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Page 1: Car haulers offer options during changing times

Car Haulers Offer Options During Changing Times

May 10, 2010

Page 2: Car haulers offer options during changing times

A Union Pacific Company

Skyrocketing Wholesale Prices!

• In 2010, several factors are driving up wholesale prices for used cars, with low supply being one of the most significant issues.

• First, with the interruption of leasing programs in 2008 and 2009 by some OEM captive finance companies, according to Manheim Consulting, the volume of new car leases offered in 2009 hit the lowest level since leasing began in the early 1980’s.

Page 3: Car haulers offer options during changing times

A Union Pacific Company

Is Anything Guaranteed Anymore?

• Second, in the past two years, automotive manufacturers have reduced the number of guaranteed buy-back (“program”) cars offered to rental companies. The result: fewer used rental cars and off-lease cars flowing to auction from auto manufacturers and their captive finance companies.

Page 4: Car haulers offer options during changing times

A Union Pacific Company

Economic Decline

• The weak economy and tight credit of 2009 pushed new car sales and auto production to the lowest level in 27years, resulting in fewer used car trade-ins. On top of this, some high profile product recalls kept many cars off the market in the first quarter of the year. Some experts predict used car supply will improve by mid-2011, but with less product available in the very near future, and prices on the rise, used car sales managers must look farther for inventory

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A Union Pacific Company

Car Haulers

• Car haulers are working with used car dealers, remarketers and Internet auto auctions to offer affordable, reliable multimodal auto transportation services that include both truck and rail options. In fact, over 70 percent of all new vehicles sold in the United States are already moved to market by rail so it only makes sense for used car dealers to consider rail for longer distance trading.

Page 6: Car haulers offer options during changing times

A Union Pacific Company

Why Ship Using Rail?

• Shipping a car by rail rather than truck can often lower auto transport cost by 15-30 percent, helping the used car buyer reach more distant auctions while keeping delivery cost low.

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A Union Pacific Company

Affordable Multimodal Car Hauling

• In a market where used car prices are on the rise and supply is tight; the recent obstacles are only adding additional challenges for used car dealers. Luckily, auto shipping companies have risen to the occasion. There are now solid, affordable multimodal car hauling solutions that can help dealers deliver cars which meet their customers needs.

Page 8: Car haulers offer options during changing times

A Union Pacific Company

About

• We are a Union Pacific Company – Trusted name & leader in transportation– Delivering over 6 million cars annually

• We deliver autos nationwide– Speedy truck delivery– Economical and green rail options

• We make it easy to ship cars!– Easy-to-use, no hassle, online

www.shipcarsnow.com– One call, we do it all 1-866-207-3360