2013 Purchase Path Study: Last Gasp for Print Mags...2013 Purchase Path Study: Last Gasp for Print Mags With a few rare exceptions, new-car shoppers have turned their backs on print

2013 Purchase Path Study: Last Gasp for Print Mags With a few rare exceptions,

new-car shoppers have turned

their backs on print versions of

consumer general interest

magazines in large and

perhaps fatal numbers.

According to the latest CNW

Research Purchase Path

Study, only 3.5 percent of new-

car intenders used a print

2.25.13

Jitters Index

0.56%

edition of a consumer magazine to assist in the selection of a new

car or truck. That’s a nearly 60 percent drop from just the year

before and only a fraction of the number in the pre-recession

Purchase Path study.

And It’s Even Worse

The bad news doesn’t stop at that. Of those who did use a print

edition of a consumer magazine as their primary source of auto info

before buying a car or truck, the vast majority – better than 80

percent – said the information gleaned from print mag advertising

was only moderately helpful. In past Purchase Path studies, a

majority historically said such ads were “Extremely” or “Very”

helpful.

While a large percentage of magazine readers are now visiting

consumer mag websites, the large increase over 2011 was not

enough to offset the print-version decline. Overall, consumer

magazine ads slipped 21 percent.

Specialty print magazines ranging from Classic Boats to

Woodworking continue to see strong advertising support among

new-car intenders, but even those are slipping, according to the

Wave 14 Purchase Path study. (continued next page)

SAMPLE: PRIMARY SOURCE AUTO INFO cy11 cy12 Percent

Average All

Stages

Average All

Stages Change

TV Ad 8.67% 7.49% -13.61%

Network (NBC, CBS, ABC, Fox) 5.72% 3.15% -44.88%

Cable 2.95% 4.34% 47.04%

Use Mobile 16.28%

Consumer Mag Ads 9.33% 7.38% -20.88%

Print 8.32% 3.46% -58.40%

Online 1.01% 3.92% 287.31%

Use Mobile 13.47%

Friend/Relative 8.36% 9.29% 11.11%

Use Mobile 42.95%

Business Assoc. 4.61% 3.82% -17.03%

Use Mobile 15.25%

Dealer Brochure 0.50% 0.37% -26.57%

Use Mobile 2.02%

Consumer Reports 9.83% 10.26% 4.29%

Print 6.91% 4.77% -31.02%

Online 2.92% 5.49% 87.82%

Use Mobile 33.64%

Local Newspaper Advertising 8.75% 7.66% -12.44%

Print 3.56% 2.66% -25.41%

Online 5.19% 5.00% -3.53%

Use Mobile 12.48%

(continued from previous page)

Bucking the trend and remaining king of the auto-info hill is Consumer

Reports which had a 4 percent overall gain in Primary Source readers

even though the shift from print to online is at work here, as well.

Showing the way of successfully switching readers from print to online

are automotive magazines. While print Auto Mag ads were down 28

percent as a primary source, the online variant was up 57.4 percent for

an overall increase of nearly 11 percent. More interactive online articles

along with online-directed print promotions are working.

TV Nets Take a Hit

The network advertising as a primary source of information also took

a significant hit in the latest study, falling 45 percent vs. the previous

year. And while “cable” networks ranging from the History Channel to

Speed Channel saw a significant 47 percent increase, it wasn’t enough to

keep the overall TV Ad numbers from dipping 13.6 percent.

Automaker, Dealer, 3rd Party Sites Up

Going straight to the horses mouth seems to be one adage new-

vehicle shoppers are heeding.

Automaker websites were up 4.8 percent; dealer sites, up 3.75

percent and third-party sites such as Edmunds, up 8.7 percent.

Supporting those increases are consumers using mobile electronic

devices to collect new-car data. For example, of those consumer who

used a manufacturer website as a primary source of information, a full

third did so using a mobile device.

CONTEXT: At difference stages in the purchase funnel, print still is a

viable way to go. For example, newspaper ads remain the go-to source

of local pricing information among consumers. Depending on budget and

message, print magazines have a role in the buying process. But that

role is diminishing.

Print versions of general interest consumer magazines are near

death. TV ads are struggling to hold on and an increasing share of auto

info is being sought on a mobile device. While those have been the

predictions for a number of years, this is complete validation of the

theory. In effect, 2012 was the actual turning point in buyer attitudes.

Page 2… CNW Research: Retail Automotive Summary

cy11 cy12 Percent

Average All

Stages

Average All

Stages Change

Auto Article (any source) 4.87% 5.01% 2.85% Use Mobile 22.62%

Radio Ad 1.49% 1.52% 2.11% Use Mobile 32.99%

Manufacturer Websites 8.18% 8.57% 4.82% Use Mobile 33.04%

Dealer Sites 3.59% 3.72% 3.75% Use Mobile 14.67%

Other Online Sites (3rd Party --

Edmonds, Portals, Branded) 9.86% 10.72% 8.73% Use Mobile 22.93%

Online Advertising 1.48% 1.61% 8.79% Use Mobile 5.51%

Auto Show 1.24% 1.32% 6.92% Use Mobile 8.58%

Auto Mag Ad 1.82% 2.02% 10.96%

Print 1.00% 0.72% -27.69%

Online 0.83% 1.30% 57.41% Use Mobile 43.71%

Auto Buyers' Guide 4.62% 4.78% 3.49%

Print 2.29% 1.72% -24.92%


Special Events 3.09% 2.85% -7.64% Use Mobile 2.24%

National Newspaper Advertising 0.34% 0.30% -12.66%

Print 0.11% 0.06% -49.37%


Social Sites 3.62% 4.39% 21.20% Use Mobile 65.65%

Other 5.76% 6.92% 20.11% 100.00% 100.00%

For a complete breakdown of Primary Information Sources including the by-stage data, see PurchasePathOnline.com

3.16% 13.0% 0.7%


Closing Ratio Closing Ratio

4.38%

February Not So Hot, but One Less Selling Day Doesn’t Appear to Thwart Some Gains

It could well be a “wash” compared to February of 2012 – a Leap Year – with total sales slightly ahead of last February, perhaps hitting a 14.9

to 15.2 million True Delivery Rate.

Same store sales, through the 20th of February, are up around 3 percent on a 0.7 percent gain in floor traffic. Closing ratios are up about 4.4

percent. None of those numbers are particularly stellar, but still in positive ground.

Floor Traffic Missing ‘Lookers’

The gain in same-store sales even with the small increase in Floor Traffic can be traced to the number of people who simply aren’t window

shopping cars and trucks. The Floor Traffic number is made up of people who actually are planning to buy a vehicle within 30 days. That’s

significant in two ways:

1. Shoppers who are ready to buy typically represent only a quarter to a third of floor traffic. The rest are shopping and making comparisons

between their top three or four choices of potential acquisitions.

2. This decline in “lookers” is a bad sign for sales in two to three months. Most of these early comparison shoppers return to market as buyers

at some point a few months down the line. Buying patterns are fed by these early shoppers.

These points are clearly seen in the Pent Up Demand stats for the first 20 days of February. Of those who are delaying a purchase, 94.6

percent say they still plan to make a new-car acquisition – that’s down from January 95.4 percent and Decembers 95.5 percent. The average

delay in that acquisition jumped from 3.5 months in January to nearly 4 months in February and higher than the same month a year ago.

41.00% CONTEXT: Blip or Trend? We lean toward this being a blip rather than the beginning of a trend. Concerns

about government shutdowns, rising fuel and food prices and taxes are a drag on the industry hitting 16 million

units, but not enough of a drag on the industry to keep it from hitting 15.2 million in 2013.

Sub-Prime Approval

34.6% Doc 140m Pent Up Dmnd Pent Up Dmnd 12 v 11 Avg. Delay Avg. Delay

Mo. '13 Mo. '12 Change Mo. '13 Mo. '12 % Change Still Plan Acq

Jan '13 94,250 106,300 88.7% 3.52 3.92 -10.2% 95.37%

Feb 118,250 109,500 108.0% 3.97 3.87 2.6% 94.62%


Import vs. Detroit 3 Intenders’ Confidence Meld

JITTERS INDEX

Fed Gas Child’s Job Day to Day Condition of Food Local Jitters

Taxes Prices Edu Stability Needs Investments Prices Taxes Index

Vs Previous Mo. 0.20% 3.04% -0.46% 0.52% 0.27% -1.28% 1.13% 0.10% 0.56%

Vs Mo. ‘12 6.64% 4.70% -16.02% -5.39% 2.72% -4.95% 5.81% 0.51% 0.94%

CNW’s ongoing Confidence Index once showed Import Intenders to be far more upbeat

than their Big Three intender counterparts. In January, ’08, for example, the Index had

import intenders at nearly 154 (with 1986 equal to 100) while Detroit Three intenders

were in the 130 range. That was a variance of nearly 18 percent.

In January of this year, however, Import Intenders and Detroit Three intenders were

virtually the same with a variance of less than 1 percent.

Variance Gap Swings In Both Directions

While there are a series of economic, personal, educational and political reasons for

the differences between import and Detroit intenders, such as slightly higher education

levels for import intenders, more stable jobs and somewhat higher incomes, Mr. Obama

Confidence Import Domestic Variance

January '08 142.81 153.79 130.64 17.72%

February 134.56 144.35 120.36 19.93%

March 122.09 123.78 120.22 2.96%

April 126.81 125.77 127.94 -1.70%

May 126.83 126.41 127.62 -0.95%

June 121.34 124.81 118.34 5.47%

July 117.68 121.37 114.79 5.73%

August 119.59 113.24 120.81 -6.27%

September 120.28 112.87 121.16 -6.84%

October 111.03 118.74 102.56 15.78%

November 109.66 117.24 101.37 15.66%

December 103.29 117.69 90.14 30.56%

January '09 101.53 115.35 88.73 30.00%

February 98.38 111.26 87.49 27.17%

March 102.54 114.78 83.48 37.49%

April 103.67 114.82 84.15 36.45%

May 106.26 114.58 86.29 32.78%

June 102.43 109.63 82.68 32.60%

July 104.84 102.03 80.69 26.45%

August 101.01 102.19 89.43 14.27%

September 97.48 98.61 86.34 14.21%

October 96.05 95.13 96.22 -1.13%

November 93.11 92.69 93.58 -0.95%

December 97.26 95.81 98.83 -3.06%

January '10 98.53 95.92 99.73 -3.82%

February 95.34 97.67 92.17 5.97%

March 97.67 100.03 93.81 6.63%

April 98.02 100.06 94.62 5.75%

May 97.45 98.34 95.17 3.33%

June 93.17 94.01 92.25 1.91%

July 93.22 92.14 93.74 -1.71%

August 90.48 89.13 90.9 -1.95%

September 86.15 85.32 86.71 -1.60%

October 84.72 83.35 86.81 -3.99%

November 87.92 85.11 89.92 -5.35%

December 88.17 88.02 88.93 -1.02%

January '11 88.23 87.41 89.62 -2.47%

February 88.76 87.04 89.96 -3.25%

March 89.84 87.09 90.93 -4.22%

April 85.82 83.59 84.76 -1.38%

May 84.07 83.66 84.57 -1.08%

June 82.58 81.34 83.77 -2.90%

July 79.41 81.22 78.62 3.31%

August 77.24 78.07 76.21 2.44%

September 74.29 75.61 73.18 3.32%

October 72.51 74.62 70.47 5.89%

November 79.46 79.22 79.9 -0.85%

December 81.27 80.34 81.96 -1.98%

Confid. Import Domestic Variance

Jan '12 82.64 81.49 83.01 -1.83%

Feb 83.14 81.87 82.56 -0.84%

Mar 83.22 81.72 82.83 -1.34%

Apr 82.45 81.97 83.04 -1.29%

May 79.46 77.16 80.32 -3.93%

June 78.91 79.44 77.15 2.97%

July 76.28 75.18 76.39 -1.58%

August 74.47 74.27 74.51 -0.3%

September 73.69 73.12 74.81 -2.3%

October 73.95 73.29 75.68 -3.2%

November 74.18 74.29 73.55 1.0%

December 75.81 76.62 74.62 2.7%

Jan '13 76.39 76.71 76.04 0.9%

becoming President saw the largest

variance toward import intenders

reaching as high as 37.5 percent in

March of 2009. No such bump took

place after the 2012 election.

Overall Confidence Weak

Among potential new-car buyers, the

CNW Confidence scores are extremely

weak and only recently began to

increase slightly.

What impact on vehicle sales?

Expect only modest gains this year with

replacement out of necessity being the

lynchpin of any increases.

Anticipated Feb Actual Feb % Chng YTD YTD % Chng

Document 106m cy13 cy12 13v12 cy2013 cy2012 13v12

Franchised

Dealer Sales 714,000 669,543 6.6% 1,545,177 1,395,692 10.7%

Independent

Dealer Sales 694,000 669,420 3.7% 1,522,718 1,378,604 10.5%

Casual (Private)

Sales 590,900 653,460 -9.6% 1,285,975 1,421,545 -9.5%

Total Sales 1,998,900 1,992,423 0.3% 4,353,870 4,195,841 3.8%


February Up a Touch vs. Leap Year Considering the strength of the used-car market a year ago and the

extra day due to Leap Year, February’s slight projected increase –

about 0.3 percent – is a decent showing.

In all, the used-car industry should get to the near 2,000,000 mark

with Franchised Dealers leading the pack.

As of the 20th of February, Franchised Dealers were ahead of last

year by 6.6 percent, putting them on track to selling around 714,000

units.

Independent dealers, during the same time frame, were up about

3.7 percent and closing in on nearly 700,000 sales.

Private Party continues to be weaker than the dealer body, down

9.6 percent in the opening days of this month in large part due to a shift

in consumer behavior vs. a year ago.

In 2012, dealers were cautious about taking vehicles in on trade and

simultaneously offering low-book for those trades. Many used-car

sellers turned to AutoTrader, craigslist and other private party outlets to

sell their cars and trucks.

This year, as dealers continue to build their used-car inventories,

both Franchised and Independents are skimming the cream of the crop

for their lots leaving private party sales mostly older, less desirable

models.

Add that franchised and independent dealers are finding financing

for lower credit-score shoppers and the shift becomes even more

logical. CNW still expects private party sales to rebound in the second

quarter, however.

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%Used % Under FICO 670

540

560

580

600

620

640

Jan'11

Mar May July Sept Nov Jan'12

Mar May July Sept Nov Jan'13

Used FICO Score (Avg.)


Franchised Independent Franchised Franchised Independent Independent

Document 107m Asking Price Asking Price Trans Price % of Asking Trans Price % of Asking

Jan. '13 $11,336 $9,867 $10,558 93.14% $9,158 92.81%

Feb '13 $11,321 $9,892 $10,562 93.21% $9,174 92.74%

Feb. '12 $11,653 $10,516 $11,090 95.17% $9,784 93.04%

Mar '12 $11,826 $10,592 $11,254 95.16% $9,874 93.22%

Apr ’12 $11,507 $10,216 $10,958 95.23% $9,576 93.74%

May '12 $12,119 $9,987 $11,296 93.21% $9,071 90.83%

June '12 $11,684 $9,937 $10,802 92.45% $9,069 91.27%

July '12 $12,136 $9,842 $11,185 92.16% $8,943 90.87%

Aug '12 $12,103 $9,849 $11,138 92.02% $8,936 90.73%

Sept '12 $11,458 $10,172 $11,021 96.19% $9,598 94.36%

Oct '12 $11,419 $9,872 $10,553 92.42% $9,019 91.36%

Nov. 12 $11,583 $9,991 $10,894 94.05% $9,334 93.42%

Dec. '12 $11,186 $10,148 $10,654 95.24% $9,452 93.14%

Percent Change Yr over Yr -3.35% -6.92% -5.40% -2.12% -7.42% -0.54%

Month Over Month Price -0.13% 0.25% -0.06% 0.08% 0.18% -0.08%

Used Prices Continue to be Weak

Used vehicle prices trailed year-ago for both franchised and

independent dealers in the opening days of February with little sign of

retail prices rebounding.

Franchised dealers were only able to get 93 percent of their asking

prices for used cars and trucks, down from last year’s 95 percent.

Independent dealers were also down vs. year ago – 92.7 percent vs.

93.0 percent.

Days’ Supply Up

Days’ Supply of used vehicles also inched upward, topping 50 days

for only the second time in more than two years. That’s 13 percent

higher than February a year ago, but well within the ideal range.

The supply of cars vs. trucks continues to narrow with a slightly

higher figure for cars.

40

42

44

46

48

50

52

54

56

58

Used Vehicle Days' Supply

January was a good month for both new-car sales (up 14 percent) and

fleet deliveries (up 7.3 percent) Total value of fleet sales hit $11.4

billion with an average per-vehicle value of $29,447 (excluding

upfitting).

Government fleets continue to decline, however, off more than 17

percent compared to January a year ago.

On the positive side, Small, Medium and Large Business sales

were up from 7 to 29 percent.

Pickups for Business

The full-2012 tabulation for the pickup truck market showed

Appearance Buyers continuing to make up a smaller share of sales.

These are people, mostly male, who acquire a pickup for the “urban

cowboy” look rather than for any actual use.

The rebound in contractor pickup buyers is heartening because

these represent a good bellwether of the overall economy, particularly

the construction and home-improvement or home-maintenance

trades.

RV Towers as new-pickup buyers continue to decline as a share of

total sales in large part because of higher gas prices keeping these

folks off the road making a new rig less important.


Fleet-Commercial Sales Up 7 Percent cy13 Jan

All Sales 1,042,721

Percent Change v Previous Year 14.2%

Fleet and Commercial Use 37.11%

Total Fleet (Monthly Approximates) 386,954


FLEET COMMERCIAL VALUE -- Per Unit $29,447

FLEET COMMERCIAL VALUE -- Total $Bllns $11.39


Government Fleet 15,537

Share Gov't of Total Sales 1.49%

Percent Change v Previous Year -17.4%

Small Business Fleet and Commercial Use 46,505

Share Small Business of Total Sales 4.46%


Medium Business Fleet and Commercial Use 95,096

Share Medium Business of Total Sales 9.12%


Large Business Fleet, Daily Rental, Commer. 249,627

Share Large Business of Total Sales 23.94%


Primary Use

Sales Share Appearance Contractor Fleet RV Tow Farm/Rnch

cy1985 10.5% 51.7% 11.8% 5.2% 20.8%

cy2001 28.1% 36.9% 11.1% 13.6% 10.3%

cy2002 27.4% 38.1% 10.6% 13.5% 10.4%

cy2003 26.4% 38.8% 10.2% 13.2% 11.4%

cy2004 24.8% 39.7% 10.9% 13.3% 11.3%

cy2005 21.7% 40.2% 12.4% 12.6% 13.1%

cy2006 19.1% 41.8% 12.7% 11.8% 14.5%

Cy2007 16.2% 42.6% 14.7% 11.6% 14.9%

Cy2008 13.1% 39.4% 19.2% 6.1% 22.2%

cy2009 8.6% 43.1% 19.3% 5.5% 23.5%

cy2010 6.7% 45.1% 19.6% 6.8% 21.8%

cy2011 6.5% 47.9% 20.4% 6.3% 18.9%

cy2012 5.3% 49.8% 20.6% 6.1% 18.2%

Big Six: Lion’s Share of Fleet/Commercial

The Big Six automakers – GM, Ford, Chrysler, Toyota, Nissan, Honda

– made up 48.5 percent of all fleet-commercial sales in January

compared to 47.2 percent a year ago. Neither of those figures

compares with the huge 73 percent share for the Big Six in January of

2010, the depths of the recession when fleet-commercial sales were

one of the only ways to stay alive when consumers weren’t in the

market.

Low-key Honda takes the gloves off in a new commercial against four major

rivals of its new model Accord, even as four agencies vie for Honda's (and

Acura's) ad account.

The 2013 Accord model is all new and the ninth generation of the iconic car

that first bowed in the US in 1976.

The spot touts how consumers rate the Accord tops after test driving it against

the Toyota Camry, Nissan Altima, Ford Fusion and Hyundai Sonata. Not a single

GM model was part of the test, showing Honda and Car and Driver believe Accord

shoppers don't cross shop with Chevrolet's Malibu.

For the effort, the American Honda Motor brand teamed with Car and Driver

magazine, which tapped 1,200 of its readers in four cities to test the Accord and

the other major mid-size cars over four weekends.

The consumers rave about the new Accord's responsive handling, fit and finish,

technology, suspension and better package. You can watch the commercial here

It's refreshing to see conservative Honda kick up some dust with the competition,

even if this ad isn't getting a lot of TV air time or eyeballs on YouTube. Honda took Honda / Car and Driver Competitive Test Drive "Opinions"

Page 8… CNW Research: Retail Automotive Summary December 2012

Jean Halliday’s

it on the chin from loyalists and the automotive press when it released the outgoing Accord model in 2008. That eighth-generation

Accord was broadly panned for being too big and not particularly attractive, among other things.

To Honda's credit, it responded to the hub-bub, even doing a mid-cycle freshening for the Accord's 2011 model year including a

different front grille, new rear deck lid, and new front bumpers.

But the 2011 earthquake and tsunami in Japan hurt Honda along with the other Japanese transplants here. Their 2011 US vehicle

sales suffered as a result, opening the door that year for Detroit and the South Koreans to boost sales. The Japanese transplants really

started to rebound in 2012, with Honda posting the first 300,000-plus year for the Accord since 2009 Honda is aiming for 350,000 units

here this year for the Accord, which should make for an interesting 2013 in the hyper-competitive mid-size segment. Not one brand will

be in cruise control.

Honda Teams with ‘Car and Driver’

Honda Ad Agency ‘Fighting for its Life’ in 4-Way Review

https://www.youtube.com/watch?v=47z_nc7lgNU

Page 9… CNW Research: Retail Automotive Summary December 2012

Speaking of competition, Santa Monica-based RPA, Honda's longtime ad agency, is fighting for its life,

literally, defending its biggest account. RPA's sister, rp&, handles Acura- also up for grabs.

Michael Accavitti (left), VP of marketing for both brands at American Honda, pushed for the review at the

end of 2012, a little over a year after his arrival via Chrysler Group and Cisco Systems.

The surprise isn’t that a review was called. It’s that it has taken this long to happen.

That's because other than a few bright advertising stars in recent years, including the boffo Super Bowl

commercials for both Honda and Acura in 2012, the work hasn’t exactly set the world on fire.

You can't totally blame the agencies either, since both the Honda and Acura clients approved the so-so

ads for years.

One school of thought believes this review is just a wake-up call for RPA and that the independent agency

will shake up its staff to keep both creative and media accounts. Incumbents DO sometimes prevail in these

pitches, but not usually.

Honda and its review consultant, Roth Associates in New York are said to have culled the list of 7 semi-finalists to 4 finalists for

creative: RPA; IPG's Martin Agency in Richmond, Va.; and MDC Partners' 72andSunny Martin certainly has some car advertising

chops. The shop handled Saab Cars USA for 3 years until losing it in early 2001 and shared the Mercedes-Benz account with Scali,

McCabe, Sloves for 5 years until 1997.

The media finalists are reportedly RPA; Publicis Groupe's MediaVest; Omnicom Group's PHD and indie Horizon Media.

Stay tuned until the end of the first quarter, when Honda says it will have a decision. – Jean Halliday

1.42 1.82

2.04 2.46

3.23 3.46

3.73 3.88

0

1

1

2

2

3

3

4

4

5

Full 09 Full 10 Full 11 Full 12

No. of Brands on Shopping List

Honda Car

Honda Truck

Why a Review? Losing Loyalty Edge

Just three years ago, when new-car shoppers had a

Honda car on their list of vehicles, there was

effectively only one and a half other brands in serious

consideration.

Last year, that figure continued to climb and hit

nearly 2.5 alternative brands.

For a major competitor – Hyundai – the figure has

dropped from 4.3 to 3.4 in the same time frame.

(Data from 2012 Purchase Path Study)

Honda Car 1.42 1.82 2.04 2.46

Honda Truck 3.23 3.46 3.73 3.88

Hyundai Car 4.33 3.85 3.56 3.43

Hyundai Truck 3.68 3.37 3.16 3.12

Brands on Shopping List: 2009-12

0.20%

11.48%

12.64%

1.94%

Page 10... CNW Research: Retail Automotive Summary February 2013

Entry Level Utility Vehicle

Budget Car Economy Car

Electric Car

January new-car sales share by market segment pretty much is mimicking January of 2012. Budget cars continue to decline

as a share of total sales while many of the luxury vehicle segments are ahead.

As pointed out elsewhere in this issue, full-size pickups are getting stronger on the back of work-truck buyers. In January,

full-size pickups collected nearly 12 percent of sales compared to under 11 percent a year ago.

Incentives on More Models

While the overall incentive spending has shrunk, it’s interesting to note that the number of vehicles carrying some sort of

incentive continues to rise. As the table (right) shows, 92 percent of all vehicles purchased carried some sort of spiff in

January. That’s up from 88 percent a year ago and 75.7 percent in January of ‘10. In those previous years, small and

economy cars didn’t need large incentives. Fuel economy and low price were enough. That’s not the case any longer.

Smaller Vehicles Hold Onto Share Through Incentives on More Models

Jan ‘12: 2.09% Jan ‘12: 12.54%

Jan ‘12: 12.09% Jan ‘12: 0.14%

J09 79.5%

F 80.2%

M 82.7%

A 82.5%

M 81.4%

J 83.7%

J 80.2%

A 76.6%

S 78.9%

O 77.5%

N 74.4%

D 76.8%

J10 75.7%

F 76.2%

M 78.8%

A 79.4%

M 79.7%

J 80.1%

Jul 81.8%

Aug 83.1%

Sep 84.6%

Oct 85.2%

Nov 84.2%

Dec 83.4%

Jan '11 83.6%

Feb 83.9%

Mar 84.1%

Apr 83.6%

May 81.6%

June 80.4%

July 82.7%

August 83.2%

Sept 84.8%

Oct 85.5%

Nov 85.9%

Dec 87.1%

Jan '12 87.6%

Feb 88.0%

Mar 86.3%

Apr 84.2%

May 87.0%

June 87.4%

July 88.3%

Aug 89.7%

Sept 90.6%

Oct 90.8%

Nov 90.8%

Dec 90.9%

Jan '13 91.8%

% Veh. With Incentives

1.31% 9.74%

11.06% Jan ‘12: 10.78%

1.53% Jan ‘12: 1.32%

1.47% 11.89%

Page 11… CNW Research: Retail Automotive Summary February 2013

Full Size Pickup Full Size Van

Luxury Car Lower Midrange

Lower Mid Range Utility Vehicle Large Utility Vehicle

Jan ‘12: 10.9% Jan ‘12: 1.56%

Jan ‘12: 8.51% Jan ‘12: 1.62%

2.41%

Jan ‘12: 2.32% 2.41%

4.20% 0.29%

3.34%

Jan ‘12: 3.70% 2.83%

0.30%

Page 12… CNW Research: Retail Automotive Summary February 2013

Near Luxury Car

Midi-Van Mid Range Utility-Vehicle

Minivan

Premium Car Premium Mid-Range Car

Jan ‘12: 0.24%

Jan ‘12: 3.47%

Jan ‘12: 0.37% Jan ‘12: 4.39%

1.67% 0.20%

1.61% 12.39%

3.07% 0.30%

Page 13… CNW Research: Retail Automotive Summary February 2013 Premium Sporty Car Premium Utility Vehicle

Standard Mid Range Car Small Pickup

Sport Utility Pickup Touring Car

Jan ‘12: 0.25 % Jan ‘12: 3.24%

Jan ‘12: 12.56% Jan ‘12: 2.54%

Jan ‘12: 0.19 % Jan ‘12: 1.75%

0.02%

0.18% 0.05%

1.89% 0.05%

0.01%

Page 14… CNW Research: Retail Automotive Summary February 2013 Traditional Car Ultra Upscale Car

Ultra Luxury Sporty Car Upper Mid-Range Utility

Ultra-Premium Utility Vehicle Upper Premium Sporty Car

Jan ‘12: 0.05 %

Jan ‘12: 02 %

Jan ‘12: 0.05 % Jan ‘12: 1.61%

Jan ‘12: 0.04% Jan ‘12: 0.17%

CNW Research: Retail Automotive Summary

Back Page *Deliveries not sales Feb 1-15 Feb 1-15 % Chng Actual Sales Feb '12 Full Mo

cy2013 cy2012 13 v 12 Feb '12 Sales Change

New Cars Extension

Detroit 3 129,943 129,416 0.4% 190,387 191,162 0.4%

Asian 135,229 125,062 8.1% 355,432 384,327 8.1%

European 35,124 34,191 2.7% 73,933 75,950 2.7%

Ttl Pass. Cars 300,296 288,669 4.0% 619,752 651,440 5.1%

New Trucks

Detroit 3 191,285 190,016 0.7% 327,857 330,047 0.7%

Asian 60,042 55,639 7.9% 175,254 189,123 7.9%

European 6,891 5,762 19.6% 26,122 31,240 19.6%

Ttl Lt. Trucks 258,218 251,417 2.7% 529,233 550,410 4.0%

Ttl Industry 558,514 540,086 3.4% 1,148,985 1,201,849 4.6%

Feb 1-15 Full Feb % Chng Prev Mo Prev Mo % Chng

cy2013 cy2012 13 v 12 cy2013 cy2012 13 v 12

Lease Share 27.8% 25.6% 8.4% 28.5% 26.4% 8.0%

Floor Traffic - New 77.52 77.01 0.7% 81.09 73.06 11.0%

Floor Traffic - Used 89.84 84.19 6.7% 88.03 80.99 8.7%

Feb 1-15 Prev Yr % Chng % Chng Pent Up Demand Units

cy2013 cy2012 Same Mo '12 Prev Mo Feb '13 118,250

Avg. New MSRP $37,314 $36,021 3.59% -0.19% Feb '12 109,500

Total Discounts $5,231 $5,807 -9.92% 0.16% % Change -8.0%

Manufacturer Incentives $3,966 $4,165 -4.78% 2.24%

Dealer Incentives $1,265 $1,642 -22.96% -5.83% Purchase Delay Months

Core Transaction Price**** $32,083 $30,214 6.19% -0.25% Feb '13 3.97

% Mfg Incentive of MSRP 10.63% 11.56% -8.1% Feb '12 3.87

% Ttl Discounts of MSRP 14.02% 16.12% -13.0% % Change 2.6%

2013 Purchase Path Study: Last Gasp for Print Mags...2013 Purchase Path Study: Last Gasp for Print Mags With a few rare exceptions, new-car shoppers have turned their backs on print

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