USED CAR BLUE BOOK EDITION DECEMBER Market Report 2013

Automotive Insights from Kelley Blue Book

Kelley Blue Book Public Relations Contacts: Chintan Talati | Senior Director, Public Relations Brenna Robinson | Public Relations Manager Natalie Kumaratne | Public Relations Coordinator 949.267.4855 | [email protected] 949.267.4781 | [email protected] 949.267.4770 | [email protected] USED-CAR MARKET ANALYSIS: In This Issue: USED-CAR MARKET ANALYSIS Auction Values Finish the Year Strong Auction Values Finish the Year Strong

$19,000 Auction Values Finish the Year Strong Model-Year 2012 Subcompact, Compact Vehicle $18,500 Segments Top Charts for Retained Value

$18,000 Moderate Declines Found in Used-Luxury Segment

$17,500 Mid-Size Vehicle Values Down Year-Over-Year

$17,000 Full-Size /SUV Values Steadily Decline

$16,500 Mid-Size Values Remain Stable Through $16,000 the Fourth Quarter of 2013 Auction Values

$15,500 HOT USED-CAR REPORT Fuel Efficiency is the Gift that Keeps Giving $15,000

$14,500 CY 2011 CY 2012 CY 2013 $14,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Kelley Blue Book Automotive Insights

• Despite overall fluctuations and disparity seen in auction values during the last couple of years, 2013 auction values are in line to finish the year less than 1 percent lower, in terms of both dollar value and retention, than those seen in 2012. • Average auction value retention in 2013 for model years 2012, 2011 and 2010 is projected to finish the fourth quarter at 57 percent, which is down from 63 percent at the start of the year.

“Auction values fell roughly $740 or 4.4 percent on average in the fourth quarter of 2013, a larger decline than the previous quarters this year,” said Alec Gutierrez, senior analyst for Kelley Blue Book. “It is typical to see a larger decrease in the fourth quarter compared to other quarters due to seasonality factors such as increased off-lease volume in the auction lanes.” Model-Year 2012 Subcompact, Compact Vehicle Segments Top Charts for Retained Value

Subaru Impreza 77.6% Honda Fit 67.7% • Topping the charts for retained auction

value for 2013 within the subcompact Hyundai Veloster 72.0% xD 64.3% and compact vehicle segments are the Scion xB Subaru Impreza and Honda Fit, followed 67.9% Kia Rio 64.2% by the Hyundai Veloster and Scion xD Scion tC 66.4% Yaris 63.0% respectively.

Honda Civic 66.4% • Auction values for model-year 2012 Average 62.3% vehicles within the subcompact and Average 65.6% segments moved in nearly Scion iQ 62.1% Cube 64.1% precise tandem, declining an average of Nissan Versa 61.5% $1,694 and $1,692, respectively, through

Hyundai Elantra 64.0% Value/MSRP) 2013. Hyundai Accent 60.8% Chevrolet Cruze 62.5% “As we wrap up 2013, it’s interesting to see

MY12 Retained Value (Auction (Auction MY12 Retained Value 62.1% 60.7% the disparity between the retained value of the Subaru Impreza, Honda Fit and their relative Mazda Mazda3 61.0% Chevrolet Sonic 59.3%

MY12 Retained Value (Auction (Auction Value/MSRP) MY12 Retained Value segments,” said Gutierrez. “With multiple Ford Focus 57.4% Ford Fiesta 59.2% points over their closest competitors, it is clear they are both well outperforming their 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% competitive set.” USED-CAR MARKET ANALYSIS: continued Moderate Declines Found in Used-Luxury Segment Dec-13 Nov-13 % Chg $30,000 Moderate Declines Found in Used-Luxury Segment Entry-Level Luxury Car $19,459 $19,768 -1.6% $29,000 High-End Luxury Car $42,775 $43,570 -1.8% Luxury Car $27,095 $27,430 -1.2% $28,000 Luxury Compact SUV/Crossover $24,738 $25,142 -1.6% Luxury Full-Size SUV/Crossover $32,996 $33,623 -1.9% $27,000 Luxury Mid-Size SUV/Crossover $31,329 $31,647 -1.0%

$26,000 Luxury Average $25,487 $25,857 -1.4% Auction Values

$25,000

$24,000

CY 2011 CY 2012 CY 2013 $23,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Kelley Blue Book Automotive Insights

• Auction values of 1- to 3-year-old luxury models dropped by an average of 1.4 percent in December, to $25,487. Currently, luxury values are down 1.6 percent from last December’s average and down 10.2 percent since January 1, 2013.

“While the supply of used-luxury vehicles has been on the rise in recent months, auction volume totals in November were essentially flat compared to November 2012,” said Gutierrez. “However, the fourth quarter is traditionally the weakest time of the year in the lanes as buyers look to the newest models hitting the showrooms and the deals offered at year-end sales events.”

• Moving into 2014, Kelley Blue Book expects luxury values to slightly underperform 2013 levels, as the available supply of late models continues to increase from the lows seen during the past couple of years. With the expected increase in supply, improving unemployment rates, higher home prices and widely available credit buyers continue to be interested in used luxury, helping to offset some of the downward pressure.

Mid-Size Vehicle Values Down Year-Over-Year

December 13, 2013 vs. November 15, 2013 $16,000 MY10-12 Mid-Size Vehicle Values Down Year-Over-Year Mid-Size 4-Week Difference (%)

Mazda6 0.1% $15,000 Accord -0.3%

Passat -0.3% $14,000

Sonata -0.5%

$13,000 Fusion -1.0%

Malibu -1.0% Auction Values $12,000 Camry -1.1%

Altima -1.3% $11,000

Legacy -2.6% CY 2011 CY 2012 CY 2013 $10,000 Optima -3.0%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -3.5% -3.0% -2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% Source: Kelley Blue Book Automotive Insights Source: Kelley Blue Book Automotive Insights

• As we approach year-end, auction values for the mid-size car segment are currently 2.7 percent lower than they were in 2012. • From a monthly standpoint, the mid-size segment is down 1.1 percent, just slightly underperforming the overall market.

“Kelley Blue Book expects auction values for the mid-size segment to remain on this steady trajectory trending downward and keep pace with the overall market into 2014,” said Gutierrez. “The biggest declines were seen with Kia Optima (down 3 percent), Subaru Legacy (down 2.6 percent) and Nissan Altima (down 1.3 percent).”

2 BLUE BOOK Used-Car Market Report DECEMBER 2013 USED-CAR MARKET ANALYSIS: continued Full-Size Crossover/SUV Values Steadily Decline • Since summer, full-size crossover/SUV values have been higher $27,000 Full-Size Crossover/SUV Values Steadily Decline year-over-year compared to 2012 values. However, values have

$26,000 recently decreased significantly, nearly intersecting with where they were in November 2012.

$25,000

“Although values continue to soften, the decrease has steadied to a $24,000 1.4 percent change month-over-month, underperforming the overall market by nearly half a percent,” said Gutierrez. “The vehicles within $23,000 the segment with the greatest month-over-month change are the Saturn Auction Values Outlook ( down6.5 percent), Mazda CX-9 (down 2.5 percent), GMC $22,000 Acadia (down 2.3 percent), and Nissan Armada (down 2.3 percent).”

$21,000 • All other vehicles within the segment had value decreases smaller CY 2011 CY 2012 CY 2013 $20,000 than 2 percent. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Kelley Blue Book Automotive Insights Mid-Size Pickup Truck Values Remain Stable Through the Fourth Quarter of 2013

$15,500 Mid-Size Pickup Values Remain Stable $15,000 • Year-to-date through 2013, average values for the mid-size pickup $14,500 truck segment dropped less than any other vehicle segment.

$14,000 • Despite a 1.01 percent drop month-over-month from November 2013, average values for 1- to 3-year-old mid-size pickups remain $13,500 above both 2012 and 2011 year-to-date levels by 5.54 percent and $13,000 12.65 percent, respectively. $12,500 • Seasonal demand for 4x4 capable vehicles and a relatively limited

$12,000 supply of used units should keep values stable, and the mid-size pickup truck segment is likely to end the year close to average values $11,500 CY 2011 CY 2012 CY 2013 at the start of the year. $11,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Kelley Blue Book Automotive Insights

December 13, 2013 vs. January 1, 2013 YTD % Difference MY10-12

Colorado 4.8%

Canyon 4.4% • The largest declines within the mid-size pickup segment came from the Equator, which ended production with the 2012 model Frontier -0.7% year and dropped 10.9 percent from the start of the year. • The Chevrolet Colorado and GMC Canyon were the only trucks

Tacoma -2.2% to end 2013 with year-to-date increases in value, perhaps driven by new interest in the recently announced 2015 redesigned Colorado, which will re-enter production as a 2015 model year. Ranger -2.7%

Dakota -3.3%

Equator -10.9%

-12% -10% -8% -6% -4% -2% 0% 2% 4% 6%

Source: Kelley Blue Book Automotive Insights

The statements set forth in this publication are the opinions of the authors and are subject to change without notice. This publication has been prepared for informational purposes only. Kelley Blue Book assumes no responsibility for errors or omissions.

3 BLUE BOOK Used-Car Market Report DECEMBER 2013 HOT USED-CAR REPORT:

Fuel Efficiency is the Gift that Keeps Giving

- Arthur Henry, manager of market intelligence and market analyst, Kelley Blue Book

Kelley Blue Book’s Hot Used-Car Report captures monthly used-car shopper activity on KBB.com, including a list of the top and bottom movers in the same time period. Results are provided by the Kelley Blue Book Market Intelligence Team, in an effort to help dealers better understand which used vehicles consumers are looking at most each month.

Monthly Used-Car Shopping Activity Growth Monthly Used-Car Shopping Activity Growth Segments Top/Bottom 10 Models

2011 Mazda MAZDA2 64.9% Hybrid Car 7.8% 6.3% 2008 Scion xD 44.5% Compact Car 3.0% 2010 Scion xB 40.1% Full-Size Crossover 2.7% 2010 21.0% Mid-Size Car 1.3% 2009 17.8% 1.1% 2008 Dodge Avenger 17.3% Mid-Size Pickup Truck 0.9% 2010 Honda Civic 8.9% 0.7% 2010 Honda Accord 8.9% Mid-Size Crossover 0.4% Full-Size Car 0.3% 2010 Toyota Prius 7.8% Full-Size Sport Utility 0.2% 2010 Ford Fusion 7.4% Compact Crossover -0.2% 2011 BMW 3 Series -7.9% Mid-Size Sport Utility -0.8% 2011 Jeep Grand Cherokee -11.3% Full-Size Pickup Truck -1.7% 2011 Cadillac CTS -17.3% Luxury Crossover -2.4% 2011 Volkswagen CC -19.6% Compact Luxury Car -2.8% 2008 BMW M3 -20.1% Entry Luxury Car -2.9% Luxury Car -4.1% 2007 GX -26.3% Premium Luxury Car -6.1% 2008 Infiniti QX -26.8% Van -6.3% 2011 Lexus LS -29.5% Premium Sports Car -6.7% 2008 Jaguar XK Series -35.0% Luxury Sport Utility -7.3% 2007 Chevrolet Silverado 1500 Regular Cab -35.2% High Performance -9.2%

-100% -50% 0% 50% 100% -40% -30% -20% -10% 0% 10% 20% 30% 40% % Change in Share Month-Over-Month % Change in Share Month-Over-Month Information based on 2011 to 2007 Model-Year Vehicles Information based on 2011 to 2007 Model-Year Vehicles

• For December, share of used-retail shopping activity increased for segments perceived to have high fuel efficiency. • Hybrid car shopping activity rebounded from the previous month’s decline. • The key driver for the segment was the 2009 and 2010 Toyota Prius. • Subcompact cars increased 6.3 percent in share of shopping activity month-over-month. • The 2011 Mazda MAZDA2 has seen the largest gain month-over-month, increasing 64.9 percent. • Also contributing to the strength of the subcompact car segment are the Scion xD and xB.

About Kelley Blue Book (www.kbb.com) Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. Each week the company provides the most market-reflective values in the industry on its top-rated website KBB.com, including its famous Blue Book® Trade-In and Suggested Retail Values, and Fair Purchase Price, which reports what others are paying for new cars this week. The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies. For two years running, Kelley Blue Book’s KBB.com ranked highest in its category for brand equity and was named Online Auto Shopping Brand of the Year in the 2012 and 2013 Harris Poll EquiTrend® study. Kelley Blue Book Co., Inc. is a subsidiary of AutoTrader Group, which includes AutoTrader.com, vAuto, VinSolutions and HomeNet Automotive. AutoTrader Group is a majority-owned subsidiary of Cox Enterprises.

4 BLUE BOOK Used-Car Market Report DECEMBER 2013