“Welcome to the latest Market Insight Overview from Cox Automotive.  Every month, we provide automotive industry professionals with unique intelligence, supported by invaluable insight and market sentiment from our customers, that goes beyond the headlines to uncover what’s driving the new and used car sectors from wholesale, retail and funding perspectives. We hope our holistic analysis arms you with the essential knowledge needed to navigate the fast-paced, ever-changing automotive market.” PHILIP NOTHARD Customer Insight & Strategy Director - UK

1. Market Insight Overview
December & FY 2019
P H I L I P N O T H A R D
C u s t o m e r I n s i g h t & S t r a t e g y D i r e c t o r - U K

2. Cox Automotive
Market Overview
“Welcome to the latest Market Insight Overview from Cox Automotive.
Every month, we provide automotive industry professionals with
unique intelligence, supported by invaluable insight and market
sentiment from our customers, that goes beyond the headlines to
uncover what’s driving the new and used car sectors from
wholesale, retail and funding perspectives. We hope our holistic
analysis arms you with the essential knowledge needed to
navigate the fast-paced, ever-changing automotive market.”
PHILIP NOTHARD
Customer Insight & Strategy Director - UK

3. Agenda
• Retail
• Wholesale
• Funding
• Outlook

4. RETAIL

5. Retail
UK new car registrations fell -2.4% in 2019 to 2.3 million units. Although December ended the year on a
positive with overall demand up +3.4%, figures suggest increased levels of tactical registrations due to
pressures on market share and the 2020/21 CAFE legislation and the focus of many of the manufacturers
on their EV volumes
Source: SMMT
36% 29%
35% 30%
43%
32%
31% 29%
32% 28%
32%
26% 32% 26% 30% 26%
29% 23%
32% 24%
32% 24% 30% 23%
59%
64%
61% 65%
53%
63%
64% 65%
62%
66%
62%
67%
62%
66%
62% 64%
64% 66%
60%
62%
61%
62% 64%
63%
6% 7%
4% 6%
4%
5%
6%
6%
6%
7%
7%
7%
7%
8%
8% 10%
7%
12%
8%
14%
7% 14% 6% 14%
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019
January February March April May June July August September October November December
Registrationvolumes
New Registrations - fuel type % share
Diesel Petrol AFV

6. Retail
Consumer Confidence Index increased three points to –11 for December. Four measures increased, with the
general economic situation increasing 7 points, and one measure decreasing. Although a similar hint of a
positive market as the new car registrations, we know due to tactical strategies they are not necessarily
associated
-5 -6 -6 -7 -5 -10 -12 -10 -9 -10 -12 -13 -9 -10 -7 -9 -7 -9 -10 -7 -9 -10 -13 -14 -14 -13 -13 -13 -10 -13 -11 -14 -12 -14 -14 -11
2.9%
-0.3%
8.4%
-19.8%
-8.5%
-4.8%
-9.3%
-6.4%
-9.3%
-4.6%-5.0%
-14.4%
-6.3%
-2.8%
-15.7%
10.4%
3.4%
-3.5%
1.2%
23.1%
-20.5%
-2.9%-3.0%
-5.5%
-1.6%
1.4%
-3.4%-4.1%-4.6%-4.9%-4.1%
-1.6%
1.3%
-6.7%
-1.3%
3.4%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
(16)
(14)
(12)
(10)
(8)
(6)
(4)
(2)
0
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
NewCarRegistrations(%YoY)
ConsumerConfidence
Consumer Confidence Index vs. New Vehicle Registrations
Consumer confidence index new vehicle registrations
Source: SMMT & GfK

7. Retail
The latest dealer sentiment survey* from Modix, the digital marketing arm of Cox Automotive, reflects a
challenging month for dealers in December, with over a third (36%) reporting a decline in margins and almost
half (48%) citing a decline in footfall for the month
*State of the market dealer survey December ‘19
15%
54%
18%
44%
20%
21%
48%
25%
36%
11%
40%
36%
37%
21%
46%
44%
40%
43%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Physical Footfall activity compared to last year?
On-line activity compared to last year?
Retained margins compared to last year?
Finance penetration compared to last year?
Retail/consumer demand compared to last year?
Stock availability compared to last year?
Increased/Better Declined/Worse About the same

8. New car registration pressures are reflected in the December Monthly Market Survey*, as 43% of dealers*
reported an increase in consignment stock, and 45% citing increased overaged new car stock. However used
cars look more favourable, as 36% report a decrease in overage and 29% cite that the days in stock reduced
as we entered 2020
*State of the market dealer survey December ‘19
Retail
43%
45%
29%
39%
29%
25%
29%
36%
29%
30%
43%
25%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
New Cars - Consignment stock
New Cars - Overage
Used Cars - Days in stock
Used Cars - Overage
Increased Decreased About the same

9. As with the positive move in the December Consumer Confidence Index, December Monthly Market Survey*
cited a more positive economic outlook for the coming months, as 50% of dealers felt it will improve and 35%
cited it will remain the same. Additionally, 50% reported that they expected sourcing stock to remain the same
whilst 18% felt it could improve
*State of the market dealer survey December ‘19
Retail
50%
15%
35%
What are your expectations for economic conditions over
the coming months?
(as a proxy for demand)
Improving Declining About the same
18%
32%
50%
What are your expectations for sourcing used vehicles
over the coming months?
(as a proxy for supply)
Improving Declining About the same

10. RETAIL
• 2019 has been described as a roller-coaster year by many dealers across the sector, which has been reflected in
many of the price and activity indicators
• The headline figure of the SMMT results is the 2019 year-end -2.4% decline, it's worth noting registration activity in
December, the "quietest" month of the year, which was up 3.4%. Many brands seeing 20-40% growth, suggesting
increased tactical/pre-regs activity ahead of the CAFE legislation
• The latest dealer sentiment survey from Modix, the digital marketing arm of Cox Automotive, suggests suggests
December was a challenging month for dealers
• First-time conversation declined slightly by -1.5%; however, it remained +3.0% compared to the same period in 2018
reflecting the supply and demand balance
• Data from Manheim reveals that average prices for petrol and diesel fell in line with the overall wholesale market.
AFV continue to fluctuate due to both volumes and new entrants, as Hybrid prices rise 102.9% year-on-year and EVs
increase 9.4% compared to November
Summary
*State of the market dealer survey December ‘19

11. WHOLESALE

12. Wholesale
Average price
£6,360
-5.6% YoY
Average age
80.8months
+3.5% YoY
Average mileage
61,431
+0.6% YoY
In December, Manheim reported average age and mileage remained relatively stable, showing little movement
either MoM or YoY, with vehicles continuing to hover around the 6.5 to 7-year age bracket and just under 10,000
miles per year. And the average sold price at Manheim of £6,360 saw the year close out with the expected
seasonal decline, down -3.1% MoM and -5.6% YoY

13. Wholesale - Fleet
Average price
£9,765
-4.8% YoY
Average age
40.7months
+1.1% YoY
Average mileage
38,406
+0.2% YoY
Manheim reported the final month of the year was also marked by marginally older, higher mileage vehicles, with
average mileage up +9% YoY and +0.2% MoM to 38,406 miles. with average prices down -4.8% YoY and -8.6%
on November

14. Wholesale
Both average mileage and age of stock within the wholesale sector in 2019 track ahead of 2018. With the
average of 84.3 months compared to 79 (up +5.3) and average mileage 63,923 compared to 60,209 for 2018
(up +3,715)
52,000
54,000
56,000
58,000
60,000
62,000
64,000
66,000
68,000
70,000
72,000
68
70
72
74
76
78
80
82
84
86
88
90
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19
AverageMileage
AverageAge(months)
Wholesale ave. Age & Mileage
Ave. Age (mths) Ave. Mileage

15. Wholesale
Diesel
Wholesale Used Prices by Fuel Type
£7,394
-10% YoY
£5,145
+0.3% YoY
£13,325
+102.9% YoY*
£13,426
-28.5% YoY*
*Hybrid & EV £/% movements relative to lower volumes observed vs. ICE vehicles
Diesel Hybrid Electric*Petrol
Average diesel values in the wholesale market continue to decline, according to data from Manheim, with the
reduction in newer used diesel models entering the sector. This is a trend which is likely to continue for the
foreseeable future. Indeed, the MoM declines for both petrol and diesel are reflective of the market

16. Wholesale
The top 4 positions remained fixed throughout 2019 with switching taking place monthly in the bottom 6 places.
The VW Golf finishes the year ahead of the Fiat 500 whilst the Audi A3 is pushed to 10th place
1
2
3
4
5
6
7
8
9
10
Ford
Fiesta
Ford
Focus
Vauxhall
Corsa
Vauxhall
Astra
BMW
3 Series
Mercedes-Benz
C Class
Nissan
Qashqai
*Manheim wholesale volumes all plates and mileages – Full-year ‘19
Audi
A3
Volkswagen
Golf
Fiat
500

17. WHOLESALE
Summary
• Fleet wholesale volumes increased +1.2% Year on Year (YoY), with green shoots in the final month of the year as
Month on Month (MoM) volumes rose +1.2%
• The trade-to-trade auction platform Dealer Auction.co.uk, reported volumes sold remained static YoY while
conversion rates increased by +1.5% and Cap Clean performance also increased by +1% YOY
• Volumes down as vendors and retailers hold on to stock ahead of New Year
• Wholesale markets saw average prices fall, down -3.1% month-on-month and -5.6% year-on-year
• Quality remains key. If cars are presented and priced correctly, they will generally find a buyer in the auctions. As
always, retail-ready standard vehicles will perform well, as buyers look to maximise turnover and reduce days in
stock
• Looking ahead to 2020, expect the recent implementation of the CAFE legislation and Regulation (EU) 2019/631 to
play a significant role in the behaviour of manufacturers, who must develop on a global scale an increased emphasis
on reducing carbon emissions, and focus onmeeting stringent 2021 targets
*State of the market dealer survey December ‘19

18. FUNDING

19. Funding
NextGear Capital, the leading provider of wholesale stock funding, saw the average cost of units funded
track ahead of 2018 for the first half of the year before levelling to track at a similar YoY level throughout
H2 and finishing the year at £7,679.88
£6,000
£6,500
£7,000
£7,500
£8,000
£8,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average Cost of Unit (£)
2018 2019

20. Funding
The average number of days in stock increased to 65.6 (63 November 2019 and 63.8 December 2018).
Continuing to reflect the increased days in stock in retailers profile observed throughout 2019 compared
to 2018
40
45
50
55
60
65
70
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average Holding Days
2018 2019

21. Funding
Data from NextGear Capital, reports the average mileage declined marginally MoM to 61,014 and age
remained broadly stable at 6.2 years, the same as the previous month. Average holding days rose
+2.6 MoM, up to 65.6. Overall, both the age and mileage eased slightly 2019 compared to 2018
2018
6.3 years
Ave. Age Funded
60,887
Ave. Mileage
2019
6.2 years
Ave. Age Funded
60,557
Ave. Mileage

22. PHILIP NOTHARD
Customer Insight & Strategy Director – UK
Philip.Nothard@CoxAuto.co.uk
@PhilipN_Auto
@coxautomotiveUK
THANK YOU
/PhilipNothard
/CoxAutomotiveUK
/philipnothard
/cox-automotive-uk