BLUE BOOK II CAR

USED

BLUE BOOK

CAR

EDITION

Market Report

DECEMBER

2014

Automotive Insights from Kelley Blue Book

Kelley Blue Book Public Relations Contacts:

Chintan Talati | Sr. Director, Public Relations 949.267.4855 | chintan.talati@

Joanna Pinkham | Sr. Public Relations Manager 404.568.7135 | joanna.pinkham@

Brenna Robinson | Sr. Public Relations Manager Samantha Hawkins | Marketing Coordinator

949.267.4781 | brenna.robinson@

949.268.2760 | samantha.hawkins@

USED-CAR MARKET ANALYSIS:

Used-Vehicle Values Finish the Year Strong

In This Issue:

USED-CAR MARKET ANALYSIS Used-Vehicle Values Finish the Year Strong

Mid-Size Pickup Truck Category Leads in Retained Value

$19,000 $18,500 $18,000 $17,500

Used-Vehicle Values Finish Strong

Fuel Prices Reach New Low

Despite Dip in Housing Construction, Full-Size Truck Values Remain Stable

Mid-Size Sedan Segment Outperforms in December Despite Auction Volume Increase

Auction Values

$17,000

$16,500

$16,000

$15,500

$15,000

$14,500

CY 2012 CY 2013 CY 2014

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

Source: Kelley Blue Book Automotive Insights

? Auction values in December finished 0.9 percent higher than in 2013 and 0.8 percent higher than 2012.

? The strength seen in December's average auction value came primarily from the mid-size and subcompact car segments, each segment gained 0.9 percent and 0.8 percent respectively.

"The real surprise came from the strength we're seeing in the subcompact car segment," said Sean Foyil, analyst for Kelley Blue Book. "Typically, as fuel prices dip we see the more fuel-efficient segments take the largest hit, and with fuel prices reaching a three-year low, it's surprising to see the smaller vehicles holding demand."

Mid-Size Pickup Truck Category Leads in Retained Value

MY13 Retained Value (Auction Value/MSRP)

MY13 Retention

Mid-Size Pickup Truck

77.7%

Mid-Size SUV/Crossover

66.5%

Luxury Car

61.0%

Compact Car

60.2%

Subcompact Car

57.6%

Mid-Size Car

56.4%

Full-Size Car

50.4%

0%

50%

100%

Source: Kelley Blue Book Automotive Insights

? Among the 20 vehicle segments used to classify vehicles, the mid-size pickup truck category leads the group in retained value, averaging retention of nearly 78 percent.

"On average, truck segments tend to hold their value better than their SUV and car counterparts. As we continue to see a decline in fuel prices, we can expect an increase in demand and thus higher retentions to continue throughout the truck segments," said Foyil.

? The luxury and compact car segments retained 61 and 60 percent of their values on average which ranks them No. 12 and 14 overall.

? Making up the bottom of the list are subcompact, mid-size and full-size car segments, ranked No. 17, 18 and 19 overall only to have the electric vehicle segment rank lowest at an average of 46 percent average retention.

USED-CAR MARKET ANALYSIS:

continued

Fuel Prices Reach New Low

Fuel Prices

Fuel Prices

Regular Conventional Retail

$4.05

$3.80

$3.55

$3.30

$3.05

$2.80

$2.55

$2.30

Jan

CY 2012 CY 2013 CY 2014

Feb March April May

June

July

Sept Oct Nov Dec

Source: U.S. Energy Information Administration

? The average price for regular conventional retail gasoline reached a new low in December at $2.49 per gallon nationally.

? The December price of $2.49 per gallon represents a 67 cent drop from 2013 and an 80 cent drop from 2012. In total, fuel prices declined 75 cents in the third quarter of 2014.

? According to the U.S. Energy Information Administration (), fuel prices are expected to stabilize and remain around the $2.50 per gallon mark throughout the first quarter of 2015.

Despite Dip in Housing Construction, Full-Size Truck Values Remain Stable

Auction Values

$21,000

Full-Size Pickup Truck Values

$20,500

$20,000

$19,500

$19,000

$18,500

$18,000

$17,500

$17,000

$16,500

$16,000

CY 2012 CY 2013 CY 2014

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

Source: Kelley Blue Book Automotive Insights

1,150

Annual Rate for Housing Units Authorized

CY 2013

1,100

CY 2014

1,050

? Housing construction saw a slight downturn in November, as the seasonally adjusted annual rate for privately-owned housing units authorized ended the month 1.4 percent below October 2014 and 0.2 percent below November 2013.

? November was the first month since May that the 2014 rate for housing units authorized dropped below the 2013 rate for the same month.

? Auction values for full-size pickups in December dropped only 0.9 percent compared to November and remain 3.0 percent above December 2013.

? These relatively stable values could be attributed to the current low gas prices, as well as increased interest in the segment stemming from new models like the recently redesigned Ford F-150.

Seasonally Adjusted Total Units (Thousadns)

1,000

950

900

850

800

Jan

Feb Mar Apr May Jun

Jul Aug Sep Oct Nov Dec

Source: US Census Bureau; New Residential Construction

2 BLUE BOOK Used-Car Market Report DECEMBER 2014

USED-CAR MARKET ANALYSIS:

continued

Mid-Size Sedan Segment Outperforms in December Despite Auction Volume Increase

Mid-Size Segment Four-Week % Difference MY 2011-2013

? Despite an increase in volume at the auctions, the mid-size car

segment was one of the overall best performing vehicle segments

Camry

1.9%

in December.

200

1.7%

? As volume increased in December, the top performers in the

Accord

1.6%

segment were the Toyota Camry, Chrysler 200 and Honda

Altima

1.6%

Accord, moving up 1.9 percent, 1.7 percent and 1.6 percent,

respectively.

Fusion

0.7%

? The worst performers include the Subaru Legacy, Volkswagen

Malibu

0.4%

Passat and Mazda Mazda6, declining by 1.8 percent, 0.8

Optima

0.2%

percent and 0.7 percent, respectively.

Sonata

-0.1%

? Month-over-month, the mid-size segment as a whole outperformed every other segment and showed an impressive

Avenger

-0.2%

increase by an average of 0.9 percent.

MAZDA6

-0.7%

Passat

-0.8%

Legacy -1.8%

-2.0%

-1.5%

-1.0%

December 19, 2014 vs. November 21, 2014

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Source: Kelley Blue Book Automotive Insights

Appendix

Top Five Performing Segments:

Bottom Five Performing Segments:

SEGMENT

4-Week (%)

Mid-Size Car

0.9%

Subcompact Car

0.8%

Compact SUV/Crossover

0.6%

Compact Car

0.6%

Luxury Compact SUV/Crossover

0.4%

MY 2011-2013, Kelley Blue Book ? Auction Value

SEGMENT

4-Week (%)

Sporty Compact Car

-7.1%

Electric Vehicle

-3.8%

Minivan/Van

-2.1%

High Performance Car

-2.0%

Luxury Car

-1.8%

MY 2011-2013, Kelley Blue Book ? Auction Value

Top 10 Performing Models:

MAKE

MODEL

Ford

C-MAX Hybrid

Mazda

MAZDA2

Mitsubishi

Endeavor

Chevrolet

Cruze

Nissan

Versa

Acura

ZDX

Ford

Fiesta

BMW

X1

Nissan

JUKE

BMW

X3

MY 2011-2013, Kelley Blue Book ? Auction Value

4-Week (%)

6.1% 5.8% 4.3% 3.9% 3.3% 3.2% 3.0% 2.8% 2.8% 2.6%

Bottom 10 Performing Models:

MAKE

MODEL

Mercedes-Benz

SLK-Class

Mitsubishi

Eclipse

Acura

RL

Dodge

Grand Caravan Cargo

Cadillac

DTS

Cadillac

XTS

Suzuki

SX4

Chevrolet

Volt

Dodge

Dart

Chrysler

Town & Country

MY 2011-2013, Kelley Blue Book ? Auction Value

4-Week (%) -7.9% -7.1% -6.9% -6.4% -5.5% -5.2% -4.6% -4.5% -4.3% -4.0%

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.

About Kelley Blue Book ()

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 , including its famous Blue Book? Trade-In Values and Fair Purchase Price, which reports what others are paying for new and used 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. Kelley Blue Book's ranked highest in its category for brand equity by the 2014 Harris Poll EquiTrend? study and has been named Online Auto Shopping Brand of the Year for three consecutive years. Kelley Blue Book Co., Inc. is a Cox Automotive company. For more information and news from Kelley Blue Book's , visit media/.

3 BLUE BOOK Used-Car Market Report DECEMBER 2014

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