Higher Depreciation for Suvs/Crossovers • Volume-Weighted, Overall Car Segment Values Decreased by 1.04% Last Week

December 9, 2019

“Steeper decline of used vehicle values continued into December. Average weekly depreciation in the last eight weeks is over three times the average weekly depreciation seen year-to-date.” Anil Goyal, Executive Vice President, Operations

0% -0.2% -0.4%

-0.6% -0.8% -$73 -0.68% -$138 -$107 -$120 -$264 -$305 -1.0% -0.79% -0.84% -0.86% -0.85% CARS WEEKLY CHANGE -1.2% -$59 -$89 -1.04% -1.07% -1.4% -1.10% -$178 -$104 -1.23% -1.6% -1.38%

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% -$33 -0.8% -0.39% -$81 -$165 -$184 -0.77% -$180 TRUCKS -1.2% -0.79% -$165 -0.94% -1.18% -$154 -$185 -$259 -$428 -$192 -1.06% WEEKLY CHANGE -1.6% -$255 -1.28% -$231 -1.29% -1.32% -1.33% -1.40% -1.34% -1.49% -$195 -2.0% -1.65%

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 11/29/19 to 12/6/19 Higher Depreciation for SUVs/Crossovers • Volume-weighted, overall car segment values decreased by 1.04% last week. In comparison, the market values were down by 0.96% on average during the prior 4-week period. • In cars, the values of Compact Cars and Sporty Cars declined the most. • Volume-weighted, overall truck segment (including pickups, SUVs, and vans) values decreased by 1.18% last week. In comparison, the market values were down by 0.84% on average during the prior 4-week period. • In trucks, the values of Minivans declined the most.

December 9, 2019 Sentiment from the Industry Key comments from auction lanes and industry observers: “Attendance both in the lanes and online was lighter than usual. Prices were down across the board on passenger cars, trucks, and SUVs.” Mark in FL “Trucks and SUVs are picking up steam as snow is falling. Our sales percentages typically drop slightly during this time period because we have some sellers and buyers sitting out in anticipation of the big tax push early next year. Our biggest competition for the next few months will be Mother Nature.” Auction Owner in OH “You would think that the dealers would now be aggressively purchasing vehicles after the recent sharp drop in values, but that is not the case.” Mark in MI Three-Month Depreciation by Segment (Sep 1-Dec 1, 2019)

source: Black Book Visual Analytics Higher depreciation rates were seen across all segments in the last three months. The Worst 5 segments included Sub-Compact Car, Compact Van, Minivan, Luxury Car and Sub-Compact Crossover. Vehicle Highlight 2020 Jaguar XF is equipped with either a 2.0L Ingenium i4 turbocharged engine or a 3.0L V6 supercharged engine, paired with an 8-speed ZF transmission and available AWD. New for the 2020 model year XF includes a Checkered Flag Limited Edition trim, standardization of rear parking aid and smartphone infotainment capabilities and deletion of the Ingenuim i4 Diesel engine. MSRP with destination starts at $52,095 and the key competitors to the XF includes the BMW 5-series, Audi A6 and Mercedes-Benz E Class.

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