COVID-19 Market UpdateE c o n o m i c & I n d u s t r y I n s i g h t s Te a m

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COVID-19 LOCAL IMPACT ASSESSMENT

Source: Cox Automotive 2

WEEKLY INITIAL CLAIMS TOTAL 36.6 MILLION OVER 8 WEEKS

Source: U.S. Department of Labor 3

CONSUMER SENTIMENT DECLINED SLIGHTLY LAST WEEK

Source: Morning Consult 4

Morning Consult’s Index of Consumer Sentiment on Monday was down 26% since February 29

60

70

80

90

100

110

120

1/1/20 1/8/20 1/15/20 1/22/20 1/29/20 2/5/20 2/12/20 2/19/20 2/26/20 3/4/20 3/11/20 3/18/20 3/25/20 4/1/20 4/8/20 4/15/20 4/22/20 4/29/20 5/6/20 5/13/20

ICS Value (7-Day Average)

CONSUMER SENTIMENT DECLINE AND PROGRESS VARY BY MARKET

Source: Morning Consult 5

Since February 29th Since May 11th

DELAYS COMING DOWN AND SHORTENING

Source: 2020 Cox Automotive COVID-19 Consumer Impact Study 6

Delaying Vehicle Purchase/Lease*

7%

17%

28%35% 34% 33% 34% 34% 31%

27%

Mar5-6

Mar13-14

Mar20-22

Mar27-28

Apr3-4

Apr10-11

Apr17-18

Apr24-25

May1-3

May15-16

Anticipated Delay in

Vehicle Purchase**(among those planning to delay purchase)

32%

14% 18%10% 8%

17%24%

11%

5%

11%10%

4% 5%

13% 2%

4%

32%43% 40%

36% 41%

39%37%

29%

30% 31% 33%

49% 46%

32%37%

56%

Mar20-22

Mar27-28

Apr3-4

Apr10-11

Apr17-18

Apr24-25

May1-3

May15-16

Not sure 6+ months 3-6 months Up to 2 months

*Among 6-month auto intendersQ10. Have you done, or do you think you will do any of the following because of the coronavirus? *Note: Added “have done” in Wave 4

Q17a1. How do you anticipate the coronavirus will change the timing of when you purchase or lease a vehicle, if at all?**Among 6-month auto intenders who will delay purchasing/leasing a vehicle

↑

↑

RETAIL TREND ESTIMATE - NEW

Source: Cox Automotive 7

-31.1%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

2/1

/20

20

2/8

/20

20

2/1

5/2

02

0

2/2

2/2

02

0

2/2

9/2

02

0

3/7

/20

20

3/1

4/2

02

0

3/2

1/2

02

0

3/2

8/2

02

0

4/4

/20

20

4/1

1/2

02

0

4/1

8/2

02

0

4/2

5/2

02

0

5/2

/20

20

5/9

/20

20

5/1

6/2

02

0

DAILY NEW RETAIL % CHG YoY vs SAME DAY OF WEEK

YoY % Chg 2019 YoY % Chg 2020

RETAIL TREND ESTIMATE - USED

Source: Cox Automotive 8

-5.8%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

2/1/202

0

2/8/20

20

2/15

/202

0

2/22

/202

0

2/29

/202

0

3/7/20

20

3/14

/202

0

3/21/2

02

0

3/28

/202

0

4/4/20

20

4/11

/202

0

4/18

/202

0

4/25

/202

0

5/2/20

20

5/9/202

0

5/16

/202

0

DAILY USED RETAIL % CHG YoY vs SAME DAY OF WEEK

YoY % Chg 2019 YoY % Chg 2020

MID-MAY MANHEIM INDEX SEES REBOUND FROM APRIL’S HISTORIC DROP

Source: Cox Automotive 9

-14.00%

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

Jan

-97

Jul-

97

Jan

-98

Jul-

98

Jan

-99

Jul-

99

Jan

-00

Jul-

00

Jan

-01

Jul-

01

Jan

-02

Jul-

02

Jan

-03

Jul-

03

Jan

-04

Jul-

04

Jan

-05

Jul-

05

Jan

-06

Jul-

06

Jan

-07

Jul-

07

Jan

-08

Jul-

08

Jan

-09

Jul-

09

Jan

-10

Jul-

10

Jan

-11

Jul-

11

Jan

-12

Jul-

12

Jan

-13

Jul-

13

Jan

-14

Jul-

14

Jan

-15

Jul-

15

Jan

-16

Jul-

16

Jan

-17

Jul-

17

Jan

-18

Jul-

18

Jan

-19

Jul-

19

Jan

-20

Manheim Index - % Change M/M

DISCONNECT BETWEEN RETAIL AND WHOLESALE PRICES CLOSING MORE RAPIDLY

Source: Cox Automotive 10

Since peak in wholesale prices in week 11, model year 2017 wholesale prices are down 8.6% while retail prices are down only 2.2%

86%

88%

90%

92%

94%

96%

98%

100%

102%

104%

106%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

MY 2017 Retail and Wholesale Price Indices (wk1=100)

2019 Retail Index 2020 Retail Index 2019 Wholesale Index 2020 Wholesale Index

DAYS’ SUPPLY COMING DOWN FROM HIGHS DURING CRISIS

Source: Cox Automotive 11

0.0 Days

20.0 Days

40.0 Days

60.0 Days

80.0 Days

100.0 Days

120.0 Days

140.0 Days

160.0 Days

01

/08/

20

01/1

1/2

0

01

/14/

20

01

/17/

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01

/20/

20

01

/23/

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/26/

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/29/

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/01/

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/04/

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/07/

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/10/

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/13/

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/16/

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/28/

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/02/

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/05/

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/23/

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/26/

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/29/

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/01/

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/04/

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/07/

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/10/

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/13/

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/16/

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/19/

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/22/

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/25/

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/28/

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/01/

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Inve

nto

ry D

ays'

Su

pp

ly

Days Supply Wholesale Inventory and Retail Inventory

Rolling 7 Day Supply Retail Rolling 7 day Supply Wholesale

COX AUTOMOTIVE LEADING INDICATORS

Source: Cox Automotive 12

Through Saturday, leads on Autotrader and Kelley Blue Book were up 35% y/y

Dealer.com continues to see both New and Used Vehicle Form Submissions outperform

Dealertrack unique credit applications on same-store basis were down 5% y/y last week,

another strong week of recovery

Xtime saw a 27% decrease y/y last week in consumers having their cars serviced, which was

another week of improvement

SALES IMPACT VARIES BY DMA AS EVIDENCED BY UNIQUE CREDIT APPS

Source: Cox Automotive 13

ZERO PERCENT FINANCING SHARE INCREASED IN NEW VEHICLE SALES

Source: Cox Automotive 14

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-17

Dec

-17

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

No

v-18

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-1

9

May

-19

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

No

v-19

Dec

-19

Jan

-20

Feb

-20

Mar

-20

Ap

r-2

0

May

-20

0% APR Finance Share