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2. 2 Sons and Daughters, August 22, 2013 A Shift in Performance Means Cautious Optimism August 21, 2013

3. 3 Thoughts for Today  Some recent market trends.  What can we expect for 2013 and 2014?  Issues that will affect your efforts.

4. 4 Stronger Then Weaker Date% of Increases Nov 925 Nov 1623 Nov 2340 Nov 3031 Dec 736 Dec 1437 Dec 2143 Dec 2850 Jan 1136 Jan 1833 Jan 2541 Feb 136 Feb 841+ November 2012-February 2013 May 2013-August 2013 Date% of Increases May 2428 May 3127 June 726 June 1428 June 2118 June 2826 July 322 July 1215 July 1923 July 2618 Aug 219 Aug 916 Aug 1619

5. 5 Vehicle Adjustments 2011-2012

6. 6 Vehicle Adjustments 2012-2013

7. 7 Vehicle Adjustments 2012

8. 8 Vehicle Adjustments 2013

9. 9 Vehicle Adjustments 2012

10. 10 Vehicle Adjustments 2013

11. 11 Vehicle Adjustments 2011-2012

12. 12 Vehicle Adjustments 2012-2013

13. 13 Vehicle Adjustments 2013 7 above norm 5 below 1.0% 7/1/13 to 8/1/13

14. 14 August 2013 trending - Cars  Cars: Better than trucks past 3 weeks  Greater declines 8/2 to 8/16 for 6 of 10 segments  Average decline: -.41%  Average increase: +.06%  Increasing segments: mostly upper end vehicles  NLC  PLC  PSC  FSC  Year ago average car change greater overall:  -$63 in 2012 and -$57 current change

15. 15 August 2013 trending - Trucks  Trucks: larger overall declines than cars but more consistent  CPT, MPT, & FPT: better retention segments  Averaged -$19 or -.15%  Biggest trend change: CSU increased 6 of 7 weeks then most current 3 week avg change of -$103  Minivans greater declines during August

16. 16 Where is the Used Market Going?  New sales continue to prosper. Supports more used.  At 15.5 to 15.6M creates 9.3 million trade-ins  Prerecession sales of 16.5M created 9.9M trades  Only 600,000 fewer used cars appearing  C4C eliminated 750,000  11.4 years old. The older cars will seek a new $ point.

17. 17 Where is the Used Market Going? Termed very rational at this time  Increasing used inventory volume  Less aggressive bidding: physical and online auction venues  Gas prices  Last 3 weeks trucks softer than cars

18. 18 Hybrid/Electric Demand  2012: Only 2.0 - 2.7% penetration  2013: Growing to 3.0 – 3.38% due to more players  CAFÉ 2015 & 2025  More players  2009: 20 hybrid vehicles*  2013: 45 hybrid vehicles, 13 electric vehicles and 1 NGV*  Held back by sub $4.00 gas  How much of a game changer will $5 be? *Source: hybridcars.com

19. 19 Just call or email Ricky Beggs VP, Managing Editor 770.533.5221 Rbeggs@BlackBookUSA.com Tim West, VP, North American Auction Director 770.533.5230 Twest@BlackBookUSA.com Questions?