NIADA USED CAR INDUSTRY REPORT 1 - NIADA ......dealer sales of used cars over the last few months is...

2 0 1 1 • N I A D A U S E D C A R I N D U S T R Y R E P O R T 1 w w w . n i a d a . c o m

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Full-spectrum auto financing

Operating in 48 states

Over 10,000 active dealers

Over 300 dealers joining our family every month

24/7 Approvals with theWWestlake Buy ProgramTM

Portfolio Services (ALPS)

(888) 8-YES-YES

UCIR_2011.indd 2 5/25/11 3:26 PM

Full-spectrum auto financing

Operating in 48 states

Over 10,000 active dealers

Over 300 dealers joining our family every month

24/7 Approvals with theWWestlake Buy ProgramTM

Portfolio Services (ALPS)

(888) 8-YES-YES

UCIR_2011.indd 3 5/25/11 3:26 PM

w w w . n i a d a . c o m

Manheim.com/YourAdvantage

Manheim is the NIADA Dealer’s Edge

©20

11 M

anh

eim

, In

c. A

ll ri

gh

ts r

eser

ved

.

GATHERING INTELLIGENCE ONLINE TO WORK THE LANES, I QUICKLY

SECURE THE PACKAGE I NEED. THEN I VANISH WITH MY PROFITS.

I AM A BUYER, WINNING IN THE GREATEST MARKETPLACE THERE IS.

I AM MAGNIFICENT. HUNDREDS ARE AT MY CALL, READYING MY CARS.

WHEN I’M HAPPY, I GRANT THE MASSES THE INVENTORY THEY DESIRE.

I AM A SELLER, WINNING IN THE GREATEST MARKETPLACE THERE IS.

I AM A SECRET AGENT

I AM AN EMPEROR

I AM A COWBOY

6317 8_375x10_875 UCD_SecGrk_v1.indd 1 4/29/11 10:15 AMUCIR_2011.indd 4 5/25/11 3:26 PM


Download and view the 2011 Used Car Industry Report at www.niada.com/publications

The used motor vehicle industry is alive and well, and news of indepen-dent dealer sales eclipsing franchise dealer sales of used cars over the last few months is even more encouraging. This 13th edition of NIADA’s Used Car Indus-try Report brings you a snapshot of all of this activity and provides valuable insight in all as-pects of dealer operations.

We are very proud of this annual report, and are amazed at how many calls and emails we get referencing the data in this publication. We at NIADA find it to be one of our most frequent-ly used tools as we interact with those busi-nesses and individuals who are involved in the automotive industry. We hope that you will find the statistics and narrative just as valuable for your own needs.

In this edition, you will find familiar cat-egories of statistics from previous years in addition to several new studies and analysis provided to us this year by NIADA’s National Corporate Partners. The Used Car Industry Report is divided into a record ten sections of data this year and is our largest and most comprehensive report we have ever published for our dealer members.

Section One is traditionally a survey of NIA-DA members. We cannot stress enough the im-portance for our dealer members to take a brief five minutes out of the year to complete and return these surveys to us. They can be found in your new and renewing member packets, in certain issues of Used Car Dealer Magazine, at various NIADA events, and by an email survey coming your way later in the year. Your answers allow us to accumulate the very valuable data for this section, which also allows you to com-pare your dealership operations to those dealer member averages. This survey also allows us to develop new programs, services and benefits – and it ensures we’re providing the right kind of services to our members.

Another familiar standard in Section Two is the work of Art Spinella of CNW Marketing Research in Oregon. His name is synonymous with comprehensive, in-depth statistical data about the used motor vehicle industry. Some-how, he understands one of the most sophis-ticated industries with its complex operations which survived within an environment of eco-nomic chaos. Having his materials in our re-port each year is a little like working alongside the guru of statistical research. Not only are we impressed with his analysis, we are also honored. Art’s work appeared in the very first Used Car Industry Report and has been includ-ed in every edition since.

Section Three features Buy Here–Pay Here benchmarks provided by Ken Shilson of Sub-Prime Analytics and the National Alliance of Buy Here–Pay Here dealers along with NCM Associates. Although this segment of the used car industry has been growing for some time, Buy Here–Pay Here took on special interest this past year as dealers started re-examining their operations and reviewing opportunities after the recession in 2009. Prospective and current BHPH business owners can use these Benchmarks to determine where they should be in comparison to others and how they can more successfully build their operations.

Sections Four through Seven are new this year from our generous partners, Autotrader.com, AutoZone, CARFAX and uShip.

Section Four of the report is a special study recently completed by AutoTrader.com and R.L. Polk entitled “The Role of the Internet in the New & Used Vehicle Purchase Process.” The data analyzes how much time consum-ers spend online during the vehicle purchase process, why shoppers use the internet, and what types of information consumers are looking for that could lead to a sale. Interest-ingly enough, the report indicates that despite heavy internet usage, initial contact with the dealer still occurs most often “offline and at the actual dealership.”

Section Five is a valuable new section for those that profit from parts, service work, re-conditioning and aftermarket products. One of our newest corporate partners, AutoZone, captures perhaps some of the best partner data we have ever seen on what NIADA mem-bers spend online ordering, and even details information on what products dealers are pur-chasing most. For those dealers with service bays, this is one section you should especially study. And for those looking to start up a ser-vice bay(s) and profit from parts and service, this section is a great tool for you to use in getting started.

For the second straight year, CARFAX has provided some very interesting data for our re-port. This year, Section Six focuses on a very hot topic: “Rising wholesale prices and com-petition in the wholesale market.” This section focuses on impact of different tactics indepen-dent dealers can use in the wholesale market to acquire the best inventory at the most com-petitive prices and looks at how these tactics impact a dealers gross and turn. This section also formulates a wholesale strategy to assist our dealers.

Section Seven, a new section this year, brings you transportation data, courtesy of our industry partner uShip. The two charts in-cluded in this section show the most popular origins & destinations with their respective mileage bands, and the mileage breakdown nationwide with the respective average ship-ping price for that mileage range.

Section Eight is familiar and highly valuable as a high-level picture of our industry. It in-cludes overviews provided by highly-respected automotive economists Tom Kontos of ADESA and Tom Webb of Manheim. As economists, they both understand the synergy between independent dealers and the auction industry they represent. They analyze past activities which impacted the used motor vehicle mar-ketplace. Then they draw in economic factors, try to peer into the future, and share their economic insight with us. Their commentary is the tie that brings all of these sections into a coherent pattern.

The final portion of the Used Car Industry Report is the NIADA member survey for next year. It is a keystone in our communications with dealers. NIADA is an organization dedi-cated to improving the used motor vehicle in-dustry. Please take a few moments to start the crucial communication process designed to help us fulfill your needs.

Used Car Dealer (ISSN 0279425X) is published monthly with one additional special issue, Used Car Industry Report, that is published in May by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203;

phone (817) 640-3838. Annual subscription rates for NIADA members: $8 Periodicals postage paid at Arling-ton, TX, and at additional offices. POSTMASTER: Send address changes to Used Car Dealer, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Used Car Dealer or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as member of NIADA, does not constitute an endorsement of the products or services featured. Copyright© 2011 by NIADA Services, Inc. All rights reserved.

Table of Contents

5 INTRODUCTION By Michael R. Linn, President, NIADA Services

6 SECTION ONENIADA Membership Data

16 SECTION TWO Used Vehicle Industry Data from CNW Research

26 SECTION THREE Buy Here–Pay Here Industry Benchmarks

30 SECTION FOUR The Role of the Internet in the New and Used Vehicle Purchase Process (furnished by AutoTrader.com and R.L. Polk)

34 SECTION FIVE AutoZone/NIADA Parts and Service Analysis

38 SECTION SIX Independent Dealers and Vehicle History (furnished by CARFAX)

40 SECTION SEVEN Auto Transport Analysis (furnished by uShip)

42 SECTION EIGHT Auction/Remarketing Commentary by Tom Webb of Manheim and Tom Kontos of ADESA

44 SECTION NINE The Effective Use of GPS in the Industry

48 SECTION TEN NIADA Membership Survey

A PUBLICATION OF THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION AND USED CAR DEALER MAGAZINE

BY MICHAEL R. LINN,PRESIDENT, NIADA

SERVICES, INC.

INTRODUCTION

Manheim.com/YourAdvantage

Manheim is the NIADA Dealer’s Edge

©20

11 M

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c. A

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eser

ved

.

GATHERING INTELLIGENCE ONLINE TO WORK THE LANES, I QUICKLY

SECURE THE PACKAGE I NEED. THEN I VANISH WITH MY PROFITS.

I AM A BUYER, WINNING IN THE GREATEST MARKETPLACE THERE IS.

I AM MAGNIFICENT. HUNDREDS ARE AT MY CALL, READYING MY CARS.

WHEN I’M HAPPY, I GRANT THE MASSES THE INVENTORY THEY DESIRE.

I AM A SELLER, WINNING IN THE GREATEST MARKETPLACE THERE IS.

I AM A SECRET AGENT

I AM AN EMPEROR

I AM A COWBOY

6317 8_375x10_875 UCD_SecGrk_v1.indd 1 4/29/11 10:15 AMUCIR_2011.indd 5 5/25/11 3:26 PM

2 0 1 1 • N I A D A U S E D C A R I N D U S T R Y R E P O R T 6 w w w . n i a d a . c o m w w w . n i a d a . c o m

One of the best ways to gauge the success of your dealership and it’s operations is to compare your situation and your dealer data to those of other NIADA members around the country. Each year NIADA surveys a variety of topics which cover demographic and business data. This section provides a two year history of every question on our member survey.

This year’s NIADA Member Data section also includes a third reference for each question from the surveys collected of our NIADA Certified Master Dealers (CMD). In many instances, there is a vast difference in the analysis from a regular NIADA Dealer Member compared to our members who have completed and passed the NIADA Certified Master Dealer course. This added reference for each question proves without a doubt the true value in the Certified Master Dealer course. For a list of upcoming CMD classes, go to www.niada.com/certified-master-dealer.php

Our survey is included in Section Ten of this report. Surveys are also included in your new and renewing member packets as well as in a few issues of Used Car Dealer Magazine shortly. Please take a moment to complete and mail back your updated surveys so that we may continue to provide you with this very valuable report and reference source.

TYPES OF BUSINESSES YOU OPERATE (percentage of respondents)

80% 79.0

60%

40%

20%

0

CMD

79.3

RETAIL

78

31.0 39.8 39.0

30.8

BHPH

54

WHOLE-SALE

38

8.0 9.3

RENTAL

6

NUMBER OF YEARS IN BUSINESS (percentage of respondents)

40%

30%

20%

10%

0

CMD

17.0

0.6

LESS THAN 1 YEAR IN BUSINESS

0

17.2

1-5 YEARS IN BUSINESS

4.8

NUMBER OF EMPLOYEES (percentage of respondents)

60%

50%

40%

30%

20%

10%

0

CMD

9.0 9.2

1 EMPLOYEE

1.6

50.0

23.8 25.0

3.7 3.0

LEASING

6

17.6

SERVICE DEPT.

36

2009

5.9 5.0

PARTS DEPT.

8

26.9

17.2


22.6

50.2

2-5 EMPLOYEES

25.8

21.9

5.0

2010

4.0

BODY SHOP

2

7.5 7.0

OTHER

12

2009

37.9

26.7


38.7

2010

37.9

21+ YEARS IN BUSINESS

33.9

2009

21.7

6-10 EMPLOYEES

35.5

19.1

10+ EMPLOYEES

37.1

2010

NIA

DA

MEM

BER

SHIP

DA

TA

N I A D A M E M B E R S H I P D A T A • N I A D A M E M B E R S H I P D A T A N I A D A M E M B E R S H I P D A T A • N I A D A M E M B E R S H I P D A T A • N I A D A M E M B E R S H I P D A T A • N I A D A M E M B E R S H I P D A T A • N I A D A M E M B E R S H I P D A T A

NIADA MEMBERSHIP DATA

SECTION ONE NIADA MEMBERSHIP DATA

1.0

18.9

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NUMBER OF LOCATIONS (percentage of respondents)

80% 73.7

60%

40%

20%

0

CMD

74.2

21.521.1

3.1

DEALERSHIP LOT SIZE (percentage of respondents)

50%

40%

30% 30.1

20%

0

CMD

30.531.3

UNDER 10,000 SQ. FT.

33.3

30.7

10,001-25,000 SQ. FT.

21.1

21.8

2009

22.6

25,001-50,000 SQ. FT.

31.6

2010

16.4 16.5

OVER 50,001 SQ. FT.

14

WHERE YOU YOUR CARS (percentage of respondents)

80%

60%

40%

20%

0

CMD

81.0 81.7

WHOLESALE AUCTIONS

91.5

48.6 49.1

OTHER DEALERS

61.7

2009 2010

74.270.9

ONLINE/ OTHER

44.7

2009

3.5

2010

1.3 1.3

1 4-6 7+ 2-3

46 48.6 5.4 0

WHERE YOU YOUR CARSSELL (percentage of respondents)

80%

60%

40%

20%

0

CMD

67.3 68.1

WHOLESALE AUCTIONS

73.5

SPECIALIZE IN (percentage of respondents)

80%

60%

40%

20% 9.7

0

46.6 46.7

OTHER DEALERS

59.2

84.4

9.6

CARS ONLY

CMD 6.4

4.5

TRUCKSONLY

0

OFFER BOTH

89.4

2009 2010

71.4

58.8

ONLINE

26.6

2009

26.9

HEAVY DUTY

AUCTIONS ATTENDED PER MONTH (percentage of respondents)

30%

20%

10%

5.0

0

CMD

15.7

4.9

0

30.2

16.5

POWER SPORTS

23.4

2010

26.5

RV’S

2009

25.9 25.7

2010

22.5

1-2 3-4 5-8 9+

1.7 5.1 30.5 33.9 28.8

N I A D A M E M B E R S H I P D A T A • N I A D A M E M B E R S H I P D A T A N I A D A M E M B E R S H I P D A T A • N I A D A M E M B E R S H I P D A T A • N I A D A M E M B E R S H I P D A T A • N I A D A M E M B E R S H I P D A T A • N I A D A M E M B E R S H I P D A T A

BUY

4.2

84.9

31.3

22.3

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AVERAGE RETAIL PRICE (percentage of respondents)

50%

40%

30%

20%

10%

0

49.8

17.2

0-5,000

CMD 4.3

49.3

5,001-10,000

45.7

21.721.9

10,001-15,000

41.3

2009

6.8

2010

7.0

15,001-20,000

8.7

4.6

20,001+

0

HOW YOU FINANCE CUSTOMERS (percentage of respondents)

43.5

40%

30%

20%

10%

0

CMD CMD

42.6

BHPH

62.5

37.8

2009

45.5 47.0

36.6

FINANCE COMPANY

45.8

BANKS

45.8

2010

15.8 15.7

OTHER

14.6

NOTE: Numbers won’t necessarily add to 100% because dealers finance multiple ways

NUMBER OF SERVICE BAYS (percentage of respondents)

40% 40.8

30%

20%

10%

0

39.8

0

40

25.0 25.3

1-2

10.9

20.0

2009

20.3

3-5

29.1

14.2

2010

14.6

6+

20

AGE OF VEHICLES SOLD (percentage of respondents)

80%

60%

40%

20%

0

CMD

11.011.4

1-2 YEARS

8.3

60.0 61.0

3-5 YEARS

68.8

2009

36.7

2010

34.8

22.9

HOW YOU FINANCE FLOORPLAN INVENTORY (percentage of respondents)

50%

43.3

40%

30%

20%

10%

0

CMD

43.0

BANKS

44.7

16.6

54.0

15.9

AUCTION FLOORPLAN

27.7

2009

52.8

CASH

57.4

2010

11.710.5

OTHER

12.8

NOTE: Numbers won’t necessarily add to 100% because dealers finance multiple ways

NIA

DA

MEM

BER

SHIP

DA

TASECTION ONE NIADA MEMBERSHIP DATA

17.1

4.6

AVERAGE MONTHLY INVENTORY (percentage of respondents)

20%

10%

13.7

7.0

0

13.6

7.2

CMD 3.4

11-20

3.4

14.8 14.8

21-30

5.2

31-50

25.9

13.8

51-75

22.4

2009

11.2 11.7

76-100

15.5

10.6

2010

10.6

5.6

101-200

19

201+

5.2

22.9 23.3

13.8

5.4

UCIR_2011.indd 8 5/25/11 3:26 PM


PAVED LOT (percentage of respondents)

CMD 2009 2010

NO 14.4%

YES 85.6%

YES 97.8%

NO 2.2%

SELL AFTERMARKET PRODUCTS (percentage of respondents)

CMD 2009 2010

YES 36.6%

NO 63.4%

YES NO

50% 50%

OUTSIDE LIGHTING (percentage of respondents)

CMD 2009

YES 100%

2010

YES 93.4%

NO 6.6%

INDOOR SHOWROOM (percentage of respondents)

YES 23.9%

CMD 2009

NO 76.1%

YES 20.3%

NO 79.7%

2010

FENCING ON PROPERTY (percentage of respondents)

CMD 2009

NO YES 45.7%

54.3%

2010

YES 52.0%

NO 48.0%

DO RECONDITIONING OR DETAILWORK (percentage of respondents)

CMD 2009 2010

YES 70.0%

NO 30.0%

NO 26.1%

YES 73.9%

YES 85.3%

NO 14.7%

YES 20.6%

NO 79.4%

YES 93.6%

NO 6.4%

YES 35.7%

NO 64.3%

YES 70.6%

NO 29.4%

YES 52.4%

NO 47.6%

UCIR_2011.indd 9 5/25/11 3:26 PM


HAVE COMMERCIALINSURANCE(percentage of respondents)

CMD 2009 2010

NO 17.0%

YES 83.0%

YES 84.8%

CMD

NO 15.2%

2009 2010

NO 8.8%

YES 91.2%

YES 97.8%

NO 2.2%

NIA

DA

MEM

BER

SHIP

DA


FULLY INSURED INVENTORY(percentage of respondents)

DEALERSHIP WEBSITE (percentage of respondents)

CMD 2009 2010

NO 18.8%

YES 81.2%

YES 91.4%

NO 8.6%

NO 19.0%

YES 81.0%

USE PAYMENT PROTECTION DEVICE

(percentage of respondents)

CMD 2009 2010

YES 20.1%

NO 79.9%

YES 21.9%

NO 78.1%

NO 16.0%

YES 84.0%

2010 HAVE WORKERS COMP (percentage of respondents)

CMD 2009

NO 32.3%

YES 67.7%

YES 80.8%

NO 19.6%

NO 32.3%

YES 67.7%

YES 80.4%

NO 8.6%

YES 91.4%

SEPARATE F&I DEPARTMENT (percentage of respondents)

CMD 2009

YES 21.1%

YES

YES

NO

NO

41.3%

41.3%

58.7%

58.7%

2010

NO 78.9%

YES 21.2%

NO 78.8%

UCIR_2011.indd 10 5/25/11 3:26 PM

UCIR_2011.indd 11 5/25/11 3:26 PM


YES 12.6%

NO87.4%

NO

YES 38.2%

61.8%

SELL WARRANTIES OR SERVICE CONTRACTS (percentage of respondents)

RENTAL CAR (percentage of respondents)

2009

NO

YES 38.4%

61.6%

YES 78.3%

NO 21.7%

2009

YES 12.4%

NO 87.6%

NO 84.8%

YES 15.2%

2010

2010

WARRANTY/SERVICE CONTRACTS SOLD PER MONTH (percentage of respondents)

50%

40%

30%

20%

10%

0

CMD

58.4

1-5

40.7

21.1

6-10

22.2

13.6

11-20

26

TYPE OF RENTAL CAR OPERATION

90%

80%

60%

40%

20%

0

CMD

81.5

INDEPENDENT

71.4

4.6

21-30

3.7

2010

2.3

31+

7.4

18.5

FRANCHISE

28.6

2010

NIA

DA

MEM

BER

SHIP

DA


UCIR_2011.indd 12 5/25/11 3:26 PM

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NIA

DA

MEM

BER

SHIP

DA

TA

ANNUAL RETAIL SALES (percentage of respondents)

40%

30%

20%

10%

0

10.8 12.1

39 38.4

20.1 19.8

12.9 12.6

0-100 vehicles

CMD 6.7

101-250 vehicles

23.3

251-400 vehicles

21.7

401-550 vehicles

15.0

2.2 2.3 5.5 5.3

3.3 3.1

6.2 6.0

551-700 vehicles

11.7

701-850 vehicles

11.7

ANNUAL WHOLESALE SALES (percentage of respondents)

ADVERTISING MEDIA USED (percentage of respondents)

80%

60%

40%

20%

0

74.9 76.1

12.8

5.6 1.6 1.0 1.3 .7

5.5 1.5 1.1 1.0 .5 2.1 2.1

12.0

0-100 vehicles

CMD 61.4

101-250 vehicles

27.3

251-400 vehicles

4.5

2009 2010

851-1,000 vehicles

3.3

1,001+ vehicles

6.7

2009

401-550 vehicles

0

PERCENTAGE OF SALES TO WOMEN BUYERS*

20%

30%

40%

10%

0-20% 21-40% 41-60% 61-80% 81-100%

* Annual comparative data not available

551-700 vehicles

4.5

701-850 vehicles

0

851-1,000 vehicles

0

2010

20.9

38.0

32.3

8.8

0

2010

1,001+ vehicles

2.3

Dealers chose a wide variety of advertising mediums in 2010.

Surprisingly, a large number of respondents dropped TV and

radio from their advertising mix in favor of the more

traditional newspaper ads as well as a continued strong

online presence.

70%

60%

50%

40%

30%

20%

54.9

16

45.1

53.2

37.3

27.5 28.5

19.6 16.7 17.6

11.9

68.6

52.6

31.4

10%

0

TV

CMD 48.9 44.4 37.8 35.6 68.9 17.8 17.8

NEWSPAPERS

2009

RADIO SPECIALTY PUBLICATIONS

ONLINE

2010

OTHER MAGAZINE

NOTE: Numbers won’t necessarily add to 100% because dealers advertise multiple ways

HOW DO YOU USE THE INTERNET AT YOUR BUSINESS

80%

60% 63 65.5

78.1 79.5

54.3 52.0 51.1 52.5 50.0 49.8

29.3 28.7

18.6 19.0

40%

20%

0

DEALERSHIP WEBSITE

CMD 88.1

E-MAIL

88.1

INDUSTRY RESEARCH

83.3

ONLINE BUYING AND

SELLING

59.5

2009

ONLINE AUCTIONS

64.3

2010

ONLINE FINANCING

42.9

OTHER

33.3

SECTION ONE NIADA MEMBERSHIP DATA

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The following 2010 used vehicle market data presented in this section by CNW Research shows great promise and an upward positive swing in many important independent dealer data categories for 2010, with forecasts for even greater improvements in 2011.

For the first time in over five years, the number of independent dealers in the U.S. finally increased from a prior year. In 2010, CNW Research indicates there are 37,717 used dealers successfully operating, up over 1,299 dealers from 2009. Of even greater significance is the huge increase in the average number of units sold by independent dealers in 2010, up to 351 units sold yearly per dealer. This represents the highest average units sold per dealer in 10-plus years. Also, for the first time in many years, independent dealer market share surpassed franchise market shares.

The high demand for used vehicles and the dwindling supply of quality inventory continue to be problematic for dealers. However, this issue has been a positive for dealers in a few areas. Quality used vehicles are selling fast, leading to a large decrease in “Inventory Days Supply.” The high demand and short supply has also justified higher asking prices for the better quality and certified inventory. The average asking price per vehicle and the average prices of vehicles actually sold were both the highest they have been in over five years. As noted on page 18, the average asking price rose to an average of $9,428, and the average selling price per unit was $8,875 in 2010.

The Internet continues to play a significant role in sales. 44 percent of all units are now offered on the internet, and over 11 percent of all units are now sold directly over the internet, the highest percentage seen in recent years.

Finally, for the first time in this report, CNW Research presents on page 24 a most valuable chart of BHPH dealer counts by state. The chart astonishingly indicates that 31,384 independent dealers participate in some form of BHPH in their daily operations. Consumer credit issues surely play a factor in many of these dealers taking the risk in financing certain customers.U

SED

CA

R IN

DU

STR

Y D

ATA

FR

OM

CN

W M

AR

KET

ING

RES

EAR

CH

U S E D C A R I N D U S T R Y D A T A F R O M C N W M A R K E T I N G R E S E A R C H • U S E D C A R I N D U S T R Y D A T A F R O M C N W M A R K E T I N G R E S E A R C H • U S E D C A R I N D U S T R Y D A T A F R O M C N W M A R K E T I N G R E S E A R C H

USED VEHICLE INDUSTRY DATA FROM CNW MARKETING RESEARCH

TOTAL USED VEHICLES SOLD

40%

30%

20%

10%

0

32.1 33.0

35.3

INDEPENDENT DEALERS

36.1

NUMBER OF VEHICLES SOLD PER INDEPENDENT DEALER (Average per year per independent dealer)

This profile includes all active dealerships with an actual place of business and multiple sales of the same vehicle (post repossession, etc.)

400

300

200

100

0

302.4 283.2

308.8351.0

2007 2008 2009 2010

SALES VOLUME BY INDEPENDENT DEALERS (in millions)

14

12

10

8

6

4

2

0

11.7 11.7

13.0

2008 2008 2007 2009 2009 2010 2010

36.1 34.7

FRANCHISE DEALERS

2008

31.8

2009

30.9

2010

30.0

CASUAL SALES

Source: CNW Research, Inc.

NUMBER OF INDEPENDENT DEALERS IN THE U.S.

60K

40K

20K

0

37,717

42,791

38,662 36,418

SECTION TWO USED VEHICLE INDUSTRY DATAfrom cnw marketing research

UCIR_2011.indd 16 5/25/11 3:26 PM


U S E D C A R I N D U S T R Y D A T A F R O M C N W M A R K E T I N G R E S E A R C H • U S E D C A R I N D U S T R Y D A T A F R O M C N W M A R K E T I N G R E S E A R C H • U S E D C A R I N D U S T R Y D A T A F R O M C N W M A R K E T I N G R E S E A R C H

TOTAL USED VEHICLE SALES PER MONTH (In millions, independent and franchise dealers)TOTAL SALES 2009: 35.5

TOTAL SALES 2010: 36.9

5

4

3

2

1

0

1.79

14.1

18.5

13.615.2

18.9

22.8

28.930.7

36.4

42.1 41.5

46.0

32.9

40.2

33.0

38.1

29.1 30.1

18.0

23.6

20.721.1 21.8 22.4

1.89 1.61 1.62

2.26 2.39

3.22 3.29

3.96

4.504.62

3.85 3.96 3.86 3.94

3.273.09

1.97

2.59 2.47 2.502.70 2.80

35.5 36.9

4.19

JAN

JAN

FEB

FEB

MAR

MAR

APR

APR

MAY

MAY

JUN

JUN

JUL

JUL

AUG

AUG

SEP

SEP

OCT

OCT

NOV

NOV

DEC

DEC

TOTAL

2009 2010

SECTION TWO USED VEHICLE INDUSTRY DATA

USED VEHICLE SALES PER MONTH, PER OUTLET - INDEPENDENT DEALERS (in millions) For example, in January 2010, independent dealers sold 668,030 vehicles from 36,125 locations.That results in 18.5 units per outlet.

35

42

28

21

14

7

0

2009 2010

USED VEHICLE INVENTORY DAYS’ SUPPLY (in days)

100

80

60

40

20

0

70.5

86.36

78.63

56.8450.8

61.73

40.2149.56

HIGH

2007 2008 2009 2010 2007 2008 2009 2010

SEPT

NOV

JAN

FEB SEPT

APRIL

OCT JUNE

LOW

INTERNET USED VEHICLE SALES (in millions)

50

40

30

20

10

0

42.5 44.01

UNITS OFFERED ON INTERNET

7.5

2009

11.0

UNITS SOLD THROUGH INTERNET

2010

UCIR_2011.indd 17 5/25/11 3:26 PM


USED VEHICLE ADVERTISING DISTRIBUTION –INDEPENDENT DEALERS WHO ADVERTISE

(Listed by percentage of money used for particular type of advertising; note that many dealers advertised more than one way, so percentages won’t necessarily add to 100)

CATEGORY 2007 2008 2009 2010Classified Ads 89.6 89.1 88.4 84.7 Radio 1.2 1.1 1.1 1.7 Television 0.8 0.6 0.1 0.3Internet 22.1 23.4 24.8 26.2

AVERAGE PRICE OF USED VEHICLES SOLD BY INDEPENDENT DEALERS

$10K

$7.5K

$5K

$2.5K

0

$8,650 $8,358 $8,459 $8,875

2007 2008 2009 2010

AVERAGE INDEPENDENT DEALERS ASKING PRICE VS. TRANSACTION PRICE

9.5K

9K

8.5K

8K

7.5K

7K

6.5K

6K

5.5K

ASKING PRICE

$8,937

$8,314

TRANSACTION PRICE

$9,428

$8,622

2009 2010

NEW AND USED VEHICLE SALES (in millions)

NEW VEHICLES USED VEHICLES TOTAL SALES

2006 16.54 42.56 59.11 2007 16.22 41.75 57.80 2008 13.33 36.50 49.80 2009 10.63 35.49 45.93 2010 11.58 36.90 48.48

SECTION TWO USED CAR INDUSTRY DATAfrom cnw marketing research

USE

D C

AR

IND

UST

RY

DA

TA F

RO

M C

NW

MA

RK

ETIN

G R

ESEA

RC

H

CNW MARKETING RESEARCH

0.0 0.0

6.8 6.4

PURCHASE OF EXTENDED WARRANTIES FOR USED CARS (percentage of respondents)

15

10

5

0

NEW 2-4 YEAR OLD

5-7 YEAR OLD

8-10 YEAR OLD

OVER 10 YEARS

2009 2010

4.13.5

1.1 0.9 1.0 0.6

10.7

8.9

PURCHASE OF EXTENDED WARRANTIES FOR NEW CARS (percentage of respondents)

15

10

5

0

NEW 2-4 YEAR OLD

5-7 YEAR OLD

8-10 YEAR OLD

OVER 10 YEARS

2009 2010

4.2 4.1

2.2 2.0 1.9 1.3

12.711.6

PAYMENT PROTECTION DEVICES - REDUCING LATE PAYMENT AND REPOSSESSIONS (Dealers with devices)

66.42 68.82

REDUCTION OF LATE PAYMENT

38.15 41.34

2009 2010

REDUCTION OF REPOSSESSIONS

80

60

40

20

0

UCIR_2011.indd 18 5/25/11 3:26 PM

SECTION TWO USED CAR INDUSTRY DATA

UCIR_2011.indd 19 5/25/11 3:26 PM


USE

D C

AR

IND

UST

RY

DA

TA F

RO

M C

NW

MA

RK

ETIN

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RC

H


TOTAL SALES (Averages all departments)

$5M

$4M

$3M

$2M

$1M

$3,844,062 $3,492,443

$3,972,812

$4,519,223

2010 2009 2008 2007

INCOME

USED VEHICLE SALES (As percent of total sales)

$1,894,458

$1,476,694 $1,428,838 $1,197,209

41.92%

37.17% 37.17% 34.28%

2010 2009 2008 2007

$1M

$1.5M

$2M

$2.5M

0

SERVICE AND PARTS (As percent of total sales)

$1,088,94431.18%

2010

$1,132,07629.45%

2009

$1,169,99329.45%

2008

$1,281,20028.35%

2007

$1.1M

$1.2M

$1.3M

0

OTHER INCOME (As percent of total sales)

$127,442

$228,834 $221,418

$171,828

2.82%

5.76% 5.76%

4.92%

2010 2009 2008 2007

$150K

$100K

$200K

$250K

$50K

F&I INCOME (As percent of total sales)

27.62%29.62%

27.62%

26.91%

$1,061,730 $1,034,462

$1,097,291

$1,216,123

2010 2009 2008 2007

$1.1M

$1.05M

$1.15M

$1.2M

$1.25M

$1M

INDEPENDENT USED VEHICLE

UCIR_2011.indd 20 5/25/11 3:26 PM



While dealers were selling many more units in 2010 compared to the

previous 10-plus years (an average of 351 units per dealer), ADVERTISING

EXPENSES PER VEHICLE ACTUALLY DECREASED

to its lowest levels since 2003. One could say this

decrease in advertising per vehicle was due to HIGH DEMAND OF QUALITY

USED INVENTORY, resulting in much shorter inventory turns for most

vehicles, equating to less time having to advertise

each unit.

EXPENSES

DEALER PROFILE

2010 2009 2008 2007

$40K

$20K

$60K

$80K

0

ADVERTISING EXPENSES ($ per vehicle)

$76,507 $253

per vehicle $66,269

$234 per vehicle

$82,459 $75,859 $267

per vehicle $216per vehicle

2010 2009 2008 2007

$50K

$25K

$75K

$100K

$125K

0

RENT AND EQUIVALENT ($ per vehicle)

$115,214 $381

per vehicle $94,589

$334 per vehicle

$346per vehicle

$349per vehicle

$106,856 $122,569

2010 2009 2008 2007

$30K

$35K

$45K

$40K

$25K

FLOOR PLAN INTEREST ($ per vehicle)

$35,986

$119 per vehicle

$37,382

$132 per vehicle

$39,222

$42,495

$127 per vehicle

$121 per vehicle

UCIR_2011.indd 21 5/25/11 3:26 PM



USE

D C

AR

IND

UST

RY

DA

TA F

RO

M C

NW

MA

RK

ETIN

G R

ESEA

RC

H

TOTAL GROSS (As percent of total sales per independent dealer)

$645,797

$501,369 $462,825 $389,757

14.29%

12.62% 12.04% 11.16%

2010 2009 2008 2007

This profile includes all active dealerships with an actual place of business and multiple sales of the same vehicle (post repossession, etc.)

$250K

$500K

$750K

$1,000K

0

TOTAL EXPENSES(As percent of total sales per independent dealer)

2009

18.67%

18.34%

$86,409

$71,481

2010

$25K

$50K

$75K

$125K

$100K

0

NET PROFIT BEFORE TAXES(As percent of total sales per independent dealer)

2009

$1,044$1,227

2010

$0.5K

$1K

$1.5K

0

TOTALS

INDEPENDENT USED VEHICLE DEALER PROFILE

USED VEHICLE SALES - FINANCED VS. CASH (Franchised dealers)

14 14

12 12

10 10

8 8

6 6

4 4

2 2

0 0 2009 2009 2010 2010

USED VEHICLE SALES - FINANCED VS. CASH (Independent dealers)

12,819,75911,721,216

13,010,15012,816,471

55.9% (Financed) 44.4%

(Financed)

43.7% (Financed) 56.62%

(Financed)

44.1% (Cash)

55.6% (Cash)

43.38% (Cash)

56.3% (Cash)

RETAIL GROSS PROFIT (Percent of retail selling price)

$433.10

$321.25 $325.93

$277.99

5.23%

4.07% 3.92%

3.37%

2010 2009 2008 2007

$350

$300

$400

$450

$200

$250

As units sold per year reached a

TEN-YEAR HIGH, retail gross profits per vehicle unfortunately continued to decline,

due to a large decrease in overall total sales volume from every

income department, as referenced on page 20.

UCIR_2011.indd 22 5/25/11 3:26 PM

UCIR_2011.indd 23 5/25/11 3:27 PM



USE

D C

AR

IND

UST

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DA

TA F

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M C

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MA

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ETIN

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H

BUY HERE–PAY HERE CHART BY STATE

The following information includes dealerships that sell more than 50 percent Buy Here, Pay Here.

Franchised Dealers’ BHPH lots are those located off site. That is, these BHPH lots are NOT on the same property as the franchised new-car dealership or the new-car dealership’s used car lot.

How to read: In 2010, there were a total of 31,384 Buy Here–Pay Here used-vehicle stores in the U.S. that had at least half of their finance contracts as BHPH notes. Among franchised new-vehicle dealers, there were another 2,446 BHPH lots located away from the dealership’s property. Not shown are franchised new-car dealerships with BHPH operations at their dealership site.

CNW MR believes there are few such BHPH locations performing at least half of their business on a new-vehicle dealership site even though many dealers might offer BHPH notes at that location.

CY ‘09 Franchised CY ‘09 Licensed Total Dealers CY ‘10 Franchised CY ‘10 Licensed Total DealersState Off Site BHPH Independent BHPH Selling BHPH Off Site BHPH Independent BHPH Selling BHPH

Alabama 39 226 265 42 228 270Alaska 24 84 108 31 86 117Arizona 56 371 427 59 378 437Arkansas 38 267 305 36 261 297California 407 1,124 1,531 419 1169 1,588Colorado 42 324 366 43 331 374Connecticut 46 207 253 48 212 260Delaware 19 69 88 23 72 95Florida 77 2,191 2,268 78 2262 2,340Georgia 63 703 766 61 709 770Hawaii 11 26 37 14 29 43Idaho 37 109 146 38 113 151Illinois 42 1,321 1,363 44 1325 1,369Indiana 36 947 983 40 951 991Iowa 29 298 327 32 289 321Kansas 32 361 393 35 366 401Kentucky 25 522 547 26 541 567Louisiana 36 347 383 38 357 395Maine 11 86 97 13 89 102Maryland 18 222 240 17 230 247Massachusetts 44 417 461 42 422 464Michigan 56 462 518 58 458 516Minnesota 38 339 377 39 337 376Mississippi 64 421 485 45 423 468Missouri 16 672 688 16 679 695Montana 11 102 113 12 110 122Nebraska 46 325 371 48 328 376Nevada 62 268 330 65 271 336New Hamp 13 211 224 12 219 231New Jersey 193 1,648 1,841 198 1682 1,880New Mexico 13 169 182 14 174 188New York 194 1,858 2,052 201 1874 2,075North Carolina 16 412 428 18 421 439North Dakota 11 126 137 13 133 146Ohio 73 2,623 2,696 75 2659 2,734Oklahoma 24 474 498 28 485 513Oregon 20 288 308 22 281 303Pennsylvania 113 2,198 2,311 119 2209 2,328Rhode Island 7 86 93 7 89 96South Carolina 14 679 693 17 683 700South Dakota 18 204 222 19 210 229Tennessee 14 1,003 1,017 13 1046 1,059Texas 102 3,082 3,184 108 3098 3,206Utah 10 125 135 13 133 146Vermont 12 267 279 15 276 291Virginia 9 815 824 11 824 835Washington 18 668 686 19 677 696Washington D.C. 11 32 43 10 35 45West Virginia 19 293 312 21 298 319Wisconsin 9 747 756 11 756 767Wyoming 17 93 110 20 96 116

Totals 2,355 30,912 33,267 2,446 31,384 33,830

A “National Corporate Partner” has met stringent NIADA criteria demonstrating that it can provide valuable products and services to NIADA members. No legal partnership has been created by the granting of this status, but NIADA does receive compensation from Protective. Lifetime Engine Warranty, Limited Warranty, Vehicle Service Contracts (VSCs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VSCs are backed by Old Republic Insurance

Company. GAP, Lifetime Engine Warranty and Limited Warranty are not available in NY. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.

Vehicle Service Contracts I GAP Coverage I Credit Insurance

Lifetime Engine Warranty I Limited Warranty I Dealer Participation Programs

F&I Training I Advanced F&I Technology

866.618.8983www.protectiveassetprotection.com

We Listen • We Care • We Have Solutions

Your NIADA Platinum National Corporate Partner!

As the exclusive F&I Product and Services National Corporate Partner

of the NIADA, Protective is committed to growing your independently

owned dealership’s profits and customer satisfaction.

We look forward to serving your independent dealership!

Serving Automotive Dealers Since 1962

UCIR_2011.indd 24 5/25/11 3:27 PM


A “National Corporate Partner” has met stringent NIADA criteria demonstrating that it can provide valuable products and services to NIADA members. No legal partnership has been created by the granting of this status, but NIADA does receive compensation from Protective. Lifetime Engine Warranty, Limited Warranty, Vehicle Service Contracts (VSCs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VSCs are backed by Old Republic Insurance

Company. GAP, Lifetime Engine Warranty and Limited Warranty are not available in NY. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.

Vehicle Service Contracts I GAP Coverage I Credit Insurance

Lifetime Engine Warranty I Limited Warranty I Dealer Participation Programs

F&I Training I Advanced F&I Technology

866.618.8983www.protectiveassetprotection.com

We Listen • We Care • We Have Solutions

Your NIADA Platinum National Corporate Partner!

As the exclusive F&I Product and Services National Corporate Partner

of the NIADA, Protective is committed to growing your independently

owned dealership’s profits and customer satisfaction.

We look forward to serving your independent dealership!

Serving Automotive Dealers Since 1962

UCIR_2011.indd 25 5/25/11 3:27 PM


BUY HERE-PAY HERE INDUSTRY BENCHMARKS / TRENDS 2010 The table below compares the resultant changes in gross profit from 2008 – 2010 (The numbers below are compiled from our best performing dealers and are not industry averages.):

Note: All percentages are expressed as a percentage of sales.

• Unit sales in 2010 were generally lower versus the year ended 2009 although some operators offset these lower unit sales volumes with sales price increases. Only where operations expanded their operations and added additional lots did unit sales increase significantly. The inventory shortages explained above constrained growth, particularly for those who had capital limitations and who were unable to compete in the rising vehicle acquisition cost environment.

• Many operators controlled vehicle acquisition costs by purchasing higher mileage vehicles. They increased their reconditioning costs in order to make ready these higher mileage vehicles for resale. Average reconditioning costs increased almost $250 per unit in 2010!

• Even the most profitable operators could not “cover” bad debt losses with finance income (where income equals or exceeds bad debt expense). This was largely because interest income was reduced as the average age of receivable portfolios increased due to a lower number of originations. (Interest revenue declines when the average age of the portfolio matures.) Bad debt defaults remained relatively constant with 2009 levels. Collections were strong where consumers had enough income to continue making payments in lieu of purchasing another vehicle.

GROSS PROFIT COMPARISON: 2008 – 2010

SALES COST OF VEHICLE SALES SUBTOTAL

FINANCING INCOME BAD DEBT GROSS PROFIT

2010

100%

(59%)

41%

15%

(18%)

38%

100%

(59%)

41%

16%

(20%)

37%

100%

(60%)

40%

18%

(21%)

37%

2009

AVERAGE CUSTOMER DOWNPAYMENT: 2006 – 2010

$900 $1,018

$1,089 $1,040

$1,059

2006 2007 2008 2009 2010

2008

SECTION THREE BUY HERE-PAY HERE

Annually, NABD, with the

help of Shilson, Goldberg

& Cheung CPAs, compiles

Buy Here-Pay Here financial

benchmarks from a database

of more than 500 operations

nationwide NABD benchmarks

also include operating infor-

mation on sales, collections

and recoveries, and inventory

management which were developed

and supplied by NCM Twenty

Groups, based upon a composite

of all of their BHPH 20 Group

members. The attached NABD

benchmarks also include portfolio

performance metrics which

were compiled electronically by

Subprime Analytics, who performed

computerized portfolio analysis of

approximately 910,000 subprime

loans aggregating approximately

$8 billion to identify loss rates and

patterns. These statistics provide a

comprehensive look at the financial

and operating performance of the

BHPH industry for the last three

years and some interesting trend

information for earlier periods.

BU

Y H

ERE-

PAY

HER

E IN

DU

STR

Y B

ENC

HM

AR

KS

B U Y H E R E - P A Y H E R E I N D U S T R Y B E N C H M A R K S • B U Y H E R E - P A Y H E R E I N D U S T R Y B E N C H M A R K S B U Y H E R E - P A Y H E R E I N D U S T R Y B E N C H M A R K S • B U Y H E R E - P A Y H E R E I N D U S T R Y B E N C H M A R K S

BUY HERE-PAY HERE INDUSTRY BENCHMARKS

Industry Benchmarks

$200

$400

$600

$1,000

$800

0

UCIR_2011.indd 26 5/25/11 3:27 PM


SECTION THREE BUY HERE-PAY HEREB U Y H E R E - P A Y H E R E I N D U S T R Y B E N C H M A R K S • B U Y H E R E - P A Y H E R E I N D U S T R Y B E N C H M A R K S B U Y H E R E - P A Y H E R E I N D U S T R Y B E N C H M A R K S • B U Y H E R E - P A Y H E R E I N D U S T R Y B E N C H M A R K S

COST OF GOODS SOLD AND OPERATING EXPENSE DETAIL NABD BY SHILSON, GOLDBERG, CHEUNG AND ASSOCIATES, LLP According to the research, Buy Here-Pay Here dealers spent more money in 2010 on reconditioning vehicles and spent more for the vehicles themselves than they did in 2009.

COST OF VEHICLE SALES

2010 % OF

VEHICLE SALES

2009% OF

VEHICLE SALES

2008 % OF

VEHICLE SALES

COST OF VEHICLES RECONDITIONING COSTS OTHER

TOTAL COST OF VEHICLE SALES

48.13%

7.17%

3.21%

58.51%

2.50%

0.27%

0.03%

0.45%

0.10%

0.27%

0.35%

0.50%

0.65%

2.33%

0.41%

10.26%

0.11%

0.30%

0.49%

0.50%

0.26%

19.78%

2.20%

0.21%

0.01%

0.40%

0.08%

0.45%

0.51%

0.13%

0.58%

2.18%

0.22%

10.59%

0.26%

0.94%

0.77%

0.70%

0.27%

20.50%

1.55%

0.24%

0.01%

0.54%

0.02%

0.99%

0.50%

0.30%

1.31%

1.62%

0.27%

10.81%

0.30%

0.60%

1.11%

0.79%

0.38%

21.35%

49.03%

6.68%

2.85%

58.56%

51.03%

4.12%

4.52%

59.67%

ADVERTISING

BANK CHARGES

CONTRIBUTIONS

DEPRECIATION

DUES AND SUBSCRIPTIONS

INSURANCE

LEGAL AND ACCOUNTING

OUTSIDE SERVICES

OFFICE EXPENSE

RENT

REPAIRS AND MAINTENANCE

SALARIES (NON-OWNERS)

TAXES - GENERAL

OTHER OPERATING EXPENSE

TAXES - PAYROLL

UTILITIES AND TELEPHONE

TRAVEL / TRAINING

TOTAL OPERATING EXPENSE

LOSS STATISTICS - 2010 (Statistics supplied by Subprime Analytics)

BHPH FINANCIAL TRENDS2004-2010 BAD DEBTS

Source: NABD

17%

19% 20%

19%

21% 20%

18%

2004 2005 2006

% OF SALES

2007

2007

$85

$84 $84

$85

2008

2008

2009

2009

2010

2010

BHPH FINANCIAL TRENDS AVERAGE WEEKLY PAYMENT AMOUNT 2007-2010

Source: NABD (for 2003-2005) NCM (for 2006)

2009 SUBPRIME ANALYTICS

BENCHMARKS

2010 SUBPRIME ANALYTICS

BENCHMARKS

AVERAGE GROSS DOLLAR LOSS (BEFORE RECOVERIES) $7,049 $7,072

AVERAGE NET DOLLAR LOSS (AFTER RECOVERIES) $5,090 $4,526

AVERAGE DEFAULT RATE (% OF LOANS WRITTEN OFF) 30.11% 30.39%

AVERAGE GROSS DOLLAR LOSS RATE (% OF PRINCIPAL) 37.51% 39.18%

AVERAGE NET DOLLAR LOSS RATE (% OF PRINCIPAL) 26.06% 26.52%

AVERAGE RECOVERY (% OF PRINCIPAL CHARGED OFF) 29.80% 35.50%

HIGHEST CUMULATIVE DEFAULT MONTH AFTER ORIGINATION 21ST MONTH 25TH MONTH

HIGHEST FREQUENCY OF DEFAULT (MONTH AFTER ORIGINATION) 4TH MONTH 4TH MONTH

WORST PERIODIC LOSS MONTH AFTER ORIGINATION FEBRUARY FEBRUARY

THE ABOVE REFERENCED LOSS DATA WAS DETERMINED BY ELECTRONICALLY ANALYZING APPROXIMATELY 613,000 LOANS, AGGREGATING APPROXIMATELY $5.3 BILLION TO IDENTIFY LOSS RATES AND TO UNDERSTAND WHY THEY OCCURRED.

$82

5%

$84

10%

$86

15%

20%

$80

0

UCIR_2011.indd 27 5/25/11 3:27 PM


BHPH FINANCIAL TRENDS AVERAGE “CASH IN DEAL” 2007-2010 Average cash in deal per unit sold

$5,000

$4,500

$4,000

$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

$500

$0

$4,645

2007

Source: NABD/NCM

$4,696

2008

2010 DEALER OPERATING INFORMATION Statistics supplied by NCM Associates, Inc.

SALES AVERAGE UNITS SOLD PER DEALER (BHPH DEALS ONLY) AVERAGE CASH IN DEAL PER VEHICLE SOLD AVERAGE ACV PER VEHICLE SOLD (INCLUDES RECON) AVERAGE RECONDITIONING COST PER VEHICLE SOLD AVERAGE GROSS PER VEHICLE SOLD AVERAGE CASH DOWN PAYMENT AVERAGE AMOUNT FINANCED AVERAGE TERM OF LOAN (IN WEEKS)

COLLECTIONS / RECOVERIES AVERAGE WEEKLY PAYMENT AMOUNT AVERAGE # OF ACCOUNTS PAST DUE AVERAGE # OF PAST DUE ACCOUNTS PER COLLECTOR AVERAGE LOSS PER CHARGE OFF AVERAGE PORTFOLIO DELINQUENCY CURRENT 0-10 DAYS 11-29 DAYS 30-59 DAYS 60-89 DAYS 90+ DAYS

INVENTORY MANAGEMENTAVERAGE NUMBER OF UNITS IN STOCK AVERAGE INVENTORY AGING 0-30 DAYS 31-60 DAYS 61-90 DAYS 91+ DAYS

$4,865 $4,850

2009 2010

BHPH FINANCIAL TRENDS 2004-2010 COSTS/EXPENSES

COST OF VEHICLES

70%

60%

50%

40%

30%

20%

10%

0%

62%

22% 18% 18% 19% 21% 21% 20%

64% 64% 63% 60% 59% 59%

2004

OPERATING EXPENSES

2005 2006 2007 2007 2008 2008

Source: Shilson, Goldberg, Cheung & Associates, LLP

2009 2009 2010 2010

728 $4,865 $5,534 $556

$4,149 $1,272 $9,274

132

$84 366 86

$4,360

74.40% 10.30% 7.80% 3.60% 1.70% 2.20%

100.00%

145

40.80%19.30%12.80%27.10%

100.00%

543$4,850$5,458$798

$4,314$1,152 $9,380

134

$8522895

$4,273

76.50% 10.30% 7.30% 2.90% 1.30% 1.70%

100.00%

128

36.00%21.10%15.40%27.50%

100.00%

AVERAGE TOTAL ACTUAL COST PER VEHICLE SOLD 2007-2010 Average total avg per vehicle sold (including recon)

$6,000

$5,000

$4,000

$3,000

$2,000

$0

$5,111 $5,284

$5,534 $5,458

Source: NABD/NCM

SECTION THREE BUY HERE-PAY HEREB

UY

HER

E-PA

Y H

ERE

IND

UST

RY

BEN

CH

MA

RK

S

Industry Benchmarks

While BHPH dealers sold many less units in 2010 than previous year, the 543 average yearly units sold per BHPH dealer are still much higher than the overall independent dealer average of 351 yearly units sold, noted in Section Two of this report. Also of note in this dealer operating chart is the large spike in reconditioning cost per vehicle in 2010 compared to 2009.

2009 NCM BENCHMARKS

2010 NCM BENCHMARKS

UCIR_2011.indd 28 5/25/11 3:27 PM


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RATIO COMPARISONS. BUY HERE–PAY HERE INDUSTRY BENCHMARKS PREPARED FOR NABD BY SHILSON, GOLDBERG, CHEUNG AND ASSOCIATES, LLP

The NABD results - combined dealer and finance affiliate numbers - break down balance sheets and income statements into 16 categories. It also compares 2010 to the past two years so dealers can examine industry trends.

RATIO COMPARISONS, COMBINED BUY HERE–PAY HERE COMBINED BUY HERE-PAY HERE

BALANCE SHEET 2010 AVG. 2009 AVG. 2008 AVG. (INVENTORY X DAYS) / COST OF VEHICLE SALES 63.40 DAYS 64.11 DAYS 68.57 DAYSCOST OF VEHICLE SALES /AVERAGE INVENTORY DOLLARS 6.40 X 5.98 X 5.96 X VEHICLE SALES / AVERAGE INVENTORY DOLLARS 11.92 X 11.16 X 9.98 XVEHICLE SALES / TOTAL ASSETS .97 X 0.95 X 0.96 X TOTAL ASSETS / TOTAL LIABILITIES 1.93 X 1.82 X 1.61 X ALLOWANCE FOR BAD DEBTS / FINANCE RECEIVABLES* 22% 21% 18% FINANCE RECEIVABLES* / TOTAL ASSETS 96% 93% 89% TOTAL DEBT / TOTAL ASSETS 52% 55% 62% * FINANCE RECEIVABLES ARE NET OF UNEARNED FINANCE CHARGES

INCOME STATEMENT BAD DEBTS / VEHICLE SALES 18% 20% 21% COST OF VEHICLE SALES / VEHICLE SALES 59% 59% 60% GROSS PROFIT*** / VEHICLE SALES 38% 37% 37% OPERATING EXPENSE / VEHICLE SALES 20% 21% 21% INTEREST EXPENSE / FINANCING INCOME 17% 18% 23% OPERATING INCOME / VEHICLE SALES 18% 16% 16% FINANCING INCOME / VEHICLE SALES 15% 16% 18% COMPENSATION** / VEHICLE SALES 10% 11% 11% RECONDITIONING COST / VEHICLE SALES 7% 7% 4%

NOTES TO RATIO COMPARISONS: **Compensation excludes those of the owners ***Gross Profit is net of bad debts and financing income x = times

SECTION THREE BUY HERE-PAY HERE

UCIR_2011.indd 29 5/25/11 3:27 PM


SECTION FOUR ROLE OF THE INTERNET

The Internet has become

an increasingly important

component of the vehicle

purchase process. Consumers

shopping for new and used vehicles

can find a wealth of information and

tools on auto manufacturer, dealer

and third-party websites.

How much time do consumers

spend online during the vehicle

purchase process? How does the

Internet compare to other channels in

terms of influencing purchase? Why

do shoppers use the Internet?

To answer these and related

questions, Polk and AutoTrader.com

recently teamed up to conduct

a study of recent car buyers:

4,005 U.S. consumers who had

purchased a new or used vehicle

from a dealership within the prior six

months. The findings provide insights

into the role, usage and perceived

helpfulness of the Internet in the

vehicle purchase process.

RO

LE O

F TH

E IN

TER

NET

IN T

HE

NEW

AN

D U

SED

VEH

ICLE

PU

RC

HA

SE P

RO

CES

S

R O L E O F T H E I N T E R N E T I N T H E N E W A N D U S E D V E H I C L E P U R C H A S E P R O C E S S • R O L E O F T H E I N T E R N E T I N T H E N E W A N D U S E D V E H I C L E P U R C H A S E P R O C E S S • R O L E O F T H E I N T E R N E T I N T H E N E W A N D U S E D V E H I C L E P U R C H A S E P R O C E S S

ROLE OF THE INTERNET IN THE NEW AND USED VEHICLE PURCHASE PROCESS

in the New and Used Vehicle Purchase Process

MOST USED SOURCE DURING SHOPPING PROCESS

The Internet is the preferred information source among vehicle buyers. In fact, 71 percent of both New & Used Vehicle Buyers said they used the Internet during the car shopping process.

Furthermore, the chart below indicates 58 percent of Used Vehicle Buyers said that the Internet was the predominant source that led them to the dealers they bought from – more than twice that of any other source cited in the study.

As a result, effective online automotive advertising not only influences what makes and models consumers buy, but also influences which dealers they buy from.

80%

60%

40%

20%

0

71% 71%

Internet

NEW BUYERS USED BUYERS

MOST INFLUENTIAL SOURCES LEADING TO THE DEALER NEW BUYERS USED BUYERS

65%

55%

45%

35%

25%

15%

5%

0%

50%

58%

19% 16%

5% 4%

2% 2% 2% 2% 2% 1% 1% 1%

4% 7%

INTERNET REFERRAL FROM

FRIEND/FAMILY

NEWSPAPER DIRECT MAIL

OUTDOOR ADS

TELEVISION MAGAZINE RADIO

NEW & USED VEHICLE BUYERS SPEND 60% OF THE SHOPPING PROCESS ONLINE

NEW VEHICLE BUYERS USED VEHICLE BUYERS

18 TOTAL HOURS

SHOPPINGTIME

19 TOTAL HOURS

SHOPPING TIME

For the first time ever, we now know the total amount of time that consumers spend on the car shopping process. According to the study, New Vehicle Buyers who use the Internet to shop for cars spend an average of 19 total hours shopping, while Used Vehicle Buyers spend an average of 18 total hours. Of that time, New and Used Vehicle Buyers spend the majority of their time online – 11.5 and 11 hours, respectively, actively choosing to engage with the medium. Throughout the process, they are seeking content and being exposed to multiple brand impressions – a big opportunity for automotive marketers to influence shoppers. Effectively engaging consumers at each point in their shopping process can dramatically improve the chances of turning a shopper into an actual buyer.

11.5 HOURS ONLINE

11 HOURS ONLINE

7.5 HOURS OFFLINE

7 HOURS OFFLINE

UCIR_2011.indd 30 5/25/11 3:27 PM


SECTION FOUR ROLE OF THE INTERNETR O L E O F T H E I N T E R N E T I N T H E N E W A N D U S E D V E H I C L E P U R C H A S E P R O C E S S • R O L E O F T H E I N T E R N E T I N T H E N E W A N D U S E D V E H I C L E P U R C H A S E P R O C E S S • R O L E O F T H E I N T E R N E T I N T H E N E W A N D U S E D V E H I C L E P U R C H A S E P R O C E S S

THIRD PARTY SITES

DEALER SITES

OEM SITES

SEARCH

HOW DO VEHICLE BUYERS INITIALLY CONTACT THE DEALERSHIP?

7 out of 10 of all vehicle buyers walk into the dealership without establishing contact with the dealer prior to their initial visit. Therefore, it has become increasingly important for automotive marketers to put methods into place to track advertising effectiveness (e.g., dealership walk-in traffic). Understanding the influence that online advertising has on car shoppers can help automotive marketers determine the true value of their advertising spend, as well as how and where they can more effectively invest their marketing dollars.

While both New & Used Buyers shop online in a variety of places, they spend the most time on third-party sites. This information is important because it reveals that vehicle buyers find value shopping on manufacturer sites, dealer sites, and third-party sites alike. These sites serve as complements to each other during the shopping process.

Knowing where car shoppers spend their time online also demonstrates the need for automotive marketers to have a broad Internet strategy. To effectively reach and influence vehicle buyers online, a defined marketing message must be in front of as many in-market shoppers as possible, as often as possible.

New & Used Vehicle Buyers both use the Internet to research car prices, compare makes & models, look at photos, and locate a vehicle. While Special Offers, Dealer Rebates and Incentives are important to Used Vehicle Buyers, they are significantly more important to New Vehicle Buyers, who rank it the third most important reason to shop online.

In order to effectively target their marketing messages as well as ad spend, it is important that automotive marketers understand how and why consumers use the Internet during the vehicle shopping process. These insights can help ensure that dealers and manufacturers deliver the right marketing message and content to the right shoppers at the right time.

NEW & USED VEHICLE BUYERS SPEND MORE TIME ON THIRD-PARTY SITES

MOST INFLUENTIAL SOURCES LEADING TO VEHICLE PURCHASE

NEW VEHICLE BUYERS USED VEHICLE BUYERS

3.25 HR 6.5 HR

2.25 HR 2.25 HR

2.75 HR 1 HR

2 HR 1.5 HR

NEW BUYERS USED BUYERS

55%

45%

35%

25%

15%

5%

0%

50%

58%

19% 16%

5%

27%

18%

7%

INTERNET REFERRAL FROM FRIEND/FAMILY

NEWSPAPER(Printed or online)

ALL OTHER MEDIA SOURCES

UCIR_2011.indd 31 5/25/11 3:27 PM


SECTION FOUR ROLE OF THE INTERNETR

OLE

OF

THE

INTE

RN

ET IN

TH

E N

EW A

ND

USE

D V

EHIC

LE P

UR

CH

ASE

PR

OC

ESS

in the New and Used Vehicle Purchase Process

According to the research, New & Used Vehicle Buyers are often using search engines like Google as a “Yellow Pages” type service – a convenient way of getting to sites and businesses they are already aware of. For example, of the Used Vehicle Buyers who used search, the most common reasons they used it were to access a dealer’s website, find a dealer’s phone number and/or address, access a manufacturer’s website, and to access third-party sites.

DO SEARCH AND SOCIAL NETWORKING SITES INFLUENCE VEHICLE BUYERS?

USED VEHICLE BUYER SEARCH ENGINE USE

SOCIAL NETWORKING SITE INFLUENCE

ACCESS OEM SITE

ACCESS A DEALER WEBSITE

FIND DEALER PHONE NUMBER AND/OR ADDRESS

ACCESS THIRD PARTY SITES

OTHER/NONE

41%

63%

51%

45%

16%

Regarding social media, an overwhelming 97% of New & Used Vehicle Buyers stated that their most recent vehicle purchases were not influenced by social networking sites. Vehicle buyers typically do not go to Facebook to search inventory, for example. However, social networking can still be an important relationship and customer retention tool. It can provide an opportunity for automotive marketers to stay engaged with their customer base and even generate post-purchase revenue.

ONLY 3% OF VEHICLE BUYERS SAID A SOCIAL NETWORKING SITE INFLUENCED THEIR PURCHASE.

97%

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*Subject to credit approval by JPMorgan Chase Bank, N.A. Additional terms and conditions apply. © 2011 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (10-1105) 02/11

UCIR_2011.indd 32 5/25/11 3:27 PM

SECTION FOUR ROLE OF THE INTERNET

Help get the right loan for each customer with Custom Finance*

Chase offers full-spectrum fi nancing to meet the needs of a diverse customer base. Our Custom Finance program places an emphasis on deal structure, enabling us to better match the right loan to the right customer.

• Flexible fi nancing options to help you meet the needs of deserving borrowers with less-than-perfect credit

• Knowledgeable sales and credit team dedicated to your dealership• Fast decisions and effi cient funding• Local presence with more than 42 business centers nationwide

Plus, you can begin building customer loyalty and improving your bottom line when you help good customers establish better credit with Custom Finance.

Call 1-800-485-8455 or visit chasedealer.com/custom to sign up with Custom Finance today.

*Subject to credit approval by JPMorgan Chase Bank, N.A. Additional terms and conditions apply. © 2011 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (10-1105) 02/11

UCIR_2011.indd 33 5/25/11 3:27 PM


SECTION FIVE AUTOZONE/NIADA

For the first time in our 16-year history of the Used Car Industry Report, NIADA has teamed up with AutoZone to provide detailed auto parts and service data. Over the past year, many of our dealer members have successfully taken advantage of the great parts discounts and quick and free delivery that AutoZone offers through its National Corporate Partnership with NIADA. The following charts and data provide valuable insight into the auto parts business.

In addition to parts discounts and free delivery through the AutoZone HotShot Delivery program, dealers have also recently found the ease of ordering AutoZone parts online. The chart at the bottom of this page shows a tremendous spike in online ordering over the first quarter of 2011.

The data on page 35 detailing the demographics of NIADA’s TOP 10 Auto Parts buyer proves that these dealers are profiting heavily from auto parts and service, and they all have two common factors: they all have multiple service bays and have their own service technicians.

Finally, the pie chart on page 36 details the most common categories of parts ordered by NIADA members, and shows the corresponding auto parts sales volume generated by NIADA members in each category. This parts breakdown gives the typical dealer a clear indication of the types of parts that can be easily purchased and delivered free of charge to maximize your service and aftermarket business.

AU

TOZ

ON

E/N

IAD

A P

AR

TS A

ND

SER

VIC

E A

NA

LYSI

S

A U T O Z O N E / N I A D A P A R T S A N D S E R V I C E A N A L Y S I S • A U T O Z O N E / N I A D A P A R T S A N D S E R V I C E A N A L Y S I S • A U T O Z O N E / N I A D A P A R T S A N D S E R V I C E A N A L Y S I S • A U T O Z O N E / N I A D A P A R T S A N D S E R V I C E A N A L Y S I S

AUTOZONE/NIADA PARTS AND SERVICE ANALYSIS

Parts and Service Analysis

“33.84 percent yearly increase in AutoZone/NIADA parts sales volume in 2010.”

www.autozonepro.com

PARTS SALES VOLUME

AVERAGE WEEKLY SALES PER DEALER MEMBER CUSTOMER

ELECTRONIC ORDERING SALES BY MONTH

The following chart represents the sales volume NIADA members have spent with AutoZone in 2009 & 2010. In 2010, TOTAL SALES VOLUME WAS AT $17,111,506, AN INCREASE OF 33.84% OVER 2009. The data reinforces the success that AutoZone has had with their NIADA Partnership and suggests that more and more dealers are using parts, service and accessories as an additional profit center.

The following chart indicates that dealer member customers of AutoZone have been gradually increasing their weekly spend on AutoZone parts and accessories each month. As of the date of this analysis in February 2011, NIADA dealer members spent an average of $258 per week on parts.

Electronic Ordering of parts through the AutoZone portal has really taken off over the first three months of 2011. Dealer Members are encouraged to order online for an even quicker free delivery of their part via AutoZone’s Hot Shot Delivery Program, provided exclusively for NIADA Members.

198223245

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

250

300

200

150

100

50

0

200920102011

920,1281,148,1881,468,839


1,000,000

1,200,000

1,400,000

1,600,000

800,000

600,000

400,000

200,000

0

2009

2010

2011

vs Last Year

27.9% 1,016,0831,264,0751,551,164

22.7%1,079,6971,474,899

-

36.6%1,052,9721,436,655

-

36.4%967,799

1,358,253-

40.3%1,109,8421,470,216

-

32.5%1,136,0571,513,832

-

33.3%1,098,6031,568,093

-

42.7%1,121,9651,504,880

-

34.1%1,185,4431,488,533

-

25.6%1,019,8531,418,924

-

39.1%1,074,8521,462,948

-

217235258

224258

-

217233

-

200214

-

218234

-

226237

-

214247

-

220251

-

227247

-

205238

-

212249

-

023,41990,742


100,000

120,000

80,000

60,000

40,000

20,000

0

2009

2010

2011

vs Last Year

287.5%539

30,07479,357

163.9%19

45,848102,316

123.2%907

35,949-

3863.6%4,441

42,853-

865.0%7,456

53,446-

616.9%9,202

60,870-

561.5%10,87864,031

-

488.6%14,90469,332

-

365.2%21,19671,445

-

237.1%16,29973,193

-

349.1%17,66577,548

-

UCIR_2011.indd 34 5/25/11 3:27 PM


SECTION FIVE AUTOZONE/NIADAA U T O Z O N E / N I A D A P A R T S A N D S E R V I C E A N A L Y S I S • A U T O Z O N E / N I A D A P A R T S A N D S E R V I C E A N A L Y S I S • A U T O Z O N E / N I A D A P A R T S A N D S E R V I C E A N A L Y S I S • A U T O Z O N E / N I A D A P A R T S A N D S E R V I C E A N A L Y S I S

TOP 10 DEALER MEMBER PARTS VOLUME SALES

DEMOGRAPHICS OF A TOP 10 AUTOZONE/NIADA PARTS BUYER

Service Technicians

Online Orders

Service Bays

Average Weekly Parts Sales

Service Hours

Purchase Frequency (Weekly Basis)

PARTS SALES BY STATE

The chart to the right details combined monthly sales volume from the TOP 10 NIADA Dealer Members who purchased parts with AutoZone in 2010. Total parts purchases made by the TOP 10 dealers eclipsed $1,490,207. One can assume these Top 10 dealers have multiple service bays and do a majority of their parts, service and accessories work directly at the dealership. Below are the common demographic characteristics of these TOP 10 dealers to give you a comparison of their dealership operation to your own.

All Top 10 AutoZone Parts Dealers have service technicians on staff, and 50% have at least 3 or more service technicians.

50% of the Top 10 AutoZone Parts Dealers order their parts online.

All Top 10 AutoZone Parts Dealers have service bays, and 60% have at least three or more service bays.

The Top 10 AutoZone Parts Dealers purchase an average of $2,883 worth of parts weekly. (percentage breakdown is a percentage of the Top 10 Dealers above)

70% of the Top 10 AutoZone Parts Dealers have their service departments open for business on Saturdays.

The Top 10 AutoZone Parts Dealers place an average of 84 orders weekly. (percentage breakdown is a percentage of the Top 10 Dealers above)

Below are the states with the highest overall sales volume in 2010: Below are the states with the highest sales volume percentage increase from 2009 to 2010:1. TEXAS $2,343,160

2. GEORGIA $1,815,316

3. OHIO $1,434,356

4. NORTH CAROLINA $1,409,288

5. ARIZONA $871,011

6. PENNSYLVANIA $734,824

7. FLORIDA $689,891

8. OKLAHOMA $689,187

9. ALABAMA $670,577

10. VIRGINIA $669,840

1. NEW YORK +693%

2. MARYLAND +321.%

3. NEBRASKA +153%

4. NEW JERSEY +114%

5. WASHINGTON +109%

6. WEST VIRGINIA +101%

7. IDAHO +74%

8. ILLINOIS +71%

9. KANSAS +67%

10. MASSACHUSETTS +65%

2010 Top Ten Dealer Member Parts Sales Volume: $1,490,207


100,000

120,000

140,000

160,000

80,000

60,000

40,000

20,000

0

30%

70%

100%100%

50% 50%

$0-$1,000

0-50 orders

$1,001-$2,000

51-100 orders

$2,001-$3,000

101-150 orders

$3,001-$4,000

151-200 orders

$4,001-$5,000

40% 60%

30% 45%

20% 30%

10% 15%

0 0

10% 10% 10%

10%

60% 40%

20%

30%

10%

UCIR_2011.indd 35 5/25/11 3:27 PM


PARTS BY CATEGORY BREAKDOWN

CATEGORY DESCRIPTIONS

The pie chart below indicates the top “Categories” of parts purchased by NIADA Members in 2010. The bar chart to the right indicates total dealer member expenditures by Category in 2010. Below are the category descriptions for a more detailed description of each part included in that category.

SECTION FIVE AUTOZONE/NIADAA

UTO

ZO

NE/

NIA

DA

PA

RTS

AN

D S

ERV

ICE

AN

ALY

SIS

Parts and Service Analysis

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

0

BRAKE SYSTEMS

CHEMICALS COMMODITY & SEASONAL

MINOR REPAIR

P&P STARTING & CHARGING

TUNE UP& FUEL

UNDERCAR OUTSIDEBUYS

$2,862,786

$887,221

$2,093,097

$771,421$413,942

$4,196,473$3,918,076

$1,757,654

$555,260

Almost half of all auto

parts purchased by

NIADA were classified

in the “Starting

& Charging” and

“Tune-Up & Fuel”

categories. Batteries

were the number one

seller overall, with

over $1,288,156

in NIADA member

parts sales volume.

Brake system parts,

engine oil, and engine

management and

ignition parts were

among the other

highest volume sales

items purchased by

NIADA Members.

BRAKES: Rotors, pads, calipers, bearings and seals

COMMODITY & SEASONAL: Antifreeze, A/C chemicals, filters

CHEMICALS: Performance chemicals, wipers, wash and wax

MINOR REPAIR: Electrical, lighting, tire and wheel

P&P: Accessories, truck and towing, covers and mats

STARTING & CHARGING: Alternators, starters, batteries, cooling system

TUNE-UP & FUEL: A/C and heating, belts and hoses, fuel systems, engine

management

UNDERCAR: Chassis, drive train, exhaust, shocks and struts, steering

OUTSIDE BUYS: Parts, accessories, chemicals, etc., which AutoZone does

not regularly stock

25%STARTING

& CHARGING

23%TUNE UP & FUEL

16%BRAKE

SYSTEMS

12%COMMODITY & SEASONAL

10%UNDERCAR

5%CHEMICALS

4%MINOR REPAIR

3%OUTSIDE

BUYS

2%P&P

UCIR_2011.indd 36 5/25/11 3:27 PM

SECTION FIVE AUTOZONE/NIADA

UCIR_2011.indd 37 5/25/11 3:27 PM


OPN_MN | Independent Dealers

19% of your vehicles listed online last month had a vehicle history report run prior to you buying them.

1vehicle you listed online had a branded title.

8vehicles you listed online have an accident.

ACQUISITIONKnow before you buy

15 fewer days online for your vehicles listed with a CARFAX® Report.

31shoppers wanted the history of cars in your inventory, but it wasn’t available to them.

136times shoppers viewed CARFAX Reports for vehicles on your website and other sites such as cars.com and AutoTrader.com.

ADVERTISINGBuild consumer

confidence online

3vehicles listed online as of the 1st of the month had open recalls.

40%of your inventory is CARFAX 1-Owner®.

RETAILBuild confidence at the

deal table

©2011 CARFAX, Inc. All rights reserved.

* Analysis of online inventory, November 2010 – April 2011 DataApril 2011 Data

SECTION SIX CARFAX/NIADAC

AR

FAX

/NIA

DA

IND

EPEN

DEN

T D

EALE

RS

AN

D V

EHIC

LE H

ISTO

RY

CARFAX/NIADA INDEPENDENT DEALERS AND VEHICLE HISTORY • CARFAX/NIADA INDEPENDENT DEALERS AND VEHICLE HISTORY

Independent Dealers and Vehicle History

Build Consumer Confidence. Confident Consumers Buy Cars. Independent Dealers Sell More Cars.

Here’s a look at the average independent dealer’s inventory.* This snapshot, based on joint research by NIADA and CARFAX®, shows how vehicle history helps impact key areas of your used car business—from acquisition to retail.

CARFAX/NIADA INDEPENDENT DEALERS AND VEHICLE HISTORY

UCIR_2011.indd 38 5/25/11 3:28 PM


UCIR_2011.indd 39 5/25/11 3:28 PM


SECTION SEVEN AUTO TRANSPORT

For the first time this year, NIADA

brings you vehicle transport data,

courtesy of our National Member

Benefit Partner uShip. The following

charts provide valuable insight into the

transport logistics business, and will provide

dealers a great reference to compare

your current shipping distances and costs

to these national averages. The charts

included in this section were devised from

combining all of the all auto shipment

listings on uShip in calendar year 2010.

The destination chart at the top indicates

that shipped vehicles traveling to California,

Washington and Oregon have by far the

longest shipping distances to travel (of

course other than the obvious in Hawaii and

Alaska). Coinciding with the far West states,

the far Northeast section of the country also

had long destination shipping distances.

The mileage and shipping costs chart

indicates that 56 percent of all vehicles

shipped have destination mileages of 1,000

or less miles. This chart also indicated that 22

percent of all auto shipment listings on UShip

travel from 1,000-1,500 miles. Surprisingly

16 percent of all auto shipment listings on

uShip had mileage interval requests of 2,500

or more miles, but only 7 percent of actual

shipments in this same mileage category. This

would suggest that either dealers weren’t

wanting to pay the large costs associated

with shipments of such a long distance, or

that there aren’t enough transport carriers in

the marketplace that cater to these very high

shipping distances.

The last chart indicates a breakdown

of auto shipments by the model year. It is

no surprise that just over 70 percent of

all autos shipped through uShip are less

than ten years old. For more information

on auto transport through uShip, visit

www.uship.com/niada.

AU

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U S H I P A U T O T R A N S P O R T A N A L Y S I S • U S H I P A U T O T R A N S P O R T A N A L Y S I S • U S H I P A U T O T R A N S P O R T A N A L Y S I S

AUTO TRANSPORT ANALYSIS

Analysis

SHIPPING DEMAND BREAKDOWN BASED UPON DESTINATION

SHIPPING MILEAGE AND AVERAGE SHIPPING COST BREAKDOWN

SHIPPING BREAKDOWN BASED UPON MODEL YEAR

US REGION DESTINATION # OF AVG. LISTING LISTINGS AVG. SHIPMENT SHIPMENTS STATES DISTANCE % DISTANCE %

MILEAGE INTERVAL AVG. MATCH PRICE LISTINGS % SHIPMENTS USD$ %

YEAR % OF LISTINGS % OF SHIPMENTS

ME, MA, RI, NH, VT 5 1,648 3% 1,245 3%

VA, WV, PA, MD, DE, NY, CT, DC, NJ 9 1,273 18% 845 20%

NC, SC, GA, TN, AL, MS 6 1,147 11% 834 13%

FLORIDA 1 1,414 9% 1,132 9%

MN, MI, IN, IL, KY, OH, WI 7 1,148 14% 896 16%

NE, KS, MO, IA 4 1,066 4% 938 4%

TX, OK, AR, LA 4 1,249 11% 1,018 12%

NM, AZ 2 1,595 3% 1,309 3%

ID, WY, MT, ND, SD 5 1,470 2% 1,272 2%

WA, OR 2 1,993 5% 1,669 4%

CALIFORNIA 1 1,940 12% 1,500 12%

NV, UT, CO 3 1,495 4% 1,240 4%

HI, AK 2 3,319 2% 3,618 0%

0-250 MILES $245.30 6% 11%

251-500 MILES $384.00 10% 18%

501-750 MILES $525.16 10% 14%

751-1,000 MILES $622.81 10% 13%

1,001-1,500 MILES $727.80 22% 21%

1,501-2,000 MILES $893.56 12% 9%

2,001-2,500 MILES $1,023.37 13% 7%

2,501+ MILES $1,178.54 16% 7%

LOCAL $575.25 1% 0%

2010-2011 4.47% 4.34%

2000-2010 68.29% 66.03%

1990-1999 22.61% 23.56%

1980-1989 4.63% 6.07%

Watch where you want...

...when you want

DEALER EDUCATION 24/7 ONLY ON NIADA.TV

Sales • Operations • F&I • Remarketing • Compliance • Legal/Regulatory • Special Features • Industry Events

PLUS: Automotive Industry News & Special Monthly Programs

www.niada.tv

UCIR_2011.indd 40 5/25/11 3:28 PM

SECTION SEVEN AUTO TRANSPORT

Watch where you want...

...when you want

DEALER EDUCATION 24/7 ONLY ON NIADA.TV

Sales • Operations • F&I • Remarketing • Compliance • Legal/Regulatory • Special Features • Industry Events

PLUS: Automotive Industry News & Special Monthly Programs

www.niada.tv

UCIR_2011.indd 41 5/25/11 3:28 PM


SECTION EIGHT AUCTION PERSPECTIVES

NUMEROUS ECONOMIC INDICATORS ARE POINTING

TOWARD A POSITIVE 2011 & 2012

We began forecasting that the economic recovery would be an “upward-slanted W” more than 18 months ago, and that description remains valid. Recent events such as the Japanese earthquake and tsunami, Middle East unrest, European sovereign debt issues and domestic gas price spikes are clearly drags on the economy. However, numerous other economic indicators (most notably employment and new and used vehicle sales) are pointing positive for 2011 and 2012. We remain optimistic about economic progress this year and next, but recognize that there will be steps backwards along the way.

The total number of vehicles remarketed via NAAA-member auctions declined for the third consecutive year in 2010 as a result of fewer repossessions, program vehicles and off-lease units (the last of which will lose close to 300,000 units in both 2011 and 2012). Dealer consignment increased to 45 percent of auction volume in 2010, up from 39 percent in 2009 and 42 percent in 2008. Looking ahead, we anticipate auction volumes will increase as new and used vehicle sales rise and auctions employ operational efficiencies to provide new processes that support the changing needs of dealers

It is hard to imagine how dealers would have coped with rising used vehicle demand and restricted used vehicle supplies without the services of the auction industry. The ability to search and buy both in live auction and Buy Now formats expanded used vehicle showrooms and helped make a “just in time” inventory model possible for dealers struggling to find used inventory. Tight supply has driven used prices up, and many dealers who in the past may have bought from auctions by the truckload are turning to online channels to buy only what they need right away.

More than 20 percent of all Manheim volume was sold online in 2010. Manheim features more than 100,000 vehicles available for preview (more than 25,000 of which are available for sale) at any time via its online channels. Mobile is the next frontier for dealers and auctions, with apps becoming the norm and buying, selling and other auction services becoming more common via mobile devices.

In recent years, we have seen improved inspection reliability enhance buyer confidence (particularly online) and operational efficiencies decrease days to sale. Auction process investments are paying off for both buyers and sellers. As a result, the auction industry is in a strong position to take advantage of the economic rebound.

Although the economic recovery has been and will continue to be uneven, the “upward-slanted W” suggests more positive than negative. We encourage a job market focus on the “doughnut” (employment) rather than the “hole” (unemployment), as it is the employed who purchase new and used vehicles. Even modest job growth boosts customer confidence, which in turn drives more retail sales.

The availability of retail financing improved consistently throughout 2010 and the first part of 2011. So too, has wholesale inventory financing for used vehicle dealers. We don’t expect either trend to reverse over the next year.

Gas prices and international affairs will remain key variables impacting retail spending, but most data and forecasting suggest that the economic rebound should continue throughout 2011 and into 2012 – although not as steadily or as quickly as many would like.

Tom Webb is chief economist for Manheim Consulting. For more in-depth and ongoing industry updates, visit the Manheim Consulting blog at www.manheimconsulting.typepad.com or follow Tom on Twitter at www.twitter.com/TomWebb_Manheim.

INDEPENDENT DEALERS ENJOYING

ENCOURAGING GROWTH IN THEIR

RETAIL USED VEHICLE SALES!

Throughout much of 2010, the choppy nature of the economic recovery appeared to be generating more uncertainty than confidence. As a result, fears of a double-dip recession were prevalent. At this juncture, however, most of the economic indicators we track are tilted towards the positive and a return to recessionary conditions appears to have been averted. GDP growth rates accelerated from the second through the fourth quarter. The unemployment rate dropped considerably in 2010 through the addition of nearly one million jobs. Manufacturing continued to expand and has resulted in increased exports. Consumer and business spending grew at a solid clip. To be sure, the housing market remains depressed and fuel prices are on the rise, but the former is to be expected to correct for past excesses and the latter is a reflection of an improving global economy.

New vehicle sales began a rebound that can be expected to continue in 2011. Independent dealers enjoyed encouraging growth in their retail used vehicle sales after several years of declines. A more right-sized automotive industry has encouraged inventory and incentive discipline that benefits new vehicle resale values and sales. In addition to the growth in trade-in volume fostered by rising new vehicle sales, the past year also saw more lease originations and rental and commercial fleet sales, all of which could eventually help relieve the current tight vehicle supplies.

Wholesale used vehicle prices reached record levels in April and rose by almost four percent for the year. Although year-over-year price growth appears to be diminishing, prices are expected to follow typical seasonal patterns.

The Canadian economy saw a bit of a slowdown in its recovery as 2010 progressed, but to some degree this was expected as a result of a cooling housing market. Nevertheless, Canada appears to have avoided the need for the degree of correction in its housing market that was required in the U.S. and should enjoy faster growth rates as its exports improve, including those to the U.S. Wholesale used vehicle prices in Canada have risen as supplies have tightened, creating market conditions similar to those in the U.S.

Class 8 truck sales were up during all of 2010. Most classes of medium-duty truck sales were also up for the year. Growth in truck sales and truck tonnage are good “coincident” indicators, reflecting the improving economy.

The percentage of insurance claims that are declared total losses remains high. Miles driven will likely increase as the economic recovery continues. Salvage recovery values are benefiting from the strong wholesale used vehicle market.

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A U C T I O N P E R S P E C T I V E S • A U C T I O N P E R S P E C T I V E S • A U C T I O N P E R S P E C T I V E S • A U C T I O N P E R S P E C T I V E S

MANHEIM AUCTION PERSPECTIVE by Tom Webb

ADESA AUCTION PERSPECTIVE by Tom Kontos

By Tom Webb of Manheim and Tom Kontos of Adesa

UCIR_2011.indd 42 5/25/11 3:28 PM

WE SPEAK “DEALER” FLUENTLY

Whether you’re a buyer or a seller, we speak your language. We know that it’s all about service—before, during and after the sale. And our dedicated, experienced staff is ready to assist in every way.

Contact the Dealer Sales and Services team at your local ADESA auction, or visit us online at ADESA.com/sell.

© 2

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AD

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, IN

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UCIR_2011.indd 43 5/25/11 3:28 PM


SECTION NINE THE EFFECTIVE USE OF GPSTH

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T H E E F F E C T I V E U S E O F G P S I N T H E I N D U S T R Y • T H E E F F E C T I V E U S E O F G P S I N T H E I N D U S T R Y

in the Industry

The following data regarding dealer use and opinions of GPS and their effects on reduction of delinquency are detailed in this section. This brand new data is the result of a survey collected by Ken Shilson of The National Alliance of Buy Here, Pay Here Dealers (NABD) and was just released at the 2011 NABD Conference in May 2011. The data was collected from a survey of dealers in 30 states, and these dealers collectively have over 150,000 GPS/Starter Interrupt units deployed nationwide.

The dealers surveyed had very high regard and very positive and strong opinions about the effective use of GPS devices, as showcased in the very first chart. The second set of charts show the number of devices in use per dealer, and the length of time that dealers have been using GPS. It is assumed that those dealers who have been using GPS for 7+ years were mostly using starter interrupt devices prior to using the newer GPS technology.

The final set of pie charts and graphs at the bottom show the dealer’s cost savings with the use of GPS devices. It is clear from the survey that the decrease in the amount of delinquencies using GPS proves the high effectiveness of such devices.

“GPS devices more significantly reduce default rates, according to our study, but don’t seem to affect customer repayment behavior like CBS systems. GPS devices reduce bad debt losses by improving recoveries and reducing recovery costs. GPS devices also deter customers from ‘walking away from the deal’,” Shilson indicated.

“However, GPS technology is newer in usage to the industry so more data is needed to fully measure its impact on collections and recoveries. NABD also found that operators activate these devices differently in their application which impacts results. In summary, GPS devices seem to increase recoveries more than they impact delinquencies,” Shilson explained.

Special thanks to STARS GPS, NIADA’s exclusive National Corporate Partner of GPS Devices, for gathering and summarizing this data for our report. For more information about STARS GPS, and to get started using GPS devices in your dealership, visit www.statgps.com/contactus.asp.

THE EFFECTIVE USE OF GPS IN THE INDUSTRY

90%

60% 30%

50%

85%

50% 25%

80%

30% 15%

30%

75%

10% 5%

10%

20% 10%

20%

40% 20%

40%

70%

0% 0%

0%

CUSTOMER RESPONSE

TO PAYMENT REMINDER

87%

0-500

59%

0-2 YEARS

< 5%

28%

22%

DISABLE FEATURE AS A PROACTIVE

TOOL

80%

500-2,000

29%

2-4 YEARS

5-10%

29%

13%

REDUCES THE NUMBER OF COLLECTORS

NEEDED

77%

2,000-5,000

6%

5-7 YEARS

27%

I WOULD DECIDE AGAIN TO INSTALL

THEM ON ALL VEHICLES I SELL

78%

5,000+

5%

7+ YEARS

> 10%

18%

41%

I WOULD RECOMMEND

THESE DEVICES TO OTHER OPERATORS

88%

DEALER FACTS/OPINIONS TOWARD GPS DEVICES

DEALERS WITH DEVICES IN USE

COST SAVINGS WITH THE USE OF GPS

DEALERS LENGTH OF TIME USING GPS/STARTER INTERRUPT

GPS REDUCTION IN AVERAGE DELINQUENCIES

< $300

$301-$500

OVER$750

CAN’T MEASURE

$501-$750

UCIR_2011.indd 44 5/25/11 3:28 PM

w w w . n i a d a . c o m

SECTION NINE THE EFFECTIVE USE OF GPS

UCIR_2011.indd 45 5/25/11 3:28 PM


This spring, NIADA members will have access to a new mobile application tool from NIADA that will enhance their productivity and profitability and stay up to date on the latest developments impacting their dealership.

This new tool, NIADA Mobile Service, is accessible by Apple iPhones, Android-type phones and other select models. It puts at members’ fingertips a wealth of critical data to help them make better vehicle appraisal, purchase and retail sales decisions.

Now, members can access their subscriptions to appraisal services from NADA Guidebook, Kelley Blue Book, Black Book, and Galves Auto Price List. They also will access run lists from participating auctions. Furthermore, NIADA Mobile Service links them by smart phone to select content on NIADA.com.

Here’s how NIADA Mobile Service will streamline your operations:

On the lot or on line: More quickly appraise a vehicle, for customers at your lot or those selling online through sites such as Craigslist. Access your guide book vehicle appraisal service or a market report – or your subscription vehicle history report service – on the specific unit. Have at your fingertips the right current facts to pencil your best deal.

Buying from auction: You can access the auction’s pre-sale run list while at the auction or sitting in your office. You may view the inventory then, once you land on a unit you like, press on the appropriate smart phone icons to pop up auction-supplied information about the unit, its appraisal data, and a vehicle history report. Continual and timely updates ensure you have the freshest available data.

During a moment of downtime: Activity suddenly slows its hectic pace for a few minutes, so you use the time to access the NIADA website. There you check some key association information or watch a NIADA.TV video you’d put off. The service also alerts you to urgent messages that might require immediate action.

Designed for NIADANIADA Mobile Service was developed

by leading automotive mobile applications developer and NIADA technology partner and advisor GigglePop.com Inc. The company is importing NIADA web content and coupling it with existing GigglePop software mobile applications. GigglePop’s technology is known

for speed, accuracy and, of course, mobility. Its fat-finger icon or button designs are a special value when searching for key information when working in distracting environments like auctions. These large icon designs help users easily find and stroke with their fingers the right icons or buttons they want, reducing keystroking errors. As NIADA’s technical partner, GigglePop will continue to support Mobile Service and be an industry liaison for NIADA Mobile.

Accessible subscription guidebook data and features through Mobile Service include:s Customizable software settingss All guidebook regions or states include s VIN look-up decoders Stores booked vehicles, recall in an instants Enter personal notes on booked vehicless Lists and sorts appraised vehicless Re-values saved vehicles with each new updates Automatically updates wirelesslys Barcode scanning capability s Seamless integration with all GigglePop

valuation tools, including vehicle history report subscription services and auction run lists

s SmartBid Market Report s Large easy-to-read fonts

NIADA Mobile Service also makes your day at the auction simple, easy and productive. Accessible auction run list data from participating auctions includes:s Search by lane or run number to view

auction vehicle datas Barcode scanning capability s Continual auction run list updates even

while auction is in progresss View those late arrivalss Save target vehicle data for future references Enter personal notes and bid pricing on

specific vehicle recordss Lists and sorts saved target vehicless Seamless integration with all GigglePop

valuation tools, including Guide Books, Vehicle History and participating Market Reports

In addition to providing mobile access to these key services, NIADA Mobile Service also connects members to select NIADA content on the NIADA site. Wherever you are, you can stay on top of moving legislative decisions, regulatory compliance issues, new NIADA member services and educational programs.

Especially in today’s market, still recovering from the recession, this mobile service will help members operate more profitably. It puts at hand the insight needed to buy and sell more profitably and keep abreast of industry news and events influencing the used vehicle retail market. The more competitive dealers today are clearly adapting to our changing industry by using mobile technologies and solutions to help them better manage their used vehicle operations, inventories, vehicle sourcing and retail sales processes.

D E L I V E R S T A N G I B L E M E M B E R B E N E F I T S

Members’ use of the NIADA Mobile Service tool will help them:s Identify quality, retail-ready inventory: Mobile

accessibility to auction inventory as well as vehicle valuation guides can help dealers meet challenges presented by the economic fallout from the last three years’ depressed vehicle sales, drop in leasing activity and reduced stream of fleet rentals into the remarketing stream.

s Source the right-priced vehicle for the customer: Reduced levels of wholesale units flowing into remarketing channels have made it more difficult to source and match the right vehicle to customers’ ability to pay. NIADA Mobile Service helps dealers locate those vehicles at an acquisition price the customer can afford and finance, while providing enhanced profit for the dealer.

Often spread thin by needing to be in the office, on the lot and at the auction seemingly simultaneously, the independent used auto dealer must use time and resources wisely. By adding this new Mobile Service tool to the NIADA portfolio of member services, the association helps its members access critical association information and related vehicle valuation, history reports and auction run list services right from their smart phone.

As market needs continue to change and dealers seek new ways to remain competitive, like purchasing inventory outside their local market areas and using web-based competitive vehicle analysis and pricing tools, GigglePop and NIADA will continue to enhance Mobile Service to help dealers make the most informed and profitable business decisions.

BY SCOTT LILJA, VICE PRESIDENT, NIADA MEMBER SERVICES

N E W N I A D A M O B I L E S E R V I C EF O R S M A R T P H O N E S P U T S K E Y A P P R A I S A L D A T A , M E M B E R N E W S A T Y O U R F I N G E R T I P S

the NEXT generation of NIADA

try NIADA’S new MOBILE APP

ACCESS GUIDEBOOK VEHICLE APPRAISAL SERVICES • GET INSTANT VEHICLE HISTORY REPORTS • ACCESS AUCTION PRE SALE RUN LISTS NATIONWIDE • STAY INFORMED WITH NIADA EVENTS & PROGRAMS

Get Started with NIADA’s Mobile App Today! For Details & Instructions Visit: http://niada.gigglepop.com or Call 1-855-MY-NIADA (855.696.4232)

UCIR_2011.indd 46 5/25/11 3:28 PM

the NEXT generation of NIADA

try NIADA’S new MOBILE APP

ACCESS GUIDEBOOK VEHICLE APPRAISAL SERVICES • GET INSTANT VEHICLE HISTORY REPORTS • ACCESS AUCTION PRE SALE RUN LISTS NATIONWIDE • STAY INFORMED WITH NIADA EVENTS & PROGRAMS

Get Started with NIADA’s Mobile App Today! For Details & Instructions Visit: http://niada.gigglepop.com or Call 1-855-MY-NIADA (855.696.4232)

UCIR_2011.indd 47 5/25/11 3:28 PM


SECTION TEN NIADA MEMBERSHIP SURVEY

NIADA NEEDS YOUR DATA!!! SO HELP US HELP YOU!!! YOU’VE NOW REACHED THE BACK OF THIS REPORT, MEANING YOU JUST CAN’T GET ENOUGH DATA.

If you are like most of our dealer members, this data is extremely important in comparing your dealership to nationwide industry standards. Please assist us in providing the most comprehensive and accurate dealership statistics by taking just five minutes to

complete and fax back this NIADA Membership Survey to 817-649-5866

FREE NADA GUIDEBOOK SUBSCRIPTION OR NIADA ACCOUNTING MANUALS The NIADA membership data is based on results from this survey. Your dealership demographic is important to us. We use the results from this

survey to gather statistics for the NIADA Used Car IndustryReport. The results will allow us to show trends in the industry over the past few years.

YOUR EFFORTS WILL NOT GO UNNOTICED.BY COMPLETING THIS SURVEY, YOUR NAME WILL BE ENTERED INTO A DRAWING TO

RECEIVE ONE OF THESE ITEMS FOR FREE• NADA GUIDEBOOK SUBSCRIPTION (1 year, $90 value) OR

• NIADA STANDARDIZED ACCOUNTING MANUALS on CD ($125 value)

Please assist us in providing the most comprehensive and accurate dealership statistics by taking just five minutes to complete and fax back this NIADA Membership Survey to 817-649-5866.

All surveys must be completed and mailed or faxed back to us by December 31, 2011 to be eligible for the drawing. The survey can also be filled out online at www.niada.com.

BY COMPLETING THIS SURVEY, YOU ALSO AUTOMATICALLY QUALIFY FOR A DRAWING FOR

TWO COMPLIMENTARY REGISTRATIONS TO THE

2012 NIADA CONVENTION & EXPO, TO BE HELD AT THE CAESARS PALACE IN

LAS VEGAS, NEVADA ON JUNE 17-21, 2012.

NIA

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UCIR_2011.indd 48 5/25/11 3:28 PM


SECTION TEN NIADA MEMBERSHIP SURVEY

1. What is the nature of your business? (check all that apply)

� Retail � BHPH �Wholesale � Rental �Leasing

� Service Dept � Parts Dept � Body Shop

� Other

2. How long has your business been in operation?

3. How many vehicles do you sell per year?

Retail: Wholesale:

4. What is the monthly average total number of vehicles in your

inventory?

5. What type of vehicles do you sell? (check all that apply)

� Cars � Trucks � Heavy-duty vehicles

� Power Sports vehicles � RV’s

6. What is the average retail price of most of the vehicles you

sell?

7. How many employees do you have (including yourself)?

8. Which of the following mediums, do you spend your advertising dollars? (check all that apply) � TV � Newspaper

� Radio � Magazines � Specialty pubs � Online � Other

9. What percentage of your retail sales are to women buyers?

10. Do you have a website for your dealership? � Yes � No

11. How do you use internet access at your dealership? (check all that apply) � Dealership Website � E-mail/Communication

� Industry Research � NIADA.TV � Online Buying/Selling

� Online Auctions � Online Financing � Other

12. How do you finance/floorplan your inventory? � Banks

� Auction floorplanning � Cash � Other

13. How do you finance vehicles for your customers? � BH-PH

� Finance companies � Banks � Other

14. How old are most of the vehicles you sell? � 1-2 yrs old

� 3-5 yrs old � More than 6yrs old

15. Where do you buy your vehicles? (check all that apply)

� Wholesale auctions � Other dealers � Online

� Other

DEALER MEMBER QUESTIONNAIRE 2012 This survey is being used to gather statistical information from NIADA dealers for our 2012 Annual Used Car Industry Report. Please take a moment to complete the information in this questionnaire and fax to us at 817-649-5866. This information is proprietary and will not be seen by anyone outside of NIADA. Thank You.

Dealer name Company name

E-mail address* City & state * Certain NIADA Member Benefits are delivered via email and by providing your email address, you are consenting to and giving NIADA, it's subsidiaries and affiliates, your permission to contact you at this address.

16. How do you wholesale your vehicles? � Wholesale auctions

� Other dealers � Online � Other

17. How often does your dealership attend auctions per month?

� None � 1-4 times per � 5-7 times � 8 or more times

18. Do you have multiple locations? � Yes � No

If yes, how many locations?

19. If you have a body shop, parts and/or service dept. on site, how

many service bays do you operate?

20. Do you have a rental car operation? � Yes � No

If yes, please check: � Franchise or � Independent

21. What is the square footage of your dealership? � Up to 10,000

� 10,001 – 25,000 � 25,001 – 50,000 � 50,001+

22. Do you sell warranties and/or service contracts? � Yes � No

If yes, how many on average do you sell per month?

23. Do you have outside lighting? � Yes � No

24. Do you have outside fencing? � Yes � No

25. Do you have a paved lot? � Yes � No

26. Is 100% of your inventory insured? � Yes � No

27. Do you have an indoor showroom? � Yes � No

28. Do you use payment protection devices? � Yes � No

29. Do you have a separate F&I department? � Yes � No

30. Do you sell aftermarket products to customers? � Yes � No

31. Do you do your own reconditioning and detailing work? � Yes � No

32. Do you carry workers compensation? � Yes � No

33. Do you carry commercial insurance on your building? � Yes � No

THANK YOU! ucd

Your efforts will not go unnoticed… By filling out this survey and returning it to us by February 29, 2012, your name will be entered into a drawing to receive one of these items, FREE!

NADA NIADA’s Standardized Guidebook Subscription Accounting Manuals on CD

1Yr ($90.00 value) ($125.00 value)

Mail to: NIADA, 2521 Brown Blvd., Arlington, TX 76006 Fax to: 817-649-5866

UCIR_2011.indd 49 5/25/11 3:28 PM

UCIR_2011.indd 50 5/25/11 3:28 PM

UCIR_2011.indd 51 5/25/11 3:28 PM

78756_AT_AT1-539.inddSarah Wilde / Krystal Carter4-21-2011 3:53 PM swilde_G5_08710

ClientJob #Prefi xTrimBleedLiveLine ScreenProduct CodeUnitCaption

AUTOTRADER.COM11-02050-003787569” x 8.5”9.25” x 8.625”8.5” x 8”300 dpi006 - TRADE ADVERTISINGMagazineThere’s no way I could...

Job infoPrint ProducerAccount MgrArt DirectorCopywriterTraffi cArt ProducerScaleProof #

Prepared by:Southfi eld, MI • 248.354.9700

Hodge, BrentDiCicco, JaclynCooke, MarkHutson, BryanWise, KrystalFrey, KarenNone3

ApprovalsFonts:Helvetica (Medium), News Gothic BT (Bold Extra Condensed, Condensed), Adobe Garamond (Regular, Bold)

Link Name: AT_10_060_RM_4Cswop_rev.tif (CMYK; 400 ppi; 100%), AT_08_WWFY_pos_4C.eps, AT_09_Ult_com_Orange_4C.eps

Used Swatches: Cyan, Magenta, Yellow, Black

100%bySaved at: From: Printed AtFonts

AT1-539 (Use Car Dealer Back cover)

Jeff RavlinAdvertising ConsultantAutoTrader.com

“THERE’S NO WAY I COULD REACH THE CUSTOMERS I DO WITHOUT AUTOTRADER.COM. THEY PUT US ON THE MAP.”

Joe MalletteOwner–American Auto Brokers

San Antonio, TX

©2011 AutoTrader.com, Inc. All Rights Reserved. “AutoTrader.com” is a registered trademark of TPI Holdings, Inc. used under exclusive license.

“When it comes to shoppers, our net casts far and wide,

and there is no way I could reach those customers without

AutoTrader.com. With their Premium listings, and most

recently, video, we have seen a tremendous spike in business.

Bottom line is without AutoTrader.com, we would struggle.”

To hear Joe’s inspiring story, visit WeWorkForYou.com/Joe.

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NIADA USED CAR INDUSTRY REPORT 1 - NIADA ......dealer sales of used cars over the last few months is...

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