Market Update

November 2006

Gross Domestic Product and Consumer Price Index

0%

1%

2%

3%

4%

5%

6%

2000

2001

2002

2003

2004

2005

Q1 200

6

Q2 200

6

Q3 200

6

GDP CPI CPI less Food and Energy

Source: Bureau of Economic Analysis and Bureau of Labor Statistics

Quarterly GDP and CPI

-2%

0%

2%

4%

6%

8%

Q1

'00

Q2

'00

Q3

'00

Q4

'00

Q1

'01

Q2

'01

Q3

'01

Q4

'01

Q1

'02

Q2

'02

Q3

'02

Q4

'02

Q1

'03

Q2

'03

Q3

'03

Q4

'03

Q1

'04

Q2

'04

Q3

'04

Q4

'04

Q1

'05

Q2

'05

Q3

'05

Q4

'05

Q1

'06

Q2

'06

Q3

'06

-2%

0%

2%

4%

6%

8%

GDP CPI CPI less Food and Energy

Source: Bureau of Economic Analysis and Bureau of Labor Statistics

Prime Rate

3%

4%

5%

6%

7%

8%

9%

10%

12/1/

2000

12/1/

2001

12/1/

2002

12/1/

2003

12/1/

2004

12/1/

2005

Curre

nt

8.25%

Source: Federal Reserve Board

Average Hourly Earnings of Production Workers

$12.25

$12.75

$13.25

$13.75

$14.25

$14.75

$15.25

$15.75

$16.25

$16.75

$17.25

$17.75

10/00 10/01 10/02 10/03 10/04 10/05 September2006

10/06-0.10%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

Average Hourly 1 month % change

$16.91

Source: Bureau of Labor Statistics

Changes in Non-Farm Payroll Employment

-600

-400

-200

0

200

400

600

10/00 10/01 10/02 10/03 10/04 10/05 September2006

10/06

92,000

(000’s)

Source: Bureau of Labor Statistics

Unemployment Rate

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

10/00 10/01 10/02 10/03 10/04 10/05 September2006

10/06

4.4%

Source: Bureau of Labor Statistics

Average Unemployment andNew Light Vehicle Sales

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

2000

2001

2002

2003

2004

2005

Octobe

r 200

6

14,000

16,000

18,000

Unemployment NLVS

(000’s)NADA’s estimate for

CY 2006

Source: Bureau of Labor Statistics, Automotive News, and NADA Industry Analysis

Consumer Price Index andY-O-Y Wage Growth

0%

1%

2%

3%

4%

5%

2000

2001

2002

2003

2004

2005

Sept

embe

r 200

6

CPI Wage Growth*

Source: Bureau of Labor Statistics - *Average Hourly Earnings of Production Workers

Retail Gasoline and On-Highway Diesel Fuel Prices

$0.70

$1.10

$1.50

$1.90

$2.30

$2.70

$3.10

$3.50

12/25

/00

12/31

/01

12/30

/02

12/29

/03

12/27

/04

*Sep

t. 5,

2005

12/26

/05

Last

Week

Novem

ber 6

, 200

6

Gas Diesel

Gas $2.20Diesel $2.506

*Price of gas peaked at $3.069

Source: Energy Information Administration Gas - regular grade, price per gallon (includes all taxes)

New VehicleMarket

What’s New on Wheels

Salzburg, Austria—Emily Post herself is not as refined as Lexus’s all-new, fourth-generation LS 460, in showrooms this month.

The leather steering wheel is buffed for six hours, and the headlights—inspired by Baccarat stemware—evoke lead crystal. Then there’s the massaging/reclining rear seat, 19-speaker Mark Levinson audio, power sunshades, and up to 11 airbags. A parking-guidance system even steers the car into place, using a rear camera and sonar.

Under the hood, a 380-hp V8—with 30 percent more gusto than its predecessor—is mated to the world’s first eight-speed automatic. Along with base and long-wheelbase models, a hybrid arrives next spring.

Price: $70,000 (est.). Mileage: 19 city/ 27 highway. Competition: Audi A8, BMW 7 Series, Mercedes S-Class.

What’s New on Wheels

Washington, D.C.—Hipper inside and out, Saturn’s new Aura is built on the same platform as the Saab 9-3. The result: Euro-like ride and handling. Two trim levels, with choice of V6 engines. Options: heated seats/mirrors, steering-wheel audio controls, and remote-start system.

Price: $20,000. Mileage: 20 city/29 highway. Competition: Honda Accord, Hyundai Sonata, Nissan Altima, Toyota Camry.

Y-O-Y New Light Vehicle Sales

1,025

1,225

1,425

1,625

1,825

Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct.

2004 - 2005 2005 - 2006

(000’s) 1.8m - all-time high

Source: Automotive News Data Center

Y-O-Y Volume % ChangeOctober 2006 YTD

-20% -15% -10% -5% 0% 5% 10% 15% 20%

Truck-based SUVs

Pickups

MiniVans/Vans

Luxury Cars

Middle Cars

Large Cars

Small Cars

CUVs

Source: Ward’s Automotive Reports

Y-O-Y Market Share %October 2006 YTD

0% 5% 10% 15% 20% 25%

Middle Cars

Pickups

Small Cars

CUVs

Truck-based SUVs

MiniVans/Vans

Luxury Cars

Large Cars

2006

2005

Source: Ward’s Automotive Reports

New Light Vehicle SalesOctober 2006 YTD

Car and truck sales -2.9% versus same time period 2005

Trucks represented 50.5% of total sales versus 53.0% same time period 2005

Toyota Division and Honda Division gained both car and truck market share

Source: Automotive News Data Center

New Light Vehicle SalesOctober 2006 YTD

Top five car market share gainers – Toyota Division, Ford Division, Lexus, Volkswagen Division, and Scion

Top five truck market share gainers –Toyota Division, Honda Division, Mercedes-Benz, Pontiac, and Kia

Source: Automotive News Data Center

Y-O-Y New Light Vehicle SalesOctober

0

400

800

1,200

1,600

October 2006 October 2005

Cars

Trucks

Total

Cars -3.5%Trucks 16.3%Total 6.1%

(000’s)

Source: Automotive News Data Center

Y-O-Y New Light Vehicle SalesOctober YTD

0

3,750

7,500

11,250

15,000

October 2006 YTD October 2005 YTD

Cars

Trucks

Total

Cars 2.2%Trucks -7.4%Total -2.9%

(000’s)

Source: Automotive News Data Center

Top Ten Selling Makes (New)October 2006 YTD

0

600

1200

1800

2400 Ford Division

Chevrolet

Toyota Division

Honda Division

Dodge

Nissan Division

Chrysler Division

Hyundai Division

GMC

Jeep

(000’s)

73.5% of total sales

Source: Automotive News Data Center

Top Ten Selling Models (New)October 2006 YTD

0

200

400

600

800 F-Series PU

Silverado PU

Camry

Ram PU

Accord

Civic

Impala

Corolla

Altima

Cobalt

(000’s)

23.8% of total sales

Source: Automotive News Data Center

Total New Light Vehicle Sales

14,000

15,000

16,000

17,000

18,000

2000 2001 2002 2003 2004 2005 NADA's est.2006

Source: Automotive News Data Center

(000’s)17.4m – all-time high

New Light Vehicle SalesCars v. Trucks

4,000

6,000

8,000

10,000

2000 2001 2002 2003 2004 2005 October2006 YTD

Cars

Trucks

Trucks Outsell Cars(000’s)

Source: Automotive News Data Center

Franchised Dealer Light Vehicle Average Selling Price (New)

$28,123

$24,000

$26,000

$28,000

$30,000

2000 2001 2002 2003 2004 2005 August2006

Source: NADA Industry Analysis

Average Finance Rate and Loan Lengthat Auto Finance Companies

2.5%

3.5%

4.5%

5.5%

6.5%

7.5%

8.5%

00 Q

4

01 Q

4

02 Q

4

03 Q

4

04 Q

4

05 Q

4Se

ptem

ber 2

006

48

51

54

57

60

63

66

Average Finance Rate Average Loan Length

months

Source: NADA Industry Analysis and Federal Reserve Board

Used VehicleMarket

Y-O-Y Used Vehicles Sold byFranchised and Independent Dealers

1,300

1,925

2,550

3,175

3,800

Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct.

2004 - 2005 2005 - 2006

Source: CNW Marketing

(000’s)

Franchised Dealer Light Vehicle Average Selling Price (Used)

$15,514

$13,000

$14,000

$15,000

$16,000

$17,000

2000 2001 2002 2003 2004 2005 August2006

Source: NADA Industry Analysis

N.A.D.A. Official Used Car GuideTrade-In Value % Decline

November 2006 YTD- 1 Year Old Vehicles

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0% Cavalier Silverado 1500 PU Grand Caravan Ram 1500 PU Focus Taurus Expedition Explorer F150 PU Ranger Grand Cherokee Camry Accord 4Runner LeSabre Corolla Mustang

Median -11.02% YTD, CY 2005 -7.94%

Eastern Edition

N.A.D.A. Official Used Car GuideTrade-In Value % Decline

1 Year Old Vehicles in Calendar Year 2005

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0% Cavalier Silverado 1500 PU Grand Caravan Ram 1500 PU Focus Taurus Expedition Explorer F150 PU Ranger Grand Cherokee Camry Accord 4Runner LeSabre Corolla Mustang

Eastern Edition

N.A.D.A. Official Used Car GuideTrade-In Value % Decline

1 Year Old Vehicles in Calendar Year 2004

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0% Cavalier Silverado 1500 PU Grand Caravan Ram 1500 PU Focus Taurus Expedition Explorer F150 PU Ranger Grand Cherokee Camry Accord 4Runner LeSabre Corolla Mustang

Eastern Edition

N.A.D.A. Official Used Car GuideTrade-In Value % Decline

1 Year Old Vehicles in Calendar Year 2003

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0% Cavalier Silverado 1500 PU Grand Caravan Ram 1500 PU Escort Taurus Expedition Explorer F150 PU Ranger Grand Cherokee Camry Accord 4Runner LeSabre Corolla Mustang

Eastern Edition

N.A.D.A. Official Used Car GuideTrade-In Value % Decline

November 2006 YTD - 2 Year Old Vehicles

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0% Cavalier Silverado 1500 PU Grand Caravan Ram 1500 PU Focus Taurus Expedition Explorer F150 PU Ranger Grand Cherokee Camry Accord 4Runner LeSabre Corolla Mustang

Median -11.30% YTD, CY 2005 -7.69%

Eastern Edition

N.A.D.A. Official Used Car GuideTrade-In Value % Decline

2 Year Old Vehicles in Calendar Year 2005

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0% Cavalier Silverado 1500 PU Grand Caravan Ram 1500 PU Focus Taurus Expedition Explorer F150 PU Ranger Grand Cherokee Camry Accord 4Runner LeSabre Corolla Mustang

Eastern Edition

N.A.D.A. Official Used Car GuideTrade-In Value % Decline

2 Year Old Vehicles in Calendar Year 2004

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0% Cavalier Silverado 1500 PU Grand Caravan Ram 1500 PU Escort Taurus Expedition Explorer F150 PU Ranger Grand Cherokee Camry Accord 4Runner LeSabre Corolla Mustang

Eastern Edition

N.A.D.A. Official Used Car GuideTrade-In Value % Decline

2 Year Old Vehicles in Calendar Year 2003

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0% Cavalier Silverado 1500 PU Grand Caravan Ram 1500 PU Escort Taurus Expedition Explorer F150 PU Ranger Grand Cherokee Camry Accord 4Runner LeSabre Corolla Mustang

Eastern Edition

Certified Used Vehicle SalesSeptember 2006 YTD

0

62,500

125,000

187,500

250,000

Chevrolet Toyota Division Honda Division Ford Division BMW Pontiac Dodge Nissan Division Mercedes-Benz GMC Lexus Buick Cadillac Chrysler Division Volkswagen Division Acura Volvo Jeep Lincoln - Mercury Audi Saturn Jaguar Saab Land Rover Porsche Mazda* Oldsmobile Subaru* Infiniti Mitsubishi Hummer Suzuki Hyundai*

Total Sales – 1,256,559

Source: Automotive News Data Center *Estimate

Used Vehicles Sold by Franchised New-Car Dealers

21.3

6,000

10,000

14,000

18,000

22,000

26,000

2000 2001 2002 2003 2004 2005

Wholesaled

Retailed

Total

Source: NADA Industry Analysis

(000’s)

Franchised New-Car Dealer Source of Used Vehicle Retailed

0%

10%

20%

30%

40%

50%

60%

70%

1995 2005

Trade-In

Auction

Street

Other

Source: NADA Industry Analysis

Light Vehicle SalesUsed / New

44.1

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2000 2001 2002 2003 2004 2005 October2006YTD

FranchisedDealers

IndependentDealers

PrivateIndividuals

Total Used

New Vehicles

Source: CNW Marketing

(000’s)

Data Sources

www.autoexecmag.comwww.autonews.comwww.bea.govwww.bls.govwww.cnwmr.comwww.eia.doe.govwww.federalreserve.govwww.nada.orgwww.nada.com/b2bwww.wardsauto.com

Your feedback welcomedat

editor@nada.org