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Experian Public.
Traveling the open road:
Discovering the trends that are shaping
the automotive remarketing industry
Melinda Zabritski | Experian Automotive

2. 2©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
 What’s on the road today
 What’s being registered and
in demand
 How are consumers financing
 The return of the leasing market
 What’s being leased
 What’s coming off lease
Discussion points

3. 3©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Vehicles in
Operation
March 31, 2013
247.4M
Used Vehicle
Sales (37.6M)
Scrapped
Vehicles
(12.3M)
Vehicle Changes over 12 months: 26.9M (11%)
(scrapped + new sales)
Vehicle Movements: 76.3M (31.1%)
(used sales + address changes)
Vehicles in
Operation
March 31, 2012
245.1M
What’s on the road today
Source: Experian Automotive

4. 4©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
14.87%
11.88%
9.14%
8.28%
5.66%
5.59%
5.29%
5.00%
4.44%
3.89%
3.45%
3.06%
3.01%
2.72%
2.70%
2.14%
1.71%
1.55%
1.38%
1.02%
Pickup - Full Sized
Mid Range Car - Standard
Small Car - Economy
Mid Range Car - Lower
SUV - Lower Mid Range
Van - Mini
Pickup - Small
CUV - Entry Level
Mid Range Car - Premium
Upscale - Near Luxury
SUV - Large
CUV - Mid Range
SUV - Entry Level
Sport Car - Touring
Upscale - Luxury
Van - Full Sized
CUV - Premium
Traditional Car
Small Car - Budget
Sport Car - Premium
Top 20 segments on the road
96.8% of all vehicles
Source: Experian Automotive

5. 5©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
7.3 7.6 7.7 7.8 7.7
10.0
10.3 10.6 10.8 10.9
0
2
4
6
8
10
12
Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013
Rolling 15 MY Avg Age All
Average age of vehicles on the road today
Source: Experian Automotive

6. 6©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
0
2
4
6
8
10
12
14
16
2014
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
1978
1976
1974
1972
1970
1968
Millions VIO by model year
Source: Experian Automotive
50.9% of all VIO is
MY2008-2000

7. 7©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
11.53 12.75 14.33
7.82
37.00 37.61 37.95
20.58
0
10
20
30
40
50
60
2010 2011 2012 YTD 2013
Millions
Total vehicle registrations
New Used
Market growth in light truck & passenger cars
Source: Experian Automotive

8. 8©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
$702
$712
$667
$636
$647
$682
$751
$560
$580
$600
$620
$640
$660
$680
$700
$720
$740
$760
Q2 2007 Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013
Billions
Total outstanding loan balance
Growth in lending balances
Source: Experian Automotive

9. 9©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
1.88% 1.97%
2.23%
2.59% 2.66%
2.52%
1.71%
0.86%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
2006 2007 2008 2009 2010 2011 2012 YTD
2013
Annual repossession rate
Turnover due to repossessions
Source: Experian Automotive

10. 10©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
What new segments are consumers purchasing?
11.8%
11.8%
11.8%
10.5%
10.2%
5.8%
3.8%
3.7%
3.6%
3.4%
3.3%
3.2%
3.1%
2.8%
2.3%
1.7%
1.7%
1.6%
1.4%
1.1%
Pickup - Full Sized
Small Car - Economy
CUV - Entry Level
Mid Range Car - Standard
Mid Range Car - Lower
CUV - Mid Range
Van - Mini
SUV - Lower Mid Range
Alt Power - Hybrid Car
Upscale - Near Luxury
CUV - Premium
Mid Range Car - Premium
Small Car - Budget
SUV - Entry Level
Sport Car - Touring
SUV - Large
Van - Full Sized
Pickup - Small
Upscale - Luxury
SUV - Premium Large
Growth since 2010
Small Car-Budget ↑ 95%
CUV Entry Level ↑ 66%
SUV Lower Mid ↑ 197%
Hybrid ↑ 145%
Source: Experian Automotive

11. 11©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
101%
72%
65%
46%
41%
38%
34%
24%
17% 17%
0
50
100
150
200
250
300
350
400
450
500
0%
20%
40%
60%
80%
100%
120%
Alt Power
- Hybrid
Car
CUV -
Entry
Level
CUV - Mid
Range
CUV -
Premium
Small Car
- Budget
Upscale -
Ultra
Sport Car
- Ultra
Luxury
SUV -
Premium
Large
Sport Car
- Premium
Upscale -
Near
Luxury
Thousands
Growth 2010 - 2013 Q2 13 registrations
Top demand used vehicle segments
Source: Experian Automotive

12. 12©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Used segments with declining demand
-12%
-10%
-8%
-6%
-4%
-2%
0%
Upscale -
Luxury
Sport Car -
Upper
Premium
SUV -
Lower Mid
Range
Traditional
Car
Van - Mini Pickup -
Small
Van - Full
Sized
306k
26k
548k 190k
505k
494k 195k
Source: Experian Automotive

13. 13©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Used vehicle sales by model year (H1 2013)

14. 14©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
$456
$446
$458 $458 $456 $459
$343
$332
$344 $347 $349 $349
$200
$250
$300
$350
$400
$450
$500
$10
$12
$14
$16
$18
$20
$22
$24
$26
$28
2008 2009 2010 2011 2012 YTD 2013
Thousands
Average new finance amount Average used finance amount
Average new payment Average used payment
Shifts in consumer financing
Source: Experian Automotive

15. 15©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
63
62
63 63
64
65
59
57
58
59
60 60
52
54
56
58
60
62
64
66
2008 2009 2010 2011 2012 YTD 2013
New term Used term
Average terms on new and used financing
Source: Experian Automotive

16. 16©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
46
69.8 68.1 66.2
0
10
20
30
40
50
60
70
80
2004 2009 2011 2012
Vehicles purchased new
36.7
50.7
46.8
0
10
20
30
40
50
60
70
80
2004 2009 2011
Vehicles purchased used
Average length of ownership
16
Source: Experian Automotive

17. 17©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
23.02%
24.14% 24.40%
17.68%
23.79% 23.62% 24.40%
27.64%
0%
5%
10%
15%
20%
25%
30%
Q2 2006 Q2 2007 Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013
New lease share of the new finance market
Return of the leasing market
Average new lease payment $414
Average new lease term 35 months
Source: Experian Automotive

18. 18©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Which states have highest share of new leasing
Source: Experian Automotive

19. 19©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
12.5%
11.6%
11.4%
9.5%
8.7%
6.9%
6.4%
4.3%
4.2%
3.8%
3.4%
3.2%
2.7%
2.0%
1.7%
1.5%
1.1%
0.8%
0.7%
0.7%
MID RANGE CAR - STANDARD
CUV - ENTRY LEVEL
MID RANGE CAR - LOWER
UPSCALE - NEAR LUXURY
SMALL CAR - ECONOMY
CUV - MID RANGE
CUV - PREMIUM
SUV - LOWER MID RANGE
UPSCALE - LUXURY
MID RANGE CAR - PREMIUM
PICKUP - FULL SIZED
ALT POWER - HYBRID CAR
VAN - MINI
SUV - PREMIUM LARGE
SMALL CAR - BUDGET
SUV - ENTRY LEVEL
SPORT CAR - TOURING
SPORT CAR - PREMIUM
UPSCALE - PREMIUM
PICKUP - SMALL
Top leased new segments in 2013
Source: Experian Automotive

20. 20©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
3.7%
3.1% 3.0%
2.5%
2.3%
2.2% 2.1% 2.0% 2.0% 2.0%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
Top leased new models by share of market
Source: Experian Automotive

21. 21©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
0
5
10
15
20
25
30
35
40
45
Thousands
ACCORD CIVIC CAMRY ALTIMA CR-V
Top 5 leased vehicles coming due
129k 318K
Source: Experian Automotive

22. 22©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
703
654
690 691
745
600
620
640
660
680
700
720
740
760
ACCORD ALTIMA CAMRY CIVIC CR-V
Average credit scores on consumers financing
MY2010 vehicles in H1 2013
What do these buyers look like?

23. 23©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
$330
$339
$323
$291
$340
$275
$285
$295
$305
$315
$325
$335
$345
$5,000
$7,000
$9,000
$11,000
$13,000
$15,000
$17,000
$19,000
$21,000
ACCORD ALTIMA CAMRY CIVIC CR-V
Amount financed Monthly payment
Financing on MY2010 vehicles in H1 2013
Source: Experian Automotive

24. 24©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
In summary
 Strong industry with continued growth as
sales/registrations increase and vehicles
last longer
 Healthy finance market with low charge-
offs and increased balances
 Low sales/registrations of 2009 will
continue to plague market with inventory
shortages for the next 24+ months
 Growth is occurring in the lower level
economy & budget class vehicles
 As vehicle prices/amount finance
increases monthly payment remain flat
with increased term and low rates

25. 25©2013 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
© 2012 Experian Information Solutions, Inc. All rights reserved.
Experian Public.