BLUE BOOK II CAR

[Pages:4]USED

BLUE BOOK

CAR

EDITION

Market Report

January

2014

Automotive Insights from Kelley Blue Book

Kelley Blue Book Public Relations Contacts:

Chintan Talati | Senior Director, Public Relations Brenna Robinson | Senior Public Relations Manager

949.267.4855 | ctalati@

949.267.4781 | berobinson@

Natalie Kumaratne | Public Relations Coordinator 949.267.4770 | nkumaratne@

USED-CAR MARKET ANALYSIS:

Used-Car Values Start the Year Strong

In This Issue:

USED-CAR MARKET ANALYSIS Used-Car Values Start the Year Strong

Auction Values

$19,000 $18,500 $18,000 $17,500 $17,000 $16,500 $16,000 $15,500

Used-Car Values Start the Year Strong

Subcompact Cars with Auction Values Under $10,000

Used Luxury Values Begin Year at 2013 Levels; Luxury Crossovers/SUVs Retain Best Value

Full-Size SUV Values Begin to Flatten

Full-Size Pickup Truck Values Begin 2014 Above Previous Years

Mid-Size Vehicles Underperform Market

HOT USED-CAR REPORT The Midwest Deep Freeze Impacts Shopper Activity

$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

? One- to 3-year-old vehicles started 2014 off strong with an average auction value of $17,876, or 1 percent higher than at the beginning of calendar year 2013.

"Despite the strong start, 1- to 3-year-old vehicles have fallen below 2013 figures, but by a minimal $90 on average," said Alec Gutierrez, senior analyst. "Auction values in 2014 should follow the seasonal upswing typical in the first quarter and remain in-line with calendar year 2013 values."

? Looking back to year-end figures, 1- to 3-year-old vehicles in December of 2013 closed just $55 shy of 2012 auction values, which was in line with 2013 projections.

Subcompact Cars with Auction Values Under $10,000

MY13 Auction Value MY13 Auction Value

MY13 Subcompacts Under $10k

Fiat 500

$10,000

Mazda MAZDA2

$9,750

Chevrolet Spark

$9,600

Smart Fortwo

$8,900

$0

$5,000 $10,000 $15,000

Source: Kelley Blue Book Automotive Insights

MY12 Subcompacts Under $10k

Toyota Yaris

$9,700

Kia Rio

$9,700

Hyundai Accent

$9,600

Scion iQ

$9,250

Ford Fiesta

$9,100

Chevrolet Sonic

$9,050

Fiat 500

$8,950

Mazda MAZDA2

$8,950

Smart Fortwo

$7,625

$0

$5,000 $10,000 $15,000

Source: Kelley Blue Book Automotive Insights

? With the constant demand from consumers for cheaper and more fuel-efficient cars, the subcompact car segment is becoming more attractive from a dollar standpoint.

? In the 2013 model-year lineup, there are four vehicles with auction values under $10,000 ? Fiat 500, Mazda Mazda2, Chevrolet Spark and the Smart Fortwo. Additionally, the 2013 Ford Fiesta missed the $10,000 cutoff by only $25.

? With model-year 2012 now two years old, the list of vehicles in the sub-$10,000 range jumps to nine vehicles ranging from $9,700 down to $7,625.

"As long as there is strong demand for lower cost and value focused vehicles, this group of 1- to 2-year-old vehicles with auction values that fall in the sub-$10,000 range will only continue to grow," said Gutierrez.

USED-CAR MARKET ANALYSIS:

continued

Used Luxury Values Begin Year at 2013 Levels; Luxury Crossovers/SUVs Retain Best Value

$30,000 $29,000 $28,000 $27,000 $26,000

Used Luxury On Par with 2013 Levels

? Values of 1- to 3-year-old luxury vehicles began 2014 at roughly the same level as last year. Although the overall market may see increases moving into the next few months, Kelley Blue Book expects luxury values to remain flat or slightly down due to increased off-lease volume and attractive lease offers on new models.

Auction Values

$25,000

Retained Value (% of MSRP)

$24,000

$23,000

CY 2012 CY 2013 CY 2014

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

Source: Kelley Blue Book Automotive Insights

90%

MY2013

80% 70% 60%

81% 74%

64%

77%

69% 63%

78%

68% 61%

74% 65% 57%

73% 64% 57%

70% 60%

MY2012 75%

MY2011 60%

53%

50%

48%

40%

30%

20%

10%

0%

Luxury Mid-size Luxury Compact Luxury Full-size Luxury Average Luxury Car Entry-level Luxury High-end Luxury

SUV/Crossover SUV/Crossover SUV/Crossover

Car

Car

Source: Kelley Blue Book Automotive Insights

Luxury crossovers and Suvs continue to perform well at auction, beating the luxury average in retained value for the past three model years...

- Alec Gutierrez

"The strong values are being driven by models such as the BMW X5 (85 percent retention for MY2013), Audi Q5 (86 percent retention for MY2013) and the Lexus LX (86 percent retention for MY2013)," said Gutierrez.

? The strength in these segments coincides with growing popularity in the new-car market as well. Nearly 750,000 luxury crossovers and SUVs were sold in 2013, a 10 percent gain from 2012 and better than the industry average. As these vehicles remain popular with consumers, expect their used values to remain high.

Full-Size SUV Values Flatten

Sequoia

Suburban

Tahoe

Yukon

Armada

-2.0%

Yukon XL

Expedition

-2.0%

-2.5%

-2.0%

January 24, 2014 vs. January 3, 2014

Full-Size SUV Values Flatten

-0.7% -1.7%

-1.3% -1.2%

MY 2011 - 2013 -0.1%

-0.4% -0.4% -0.4%

-0.4% -1.6%

-0.5%

-0.8%

-1.5%

-1.0%

-0.5%

0.0%

December January

Source: Kelley Blue Book Automotive Insights

2 BLUE BOOK Used-Car Market Report JANUARY 2014

? Although values for all vehicles in the full-size SUV segment continue to decline in January, the decreases are not as significant as in December 2013.

? Changes for all vehicles in this segment were less than 1 percent. The largest decrease was for the Ford Expedition, which dropped 0.8 percent in January.

? With the start of the new year, Kelley Blue Book expects full-size SUV values overall to hold steady as long as gas prices remain relatively steady.

USED-CAR MARKET ANALYSIS:

continued

Full-Size Pickup Truck Values Begin 2014 Above Previous Years

$19,500

Full-Size Pickup Truck Auction Values

$19,000

"Auction values for full-size pickup trucks are off to a strong start in 2014, compared to previous years, ending the month of January 4.1 percent higher than January 2012 and 3.4 percent higher than January 2013," said Gutierrez.

$18,500

Auction Values

$18,000

$17,500

$17,000

$16,500

CY 2012 CY 2013 CY 2014

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

Source: Kelley Blue Book Automotive Insights

Truck YTD % Difference

MY 2011 - 2013

F150 Super Cab

0.9%

1500 Quad Cab

0.0%

Tundra Double Cab

0.0%

Avalanche

-0.4%

Ridgeline

-0.6%

Sierra 1500 Extended Cab

-1.7%

Titan Crew Cab

-1.7%

Silverado 1500 Extended Cab

-1.7%

-2%

-2%

-1%

-1%

0%

1%

1%

2%

January 24, 2014 vs. January 1, 2014

Source: Kelley Blue Book Automotive Insights

? Values are continuing to hold, thanks in part to strength in the construction sector. Permits authorized for privately owned housing units in December 2013 were up 4.6 percent from December 2012, according to the U.S. Department of Commerce.

? Increasing interest in the segment also is likely helping keep values higher, thanks to the launch of redesigned models like the Chevrolet Silverado and GMC Sierra, and refreshes or the introduction of new trim levels for models like the Toyota Tundra.

? At the model level, declines have been mild for full-size pickups so far in 2014 with no models dropping more than 1.7 percent year-to-date. The Ford F150 was the only model to increase so far in 2014, possibly due to consumer and industry interest in the recently revealed all-new 2015 F-150.

Mid-Size Vehicles Underperform Market

$15,000 $14,500

Mid-Size Segment Underperforms

$14,000

Auction Values

$13,500

$13,000

$12,500

$12,000

$11,500

$11,000

CY 2012 CY 2013 CY 2014

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

Source: Kelley Blue Book Automotive Insights

Altima Optima Fusion Camry MAZDA6 Malibu Sonata Accord Legacy Passat

Mid-Size Segment YTD % Difference MY 2011 - 2013

0.8% 0.7% 0.5% 0.5% 0.1% -0.3% -0.6% -0.6% -1.3% -3.2%

-4.0%

-3.0%

January 24, 2014 vs. January 3, 2014

-2.0%

-1.0%

0.0%

1.0%

2.0%

Source: Kelley Blue Book Automotive Insights

? The mid-size vehicle segment ended the year 2.7 percent below calendar year 2012 figures. As a result, the segment started 2014 an average of $285, or 2.2 percent lower than at the start of 2013.

? Throughout the first month of the new year, the vehicles within the mid-size segment that had the largest four-week percentage change were the Volkswagen Passat and Subaru Legacy, down 3.2 percent and 1.3 percent respectively.

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

3 BLUE BOOK Used-Car Market Report JANUARY 2014

HOT USED-CAR REPORT:

The Midwest Deep Freeze Impacts Shopper Activity

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

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

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

2011 Mercedes-Benz E-Class 2011 Acura MDX

2011 Ford F150 Super Cab 2011 Honda Odyssey

2011 Toyota Highlander 2011 Toyota RAV4 2011 Honda Civic 2011 Honda CR-V

2011 Jeep Grand Cherokee 2011 Honda Accord 2007 Honda CR-V 2007 Toyota RAV4 2010 Toyota Prius 2007 Pontiac G6

2008 Chevrolet Cobalt 2008 Cadillac SRX

2007 Jaguar XK Series 2007 Chevrolet Silverado 1500 Regular Cab

2010 Jaguar XK Series 2007 GMC Sierra (Classic) 1500 Regular Cab

-7.3% -10.9% -11.1% -11.5% -15.3% -25.6% -26.5% -35.1% -38.7% -40.4%

18.8% 15.5% 14.4% 14.1% 13.8% 12.0% 11.6% 10.7% 7.1% 5.3%

-100%

-50%

0%

50%

100%

% Change in Share Month-Over-Month

Information based on 2011 to 2007 Model-Year Vehicles

Monthly Used-Car Shopping Activity Growth Segments

Full-Size Sport Utility Luxury Crossover

Full-Size Pickup Truck Full-Size Crossover Compact Luxury Car Luxury Car Luxury Sport Utility Mid-Size Sport Utility Mid-Size Crossover Compact Crossover Entry Luxury Car Hybrid Car Mid-Size Car Premium Sports Car Premium Luxury Car Compact Car Minivan

Mid-Size Pickup Truck Subcompact Car Full-Size Car Van Sports Car

High Performance

-0.5% -1.1% -1.4% -1.5% -1.6% -2.4% -2.8% -3.3% -3.8% -5.8% -6.1% -6.9%

5.2% 3.7% 3.5% 2.3% 2.0% 1.7% 1.7% 1.7% 1.5% 1.0% 0.1%

-40% -30% -20% -10% 0% 10% 20% 30% 40%

% Change in Share Month-Over-Month

Information based on 2011 to 2007 Model-Year Vehicles

? Share of used-car shopping activity for full-size SUVs, luxury crossovers and full-size pickup trucks increased in December, particularly in the midwest.

? GM is the leading brand in the Midwest with the Tahoe, Suburban and Yukon the most shopped models in the region. Most shoppers in this region favor domestic automobiles, but GM tops with its product offerings in the full-size segment.

? The leading truck in the segment in the Midwest is the Ford F-150, followed by Silverado. ? The Lexus RX is the key driver among Midwest shoppers in the luxury crossover segment.

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 and Suggested Retail Values, and Fair Purchase Price, which reports what others are paying for new cars this week. The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies. For two years running, Kelley Blue Book's ranked highest in its category for brand equity and was named Online Auto Shopping Brand of the Year in the 2012 and 2013 Harris Poll EquiTrend? study. Kelley Blue Book Co., Inc. is a subsidiary of AutoTrader Group, which includes , vAuto, VinSolutions and HomeNet Automotive. AutoTrader Group is a majority-owned subsidiary of Cox Enterprises.

4 BLUE BOOK Used-Car Market Report JANUARY 2014

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