Highest Weekly Decline Since January • Volume-Weighted, Overall Car Segment Values Decreased by 0.65% Last Week

October 28, 2019

“Used vehicle values experienced the steepest decline of any week since January of this year. The sentiment appears to be negative, setting the expectation for the market to drop more.” Anil Goyal, Executive Vice President, Operations

0% -0.2%

-0.4% -$51 -$103 -$144 -$70 -$40 -0.28% -0.32% -0.6% -$40 -0.39% -0.45% CARS -0.8% -0.50% -0.65% -$94 -1.0% -$132 -0.81% -0.87% WEEKLY CHANGE -1.2% -$167 -1.4% -$71 -1.10% -1.24% -1.6%

CARS Luxury Car Sporty Car Compact Car Mid-Size Car Full-Size Car Sub-Compact Car Near Luxury Car Prestige Luxury Car Premium Sporty Car

-0.4% -$18 -$23 -0.20% -0.15% -$59 -$86 -$126 -$115 -0.37% -$103 -0.8% -0.51% -$109 -0.46% -$196 -0.51% TRUCKS -0.77% -$94 -$99 -0.67% -$178 -0.64% -1.2% -0.83% -0.82% -0.85% WEEKLY CHANGE -$150 -$192 -1.20% -1.6% -1.28%

Minivan TRUCKS Compact VanFull-Size VanSmall Pickup Full-Size Pickup

Sub-CompactCompact Crossover Crossover/SUVMid-Size Crossover/SUVFull-Size Crossover/SUV

Sub-CompactCompact Luxury Luxury CrossoverMid-Size Crossover/SUV LuxuryFull-Size Crossover/SUV Luxury Crossover/SUV

Model Years: 2011-2017, Volume Weighted Wholesale Average Values, Weekly Change from 10/18/19 to 10/25/19 Highest Weekly Decline Since January • Volume-weighted, overall car segment values decreased by 0.65% last week. In comparison, the market values were down by 0.52% on average during the prior 4-week period. • In cars, the values of Sub-Compact Cars and Sporty Cars declined the most. • Volume-weighted, overall truck segment (including pickups, SUVs, and vans) values decreased by 0.77% last week. In comparison, the market values were down by 0.48% on average during the prior 4-week period. • In trucks, the values of Mid-Size Crossover/SUVs and Minivans declined the most.

October 28, 2019

Sentiment from the Industry Key comments from auction lanes and industry observers: “The demand is still there for the nicer vehicles. As for the others, it is all about the price they are offered for.” Gene in PA “The volume of vehicles was up, but attendance was down, leading to more no- sales this week than last week. There were more rough units in the lanes than usual.” Mark in GA

“Dealers continue to describe a tough retail market, resulting in a lot of no- sales.” Jim in TN “The values are coming down but overall it was a good sale for a Fall market.” Mark in CA Depreciation Trend in Last 12 Months Model Years 2014 To 2018

13.9%

source: Black Book Visual Analytics The depreciation trends of a 2- to 6-year old used vehicle in the last 12 months are running at 13.9%, about two percentage points higher than the same time last year, in line with our projections. Vehicle Highlight The All-New 2020 Land Rover Defender comes standard with a 2.0L 4-cylinder 296 hp Turbocharged gas engine and is only available in AWD. This Compact Luxury Crossover has a base MSRP starting at $50,925 including destination charges and its main competition includes the Audi Q5, BMW X4, and Volvo

XC60.

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