '14 thru Percent share increased Nov '13 Nov '14 Change Nov '13 Nov '14 Change 2.8 share points. Total 47,032 50,439 7.2% 47,414 48,757 2.8% Cars 18,580 19,485 4.9% 21,436 21,790 1.7% , , Ram, Audi, and Light Trucks 28,452 30,954 8.8% 25,978 26,967 3.8% new vehicle Detroit Three Brands 17,761 18,960 6.8% 22,182 23,184 4.5% registrations each European Brands 5,158 5,054 -2.0% 4,932 5,463 10.8% increased more Japanese Brands 21,087 23,157 9.8% 17,372 17,029 -2.0% than 18% so far this year. Korean Brands 3,026 3,268 8.0% 2,928 3,081 5.2%

YTD thru November Data measures new Retail New Vehicle Registrations Retail Used Vehicle Registrations vehicle registra- tions in the state. YTD YTD Percent YTD YTD Percent Monthly recording 2013 2014 Change 2013 2014 Change of registrations oc- Total 159,755 169,640 6.2% 158,847 164,134 3.3% curs when the data is processed by the Cars 65,356 66,226 1.3% 72,498 73,575 1.5% DMV. Light Trucks 94,399 103,414 9.5% 86,349 90,559 4.9% Detroit Three Brands 60,819 65,006 6.9% 75,812 77,376 2.1% European Brands 17,657 17,588 -0.4% 16,473 17,845 8.3% Japanese Brands 70,715 76,065 7.6% 57,032 58,136 1.9% Korean Brands 10,564 10,981 3.9% 9,530 10,777 13.1%

Data Information All data represents new and used vehicle retail registrations in Colorado and excludes feet and wholesale transactions. Used vehicle data only includes vehicles seven years old or newer and excludes private party transactions. Please keep in mind that monthly registration fgures can occasionally be subject to fuctuations, resulting in over or under estimation of actual results. This usually occurs due to processing delays by governmental agencies. For this reason, the year-to-date fgures will typically be more refective of market results. Green shaded areas in tables represent the top ten ranked brands. Data Source: AutoCount data from Experian Automotive.

8 Colorado Automobile Dealers Association January 2015 Colorado Auto Outlook

Page 2 Colorado Auto Outlook

New Vehicle Market Brand Registrations

Colorado New Retail Car and Light Truck Registrations Three Month Period YTD November YTD thru November Sep '14 thru Nov '14 Market Share (%) Colorado Colorado Colorado Colorado 2013 2014 % chg. 2013 2014 % chg. 2013 2014 % chg. 2013 2014 Chg. TOTAL 13,743 13,199 -4.0% 47,032 50,439 7.2% 159,755 169,640 6.2% 182 141 -22.5% 574 504 -12.2% 1,903 1,966 3.3% 1.2 1.2 0.0 Audi 205 266 29.8% 695 943 35.7% 2,467 3,020 22.4% 1.5 1.8 0.2 BMW 271 229 -15.5% 880 865 -1.7% 3,223 3,433 6.5% 2.0 2.0 0.0 108 105 -2.8% 410 446 8.8% 1,412 1,483 5.0% 0.9 0.9 0.0 Cadillac 115 85 -26.1% 384 310 -19.3% 1,246 1,095 -12.1% 0.8 0.6 -0.1 1,080 950 -12.0% 3,681 3,686 0.1% 12,326 12,697 3.0% 7.7 7.5 -0.2 89 93 4.5% 342 324 -5.3% 1,192 1,053 -11.7% 0.7 0.6 -0.1 Dodge 304 285 -6.3% 1,130 1,199 6.1% 4,533 4,401 -2.9% 2.8 2.6 -0.2 Fiat 29 13 -55.2% 104 43 -58.7% 402 299 -25.6% 0.3 0.2 -0.1 Ford 1,668 1,414 -15.2% 5,617 5,820 3.6% 20,035 20,155 0.6% 12.5 11.9 -0.7 GMC 371 388 4.6% 1,313 1,380 5.1% 4,341 4,841 11.5% 2.7 2.9 0.1 Honda 1,174 1,065 -9.3% 3,962 4,020 1.5% 13,509 12,971 -4.0% 8.5 7.6 -0.8 Hyundai 389 477 22.6% 1,466 1,663 13.4% 5,257 5,483 4.3% 3.3 3.2 -0.1 85 67 -21.2% 307 310 1.0% 986 1,111 12.7% 0.6 0.7 0.0 Jaguar 9 7 -22.2% 34 26 -23.5% 83 107 28.9% 0.1 0.1 0.0 Jeep 772 923 19.6% 2,845 3,495 22.8% 9,284 11,796 27.1% 5.8 7.0 1.1 424 390 -8.0% 1,560 1,605 2.9% 5,307 5,498 3.6% 3.3 3.2 -0.1 Land Rover 66 50 -24.2% 234 223 -4.7% 770 812 5.5% 0.5 0.5 0.0 Lexus 266 228 -14.3% 937 1,001 6.8% 2,924 3,511 20.1% 1.8 2.1 0.2 Lincoln 61 63 3.3% 184 225 22.3% 608 600 -1.3% 0.4 0.4 0.0 297 358 20.5% 1,077 1,240 15.1% 3,174 3,742 17.9% 2.0 2.2 0.2 Mercedes 273 216 -20.9% 720 707 -1.8% 2,389 2,633 10.2% 1.5 1.6 0.1 MINI 84 53 -36.9% 287 246 -14.3% 997 801 -19.7% 0.6 0.5 -0.2 Mitsubishi 38 46 21.1% 133 176 32.3% 564 717 27.1% 0.4 0.4 0.1 959 815 -15.0% 3,125 3,298 5.5% 10,276 11,079 7.8% 6.4 6.5 0.1 Porsche 41 39 -4.9% 134 166 23.9% 439 516 17.5% 0.3 0.3 0.0 Ram 514 536 4.3% 1,783 2,031 13.9% 5,679 6,726 18.4% 3.6 4.0 0.4 smart 6 5 -16.7% 29 32 10.3% 142 115 -19.0% 0.1 0.1 0.0 1,525 1,646 7.9% 4,832 5,555 15.0% 16,270 18,569 14.1% 10.2 10.9 0.8 Tesla 16 19 18.8% 70 43 160 158 0.1 0.1 0.0 Toyota/Scion 1,775 1,730 -2.5% 6,140 7,052 14.9% 20,870 22,395 7.3% 13.1 13.2 0.1 Volkswagen 473 438 -7.4% 1,814 1,602 -11.7% 5,907 5,101 -13.6% 3.7 3.0 -0.7 Volvo 63 49 -22.2% 203 172 -15.3% 770 637 -17.3% 0.5 0.4 -0.1 Other 11 10 -9.1% 26 31 19.2% 310 119 -61.6% 0.2 0.1 -0.1

Change in New Vehicle Segment Market Share - YTD 2014 thru November v. YTD 2013

3.0 1.9 2.0

1.0 0.5 0.3 0.3 0.2 0.2 0.1 0.1 0.1 0.0 0.0 0.0 0.0 -0.1 -0.1 -0.1 -1.0 -0.3 -0.3 -0.6 -0.6

Change in market share -2.0 -1.4

-3.0

Data Source: AutoCount data from Experian Automotive.

January 2015 Colorado Automobile Dealers Association 9 Colorado Auto Outlook

Released: December 2014 (covering November 2014 data) Page 3 Used Vehicle Market Brand Registrations (only includes vehicles seven years old or newer) Colorado Used Retail Car and Light Truck Registrations Three Month Period YTD November YTD thru November Sep '14 thru Nov '14 Market Share (%) 2013 2014 % chg. 2013 2014 % chg. 2013 2014 % chg. 2013 2014 Chg. TOTAL 14,848 13,735 -7.5% 47,414 48,757 2.8% 158,847 164,134 3.3% Acura 223 168 -24.7% 650 613 -5.7% 2,082 2,294 10.2% 1.3 1.4 0.1 Audi 254 247 -2.8% 736 805 9.4% 2,317 2,655 14.6% 1.5 1.6 0.2 BMW 357 337 -5.6% 1,078 1,252 16.1% 3,588 4,230 17.9% 2.3 2.6 0.3 Buick 109 157 44.0% 375 536 42.9% 1,289 1,620 25.7% 0.8 1.0 0.2 Cadillac 180 199 10.6% 598 663 10.9% 1,944 2,257 16.1% 1.2 1.4 0.2 Chevrolet 1,639 1,561 -4.8% 5,255 5,548 5.6% 18,334 18,560 1.2% 11.5 11.3 -0.2 Chrysler 330 253 -23.3% 1,038 898 -13.5% 3,657 3,206 -12.3% 2.3 2.0 -0.3 Dodge (incl. Ram) 1,089 998 -8.4% 3,385 3,637 7.4% 11,826 12,370 4.6% 7.4 7.5 0.1 Ford 1,866 1,758 -5.8% 5,915 6,400 8.2% 20,030 21,328 6.5% 12.6 13.0 0.4 GMC 436 434 -0.5% 1,400 1,593 13.8% 4,506 5,151 14.3% 2.8 3.1 0.3 Honda 844 707 -16.2% 2,738 2,521 -7.9% 8,771 8,875 1.2% 5.5 5.4 -0.1 52 27 -48.1% 146 93 -36.3% 490 273 -44.3% 0.3 0.2 -0.1 Hyundai 502 492 -2.0% 1,521 1,666 9.5% 5,015 5,739 14.4% 3.2 3.5 0.3 Infiniti 174 152 -12.6% 540 618 14.4% 1,605 1,945 21.2% 1.0 1.2 0.2 Jaguar 8 10 25.0% 25 31 24.0% 84 86 2.4% 0.1 0.1 0.0 Jeep 880 771 -12.4% 2,800 2,760 -1.4% 9,141 8,948 -2.1% 5.8 5.5 -0.3 Kia 406 400 -1.5% 1,407 1,415 0.6% 4,515 5,038 11.6% 2.8 3.1 0.2 Land Rover 85 73 -14.1% 277 262 -5.4% 897 835 -6.9% 0.6 0.5 -0.1 Lexus 257 256 -0.4% 880 919 4.4% 3,064 2,984 -2.6% 1.9 1.8 -0.1 Lincoln 104 102 -1.9% 314 331 5.4% 1,071 1,066 -0.5% 0.7 0.6 0.0 Mazda 341 268 -21.4% 1,071 923 -13.8% 3,566 3,241 -9.1% 2.2 2.0 -0.3 Mercedes 187 268 43.3% 697 884 26.8% 2,437 2,809 15.3% 1.5 1.7 0.2 44 30 -31.8% 157 123 -21.7% 522 427 -18.2% 0.3 0.3 -0.1 MINI 93 83 -10.8% 271 300 10.7% 852 948 11.3% 0.5 0.6 0.0 Mitsubishi 120 105 -12.5% 357 310 -13.2% 1,393 1,099 -21.1% 0.9 0.7 -0.2 Nissan 1,051 1,034 -1.6% 3,407 3,595 5.5% 11,597 12,085 4.2% 7.3 7.4 0.1 121 76 -37.2% 420 327 -22.1% 1,707 1,161 -32.0% 1.1 0.7 -0.4 Porsche 41 24 -41.5% 113 109 -3.5% 432 373 -13.7% 0.3 0.2 0.0 Saab 20 7 -65.0% 78 44 -43.6% 277 145 -47.7% 0.2 0.1 -0.1 Saturn 122 75 -38.5% 379 274 -27.7% 1,295 1,006 -22.3% 0.8 0.6 -0.2 Subaru 674 679 0.7% 2,201 2,435 10.6% 6,810 7,950 16.7% 4.3 4.8 0.6 89 56 -37.1% 316 218 -31.0% 1,073 795 -25.9% 0.7 0.5 -0.2 Toyota/Scion 1,654 1,400 -15.4% 5,206 4,872 -6.4% 17,043 16,853 -1.1% 10.7 10.3 -0.5 Volkswagen 376 419 11.4% 1,238 1,326 7.1% 4,215 4,343 3.0% 2.7 2.6 0.0 Volvo 99 83 -16.2% 350 339 -3.1% 1,151 1,093 -5.0% 0.7 0.7 -0.1 Other 21 26 23.8% 75 117 56.0% 251 346 37.8% 0.2 0.2 0.1

Change in Used Vehicle Market Share by Age of Vehicle YTD 2014 thru November v. YTD 2013 4.0 2.8 2.0 1.9 2.0 0.2 0.0 0.0 -0.5 -2.0 -0.7

-4.0 Change in market share Three year old vehicle market share has increased, -6.0 while fve year old share is down sharply -5.6 -8.0

-10.0 3 yrs. old 4 yrs. old 2 yrs. old 7 yrs. old 1 yr. old 6 yrs. old < 1 yr. 5 yrs. old

Data Source: AutoCount data from Experian Automotive.

10 Colorado Automobile Dealers Association January 2015 Colorado Auto Outlook

Page 4 Colorado Auto Outlook New Vehicle Market Percent Change in Brand Registrations YTD 2014 thru November v. YTD 2013 (Top 30 selling brands)

Mitsubishi 27.1% Jeep 27.1% Audi 22.4% Lexus 20.1% Ram 18.4% Mazda 17.9% Porsche 17.5% Subaru 14.1% Infniti 12.7% GMC 11.5% Mercedes 10.2% Nissan 7.8% Toyota/Scion 7.3% BMW 6.5% Land Rover 5.5% Buick 5.0% Hyundai 4.3% Kia 3.6% Acura 3.3% Chevrolet 3.0% Ford 0.6% Lincoln -1.3% Dodge -2.9% Honda -4.0% Chrysler -11.7% Cadillac -12.1% Volkswagen -13.6% Volvo -17.3% MINI -19.7% Fiat -25.6% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% Percent change in registrations Data Source: AutoCount data from Experian Automotive.

Colorado Auto Outlook Published for: Colorado Automobile Dealers Association Colorado Auto Outlook is distributed free of 290 East Speer Boulevard charge to all members of Colorado Automobile Denver, CO 80203 Dealers Association. The publication is spon- Phone: 303-831-1722 sored and supported by CADA. 8EJN

Copyright Auto Outlook, Inc., Experian Automotive is the data provider for December 2014 Colorado Auto Outlook.

January 2015 Colorado Automobile Dealers Association 11 2015 Charity Preview Party

SAVE THE DATE Colorado Convention Center Tuesday, April 7, 2015 7 pm 700 14th St. • Denver, CO 80202

7th

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PAID ADVERTISEMENT January 2015 Colorado Automobile Dealers Association 13 CADA Board of Directors, Committee & Foundation Chairs and Staff

OFFICERS Bret Petersen CADA STAFF Chair of the Board Freedom Honda President Thom Buckley Colorado Springs – District #8 Tim Jackson, CAE, CMP Red Noland Auto Group, Colorado Springs [email protected] Jeremy Hamm 303.282.1448 Vice Chair Solon Automotive Fletcher Flower Pueblo – District #9 Vice President Flower Motor Co., Montrose Tammi L. McCoy Lisa Camarillo [email protected] Treasurer Phil Long Toyota of Trinidad 303.282.1449 Ed Dobbs Trinidad – District #10 Land Rover Flatirons, Superior Chief Operating Offcer Ross Turner Marsha Temple Secretary Turner Automotive [email protected] Todd Maul Montrose – District #11 303.457.5123 John Elway Chevrolet Ryan Ramsay Communications & Marketing Manager Immediate Past Chair Summit Ford Trainor Walsh Bill Helman Silverthorne – District #12 [email protected] Hellman Motor Co. 303.831.1722 Jeff Carlson DIRECTORS Glenwood Springs Ford Bond Coordinator Colorado NADA Director Linda Toteve Jeff Thorpe At-Large Director [email protected] 303.457.5122 AutoNation Todd Maul Northglenn – District #1 John Elway Chevrolet Member Services Coordinator Anthony Brownlee Chair – Clear the Air Foundation Kim Harrison Land Rover Denver [email protected] Littleton – District #2 303-831-1722 Ray Reilly Insurance Services - Account Manager Larry H. Miller Chrysler Jeep Dodge Ram COMMITTEE & Deb Lay Tornton – District #3 FOUNDATION CHAIRS [email protected] 303.282.1453 Anthony Banno John Medved Stevinson Lexus of Frederick Medved Chevrolet Cadillac North Field Services Manager Frederick – District #4 Chair - Legislative Policy Committee Polly Penna [email protected] Roger Belisle Mike Cimino 303.457.5119 Markley Motors Phil Long Motor City Ft. Collins – District #5 Chair – Clear the Air Foundation Clear the Air Foundation Program Coordinator Phil Marzolf Gregg Stone George Billings Ehrlich Vehicles, Inc. Kuni Lexus of Greenwood Village [email protected] Greeley – District #6 Chair – Denver Auto Show 303.775.8896 Donnie Chrismer Administrative Assistant Korf Continental Sterling, Inc. Khorrie Luther Sterling – District #7 [email protected] 303.457.5117

William D. Barrow Building • CADA Headquarters 290 E. Speer Blvd. • Denver, CO 80203 Phone: 303.831.1722 • Fax: 303.831.4205 Website: www.coloradodealers.org

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JanuaryMember FDIC2015 ColoradoPAID ADVERTISEMENT Automobile Dealers Association 15 For the most current list of other on-going CADA seminars and events, please visit the online calendar at www.coloradodealers.org/calendar EVENT DESCRIPTION DATE/TIME LOCATION/INFORMATION WEBINAR: Habits & Practices of Excep- Tursday, Jan. 20 To register for any of these online tional BDC Managers at 11 am training webinars or to access ar- WEBINAR: Guiding the Prospect from Tuesday, Jan. 27 chived sessions, go online to www. Email to Phone to Showroom at 11 am coloradodealers.dealersedge.com KPA Webinar: EH&S or HR Webinar Every Tursday For more information go to Online/Ongoing at 10-11 am www.kpaonline.com/webinars Colorado Dealer Breakfast at the 2015 Sunday, Jan. 25, 7:15- For more information, please visit NADA National Convention and Expo 9:00am. San Francisco www.coloradodealers.org

Innovative Dealer Summit Tuesday-Wednesday, For more information please visit April 7-8 www.showweekdenver.com

Denver Auto Show Charity Preview Tuesday, April 7 For more information please visit Party www.showweekdenver.com LET US KNOW ABOUT YOUR WE DELIVER BUSINESS GOOD NEWS! FOR THE TENS OF THOUSANDS WHO ATTEND, the Denver Auto Show is the most effcient means Have you or of conveniently comparing several makes and models of vehicles at one time...in one place...before making anyone else at an informed buying de-cision. The Denver Auto Show attracts not only car buffs looking for new concepts your dealership and prototypes, but the public who plan to buy a new car, van or won an award light truck in the up-coming year, as well as families looking for recently? entertainment. Have you or THE ALLIED SEGMENT includes specialty and limited pro- your dealership duction vehicles, handicapped access vehicle and assist op-tions, provided any van conversions, motorcycles and 4x4 truck accesso-ries, conver- outstanding sion options and equipment. community APRIL 8-12, 2015 service? If so, THE ACCESSORY SEGMENT of the Show includes every- please send thing attendees would use to complement their new car purchase experience...from waxes and polishes, oils CADA a brief and lubricants, tire and wheel companies, alarm and sound sys-tems to car and truck restyling, performance write-up of the upgrades, mo-bile electronics and garage installations. award or event RECOGNIZED AS THE MOST OUTSTANDING and compre-hensive new vehicle showcase, the Denver along with any Auto Show is the perfect place to expand your market reach. other information to milestones@ YOU’LL BUILD PROFITS and add to your customer base, generating revenue both on-site and long after coloradodealers. the Show is over by meeting face-to-face with one of the largest car and truck enthusiast audiences assembled org. Also include in one place! your contact RESERVE YOUR SPACE! Contact Rich Casey: information for further follow-up. 781-343-1474 or [email protected]

STATE RESOURCES • Auto Industry Division: 303.205.5746, www.colorado.gov/revenue/AID • Titles/Registration: 303.205.5608, www.colorado.gov/revenue/dmv (Select “Title - Register a Vehicle” link) • Department of Revenue Taxation: www.colorado.gov/revenue/tax • Latest Sales & Use Tax Rate Summary: www.coloradodealers.org/DR1002 Bulletin questions or comments? If you have questions about items in this newsletter or suggestions for future articles, please contact Marsha Temple at 303.457.5123 or e-mail to [email protected]. DISCLAIMER: CADA IS NOT AUTHORIZED TO DISPENSE LEGAL ADVICE. THE INFORMATION CONTAINED IN THIS NEWSLETTER IS FOR INFORMATIONAL PURPOSES ONLY. CADA ADVISES THAT DEALERS CONSULT LEGAL COUNSEL ON THE SPECIFICS OF ANY LAW OR REGULATION TO ENSURE FULL COMPLIANCE.