ANNUAL FINANCIAL PROFILE OF AMERICA S FRANCHISED NEW-CAR DEALERSHIPS

2015 ANNUAL FINANCIAL PROFILE OF AMERICA S FRANCHISED NEW-CAR DEALERSHIPS NATIONAL AUTOMOBILE DEALERS ASSOCIATION

Overview Steven Szakaly Chief Economist, NADA Patrick Manzi Senior Economist, NADA NADA Data the annual financial profile of new-car dealerships includes the many major milestones achieved by the retail auto industry in 2015: Franchised dealers sold a record 17.3 million-plus new vehicles. Total new-vehicle sales topped $938 billion. Dealerships wrote nearly 300 million repair orders with service and parts sales of more than $100 billion. Local dealers continue to be drivers of economic development in their communities. In 2015, franchised dealers directly employed more than 1.1 million workers; in addition, hundreds of thousands of other local jobs were dependent on dealerships. Dealers spent billions last year on contracting, services and wages almost all of which flows right back to the community. In each of the past few years, dealership employees have seen their incomes rise by more than 2 percent and total compensation increase by almost 6 percent. This has outpaced total compensation in other retail sectors, and dealers boast one of the highest average salaries of all industries. We expect 2016 to end with dealership employment at an all-time high. 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. Overall, the past six years have been the longest period of new-vehicle sales growth since the 1920s. Luckily the outlook for 2016 is just as bright. This year s NADA Data has been updated with completely re-benchmarked data and methodologies. As a result, data and figures from previously released reports will not be comparable to our new series. 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.................................... 2 Dealership Financial Trends..................................... 22 New Light-Vehicle Department... 26 F&I Department... 29 Used-Vehicle Department... 30 Service and Parts Department... 31 Body Shop Department... 33 Dealership Advertising... 34 Employment and Payroll... 36 New- and Used-Vehicle Consumer... 39 NADA DATA 2015 nada.org 1

New Light-Vehicle Dealerships Average Light-Vehicle Dealership Profile 2013 2014 2015 Total sales $49,278,573 $52,949,226 $56,723,576 Total gross 1 $5,895,175 $6,244,337 $6,572,760 As % of total sales 12.0% 11.8% 11.6% Total expense $5,460,530 $5,800,686 $6,099,768 As % of total sales 11.1% 11.0% 10.8% As % of total gross 92.6% 92.9% 92.8% Total operating profit $435,685 $444,464 $472,981 As % of total sales 0.9% 0.8% 0.8% As % of total gross 7.4% 7.1% 7.2% Net profit before tax $1,283,609 $1,382,379 $1,503,432 As % of total sales 2.6% 2.6% 2.7% As % of total gross 21.8% 22.1% 22.9% New-vehicle department 2 New-vehicle department total sales $26,194,514 $28,460,645 $30,642,685 New-vehicle department sales as % of total sales 60.3% 60.6% 61.0% New-vehicle department gross as % of total gross 20.8% 20.6% 19.9% New-vehicle selling price (retail) $32,035 $32,824 $33,456 Gross as % of selling price 3.7% 3.5% 3.3% Retail gross profit per new vehicle retailed $1,174 $1,152 $1,088 Retail net profit per new vehicle retailed $3 ($10) ($22) Average number of new vehicles retailed 818 867 916 F&I income as % of new-vehicle department sales 2.7% 2.8% 2.8% F&I penetration (new) 86.4% 81.5% 90.3% 1 Gross profit includes cost of goods sold, but not SG&A or advertising. 2 Excludes F&I sales unless otherwise noted. NADA DATA 2015 nada.org 2

New Light-Vehicle Dealerships (continued) Average Light-Vehicle Dealership Profile (continued) Used-vehicle department 2 2013 2014 2015 Used-vehicle department sales $11,451,823 $12,288,141 $13,142,817 Used-vehicle department sales as % of total sales 23.2% 23.2% 23.2% Used-vehicle department gross as % of total gross 21.7% 21.1% 20.7% Used-vehicle selling price (retail) $18,081 $18,839 $19,400 Gross as % of selling price 8.8% 8.3% 7.9% Retail gross profit per new vehicle retailed $1,584 $1,565 $1,534 Retail net profit per new vehicle retailed $177 $164 $132 Average number of used vehicles retailed 633 652 677 F&I income as % of used-vehicle sales 3.3% 3.4% 3.6% F&I penetration (used) 61.2% 67.3% 71.4% Used- to new-unit vehicle ratio (retail only) 77.5% 75.2% 74.0% Service, parts and body shop department Service, parts and body shop sales $5,783,559 $6,187,243 $6,458,094 Service, parts and body shop sales as % of total sales 11.7% 11.7% 11.4% Service, parts and body shop gross as % of total gross 57.5% 58.3% 59.4% Warranty (% of total service, parts and body shop sales) 14.5% 15.7% 17.6% Advertising expense 3 $4,151,238 $4,462,625 $4,788,111 As % of total gross 8.4% 8.4% 8.4% Per new vehicle retailed $607 $607 $606 Rent and equivalent $5,238,947 $5,486,538 $5,824,072 As % of total gross 10.6% 10.4% 10.3% Per new vehicle retailed $766 $746 $737 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 2015 nada.org 3

New Light-Vehicle Dealerships (continued) Average Light-Vehicle Dealership Profile (continued) 2013 2014 2015 Floorplan interest ($77,224) ($98,214) ($134,238) As % of total sales -1.3% -1.6% -2.0% Per new vehicle retailed ($94) ($113) ($147) Selling, general and administrative expense $4,973,233 $5,316,310 $5,628,310 As % of total sales 10.1% 10.0% 9.9% As % of total gross 84.4% 85.1% 85.6% NADA DATA 2015 nada.org 4

New Light-Vehicle Dealerships (continued) Average Dealership Profile 2014 2015 Percent change Total sales $52,949,226 $56,723,576 7.1% Total gross 1 $6,244,337 $6,572,760 5.3% As % of total sales 11.8% 11.6% Total expense $5,800,686 $6,099,768 5.2% As % of total sales 11.0% 10.8% As % of total gross 92.9% 92.8% Total operating profit $444,464 $472,981 6.4% As % of total sales 0.8% 0.8% As % of total gross 7.1% 7.2% Net profit before tax $1,382,379 $1,503,432 8.8% As % of total sales 2.6% 2.7% As % of total gross 22.1% 22.9% New-vehicle department 2 New-vehicle department total sales $28,460,645 $30,642,685 7.7% New-vehicle department sales as % of total sales 60.6% 61.0% New-vehicle department gross as % of total gross 20.6% 19.9% New-vehicle selling price (retail) $32,824 $33,456 1.9% Gross as % of selling price 3.5% 3.3% Retail gross profit per new vehicle retailed $1,152 $1,088-5.6% Retail net profit per new vehicle retailed ($10) ($22) Average number of new vehicles retailed 867 916 5.6% F&I income as % of new-vehicle department sales 2.8% 2.8% F&I penetration (new) 81.5% 90.3% 1 Gross profit includes cost of goods sold, but not SG&A or advertising. 2 Excludes F&I sales unless otherwise noted. NADA DATA 2015 nada.org 5

New Light-Vehicle Dealerships (continued) Average Dealership Profile (continued) Used-vehicle department 2 2014 2015 Percent change Used-vehicle department sales $12,288,141 $13,142,817 7.0% Used-vehicle department sales as % of total sales 23.2% 23.2% Used-vehicle department gross as % of total gross 21.1% 20.7% Used-vehicle selling price (retail) $18,839 $19,400 3.0% Gross as % of selling price 8.3% 7.9% Retail gross profit per new vehicle retailed $1,565 $1,534-2.0% Retail net profit per new vehicle retailed $164 $132 Average number of used vehicles retailed 652 677 3.9% F&I income as % of used-vehicle sales 3.4% 3.6% F&I penetration (used) 67.3% 71.4% Used- to new-unit vehicle ratio (retail only) 75.2% 74.0% Service, parts and body shop department Service, parts and body shop sales $6,187,243 $6,458,094 4.4% Service, parts and body shop sales as % of total sales 11.7% 11.4% Service, parts and body shop gross as % of total gross 58.3% 59.4% Warranty (% of total service, parts and body shop sales) 15.7% 17.6% Advertising expense 3 $4,462,625 $4,788,111 7.3% As % of total gross 8.4% 8.4% Per new vehicle retailed $607 $606-0.2% Rent and equivalent $5,486,538 $5,824,072 6.2% As % of total gross 10.4% 10.3% Per new vehicle retailed $746 $737-1.3% 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 2015 nada.org 6

New Light-Vehicle Dealerships (continued) Average Dealership Profile (continued) 2014 2015 Percent change Floorplan interest ($98,214) ($134,238) 36.7% As % of total sales -1.6% -2.0% Per new vehicle retailed ($113) ($147) 29.4% Selling, general and administrative expense $5,316,310 $5,628,310 5.9% As % of total sales 10.0% 9.9% As % of total gross 85.1% 85.6% NADA DATA 2015 nada.org 7

New Light-Vehicle Dealerships (continued) Domestic Dealership Profile 2014 2015 Percent change Total sales $45,367,298 $49,882,081 10.0% Total gross 1 $5,275,512 $5,655,845 7.2% As % of total sales 11.6% 11.3% Total expense $4,796,520 $5,142,563 7.2% As % of total sales 10.6% 10.3% As % of total gross 90.9% 90.9% Total operating profit $478,992 $513,282 7.2% As % of total sales 1.1% 1.0% As % of total gross 9.1% 9.1% Net profit before tax $1,197,822 $1,306,329 9.1% As % of total sales 2.6% 2.6% As % of total gross 22.7% 23.1% New-vehicle department 2 New-vehicle department total sales $23,564,723 $26,119,211 10.8% New-vehicle department sales as % of total sales 59.6% 60.1% New-vehicle department gross as % of total gross 21.5% 21.3% New-vehicle selling price (retail) $34,396 $35,606 3.5% Gross as % of selling price 3.7% 3.5% Retail gross profit per new vehicle retailed $1,283 $1,260-1.8% Retail net profit per new vehicle retailed $214 $203 Average number of new vehicles retailed 685 734 7.1% F&I income as % of new-vehicle department sales 2.7% 2.7% F&I penetration (new) 88.8% 93.4% 1 Gross profit includes cost of goods sold, but not SG&A or advertising. 2 Excludes F&I sales unless otherwise noted. NADA DATA 2015 nada.org 8

New Light-Vehicle Dealerships (continued) Domestic Dealership Profile (continued) Used-vehicle department 2 2014 2015 Percent change Used-vehicle department sales $10,922,581 $11,920,391 9.1% Used-vehicle department sales as % of total sales 24.1% 23.9% Used-vehicle department gross as % of total gross 24.2% 23.8% Used-vehicle selling price (retail) $18,239 $18,897 3.6% Gross as % of selling price 9.1% 8.6% Retail gross profit per new vehicle retailed $1,655 $1,634-1.2% Retail net profit per new vehicle retailed $257 $228 Average number of used vehicles retailed 599 631 5.3% F&I income as % of used-vehicle sales 3.4% 3.5% F&I penetration (used) 61.2% 70.1% Used- to new-unit vehicle ratio (retail only) 87.4% 86.0% Service, parts and body shop department Service, parts and body shop sales $5,077,304 $5,401,407 6.4% Service, parts and body shop sales as % of total sales 11.2% 10.8% Service, parts and body shop gross as % of total gross 54.3% 54.9% Warranty (% of total service, parts and body shop sales) 15.2% 17.1% Advertising expense 3 $3,713,203 $4,110,280 10.7% As % of total gross 8.2% 8.2% Per new vehicle retailed $630 $635 0.8% Rent and equivalent $4,236,038 $4,652,603 9.8% As % of total gross 9.3% 9.3% Per new vehicle retailed $719 $719 0.0% 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 2015 nada.org 9

New Light-Vehicle Dealerships (continued) Domestic Dealership Profile (continued) 2014 2015 Percent change Floorplan interest ($83,653) ($115,927) 38.6% As % of total sales -1.6% -2.0% Per new vehicle retailed ($122) ($158) 29.4% Selling, general and administrative expense $4,420,357 $4,767,377 7.9% As % of total sales 9.7% 9.6% As % of total gross 83.8% 84.3% NADA DATA 2015 nada.org 10

New Light-Vehicle Dealerships (continued) Import Dealership Profile 2014 2015 Percent change Total sales $61,149,592 $64,952,534 6.2% Total gross 1 $7,301,648 $7,675,626 5.1% As % of total sales 11.9% 11.8% Total expense $6,914,083 $7,251,095 4.9% As % of total sales 11.3% 11.2% As % of total gross 94.7% 94.5% Total operating profit $389,375 $424,506 9.0% As % of total sales 0.6% 0.7% As % of total gross 5.3% 5.5% Net profit before tax $1,580,027 $1,740,509 10.2% As % of total sales 2.6% 2.7% As % of total gross 21.6% 22.7% New-vehicle department 2 New-vehicle department total sales $33,921,043 $36,083,525 6.4% New-vehicle department sales as % of total sales 61.7% 61.8% New-vehicle department gross as % of total gross 19.9% 18.6% New-vehicle selling price (retail) $31,561 $31,785 0.7% Gross as % of selling price 3.3% 3.0% Retail gross profit per new vehicle retailed $1,048 $955-8.9% Retail net profit per new vehicle retailed ($186) ($198) Average number of new vehicles retailed 1,075 1,135 5.6% F&I income as % of new-vehicle department sales 2.8% 2.9% F&I penetration (new) 75.7% 88.0% 1 Gross profit includes cost of goods sold, but not SG&A or advertising. 2 Excludes F&I sales unless otherwise noted. NADA DATA 2015 nada.org 11

New Light-Vehicle Dealerships (continued) Import Dealership Profile (continued) Used-vehicle department 2 2014 2015 Percent change Used-vehicle department sales $13,683,312 $14,613,153 6.8% Used-vehicle department sales as % of total sales 22.4% 22.5% Used-vehicle department gross as % of total gross 18.2% 18.0% Used-vehicle selling price (retail) $19,480 $19,920 2.3% Gross as % of selling price 7.5% 7.2% Retail gross profit per new vehicle retailed $1,470 $1,429-2.8% Retail net profit per new vehicle retailed $63 $32 Average number of used vehicles retailed 702 734 4.4% F&I income as % of used-vehicle sales 3.4% 3.7% F&I penetration (used) 73.7% 72.7% Used- to new-unit vehicle ratio (retail only) 65.4% 64.6% Service, parts and body shop department Service, parts and body shop sales $7,415,807 $7,729,079 4.2% Service, parts and body shop sales as % of total sales 12.1% 11.9% Service, parts and body shop gross as % of total gross 61.9% 63.4% Warranty (% of total service, parts and body shop sales) 16.1% 18.0% Advertising expense 3 $5,296,194 $5,598,517 5.7% As % of total gross 8.7% 8.6% Per new vehicle retailed $588 $583-1.0% Rent and equivalent $6,902,156 $7,210,257 4.5% As % of total gross 11.3% 11.1% Per new vehicle retailed $767 $751-2.1% 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 2015 nada.org 12

New Light-Vehicle Dealerships (continued) Import Dealership Profile (continued) 2014 2015 Percent change Floorplan interest ($114,142) ($156,263) 36.9% As % of total sales -1.6% -2.0% Per new vehicle retailed ($106) ($138) 29.6% Selling, general and administrative expense $6,306,667 $6,663,841 5.7% As % of total sales 10.3% 10.3% As % of total gross 86.4% 86.8% NADA DATA 2015 nada.org 13

New Light-Vehicle Dealerships (continued) Luxury Dealership Profile 2014 2015 Percent change Total sales $88,794,446 $93,016,150 4.8% Total gross 1 $9,942,696 $9,980,162 0.4% As % of total sales 11.2% 10.7% Total expense $9,630,169 $9,785,416 1.6% As % of total sales 10.8% 10.5% As % of total gross 96.9% 98.0% Total operating profit $312,527 $194,619-37.7% As % of total sales 0.4% 0.2% As % of total gross 3.1% 2.0% Net profit before tax $2,345,414 $2,606,132 11.1% As % of total sales 2.6% 2.8% As % of total gross 23.6% 26.1% New-vehicle department 2 New-vehicle department total sales $48,038,269 $50,349,469 4.8% New-vehicle department sales as % of total sales 60.7% 60.8% New-vehicle department gross as % of total gross 18.4% 15.7% New-vehicle selling price (retail) $49,150 $50,191 2.1% Gross as % of selling price 3.2% 2.6% Retail gross profit per new vehicle retailed $1,566 $1,282-18.1% Retail net profit per new vehicle retailed ($558) ($732) Average number of new vehicles retailed 977 1,003 2.6% F&I income as % of new-vehicle department sales 1.9% 2.0% F&I penetration (new) 40.5% 66.4% 1 Gross profit includes cost of goods sold, but not SG&A or advertising. 2 Excludes F&I sales unless otherwise noted. NADA DATA 2015 nada.org 14

New Light-Vehicle Dealerships (continued) Luxury Dealership Profile (continued) Used-vehicle department 2 2014 2015 Percent change Used-vehicle department sales $19,414,177 $20,634,395 6.3% Used-vehicle department sales as % of total sales 21.9% 22.2% Used-vehicle department gross as % of total gross 14.8% 13.9% Used-vehicle selling price (retail) $29,180 $30,205 3.5% Gross as % of selling price 6.3% 5.5% Retail gross profit per new vehicle retailed $1,850 $1,667-9.9% Retail net profit per new vehicle retailed ($15) ($37) Average number of used vehicles retailed 665 683 2.7% F&I income as % of used-vehicle sales 2.3% 2.3% F&I penetration (used) 72.7% 45.8% Used- to new-unit vehicle ratio (retail only) 68.1% 68.1% Service, parts and body shop department Service, parts and body shop sales $11,656,618 $11,826,547 1.5% Service, parts and body shop sales as % of total sales 13.1% 12.7% Service, parts and body shop gross as % of total gross 66.8% 70.4% Warranty (% of total service, parts and body shop sales) 19.1% 20.6% Advertising expense 3 $5,500,245 $5,926,811 7.8% As % of total gross 6.2% 6.4% Per new vehicle retailed $630 $634 0.6% Rent and equivalent $11,100,367 $11,600,783 4.5% As % of total gross 12.5% 12.5% Per new vehicle retailed $1,272 $1,241-2.4% 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 2015 nada.org 15

New Light-Vehicle Dealerships (continued) Luxury Dealership Profile (continued) 2014 2015 Percent change Floorplan interest ($104,694) ($193,876) 85.2% As % of total sales -1.1% -1.9% Per new vehicle retailed ($107) ($193) 80.4% Selling, general and administrative expense $8,706,702 $8,949,810 2.8% As % of total sales 9.8% 9.6% As % of total gross 87.6% 89.7% NADA DATA 2015 nada.org 16

New Light-Vehicle Dealerships (continued) Mass Market Dealership Profile 2014 2015 Percent change Total sales $48,944,442 $52,689,062 7.7% Total gross 1 $5,831,074 $6,194,993 6.2% As % of total sales 11.9% 11.8% Total expense $5,372,479 $5,690,071 5.9% As % of total sales 11.0% 10.8% As % of total gross 92.1% 91.8% Total operating profit $459,507 $504,923 9.9% As % of total sales 0.9% 1.0% As % of total gross 7.9% 8.2% Net profit before tax $1,275,841 $1,381,859 8.3% As % of total sales 2.6% 2.6% As % of total gross 21.9% 22.3% New-vehicle department 2 New-vehicle department total sales $26,286,864 $28,464,612 8.3% New-vehicle department sales as % of total sales 60.6% 61.0% New-vehicle department gross as % of total gross 21.1% 20.7% New-vehicle selling price (retail) $30,695 $31,359 2.2% Gross as % of selling price 3.6% 3.4% Retail gross profit per new vehicle retailed $1,096 $1,062-3.1% Retail net profit per new vehicle retailed $59 $65 Average number of new vehicles retailed 856 908 6.0% F&I income as % of new-vehicle department sales 2.9% 3.0% F&I penetration (new) 86.9% 93.3% 1 Gross profit includes cost of goods sold, but not SG&A or advertising. 2 Excludes F&I sales unless otherwise noted. NADA DATA 2015 nada.org 17

New Light-Vehicle Dealerships (continued) Mass Market Dealership Profile (continued) Used-vehicle department 2 2014 2015 Percent change Used-vehicle department sales $11,491,092 $12,307,054 7.1% Used-vehicle department sales as % of total sales 23.5% 23.4% Used-vehicle department gross as % of total gross 22.4% 22.0% Used-vehicle selling price (retail) $17,640 $18,171 3.0% Gross as % of selling price 8.7% 8.4% Retail gross profit per new vehicle retailed $1,532 $1,518-0.9% Retail net profit per new vehicle retailed $184 $150 Average number of used vehicles retailed 651 677 4.0% F&I income as % of used-vehicle sales 3.6% 3.8% F&I penetration (used) 66.6% 74.3% Used- to new-unit vehicle ratio (retail only) 76.1% 74.6% Service, parts and body shop department Service, parts and body shop sales $5,572,800 $5,859,437 5.1% Service, parts and body shop as % of total sales 11.4% 11.1% Service, parts and body shop as % of total gross 56.5% 57.3% Warranty (% of total service, parts and body shop sales) 14.9% 16.9% Advertising expense 3 $4,340,326 $4,648,340 7.1% As % of total gross 8.9% 8.8% Per new vehicle retailed $604 $602-0.3% Rent and equivalent $4,870,949 $5,200,445 6.8% As % of total gross 10.0% 9.9% Per new vehicle retailed $678 $674-0.6% 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 2015 nada.org 18

New Light-Vehicle Dealerships (continued) Mass Market Dealership Profile (continued) 2014 2015 Percent change Floorplan interest ($98,215) ($128,653) 31.0% As % of total sales -1.7% -2.1% Per new vehicle retailed ($115) ($142) 23.6% Selling, general and administrative expense $4,937,495 $5,259,782 6.5% As % of total sales 10.1% 10.0% As % of total gross 84.7% 84.9% NADA DATA 2015 nada.org 19

New Light-Vehicle Dealerships (continued) New Light-Vehicle Dealerships by State, 2015 Alabama 269 Alaska 29 Arizona 243 Arkansas 202 California 1,319 Colorado 243 Connecticut 252 Delaware 52 Florida 843 Georgia 485 Hawaii 68 Idaho 96 Illinois 712 Indiana 385 Iowa 295 Kansas 212 Kentucky 239 Louisiana 269 Maine 109 Maryland 290 Massachusetts 388 Michigan 602 Minnesota 328 Mississippi 171 Nebraska 161 Nevada 94 New Hampshire 138 New Jersey 445 New Mexico 111 New York 834 North Carolina 573 North Dakota 79 Ohio 710 Oklahoma 259 Oregon 219 Pennsylvania 862 Rhode Island 51 South Carolina 250 South Dakota 88 Tennessee 327 Texas 1,142 Utah 136 Vermont 83 Virginia 452 Washington 307 West Virginia 135 Wisconsin 458 Wyoming 52 Number of Dealerships by Volume of New-Unit Sales, 2015 Number of dealerships 5,000 4,000 3,000 2,000 1,000 16,545 TOTAL NEW-CAR DEALERSHIPS Missouri 378 Montana 100 Total U.S. 16,545 0 0-149 150-399 400-749 750+ NADA DATA 2015 nada.org 20

New Light-Vehicle Dealerships (continued) Count by Chain Size by Year Number of chains 2013 2014 2015 1 5,500 5,290 5,133 2 1,346 1,345 1,294 3 553 547 558 4 258 266 289 5 173 173 175 6 100 114 100 7 53 52 63 8 57 49 54 9 30 30 33 10 22 28 28 11-50 100 119 125 Greater than 50 9 9 9 NADA DATA 2015 nada.org 21

Dealership Financial Trends Total Sales by State, 2015 State All dealerships ($ millions) Average per dealership ($ thousands) Alabama $11,793 $43,842 Alaska $1,726 $59,522 Arizona $20,476 $84,266 Arkansas $7,488 $37,072 California $112,112 $84,998 Colorado $15,344 $63,147 Connecticut $9,897 $39,275 Delaware $2,898 $55,739 Florida $72,987 $86,580 Georgia $27,797 $57,313 Hawaii $3,855 $56,697 Idaho $3,300 $34,383 Illinois $37,329 $52,429 Indiana $13,761 $35,743 Iowa $7,553 $25,604 Kansas $6,412 $30,249 Kentucky $8,377 $35,051 Louisiana $12,556 $46,679 Maine $3,496 $32,077 Maryland $18,582 $64,079 Massachusetts $20,602 $53,098 Michigan $33,130 $55,034 Minnesota $13,823 $42,144 Mississippi $6,327 $37,001 Missouri $16,343 $43,237 Montana $3,562 $35,620 State All dealerships ($ millions) Average per dealership ($ thousands) Nebraska $4,903 $30,457 Nevada $8,112 $86,301 New Hampshire $5,238 $37,958 New Jersey $32,147 $72,242 New Mexico $5,169 $46,573 New York $55,478 $66,521 North Carolina $24,250 $42,322 North Dakota $2,345 $29,689 Ohio $33,735 $47,514 Oklahoma $42,276 $163,230 Oregon $9,302 $42,478 Pennsylvania $36,997 $42,920 Rhode Island $2,865 $56,177 South Carolina $11,866 $47,467 South Dakota $2,168 $24,636 Tennessee $14,938 $45,682 Texas $86,719 $75,936 Utah $7,100 $52,207 Vermont $2,366 $28,517 Virginia $21,542 $47,661 Washington $15,654 $50,992 West Virginia $4,525 $33,522 Wisconsin $13,877 $30,300 Wyoming $1,476 $28,399 Total U.S. $938,492 $56,724 NADA DATA 2015 nada.org 22

Dealership Financial Trends (continued) Total Sales of New-Vehicle Dealerships by Year $1,000 800 600 All dealerships (left scale) in billions of dollars Average per dealership (right scale) in millions of dollars $60 50 40 30 400 2009 2010 2011 2012 2013 2014 2015 20 Source: U.S. Department of Commerce and NADA Industry Analysis Division Share of Total Dealership Sales Dollars, 2014 vs. 2015 Service and parts Service and parts 11.7 % 11.4 % 30.7 % Used vehicles 57.6 % New vehicles 30.4 % Used vehicles 58.2 % New vehicles 2014 2015 NADA DATA 2015 nada.org 23

Dealership Financial Trends (continued) New-Vehicle Department Gross Profit by Year Average dealership, in millions of dollars, including F&I $2.0 1.5 1.0 0.5 0.0 2009 2010 2011 2012 2013 2014 2015 Used-Vehicle Department Gross Profit by Year Average dealership, in thousands of dollars, including F&I $2.0 1.5 1.0 0.5 0 2009 2010 2011 2012 2013 2014 2015 NADA DATA 2015 nada.org 24

Dealership Financial Trends (continued) Service and Parts Department Gross Profit by Year Average dealership, in millions of dollars $3.0 2.5 2.0 1.5 1.0.5 0 2009 2010 2011 2012 2013 2014 2015 Total Net Profit Share of Sales by Year Average dealership, in percent of sales 3.0% 2.5 2.0 1.5 1.0.5 0 2009 2010 2011 2012 2013 2014 2015 NADA DATA 2015 nada.org 25

New Light-Vehicle Department New-Vehicle Inventories and Days Supply by Year Inventory (in millions) 4.0 Total 3.5 Import 3.0 2.5 2.0 1.5 Days supply 80 Domestic 70 60 domestic 2,867,653 NEW-CAR INVENTORY import 655,522 3,523,175 1.0.5 0 Domestic 50 40 Import 2010 2015 2010 2015 NEW-VEHICLE DAYS SUPPLY 65 55 domestic import Number of New Vehicles Sold and Selling Price Year New vehicles sold Average retail selling price 2009 615 $28,133 SOLD 2010 714 $29,930 2011 793 $30,982 2012 896 $31,194 2013 960 $32,035 2014 1,003 $32,824 2015 1,050 $33,456 $33,456 AVERAGE SELLING PRICE OF NEW VEHICLES SOLD (by new-vehicle dealerships) NADA DATA 2015 nada.org 26

New Light-Vehicle Department (continued) New Light-Duty Vehicle Sales by Year Year New cars Light-duty trucks Total light-duty vehicles Light-duty trucks as % of total 2006 7,780,800 8,721,000 16,502,700 52.8% 2007 7,618,400 8,470,900 16,089,300 52.6% 2008 6,813,550 6,381,050 13,194,600 48.4% 2009 5,456,300 4,945,400 10,401,700 47.5% 2010 5,635,400 5,919,100 11,554,500 51.2% 2011 6,089,300 6,644,900 12,734,200 52.2% 2012 7,242,800 7,199,000 14,441,800 49.8% 2013 7,582,500 7,942,300 15,524,800 51.2% 2014 7,688,900 8,748,100 16,437,000 53.2% 2015 7,525,023 9,861,024 17,386,047 56.7% Gross Margin as Percentage of Selling Price by Year New vehicles retailed 5% 4.5 4 3.5 3 2010 2011 2012 2013 2014 2015 NADA DATA 2015 nada.org 27

New Light-Vehicle Department (continued) Market Share by Manufacturer, 2015 0.06 Gain No change Loss 0.04 Subaru 0.02 Other* FCA Loss/Gain 0-0.02-0.04 Daimler BMW VW Hyundai- Kia Nissan Honda Toyota Ford GM -0.06 *Other is JLR, Mitsubishi, Mazda, Tesla, Volvo New-Vehicle Sales and Market Share by Manufacturer Year FCA Ford GM Toyota Honda Nissan Volkswagen Other Total 2015 2,228,100 2,548,900 3,082,400 2,499,300 1,586,500 1,484,900 349,400 3,601,000 12.8% 14.7% 17.7% 14.4% 9.1% 8.5% 2.0% 20.7% 17,380,500 Source: WardsAuto NADA DATA 2015 nada.org 28

F&I Department Aftermarket Income by Year As % of new- and used-vehicle department gross profit 50% Total 40 30 20 Service contract and other 10 Finance and insurance 0 2009 2010 2011 2012 2013 2014 2015 Service Contract Penetration Rates by Year As % of new- and used-vehicle department gross profit 50% 40 30 2009 2010 2011 2012 2013 2014 2015 NADA DATA 2015 nada.org 29

Used-Vehicle Department Used-Vehicle Sales by New-Vehicle Dealerships, by Year In millions 15 Sources of Used Vehicles Retailed by New Vehicle Dealerships, 2015 4 % Street purchase 12 9 26 % Auction purchase 42 % Trade-in on new vehicle 6 3 4 % Other 24 % Trade-in on used vehicle 0 2010 2011 2012 2013 2014 2015 Average Retail Selling Price of Used Vehicles Sold by New-Vehicle Dealerships In thousands $20.0 SOLD 17.5 $19,400 AVERAGE RETAIL SELLING PRICE OF USED VEHICLES SOLD (by new-vehicle dealerships) 15.0 2010 2011 2012 2013 2014 2015 NADA DATA 2015 nada.org 30

Service and Parts Department Dealerships Total Service and Parts Sales, 2015 Service labor sales (in billions of dollars) $20 15 10 5 Dealerships Total Service and Parts Sales, 2015 (in billions of dollars) Service labor sales Customer mechanical $17.69 Customer body 4.15 Warranty 8.75 Sublet 3.48 Internal 7.63 0 Customer mechanical Customer body Warranty Sublet Internal Other Other 3.13 Total service labor $44.83 Parts sales (in billions of dollars) $15 10 5 0 Customer mechanical Customer body Wholesale Counter Warranty Dealerships Total Service and Parts Sales by Years In billions of dollars $120 100 80 Internal Other Parts sales Customer mechanical $15.75 Customer body 3.50 Wholesale 15.38 Counter 2.85 Warranty 10.06 Internal 5.65 Other 5.85 Total parts $59.04 $100.02 billion SERVICE AND PARTS SALES (for all new-vehicle dealerships) 60 2009 2010 2011 2012 2013 2014 2015 NADA DATA 2015 nada.org 31

Service and Parts Department (continued) Profile of Dealerships Service and Parts Operations, 2015 Average dealership All dealers Total service and parts sales $6,045,373 $100,020,688,949 Total gross profit as % of service and parts sales 45.8% Total net profit as % of service and parts sales 20.1% Total number of repair orders written 17,923 296,538,651 Total service and parts sales per customer repair order $265 Total service and parts sales per warranty repair order $273 Number of technicians (including body) $1.59 Number of service bays (excluding body) 15 251,710 Total parts inventory $356,518 $5,898,582,125 Average customer mechanical labor rate $107 $6.04 million SERVICE AND PARTS SALES (per new-vehicle dealership) 251,710 TECHNICIANS (including body shop) 296 million REPAIR ORDERS WRITTEN NADA DATA 2015 nada.org 32

Body Shop Department Dealerships Operating On-Site Body Shops by Year Percent of total dealership population 40% 35 30 2009 2010 2011 2012 2013 2014 2015 Total Dealership Body Shop Sales by Year In billions of dollars $7 6 5 2009 2010 2011 2012 2013 2014 2015 Body Shop Sales per Repair Order, by Year In thousands of dollars $900 700 500 300 100 2009 2010 2011 2012 2013 2014 2015 NADA DATA 2015 nada.org 33

Dealership Advertising Total Franchised Dealership Advertising Expenditures by Year In billions of dollars $10 8 6 4 2009 2010 2011 2012 2013 2014 2015 Average Dealership Advertising per New Unit Sold, Year In dollars $800 700 600 500 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 NADA DATA 2015 nada.org 34

Dealership Advertising (continued) Advertising Expenditures by Medium, 2015 Other Newspaper 27.8 % Internet 8.7 % 13.9 % 16.1 % Radio 9.8 % 23.7 % TV Direct mail Estimated Advertising Expenses per Dealership, 2015 By media used Average of all dealerships Newspapers $74,395 Radio $86,170 TV $126,846 Direct mail $52,451 Internet $148,790 Other $46,564 Total $535,215 Total advertising as % of total sales 0.09% NADA DATA 2015 nada.org 35

Employment and Payroll Number Dealership Employees by State, 2015 State Total number, all dealers Average number per dealership State Total number, all dealers Average number per dealership Alabama 14,564 55 Alaska 2,968 76 Arizona 23,178 97 Arkansas 9,570 44 California 114,154 96 Colorado 18,461 77 Connecticut 13,839 56 Delaware 4,399 84 Florida 76,082 96 Georgia 32,825 72 Hawaii 4,277 60 Idaho 5,392 62 Illinois 45,469 63 Indiana 22,047 57 Iowa 12,682 41 Kansas 10,317 49 Kentucky 13,205 55 Louisiana 16,521 59 Maine 5,388 53 Maryland 23,482 80 Massachusetts 23,180 62 Michigan 35,255 60 Minnesota 19,677 57 Mississippi 7,939 45 Missouri 22,017 59 Montana 3,893 42 Nebraska 7,634 46 Nevada 8,658 100 New Hampshire 6,711 52 New Jersey 32,200 72 New Mexico 6,874 65 New York 50,153 61 North Carolina 34,537 59 North Dakota 3,912 46 Ohio 42,551 59 Oklahoma 14,324 65 Oregon 12,483 61 Pennsylvania 49,457 57 Rhode Island 3,453 62 South Carolina 15,008 61 South Dakota 4,204 44 Tennessee 21,146 59 Texas 96,651 86 Utah 9,227 68 Vermont 3,063 38 Virginia 31,400 67 Washington 20,980 74 West Virginia 6,418 44 Wisconsin 23,873 52 Wyoming 2,303 40 Total U.S. 1,088,001 66 DEALERSHIP EMPLOYEES 1,088,001 66 Average per dealership NADA DATA 2015 nada.org 36

Employment and Payroll (continued) Average Weekly Earnings of New Light-Vehicle Dealership Employees by State, 2015 Alabama $1,039 Indiana $963 Nebraska $990 South Carolina $1,022 Alaska $1,091 Iowa $972 Nevada $1,232 South Dakota $1,034 Arizona $1,116 Kansas $987 New Hampshire $1,219 Tennessee $1,103 Arkansas $1,010 Kentucky $985 New Jersey $1,264 Texas $1,217 California $1,212 Louisiana $1,049 New Mexico $1,035 Utah $1,018 Colorado $1,129 Maine $982 New York $1,183 Vermont $1,023 Connecticut $1,178 Maryland $1,098 North Carolina $1,002 Virginia $1,072 Delaware $1,072 Massachusetts $1,248 North Dakota $1,019 Washington $1,088 Florida $1,121 Michigan $1,083 Ohio $984 West Virginia $896 Georgia $1,096 Minnesota $973 Oklahoma $1,015 Wisconsin $857 Hawaii $1,152 Mississippi $997 Oregon $1,033 Wyoming $951 Idaho $996 Illinois $1,028 Missouri $1,000 Montana $987 Pennsylvania $996 Rhode Island $1,049 Total U.S. $1,094 Estimated Number of Dealership Employees by Year Dealership Employment by Position, 2015 1200 Total of all dealerships (left scale) Average number per dealership (right scale) 80 Supervisors, others New and used-car salespeople 1000 70 31.9 % 20.1 % 60 23.1 % 24.9 % 800 2010 2011 2012 2013 2014 2015 50 Other service and parts employees Technicians NADA DATA 2015 nada.org 37

Employment and Payroll (continued) Annual Payroll of New-Vehicle Dealerships by State, 2015 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 $0.80 $2.96 Alaska $0.12 $4.30 Arizona $1.36 $5.60 Arkansas $0.47 $2.32 California $7.77 $5.89 Colorado $1.10 $4.54 Connecticut $0.85 $3.37 Delaware $0.24 $4.58 Florida $4.56 $5.41 Georgia $1.97 $4.06 Hawaii $0.24 $3.54 Idaho $0.30 $3.12 Illinois $2.41 $3.38 Indiana $1.08 $2.81 Iowa $0.60 $2.05 Kansas $0.54 $2.57 Kentucky $0.66 $2.77 Louisiana $0.87 $3.23 Maine $0.28 $2.58 Maryland $1.31 $4.52 Massachusetts $1.52 $3.92 Michigan $2.03 $3.37 Minnesota $0.95 $2.89 Mississippi $0.39 $2.29 Missouri $1.16 $3.08 Montana $0.21 $2.08 Nebraska $0.39 $2.40 Nevada $0.59 $6.31 New Hampshire $0.42 $3.06 New Jersey $2.08 $4.67 New Mexico $0.37 $3.37 New York $3.11 $3.73 North Carolina $1.77 $3.09 North Dakota $0.19 $2.44 Ohio $2.11 $2.97 Oklahoma $0.93 $3.61 Oregon $0.69 $3.16 Pennsylvania $2.50 $2.90 Rhode Island $0.18 $3.53 Annual Payroll of New-Vehicle Dealerships by Year South Carolina $0.79 $3.15 South Dakota $0.21 $2.37 $70 Total of all dealerships (left scale), in billions Average per dealership (right scale), in thousands $4.0 Tennessee $1.08 $3.29 Texas $6.34 $5.55 60 50 3.5 Utah $0.48 $3.53 Vermont $0.16 $1.91 Virginia $1.67 $3.69 Washington $1.27 $4.14 3.0 West Virginia $0.28 $2.05 40 Wisconsin $1.04 $2.27 Wyoming $0.11 $2.15 30 2010 2011 2012 2013 2014 2015 2.5 Total U.S. $62.56 $3.78 NADA DATA 2015 nada.org 38

New- and Used-Vehicle Consumer Percentage of Vehicles With Financing Credit Score Ranges 100 New Used Category Score range 80 81.4 % 82.2 % 82.1 % 83.7 % 84.0 % 85.9 % Superprime 781-850 60 40 50.9 % 53.3 % 52.8 % 53.5 % 55.2 % 54.7 % Prime 661-780 Nonprime 601-660 20 Subprime 501-600 0 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Deep subprime 300-500 Consumer Leasing New Leasing by Risk Segment 35% 30 Lease % of all new Lease % of new financing Lease % of total 100 80 26.8% 26.2% 25 20 60 15 48.8% 47.8% 10 40 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 20 17.2% 18.0% 0 6.9% 7.8% Q4 2014 Q4 2015 Superprime Prime Nonprime Subprime NADA DATA 2015 nada.org Source: Experian Automotive 39

New- and Used-Vehicle Consumer (continued) Average Monthly Payment New-Vehicle Market Share by Lender Type $600 500 $11 Q4 2014 Q4 2015 10.1 % Credit union 4.9 % Finance 400 $482 $493 $4 300 $355 $359 35.1 % Bank 200 100 49.8 % Captive 0.2 % BHPH 0 New Average Loan Term, in Months Used 68 67 One month Q4 2014 Q4 2015 66 65 66 67 64 63 62 61 62 One month 63 60 59 New Used NADA DATA 2015 nada.org Source: Experian Automotive 40

New- and Used-Vehicle Consumer (continued) Average Loan Credit Scores by Vehicle Type 800 New Used 750 711 726 736 732 727 723 715 712 711 700 650 640 647 657 659 653 650 646 648 649 600 Q4 2007 Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Source: Experian Automotive For more information on Experian data, contact auto@experian.com. NADA DATA 2015 nada.org 41

New- and Used-Vehicle Consumer (continued) New-Vehicle Loan Origination by State New-vehicle share New-vehicle share New-vehicle share New-vehicle share Alabama 1.7% Iowa 0.8% Montana 0.3% Pennsylvania 4.3% Alaska 0.2% Kansas 0.6% Nebraska 0.3% South Carolina 1.5% Arizona 2.3% Kentucky 1.0% Nevada 1.2% South Dakota 0.3% Arkansas 1.2% Louisiana 1.8% New Hampshire 0.5% Tennessee 2.1% California 12.7% Maine 0.4% New Jersey 2.3% Texas 12.6% Colorado 1.7% Maryland 2.6% New Mexico 0.6% Utah 0.9% Florida 7.4% Massachusetts 1.9% New York 4.7% Vermont 0.2% Georgia 3.3% Michigan 2.0% North Carolina 3.6% Virginia 3.0% Idaho 0.3% Minnesota 1.7% North Dakota 0.3% Washington 2.0% Illinois 4.6% Mississippi 0.9% Ohio 3.6% West Virginia 0.5% Indiana 1.5% Missouri 1.9% Oregon 1.3% Wisconsin 1.6% 2.04 1.29 1.17 12.68 0.29 0.27 0.29 0.30 0.33 0.85 1.65 0.63 2.27 0.59 1.68 1.62 0.82 4.58 1.85 1.19 0.19 4.70 2.04 4.32 3.61 1.51 0.52 3.02 0.99 3.58 2.06 1.54 0.39 0.48 1.86 2.28 2.62 0.24 12.59 1.81 0.87 1.70 3.28 7.41 HI 1.0-2.0% 2.1-3.0% 3.1-4.0% 4.1-6.0 6.1-12% >12.1% data not availab NADA DATA 2015 nada.org Source: Experian Automotive 42

New- and Used-Vehicle Consumer (continued) Used-Vehicle Loan Origination by State Used-vehicle share Used-vehicle share Used-vehicle share Used-vehicle share Alabama 2.1% Iowa 1.6% Montana 0.3% Pennsylvania 4.4% Alaska 0.3% Kansas 1.0% Nebraska 0.4% South Carolina 1.9% Arizona 2.2% Kentucky 1.2% Nevada 1.2% South Dakota 0.4% Arkansas 1.1% Louisiana 0.8% New Hampshire 0.5% Tennessee 2.9% California 9.6% Maine 0.5% New Jersey 0.5% Texas 10.0% Colorado 2.0% Maryland 2.0% New Mexico 0.5% Utah 1.1% Florida 6.8% Massachusetts 1.7% New York 4.5% Vermont 0.2% Georgia 3.3% Michigan 3.0% North Carolina 4.0% Virginia 2.6% Idaho 0.4% Minnesota 2.4% North Dakota 0.3% Washington 2.2% Illinois 4.2% Mississippi 1.3% Ohio 4.8% West Virginia 0.6% Indiana 2.6% Missouri 2.0% Oregon 1.3% Wisconsin 2.0% 2.21 1.32 1.21 9.56 0.31 0.28 0.42 0.37 0.44 1.14 1.99 1.02 2.23 0.48 2.36 1.95 1.55 4.20 2.03 1.12 0.17 4.46 3.02 4.40 4.80 2.56 0.58 2.61 1.08 4.01 2.92 1.91 0.48 0.54 1.67 2.08 1.98 0.27 10.04 0.77 1.31 2.09 3.29 6.75 HI <1% 1.0-2.0% 2.1-3.0% 3.1-4.0% 4.1-6.0% 6.1-8.0% 8.1-10.0% >10.1% NADA DATA 2015 nada.org Source: Experian Automotive 43