ANNUAL FINANCIAL PROFILE OF AMERICA S FRANCHISED NEW-CAR DEALERSHIPS

Transcription

1 M I D Y E A R 2016 ANNUAL FINANCIAL PROFILE OF AMERICA S FRANCHISED NEW-CAR DEALERSHIPS NATIONAL AUTOMOBILE DEALERS ASSOCIATION

2 Overview NADA Data now provides a biannual financial profile of new-car dealerships. This midyear review includes the many major milestones achieved by the retail auto industry through the first half of 2016: The nation s 16,680 franchised dealers sold 8.64 million lightduty vehicles. Total new-vehicle sales topped $490 million. Dealerships wrote more than 155 million repair orders, with service and parts sales of more than $54 billion. Steven Szakaly Chief Economist, NADA In first-quarter 2016, dealership employment topped 1.1 million employees. In addition to the direct employment provided by dealerships, hundreds of thousands of other jobs in local communities are dependent on dealerships. Dealerships spend billions of dollars in their communities on contracting and other services, and this includes nearly $30 billion in wages to dealership employees during the first six months of For the past several years, dealership employees have seen steady increases in their incomes as well as their total compensation. Dealership jobs offer compensation that is significantly higher than other retail sectors, and dealers continue to boast one of the highest average salaries of all industries. We expect to see dealership employment to reach an all-time high at the end of While employment at a dealership is one of the best paths to the middle-class American dream (and has been so consistently for decades), customers also have benefited. There is healthy competition between dealers to sell and service vehicles, and this has meant consistently good deals for consumers. As NADA Data has shown, despite rising sales profitability has been flat at around 2.6 percent for five years. Patrick Manzi Senior Economist, NADA This is the inaugural issue of the NADA Data midyear update. NADA Data will be published twice a year, with a mid-year update and full review at year-end. To improve the breadth of information provided in NADA Data, we offer a section focusing on the new- and used-vehicle consumer, with in-depth data from Experian. These stats include average monthly payment, average loan term, leasing and more. CONTENTS New Light-Vehicle Dealerships Dealership Financial Trends New Light-Vehicle Department...23 F&I Department Used-Vehicle Department Service and Parts Department Body Shop Department Dealership Advertising...31 Employment and Payroll New- and Used-Vehicle Consumer NADA DATA 2016 MIDYEAR nada.org 1

3 New Light-Vehicle Dealerships Average Light-Vehicle Dealership Profile June YTD Total sales $25,864,723 $27,921,799 $29,459,808 Total gross 1 $3,144,989 $3,334,841 $3,427,940 As % of total sales 12.2% 11.9% 11.6% Total expense $2,856,830 $3,038,562 $3,217,857 As % of total sales 11.0% 10.9% 10.9% As % of total gross 90.8% 91.1% 93.9% Total operating profit $288,455 $296,142 $211,131 As % of total sales 1.1% 1.1% 0.7% As % of total gross 9.2% 8.9% 6.2% Net profit before tax $720,145 $789,912 $767,767 As % of total sales 2.8% 2.8% 2.6% As % of total gross 22.9% 23.7% 22.4% New-vehicle department 2 New-vehicle department total sales $13,705,906 $14,792,942 $15,306,125 New-vehicle department sales as % of total sales 60.0% 60.0% 58.9% New-vehicle department gross as % of total gross 20.7% 19.4% 17.2% New-vehicle selling price (retail) $32,362 $33,103 $34,221 Gross as % of selling price 3.7% 3.3% 2.9% Retail gross profit per new vehicle retailed $1,186 $1,098 $999 Retail net profit per new vehicle retailed $14 ($42) ($227) Average number of new vehicles retailed F&I income as % of new-vehicle department sales 2.8% 2.9% 2.7% F&I penetration (new) 85.9% 88.7% 89.7% 1 Gross profit includes cost of goods sold, but not SG&A or advertising. 2 Excludes F&I sales unless otherwise noted. NADA DATA 2016 MIDYEAR nada.org 2

4 New Light-Vehicle Dealerships (continued) Average Light-Vehicle Dealership Profile, June YTD (continued) Used-vehicle department Used-vehicle department sales $6,094,416 $6,614,114 $7,198,753 Used-vehicle department sales as % of total sales 23.6% 23.7% 24.4% Used-vehicle department gross as % of total gross 21.8% 21.5% 21.1% Used-vehicle selling price (retail) $18,703 $19,240 $19,879 Gross as % of selling price 8.7% 8.3% 7.6% Retail gross profit per new vehicle retailed $1,628 $1,589 $1,515 Retail net profit per new vehicle retailed $294 $282 $228 Average number of used vehicles retailed F&I income as % of used-vehicle sales 3.4% 3.6% 3.8% F&I penetration (used) 63.5% 69.6% 73.6% Used- to new-unit vehicle ratio (retail only) 76.9% 76.9% 81.0% Service, parts and body shop department Service, parts and body shop sales $3,042,087 $3,251,957 $3,490,214 Service, parts and body shop sales as % of total sales 11.8% 11.6% 11.8% Service, parts and body shop sales gross as % of total gross 57.5% 59.1% 61.7% Warranty (% total service, parts and body shop sales) 15.0% 16.9% 17.8% Advertising expense 3 $2,068,304 $2,278,653 $2,415,210 As % of total gross 8.0% 8.2% 8.2% Per new vehicle retailed $594 $609 $628 Rent and equivalent $2,643,612 $2,828,408 $3,119,034 As % of total gross 10.2% 10.1% 10.6% Per new vehicle retailed $759 $756 $811 2 Excludes F&I sales unless otherwise noted. 3 Advertising expense includes advertising and sales promotion less advertising rebates. Some advertising data is reported in one account, which includes sales promotion and is already less advertising rebates. NADA DATA 2016 MIDYEAR nada.org 3

5 New Light-Vehicle Dealerships (continued) Average Light-Vehicle Dealership Profile, June YTD (continued) Floorplan interest ($40,187) ($57,141) ($53,442) As % of total sales -1.3% -1.7% -1.6% Per new vehicle retailed ($95) ($128) ($119) Selling, general and administrative expense $2,606,088 $2,789,997 $2,949,793 As % of total sales 10.1% 10.0% 10.0% As % of total gross 82.9% 83.7% 86.1% NADA DATA 2016 MIDYEAR nada.org 4

6 New Light-Vehicle Dealerships (continued) Domestic Dealership Profile, June YTD Percent change Total sales $24,310,038 $25,864, % Total gross 1 $2,857,917 $2,908, % As % of total sales 11.8% 11.2% Total expense $2,519,276 $2,672, % As % of total sales 10.4% 10.3% As % of total gross 88.2% 91.9% Total operating profit $338,642 $235, % As % of total sales 1.4% 0.9% As % of total gross 11.8% 8.1% Net profit before tax $706,051 $644, % As % of total sales 2.9% 2.5% As % of total gross 24.7% 22.1% New-vehicle department 2 New-vehicle department total sales $12,494,234 $13,006, % New-vehicle department sales as % of total sales 59.1% 57.4% New-vehicle department gross as % of total gross 20.9% 18.7% New-vehicle selling price (retail) $34,792 $36, % Gross as % of selling price 3.6% 3.2% Retail gross profit per new vehicle retailed $1,268 $1, % Retail net profit per new vehicle retailed $227 ($54) Average number of new vehicles retailed % F&I income as % of new-vehicle department sales 2.8% 2.6% F&I penetration (new) 91.4% 93.0% 1 Gross profit includes cost of goods sold, but not SG&A or advertising. 2 Excludes F&I sales unless otherwise noted. NADA DATA 2016 MIDYEAR nada.org 5

7 New Light-Vehicle Dealerships (continued) Domestic Dealership Profile, June YTD (continued) Used-vehicle department Percent change Used-vehicle department sales $5,973,229 $6,435, % Used-vehicle department sales as % of total sales 24.6% 24.9% Used-vehicle department gross as % of total gross 25.0% 24.5% Used-vehicle selling price (retail) $18,645 $19, % Gross as % of selling price 9.1% 8.4% Retail gross profit per new vehicle retailed $1,698 $1, % Retail net profit per new vehicle retailed $413 $355 Average number of used vehicles retailed % F&I income as % of used-vehicle sales 3.5% 3.7% F&I penetration (used) 68.3% 73.2% Used- to new-unit vehicle ratio (retail only) 89.2% 92.8% Service, parts and body shop department Service, parts and body shop sales $2,661,354 $2,837, % Service, parts and body shop sales as % of total sales 10.9% 11.0% Service, parts and body shop gross as % of total gross 54.0% 56.8% Warranty (% of total service, parts and body shop sales) 16.5% 17.5% Advertising expense 3 $1,907,814 $2,145, % As % of total gross 7.8% 8.3% Per new vehicle retailed $625 $ % Rent and equivalent $2,193,635 $2,427, % As % of total gross 9.0% 9.4% Per new vehicle retailed $718 $ % 2 Excludes F&I sales unless otherwise noted. 3 Advertising expense includes advertising and sales promotion less advertising rebates. Some advertising data is reported in one account, which includes sales promotion and is already less advertising rebates. NADA DATA 2016 MIDYEAR nada.org 6

8 New Light-Vehicle Dealerships (continued) Domestic Dealership Profile, June YTD (continued) Percent change Floorplan interest ($49,858) ($40,899) -18.0% As % of total sales -1.7% -1.4% Per new vehicle retailed ($139) ($114) -18.1% Selling, general and administrative expense $2,327,543 $2,455, % As % of total sales 9.6% 9.5% As % of total gross 81.4% 84.4% NADA DATA 2016 MIDYEAR nada.org 7

9 New Light-Vehicle Dealerships (continued) Import Dealership Profile, June YTD Percent change Total sales $32,266,030 $48,618, % Total gross 1 $3,908,486 $5,710, % As % of total sales 12.1% 11.7% Total expense $3,663,161 $5,533, % As % of total sales 11.4% 11.4% As % of total gross 93.7% 96.9% Total operating profit $245,023 $176, % As % of total sales 0.8% 0.4% As % of total gross 6.3% 3.1% Net profit before tax $890,780 $1,159, % As % of total sales 2.8% 2.4% As % of total gross 22.8% 20.3% New-vehicle department 2 New-vehicle department total sales $17,557,831 $25,813, % New-vehicle department sales as % of total sales 60.7% 58.5% New-vehicle department gross as % of total gross 18.0% 14.9% New-vehicle selling price (retail) $31,783 $31, % Gross as % of selling price 3.0% 2.4% Retail gross profit per new vehicle retailed $966 $ % Retail net profit per new vehicle retailed ($253) ($435) Average number of new vehicles retailed % F&I income as % of new-vehicle department sales 2.9% 2.9% F&I penetration (new) 86.6% 79.8% 1 Gross profit includes cost of goods sold, but not SG&A or advertising. 2 Excludes F&I sales unless otherwise noted. NADA DATA 2016 MIDYEAR nada.org 8

10 New Light-Vehicle Dealerships (continued) Import Dealership Profile, June YTD (continued) Used-vehicle department Percent change Used-vehicle department sales $7,384,971 $12,473, % Used-vehicle department sales as % of total sales 22.9% 25.7% Used-vehicle department gross as % of total gross 18.5% 19.6% Used-vehicle selling price (retail) $19,857 $19, % Gross as % of selling price 7.4% 6.7% Retail gross profit per new vehicle retailed $1,476 $1, % Retail net profit per new vehicle retailed $145 $132 Average number of used vehicles retailed % F&I income as % of used-vehicle sales 3.7% 3.9% F&I penetration (used) 71.0% 69.1% Used- to new-unit vehicle ratio (retail only) 67.3% 77.9% Service, parts and body shop department Service, parts and body shop sales $3,962,334 $5,848, % Service, parts and body shop sales as % of total sales 12.3% 12.0% Service, parts and body shop gross as % of total gross 63.5% 65.6% Warranty (% of total service, parts and body shop sales) 17.1% 16.1% Advertising expense 3 $2,722,000 $4,366, % As % of total gross 8.4% 9.0% Per new vehicle retailed $597 $ % Rent and equivalent $3,582,375 $5,508, % As % of total gross 11.1% 11.3% Per new vehicle retailed $786 $ % 2 Excludes F&I sales unless otherwise noted. 3 Advertising expense includes advertising and sales promotion less advertising rebates. Some advertising data is reported in one account, which includes sales promotion and is already less advertising rebates. NADA DATA 2016 MIDYEAR nada.org 9

11 New Light-Vehicle Dealerships (continued) Import Dealership Profile, June YTD (continued) Percent change Floorplan interest ($65,902) ($136,798) 107.6% As % of total sales -1.7% -2.4% Per new vehicle retailed ($119) ($169) 42.0% Selling, general and administrative expense $3,346,238 $5,082, % As % of total sales 10.4% 10.5% As % of total gross 85.6% 89.0% NADA DATA 2016 MIDYEAR nada.org 10

12 New Light-Vehicle Dealerships (continued) Luxury Dealership Profile, June YTD Percent change Total sales $46,481,434 $50,916, % Total gross 1 $5,272,179 $5,699, % As % of total sales 11.3% 11.2% Total expense $5,018,822 $5,567, % As % of total sales 10.8% 10.9% As % of total gross 95.2% 97.7% Total operating profit $253,165 $131, % As % of total sales 0.5% 0.3% As % of total gross 4.8% 2.3% Net profit before tax $1,355,216 $1,368, % As % of total sales 2.9% 2.7% As % of total gross 25.7% 24.0% New-vehicle department 2 New-vehicle department total sales $24,254,409 $26,113, % New-vehicle department sales as % of total sales 58.9% 57.6% New-vehicle department gross as % of total gross 15.8% 15.0% New-vehicle selling price (retail) $49,654 $52, % Gross as % of selling price 2.8% 2.7% Retail gross profit per new vehicle retailed $1,411 $1, % Retail net profit per new vehicle retailed ($690) ($720) Average number of new-vehicles retailed % F&I income as % of new vehicle department sales 2.0% 2.0% F&I penetration (new) 69.9% 69.9% 1 Gross profit includes cost of goods sold, but not SG&A or advertising. 2 Excludes F&I sales unless otherwise noted. NADA DATA 2016 MIDYEAR nada.org 11

13 New Light-Vehicle Dealerships (continued) Luxury Dealership Profile, June YTD (continued) Used-vehicle department Percent change Used-vehicle department sales $10,648,653 $12,311, % Used-vehicle department sales as % of total sales 22.9% 24.2% Used-vehicle department gross as % of total gross 14.9% 14.4% Used-vehicle selling price (retail) $29,744 $29, % Gross as % of selling price 6.1% 5.4% Retail gross profit per new vehicle retailed $1,813 $1, % Retail net profit per new vehicle retailed $99 ($27) Average number of used vehicles retailed % F&I income as % of used-vehicle sales 2.4% 2.6% F&I penetration (used) 47.1% 51.5% Used- to new-unit vehicle ratio (retail only) 73.3% 82.5% Service, parts and body shop department Service, parts and body shop sales $6,255,886 $6,939, % Service, parts and body shop sales as % of total sales 13.5% 13.6% Service, parts and body shop gross as % of total gross 69.3% 70.6% Warranty (% of total service, parts and body shop sales) 20.9% 18.2% Advertising expense 3 $2,812,672 $2,825, % As % of total gross 6.1% 5.5% Per new vehicle retailed $653 $ % Rent and equivalent $5,612,179 $6,882, % As % of total gross 12.1% 13.5% Per new vehicle retailed $1,303 $1, % 2 Excludes F&I sales unless otherwise noted. 3 Advertising expense includes advertising and sales promotion less advertising rebates. Some advertising data is reported in one account, which includes sales promotion and is already less advertising rebates. NADA DATA 2016 MIDYEAR nada.org 12

14 New Light-Vehicle Dealerships (continued) Luxury Dealership Profile, June YTD (continued) Percent change Floorplan interest ($89,867) ($80,580) -10.3% As % of total sales -1.7% -1.4% Per new vehicle retailed ($184) ($161) -12.5% Selling, general and administrative expense $4,574,094 $5,068, % As % of total sales 9.8% 10.0% As % of total gross 86.8% 88.9% NADA DATA 2016 MIDYEAR nada.org 13

15 New Light-Vehicle Dealerships (continued) Mass Market Dealership Profile, June YTD Percent change Total sales $25,856,617 $27,062, % Total gross 1 $3,119,398 $3,174, % As % of total sales 12.1% 11.7% Total expense $2,818,357 $2,955, % As % of total sales 10.9% 10.9% As % of total gross 90.3% 93.1% Total operating profit $300,908 $219, % As % of total sales 1.2% 0.8% As % of total gross 9.6% 6.9% Net profit before tax $727,334 $701, % As % of total sales 2.8% 2.6% As % of total gross 23.3% 22.1% New-vehicle department 2 New-vehicle department total sales $13,747,458 $14,105, % New-vehicle department sales as % of total sales 60.2% 59.2% New-vehicle department gross as % of total gross 20.1% 17.7% New-vehicle selling price (retail) $31,038 $31, % Gross as % of selling price 3.4% 3.0% Retail gross profit per new vehicle retailed $1,058 $ % Retail net profit per new vehicle retailed $37 ($165) Average number of new vehicles retailed % F&I income as % of new-vehicle department sales 3.0% 2.9% F&I penetration (new) 91.0% 92.2% 1 Gross profit includes cost of goods sold, but not SG&A or advertising. 2 Excludes F&I sales unless otherwise noted. NADA DATA 2016 MIDYEAR nada.org 14

16 New Light-Vehicle Dealerships (continued) Mass Market Dealership Profile, June YTD (continued) Used-vehicle Department Percent change Used-vehicle department sales $6,162,707 $6,625, % Used-vehicle department sales as % of total sales 23.8% 24.5% Used-vehicle department gross as % of total gross 22.9% 22.6% Used-vehicle selling price (retail) $18,002 $18, % Gross as % of selling price 8.7% 8.1% Retail gross profit per new vehicle retailed $1,562 $1, % Retail net profit per new vehicle retailed $302 $260 Average number of used vehicles retailed % F&I income as % of used-vehicle sales 3.8% 4.0% F&I penetration (used) 72.3% 76.5% Used- to new-unit vehicle ratio (retail only) 77.3% 80.7% Service, parts and body shop department Service, parts and body shop sales $2,916,150 $3,104, % Service, parts and body shop sales as % of total sales 11.3% 11.5% Service, parts and body shop gross as % of total gross 57.0% 59.7% Warranty (% of total service, parts and body shop sales) 15.9% 17.7% Advertising expense 3 $2,215,614 $2,364, % As % of total gross 8.6% 8.7% Per new vehicle retailed $603 $ % Rent and equivalent $2,525,014 $2,706, % As % of total gross 9.8% 10.0% Per new vehicle retailed $688 $ % 2 Excludes F&I sales unless otherwise noted. 3 Advertising expense includes advertising and sales promotion less advertising rebates. Some advertising data is reported in one account, which includes sales promotion and is already less advertising rebates. NADA DATA 2016 MIDYEAR nada.org 15

17 New Light-Vehicle Dealerships (continued) Mass Market Dealership Profile, June YTD (continued) Percent change Floorplan interest ($53,972) ($51,003) -39.9% As % of total sales -1.7% -1.6% Per new vehicle retailed ($122) ($115) -33.8% Selling, general and administrative expense $2,591,856 $2,713, % As % of total sales 10.0% 10.0% As % of total gross 83.1% 85.5% NADA DATA 2016 MIDYEAR nada.org 16

18 New Light-Vehicle Dealerships (continued) New Light-Vehicle Dealerships by State, June YTD 2016 Alabama 268 Alaska 30 Arizona 244 Arkansas 203 California 1,330 Colorado 243 Connecticut 255 Delaware 54 Florida 855 Georgia 488 Hawaii 68 Idaho 97 Illinois 719 Indiana 391 Iowa 294 Kansas 214 Kentucky 240 Louisiana 269 Maine 108 Maryland 293 Massachusetts 391 Michigan 610 Minnesota 333 Mississippi 172 Nebraska 162 Nevada 97 New Hampshire 138 New Jersey 447 New Mexico 113 New York 847 North Carolina 572 North Dakota 79 Ohio 712 Oklahoma 258 Oregon 218 Pennsylvania 867 Rhode Island 54 South Carolina 252 South Dakota 87 Tennessee 329 Texas 1,161 Utah 136 Vermont 82 Virginia 460 Washington 312 West Virginia 135 Wisconsin 462 Wyoming 53 TOTAL NEW-CAR DEALERSHIPS 16,680 Number of Dealerships by Volume of New-Unit Sales, June YTD 2016 Number of dealerships 5,000 4,000 3,000 2,000 1,000 Missouri 379 Montana 99 Total U.S. 16, NADA DATA 2016 MIDYEAR nada.org 17

19 New Light-Vehicle Dealerships (continued) Count by Chain Size by Year, June YTD Number of chains ,316 5,962 5,763 5,500 5,290 5,133 5, ,394 1,355 1,339 1,346 1,345 1,294 1, Greater than NADA DATA 2016 MIDYEAR nada.org 18

20 Dealership Financial Trends Total Sales by State, June YTD 2016 State All dealerships ($ millions) Average per dealership ($ thousands) Alabama $6,175 $23,041 Alaska $903 $30,126 Arizona $10,721 $43,940 Arkansas $3,920 $19,315 California $58 $44,136 Colorado $8,034 $33,063 Connecticut $5,182 $20,322 Delaware $1,517 $28,104 Florida $38,215 $44,696 Georgia $14,554 $29,824 Hawaii $2,018 $29,686 Idaho $1,728 $17,817 Illinois $19,545 $27,184 Indiana $7,205 $18,427 Iowa $3,954 $13,452 Kansas $3,357 $15,690 Kentucky $4,386 $18,276 Louisiana $6,574 $24,441 Maine $1,830 $16,951 Maryland $9,729 $33,207 Massachusetts $10,787 $27,588 Michigan $17,347 $28,437 Minnesota $7,237 $21,735 Mississippi $3,312 $19,260 Missouri $8,557 $22,579 Montana $1,865 $18,839 State All dealerships ($ millions) Average per dealership ($ thousands) Nebraska $2,567 $15,848 Nevada $4,247 $43,789 New Hampshire $2,742 $19,874 New Jersey $16,832 $37,656 New Mexico $2,706 $23,954 New York $29,048 $34,295 North Carolina $12,697 $22,198 North Dakota $1,228 $15,545 Ohio $17,663 $24,808 Oklahoma $9,556 $37,040 Oregon $4,870 $22,343 Pennsylvania $19,371 $22,343 Rhode Island $1,500 $27,780 South Carolina $6,213 $24,656 South Dakota $1,135 $13,048 Tennessee $7,821 $23,773 Texas $45,405 $39,109 Utah $3,717 $27,335 Vermont $1,239 $15,113 Virginia $11,279 $24,521 Washington $8,196 $26,271 West Virginia $2,369 $17,552 Wisconsin $7,266 $15,727 Wyoming $773 $14,589 Total U.S. $491,389 $29,459 NADA DATA 2016 MIDYEAR nada.org 19

21 Dealership Financial Trends (continued) Total Sales of New-Vehicle Dealerships by Year, June YTD $ All dealerships (left scale) in billions of dollars Average per dealership (right scale) in millions of dollars $ Source: U.S. Department of Commerce and NADA Industry Analysis Division Share of Total Dealership Sales Dollars, 2015 vs. 2016, June YTD Service and parts Service and parts 11.7 % 11.8 % 31.3 % Used vehicles 57.1 % New vehicles 31.4 % Used vehicles 56.8 % New vehicles NADA DATA 2016 MIDYEAR nada.org 20

22 Dealership Financial Trends (continued) New-Vehicle Department Gross Profit by Year, June YTD Average dealership, in thousands of dollars, including F&I $ Used-Vehicle Department Gross Profit by Year, June YTD Average dealership, in thousands of dollars, including F&I $ NADA DATA 2016 MIDYEAR nada.org 21

23 Dealership Financial Trends (continued) Service and Parts Department Gross Profit by Year, June YTD Average dealership, in millions of dollars $ Total Net Profit Share of Sales by Year, June YTD Average dealership, in percent of sales 3.0% NADA DATA 2016 MIDYEAR nada.org 22

24 New Light-Vehicle Department New-Vehicle Inventories and Days Supply by Year, June YTD Inventory (in millions) 4.0 Total 3.5 Import Days supply 80 Domestic domestic 2,025,400 import 1,818,300 NEW-VEHICLE INVENTORY 3,843, Domestic Import NEW-VEHICLE DAYS SUPPLY domestic import Number of New Vehicles Sold and Selling Price by Year, June YTD Year New vehicles sold Average retail selling price $29,660 SOLD $30, $30, $31, $32, $33, $34,221 $34,221 AVERAGE SELLING PRICE OF NEW VEHICLES SOLD (by new-vehicle dealerships) NADA DATA 2016 MIDYEAR nada.org 23

25 New Light-Vehicle Department (continued) New Light-Duty Vehicle Sales by Year, June YTD Year New cars Light-duty trucks Total light-duty vehicles Light-duty trucks as % of total ,979,238 4,369,625 8,348, % ,928,962 4,287,738 8,216, % ,866,628 3,517,552 7,384, % ,452,687 2,342,900 4,795, % ,824,863 2,776,074 5,600, % ,155,613 3,154,798 6,310, % ,742,368 3,506,525 7,248, % ,899,781 3,898,802 7,798, % ,896,078 4,227,311 8,123, % ,840,833 4,645,480 8,486, % ,538,860 5,059,487 8,598, % Gross Margin as Percentage of Selling Price by Year, June YTD New vehicles retailed 5% NADA DATA 2016 MIDYEAR nada.org 24

26 Total Light Truck % % Domestic Light Vehicle % % Import Light Vehicle % % Total Light Vehicle SAAR % % New Light-Vehicle Department (continued) Market Share by Manufacturer, June YTD 2016 Market Share, by manufacturer 0.8 gain no change loss All Figures are Year to Date / Year to Date Changes 0.6 Nissan FCA 0.4 Ford Honda Loss/Gain Subaru Hyundai- Kia -0.2 Daimler Other* GM -0.4 BMW VW -0.6 Toyota -0.8 *Other is JLR, Mitsubishi, Mazda, Tesla, Volvo New-Vehicle Sales and Market Share by Manufacturer, June YTD 2016 Market Share, by segment Year FCA Ford GM Toyota Honda Nissan Volkswagen Other Total 1,144,470 1,315,983 1,438,915 1,197, , , ,014 1,761, ,598, % 15.3% 16.7% 13.9% 9.2% 9.3% 1.7% 20.5% Source: WardsAuto 17.0% Small Car 16.0% Midsized Car 1.9% Large Car 6.2% Luxury Car 14.4% Pickup 30.7% Crossover 7.4% 6.3% SUV Van NADA DATA 2016 MIDYEAR nada.org 25

27 F&I Department Aftermarket Income by Year, June YTD As % of new- and used-vehicle department gross profit 70% Total Service contract and other Finance and insurance Service Contract Penetration Rates by Year, June YTD As % of new- and used-vehicle department gross profit 50% NADA DATA 2016 MIDYEAR nada.org 26

28 Used-Vehicle Department Used-Vehicle Sales by New-Vehicle Dealerships, by Year, June YTD In millions 8 Sources of Used Vehicles Retailed by Dealerships, June YTD % Street purchase % Auction purchase 42 % Trade-in on new vehicle 3 4 % Other 24 % Trade-in on used vehicle Average Retail Selling Price of Used Vehicles Sold by New-Vehicle Dealerships, by Year, June YTD In thousands $20.0 SOLD 17.5 $19,879 AVERAGE RETAIL SELLING PRICE OF USED VEHICLES SOLD (by new-vehicle dealerships) NADA DATA 2016 MIDYEAR nada.org 27

29 Service and Parts Department Dealerships Total Service and Parts Sales, June YTD 2016 Service labor sales (in billions of dollars) Service labor sales (in billions of dollars) $ Dealerships Total Service and Parts Sales, June YTD 2016 (in billions of dollars) Service labor sales Customer mechanical $9.50 Customer body 2.32 Warranty Sublet 2.13 Internal Customer mechanical Customer body Warranty Sublet Internal Other Other 1.66 Parts sales (in billions of dollars) Total service labor $24.39 $10 Parts sales 7.5 Customer mechanical $ Customer body Wholesale Customer mechanical Customer body Wholesale Counter Warranty Internal Other Counter 1.70 Warranty 5.75 Dealerships Total Service and Parts Sales by Year, June YTD In billions of dollars $ Internal 3.07 Other 3.10 Total parts $29.05 $54.41 billion SERVICE AND PARTS SALES (for all new-vehicle dealerships) NADA DATA 2016 MIDYEAR nada.org 28

30 Service and Parts Department (continued) Profile of Dealerships Service and Parts Operations, June YTD 2016 Average dealership All dealers Total service and parts sales $3,262,336 $54,415,761,288 Total gross profit as % of service and parts sales 45.5% Total net profit as % of service and parts sales 17.9% Total number of repair orders written 9, ,186,440 Total service and parts sales per customer repair order $267 Total service and parts sales per warranty repair order $288 Number of technicians (including body) ,808 Number of service bays (excluding body) 1.62 Total parts inventory $371,209 $6,191,757,923 Average customer mechanical labor rate $110 $6.19 million SERVICE AND PARTS SALES (per new-vehicle dealership) 265,808 TECHNICIANS (including body shop) 155 million REPAIR ORDERS WRITTEN NADA DATA 2016 MIDYEAR nada.org 29

31 Body Shop Department Dealerships Operating On-Site Body Shops by Year, June YTD Percent of total dealership population 40% Total Dealership Body Shop Sales by Year, June YTD In billions of dollars $ Body Shop Sales per Repair Order by Year, June YTD In thousands of dollars $ NADA DATA 2016 MIDYEAR nada.org 30

32 Dealership Advertising Total Franchised Dealership Advertising Expenditures by Year, June YTD In billions of dollars $ Average Dealership Advertising per New Units Sold by Year, June YTD In dollars $ NADA DATA 2016 MIDYEAR nada.org 31

33 Employment and Payroll Average Weekly Earnings of New Light-Vehicle Dealership Employees by State, June YTD 2016 Alabama $1,013 Indiana $939 Nebraska $965 South Carolina $996 Alaska $1,065 Iowa $948 Nevada $1,201 South Dakota $1,008 Arizona $1,088 Kansas $962 New Hampshire $1,189 Tennessee $1,075 Arkansas $985 Kentucky $960 New Jersey $1,232 Texas $1,187 California $1,182 Louisiana $1,023 New Mexico $1,009 Utah $993 Colorado $1,101 Maine $957 New York $1,153 Vermont $997 Connecticut $1,149 Maryland $1,071 North Carolina $977 Virginia $1,045 Delaware $1,045 Massachusetts $1,217 North Dakota $994 Washington $1,061 Florida $1,093 Michigan $1,056 Ohio $959 West Virginia $874 Georgia $1,069 Minnesota $949 Oklahoma $990 Wisconsin $836 Hawaii $1,123 Mississippi $972 Oregon $1,007 Wyoming $927 Idaho $971 Illinois $1,002 Missouri $975 Montana $962 Pennsylvania $971 Rhode Island $1,023 Total U.S. $1,033 Estimated Number of Dealership Employees by Year, June YTD Dealership Employment by Position, June YTD Total of all dealerships (left scale) Average number per dealership (right scale) 80 Supervisors, others New and used salespeople % 20.1 % % 24.8 % Other service and parts employees Technicians NADA DATA 2016 MIDYEAR nada.org 32

34 Employment and Payroll (continued) Annual Payroll of New-Vehicle Dealerships by State, June YTD 2016 State Total all dealers (billions) Average per dealership (millions) State Total all dealers (billions) Average per dealership (millions) State Total all dealers (billions) Average per dealership (millions) Alabama $0.37 $2.96 Alaska $0.60 $4.3 0 Arizona $0.64 $5.60 Arkansas $0.24 $2.32 California $3.45 $5.89 Colorado $0.52 $4.54 Connecticut $0.40 $3.37 Delaware $0.11 $4.58 Florida $2.12 $5.41 Georgia $0.89 $4.06 Hawaii $0.12 $3.54 Idaho $0.13 $3.12 Illinois $1.16 $3.38 Indiana $0.53 $2.81 Iowa $0.30 $2.05 Kansas $0.25 $2.57 Kentucky $0.32 $2.77 Louisiana $0.43 $3.23 Maine $0.13 $2.58 Maryland $0.64 $4.52 Massachusetts $0.72 $3.92 Michigan $0.95 $3.37 Minnesota $0.47 $2.89 Mississippi $0.19 $2.29 Missouri $0.54 $3.08 Montana $0.09 $2.08 Nebraska $0.18 $2.40 Nevada $0.26 $6.31 New Hampshire $0.20 $3.06 New Jersey $1.01 $4.67 New Mexico $0.17 $3.37 New York $1.48 $3.73 North Carolina $0.86 $3.09 North Dakota $0.09 $2.44 Ohio $1.04 $2.97 Oklahoma $0.36 $3.61 Oregon $0.32 $3.16 Pennsylvania $1.23 $2.90 Rhode Island $0.09 $3.53 South Carolina $0.38 $3.15 South Dakota $0.10 $2.37 Tennessee $0.58 $3.29 Texas $2.93 $5.55 Utah $0.23 $3.53 Vermont $0.07 $1.91 Virginia $0.84 $3.69 Washington $0.57 $4.14 West Virginia $0.14 $2.05 Wisconsin $0.51 $2.27 Wyoming $0.05 $2.15 Total U.S. $29.70 $1.78 NADA DATA 2016 MIDYEAR nada.org 33

35 New- and Used-Vehicle Consumer Percentage of Vehicles With Financing Credit Score Range 100 New Used Category Score range 80 Superprime Prime Nonprime Subprime Deep subprime Q Q Consumer Leasing 35 New Used New Leasing by Risk Segment % 26.8% % 48.1% 5 0 Q Q % 17.4% 0 7.2% 7.4% Q Q Super prime Prime Nonprime Subprime NADA DATA 2016 MIDYEAR nada.org Source: Experian Automotive 34

36 New- and Used-Vehicle Consumer (continued) Average Monthly Payment New-Vehicle Market Share by Lender Type June YTD 2016 $ $16 Q Q % Credit union 4.6 % Finance 400 $ % Bank % Captive 0.2 % BHPH 0 New Average Loan Term, in Months Used ne month Q Q ne month New Used NADA DATA 2016 MIDYEAR nada.org Source: Experian Automotive 35

37 New- and Used-Vehicle Consumer (continued) Average Loan Credit Scores by Vehicle Type 800 New Used Q Q Q Q Q Source: Experian Automotive For more information on Experian data, contact NADA DATA 2016 MIDYEAR nada.org 36