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Automotive Insights from Kelley Blue Book

BLUE BOOK Market Report JULY

2013

Natalie Kumaratne | Public Relations Coordinator949.267.4770 | nkumaratne@kbb.com

Brenna Robinson | Public Relations Manager949.267.4781 | berobinson@kbb.com

Kelley Blue Book Public Relations Contacts:

In This Issue:

Joanna Pinkham | Senior Public Relations Manager949.268.3079 | jpinkham@kbb.com

USED-CAR MARKET ANALYSIS:

Auction Values Flat Year-Over-Year in July 2013 USED-CAR MARKET ANALYSIS Auction Values Flat Year-Over-Year in July 2013

Hybrid and Electric Vehicle Values Decline 3 Percent Despite Rising Gas Prices

Hybrid Cars Lead Depreciation Through the First Half of 2013

Mid-Size Vehicle Values Continue Steady Downward Path

Luxury Mid-Size SUVs and Crossovers Up Year-Over-Year

Used Luxury Continues Modest Declines in July 2013

Mid-Size Pickup Truck Values Holding Strong in First Half of 2013

Used Full-Size Pickup Truck Values Remain Down Year-Over-Year, Face Continued Pressure from New Truck Sales

Full-Size Van Auction Values Higher Year-Over-Year

HOT USED-CAR REPORT Used Hybrid Cars Report Highest Traffic Share Increase Month-Over-Month

Chintan Talati | Senior Director, Public Relations949.267.4855 | ctalati@kbb.com

$14,000

$14,500

$15,000

$15,500

$16,000

$16,500

$17,000

$17,500

$18,000

$18,500

$19,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Auct

ion

Valu

es

Auction Value Ease Above Previous Years

CY 2011 CY 2012 CY 2013

Source: Kelley Blue Book Automotive Insights

• Despiteamodestmonthlydeclineof0.89percentinJuly2013,auctionvaluedepreciationremainedrelativelymild,withvaluesendingrelativelyflatyear-over-year.

“Whileoff-leaseunitshavebecomeslightlymoreabundantatauctionsinrecentmonths,increasesinretaildemandhavehelpedtooffsettheimpactofrisingsupply,”saidAlecGutierrez,seniormarketanalystforKelleyBlueBook.“Used-carvaluesshouldcontinuetodeclineslowlyandsteadilythroughtherestofthesummer,likelydepreciating1percentpermonthonaverage.”

CAREDITION

USED

Hybrid and Electric Vehicle Values Decline 3 Percent Despite Rising Gas Prices

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Auct

ion

Valu

es

Hybrid & Electric Auction Values

CY 2011 CY 2012 CY 2013

Source: Kelley Blue Book Automotive Insights

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Fuel

Pric

es

Fuel Prices Rise in July

CY11 CY12 CY13

Source: U.S. Energy Information Administration

• Hybridandelectricvehiclevaluesdeclinesexceeded3percentinJuly2013,despiteanuptickinfuelprices.• Althoughfuelpricesremainabove$4.00pergalloninmanypartsofthecountry($3.68pergallonnationally),valuesofhybridandelectricvehicles

depreciatedmorethananyothersegmentsofarthisyear.

“Consumersarelesswillingtopaytopdollarforusedelectric,hybrid,andalternative-fuelcarsforanumberofreasons,”saidGutierrez.“First,leasedealsonmanypopularnewelectricvehiclessuchastheFiat500e,ChevroletSparkorNissanLEAFcanbehadforaslittleas$200permonthand$999down.Also,consumerinterestinusedalternative-energyvehicleshasfadedasmanysubcompacts,compactsandevenmid-sizecarsnowareabletoachievecloseto40mpgonthehighway.”

2 BLUE BOOK Used-Car Market Report JULY 2013

Hybrid Cars Lead Depreciation Through the First Half of 2013

$6,000

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

$13,000

$14,000

$15,000

$16,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Auct

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Valu

es

Mid-Size Vehicles

CY 2011 CY 2012 CY 2013

Source: Kelley Blue Book Automotive Insights

-13.2% -8.2%

-7.5% -6.2% -6.0%

-5.8% -5.5%

-5.3% -5.0%

-4.6% -4.2%

-3.6% -3.2%

-2.9% -2.8% -2.6%

-2.1% -2.1%

-1.8% -1.5%

-0.9% -0.5%

0.7% 2.3% 2.3%

-14% -12% -10% -8% -6% -4% -2% 0% 2% 4%

Hybrid CarCompact Crossover

Premium Luxury CarLuxury Car

Mid-Size CrossoverMid-Size Car

Full-Size CrossoverLuxury Crossover

Compact CarNear Luxury Car

AverageFull-Size Car

Subcompact CarLuxury Sport Utility

Premium Sports CarCompact Luxury Car

ExoticVan

High PerformanceFull-Size Pickup Truck

MinivanMid-Size Sport UtilityFull-Size Sport Utility

Sports CarMid-Size Pickup Truck

Auction Values, First-Half 2013

June 28, 2013 vs. January 1, 2013 Source: Kelley Blue Book Automotive Insights

Mid-Size Vehicle Values Continue Steady Downward Path

• Mid-sizevehiclescontinueonasteadydownwardpath,movingdown0.4percentinJuly2013.

USED-CAR MARKET ANALYSIS:continued

• Inthefirsthalfof2013,averageauctionvaluesdeclined4.2percentor$195overall.

• Themid-sizetruckandsportscarsegmentsarebothup2.3percentfromwheretheystartedtheyearintermsofauctionvalues,withtrucksoutperformingduetoincreasingconsumerdemandasseveralmodelsrecentlyhaveendedproduction.

“Thehybridcarsegmentisdownsignificantlyat13.2percentor$2,432,despitefuelpricesremainingrelativelyflatthroughoutthefirsthalfoftheyear,”saidGutierrez.“Thisreiteratesthatconsumersarebecominglesswillingtopaytopdollarforvehicleswithintheusedhybridcarmarket.”

• KelleyBlueBookFieldAnalystshavereportedthatinsomepartsofthenation,auctionsareinundatedwithHondaAccordleasematurityreturns.

• DespiteminimaldeclinesinJuneandJuly2013,valuesarestilldown2.9percentincomparisontothistimelastyear.

Luxury Mid-Size SUVs and Crossovers Up Year-Over-Year

$27,000

$28,000

$29,000

$30,000

$31,000

$32,000

$33,000

$34,000

$35,000

$36,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Auct

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Valu

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Luxury Mid-Size SUV/Crossover

CY 2011 CY 2012 CY 2013

Source: Kelley Blue Book Automotive Insights

• Despitetheluxurymid-sizeutilitysegmentdeclining,theyarestillholdingtheirvaluesbetterincomparisontothelasttwoyears.

• ThetopthreeperformerswithinthesegmentarethePorscheCayenne,VolvoXC90andMercedes-BenzM-Class,moving10.5percent,9.7percentand6.9percent,respectively.

• Luxurymid-sizeSUVsandcrossoversarethebestperformingsub-segmentintheSUV/crossoversegment,trending4.2percentabovelevelsseenatthistimein2012.However,themid-sizeSUVandcrossoverssub-segmentisbringingdowntheSUVandcrossoversegmentby0.5percent.

• Valuesoflate-modelusedluxurymid-sizeSUVsandcrossoversaretrending4.2percentabovelevelsseenatthistimein2012.

“Signsofeconomicimprovementandrisingconsumerconfidenceishavingawealtheffect,asauctionvaluesofluxurymid-sizeSUVsandcrossoversareoutperformingmid-sizeSUVsandcrossovers,”saidGutierrez.

3 BLUE BOOK Used-Car Market Report JULY 2013

Used Luxury Continues Modest Declines in July 2013

Mid-Size Pickup Truck Values Holding Strong in First Half of 2013

-1.5%

-2.8%

-0.9%

-3.0%

-2.5%

-2.0%

-1.5%

-1.0%

-0.5%

0.0%Jul-11 Jul-12 Jul-13

Auct

ion

Valu

e Ch

ange

, 1- t

o 3-

Year

-Old

M

odel

s

Luxury Values Only Slightly Down

Source: Kelley Blue Book Automotive Insights

$11,000

$11,500

$12,000

$12,500

$13,000

$13,500

$14,000

$14,500

$15,000

$15,500

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Auct

ion

Valu

es

Mid-Size Pickup Truck Auction Values

CY 2011 CY 2012 CY 2013

Source: Kelley Blue Book Automotive Insights

Jun-13 Jul-13 % ChgEntry-Level Luxury Car $22,075 $21,803 -1.2%High-End Luxury Car $48,845 $47,914 -1.9%Luxury Car $30,522 $30,205 -1.0%Luxury Compact SUV/Crossover $27,419 $27,332 -0.3%Luxury Full-Size SUV/Crossover $35,753 $36,056 0.8%Luxury Mid-Size SUV/Crossover $34,282 $33,814 -1.4%Luxury Average $28,411 $28,144 -0.9%

• Comparedtothebeginningoftheyear,everymid-sizepickupmodel(excepttheSuzukiEquator)hasseenanincreaseinvalue.

-8.1%

0.4%

2.5%

3.0%

4.8%

5.0%

5.3%

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

Equator

Tacoma

Ranger

Frontier

Canyon

Colorado

Dakota

Mid-SizeTruck YTD % Difference

July 19, 2013 vs. January 1, 2013 Source: Kelley Blue Book Automotive Insights

MY 2010-2012

USED-CAR MARKET ANALYSIS:continued

• Auctionvaluesof1-to3-year-oldluxuryvehiclesfellnearly1percentinJuly2013,onceagainoutperformingtheoverallmarketaverage.

• Therelativestrengthinusedluxuryvaluescomesatatimewhenbuyersalsoareinterestedinnewluxuryvehicles,withsalesup13percentthisyear.

“Forthefirsttimethisyear,luxuryauctionvaluesarenowoutperforming2012levels.LuxurySUVsandcrossoversarethestrongestperformersrightnow,cominginat1.3percenthigherthanlastyear,”saidGutierrez.“DepreciationwilllikelyincreaseslightlyinAugust2013asmorevehiclescomeoff-lease,butshouldnotapproachthe3percentdropthatwesawinAugust2012.”

• Bymid-July2013,theaveragevalueof1-to3-year-oldmid-sizepickuptruckswas2.6percenthigherthanthebeginningoftheyear.

• July2013valuesformid-sizepickupsare5.8percenthigherthanJuly2012,and9.9percenthigherthanJuly2011.

• Mid-sizepickupsarelikelytoretaintheirvaluesintheshort-term,thankstoanexpandingconstructionsector,andlowerlevelsofsupplyatauction.

• TheEquatorendedproductionwiththe2012modelyear,whenAmericanSuzukiMotorCorp.filedforbankruptcy.

• DomesticmodelsliketheRamDakota,ChevroletColoradoandGMCCanyonhavethehighestpercentagegainssincethestartof2013,benefittingfromhistoricallylowerretainedvaluethanimportmodels.

• ImportmodelsliketheNissanFrontierandToyotaTacomagenerallyhavehigherretainedvalueandlesspriceflexibilityinthemarket.

4 BLUE BOOK Used-Car Market Report JULY 2013

Used Full-Size Pickup Truck Values Remain Down Year-Over-Year, Face Continued Pressure from New Truck Sales

$15,000

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$16,000

$16,500

$17,000

$17,500

$18,000

$18,500

$19,000

$19,500

$20,000

$20,500

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Auct

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Valu

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Full-Size Pickup Truck Auction Values

CY 2011 CY 2012 CY 2013

Source: Kelley Blue Book Automotive Insights

USED-CAR MARKET ANALYSIS:continued

• Theaveragevalueof1-to3-year-oldfull-sizepickupsinJuly2013was10.4percenthigherthanJuly2011,but0.37percentlowerthanJuly2012.

• Thisyear-over-yeardipispartiallyduetoincreasednew-carsales,stemmingfromthereleaseofthenew2013Ram,2014ChevroletSilveradoandGMCSierramodels.

• Supplyforusedpickupsincreasedaswell;auctionvolumeinthefirstsixmonthsof2013increased2.4percentcomparedtothefirsthalfof2012.

-6.1%

-5.4%

-4.1%

-3.0%

-2.4%

-2.0%

-0.1%

3.2%

-8% -6% -4% -2% 0% 2% 4%

F-Series

Ridgeline

Avalanche

Sierra

Tundra

Silverado

Titan

Ram Pickup

Full-Size Truck YTD % Difference

July 19, 2013 vs. January 1, 2013 Source: Kelley Blue Book Automotive Insights

MY 2010-2012

• Rammodelsweretheonlyusedfull-sizepickuptruckswithaveragevaluesstillhigherthanatthestartof2013.

• Thankstoa2013model-yearrestyling,Rampickupsarethefreshestfull-sizepickupsavailableintheusedmarket,asthe1-year-oldtruckscontinuetoreachwholesaleauctions.

Full-Size Van Auction Values Higher Year-Over-Year

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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Valu

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Full-Size Van Auction Values

CY 2011 CY 2012 CY 2013

Source: Kelley Blue Book Automotive Insights

• Valuesoffull-sizevansremainassteadyasever,currentlyslightlyaboveaveragepricespaidineither2012or2011.

• ValuesincreasedslightlyinJuly2013,withtheFordESeriesPassengerimproving1.5percent,ChevroletExpressCargo1.3percentandGMCSavanaCargoup1.4percent.

• KelleyBlueBookexpectsfull-sizevanstocontinuetoholdtheirvalue.Theweek-over-weekchangeshavebeenstablewithsmallpositivechanges.

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.

5 BLUE BOOK Used-Car Market Report JULY 2013

HOT USED-CAR REPORT:

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.

Used Hybrid Cars Report Highest Traffic Share Increase Month-Over-Month-ArthurHenry,managerofmarketintelligenceandmarketanalyst,KelleyBlueBook

• Drivingthistrendistheseasonalsummergashike.• Themodelbenefitingmostfromthistrendisthe2010ToyotaPrius.

Top Movers Are Mix of Small Gas Savers and Large Utility Vehicles• TheHyundaiAccenttopsthelistofusedvehicleswiththehighestshareofgrowth.

-26.8%

-18.4%

-17.4%

-16.2%

-15.6%

-14.1%

-14.0%

-12.0%

-11.4%

-10.6%

7.9%

9.0%

10.8%

11.6%

16.7%

17.7%

18.6%

21.1%

24.7%

27.4%

-100% -50% 0% 50% 100%

2009 BMW M3

2011 MERCEDES-BENZ E-CLASS

2009 MERCEDES-BENZ E-CLASS

2010 BMW 5 SERIES

2009 MERCEDES-BENZ C-CLASS

2009 INFINITI G

2009 BMW 3 SERIES

2008 TOYOTA TUNDRA

2010 BMW 3 SERIES

2010 TOYOTA CAMRY

2011 TOYOTA CAMRY

2011 HONDA CR-V

2011 HONDA ACCORD

2011 JEEP GRAND CHEROKEE

2011 HONDA ODYSSEY

2011 SUBARU OUTBACK

2010 TOYOTA PRIUS

2009 HYUNDAI ELANTRA

2010 MAZDA CX-7

2009 HYUNDAI ACCENT

% Change in Share Month-Over-Month

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

Information based on 2011 to 2007 Model-Year Vehicles

-5.0% -4.8%

-4.5%

-4.4%

-3.3%

-3.2%

-2.9%

-1.5%

-1.1%

-0.7%

0.0%

0.1%

0.3%

0.5%

1.0%

1.2%

1.3%

1.6%

1.8%

2.0%

2.0%

3.0%

4.7%

-20% -10% 0% 10% 20%

Van

Premium Sports Car

Luxury Car

Sports Car

Entry Luxury Car

High Performance

Mid-Size Pickup Truck

Luxury Sport Utility

Full-Size Pickup Truck

Full-Size Car

Premium Luxury Car

Luxury Crossover

Mid-Size Sport Utility

Mid-Size Car

Compact Car

Full-Size Crossover

Subcompact Car

Minivan

Compact Luxury Car

Mid-Size Crossover

Compact Crossover

Full-Size Sport Utility

Hybrid Car

% Change in Share Month-Over-Month

Monthly Used-Car Shopping Activity Growth Segments

Information based on 2011 to 2007 Model-Year Vehicles

About Kelley Blue Book (www.kbb.com)

Foundedin1926,KelleyBlueBook,TheTrustedResource®,istheonlyvehiclevaluationandinformationsourcetrustedandrelieduponbybothconsumersandtheindustry.Eachweekthecompanyprovidesthemostmarket-reflectivevaluesintheindustryonitstop-ratedwebsitewww.kbb.com,includingitsfamousBlueBook®Trade-InandSuggestedRetailValuesandFairPurchasePrice,whichreportswhatothersarepayingfornewcarsthisweek.Thecompanyalsoprovidesvehiclepricingandvaluesthroughvariousproductsandservicesavailabletocardealers,automanufacturers,financeandinsurancecompaniesaswellasgovernmentalagencies.KBB.comprovidesconsumerpricingandinformationoncarsforsale,minivans,pickuptrucks,sedan,hybrids,electriccars,andSUVs.KelleyBlueBookCo.,Inc.isawhollyownedsubsidiaryofAutoTraderGroup.

• Shoppersaregravitatingtowardthismodelbecauseofitsvalueproposition.• Full-sizeutilityvehiclesareexperiencingincreasesinshoppingactivity.

• Seasonaltrend:Morefamiliesaretakingroadtripsforvacationsandarelookingforalargevehicletohaulthefamily.

Luxury Interest Cools• Shoppingforusedluxuryvehiclesisstrongestinspringandfall;thesegmenttypicallyseeslullsinsummerandwinter.• ThemodelsexperiencingthegreatestdecreaseininterestaretheBMW3Seriesand5Series,andMercedes-BenzC-ClassandE-Class.