1.
Market Overview
Q1 2018
Philip Nothard - Head of External Relations

2.
T H E V E H I C L E L I F E C Y C L E
Who we are
Cox Automotive

3.
AGENDA
• Retail
• Wholesale
• Funding
• Dealers
• Outlook

4.
Retail
Q1 finished fourth highest in a decade whilst diesel share continues to decline
45%
36%
44%
35%
43%
32%
45% 44% 43% 43%
40% 40% 39%
38% 38%
51%
59%
52%
61%
53%
63%
51% 52% 53% 52%
55% 55% 55%
57% 57%
4% 6%
4% 4% 4% 5% 4% 4% 4% 5% 5% 5% 5% 5% 6%
0
100,000
200,000
300,000
400,000
500,000
600,000
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan 17 Jan 18 Feb 17 Feb 18 Mar 17 Mar 18 Apr 17 May 17 Jun 17 Jul 17 Aug 17Sept 17 Oct 17 Nov 17 Dec 17
RegistrationVolume(k)
FuelShare(%) New Registrations - fuel type
Diesel Petrol AFV Registrations 2017 Registrations 2018

5.
Retail
Average advertised prices increase of 4.3% YoY in Q1 and return to January ‘18 performance
March
‘16
£11,832
March
‘17
£12,476
March
‘18
£13,018
£8,000
£9,000
£10,000
£11,000
£12,000
£13,000
£14,000
£15,000
£16,000
£17,000Averageadvertisedprice
Retail Used Car Price Performance
(as listed on Motors.co.uk)
2016 2017 2018

6.
Retail
Petrol volumes ease -6.3% YoY in Q1 whereas diesel reduces by -3.1%
88216
72172
8100782800
72629
78376
January February March
Diesel
2017 2018
87386
73188
82747
77490
71593
78808
January February March
Petrol
2017 2018
Retail Used Volumes
(as listed on Motors.co.uk)

7.
Retail
Hybrid volumes increase +33.7% in Q1 YoY, in contrast, EV declines by -14.1%, although volumes remain low
1726 1676
19752055
2343
2790
January February March
Hybrid
2017 2018
367
332
411
356
314
283
January February March
EV
2017 2018
Retail Used Volumes
(as listed on Motors.co.uk)

8.
Retail
2017 - average days in stock reduced in Q1 in line with expectations as demand improves into spring
45
58
54
48 49
44
46
48
51
47
49
43
57
55
45
47
40
45 45
47
44 45
37
49
43
38
40
31
36
38
42
37 36
0
10
20
30
40
50
60
70
4x4 Convertible Coupe Estate Large Lower
Medium
Medium MPV Prestige Small Supermini
Retail days in stock Q1 ‘17
(as listed on Motors.co.uk)
January February March

9.
Retail
2018 - days in stock reduced overall in Q1, with the lowest level of improvement in prestige
49
60
50 51
55
48 49
51 52
49 49
44
57
50
47
49
39
42
47
50
42 43
41
52
44 43 44
36
39
43
48
38 39
0
10
20
30
40
50
60
70
4x4 Convertible Coupe Estate Large Lower
Medium
Medium MPV Prestige Small Supermini
Retail days in stock Q1 ‘18
(as listed on Motors.co.uk)
January February March

10.
Retail
YoY the average days in stock increased by two days in Q1 with exception of Coupe reducing by -6%
43 42
55
51
44
46
39
42
44
47
43 4445 45
56
48 47
49
41
43
47
50
43 44
0
10
20
30
40
50
60
Retail days in stock Q1 ‘17 vs. ‘18
(as listed on Motors.co.uk)
2017 2018

11.
Retail
Q1 stock volumes remain stable, albeit with increased days in stock for Diesel and Hybrid vehicles
Vehicle Views
Q1 ‘18– 50% of total
Q1 ‘17– 51% of total
Stock Volume
Q1 ‘18 - 54% of total
Q1 ‘17– 56% of total
Days in stock
Q1 ‘18– 47 days
Q1 ‘17– 45 days
Diesel Petrol Hybrid ElectricHybrid
Stock Volume
Q1 ‘18 – 45% of total
Q1 ‘17– 43% of total
Stock Volume
Q1 ’18 – 1.04% of total
Q1 ‘17– 1.02% of total
Stock Volume
Q1 ‘18– 0.22% of total
Q1 ‘17– 0.28% of total
Vehicle Views
Q1 ‘18– 1.10% of total
Q1 ‘17– 0.99% of total
Vehicle Views
Q1 ‘18– 48% of total
Q1 ‘17– 47% of total
Vehicle Views
Q1 ‘18– 0.36% of total
Q1 ‘17– 0.45% of total
Days in stock
Q1 ‘18– 43 days
Q1 ‘17– 43 days
Days in stock
Q1 ‘18– 45 days
Q1 ‘17– 41 days
Days in stock
Q1 ‘18– 41 days
Q1 ‘17– 52 days

12.
Retail
The data – Summary
Retail• Overall, stock volumes are similar YoY, but it has taken slightly longer to sell vehicles
in Q1 2018 compared to 2017 except for Small and Supermini, which remained the
same
• The adverse weather conditions experienced March ‘18 could be a factor in the YoY
stock variances
• Franchise dealers and supermarkets have been hit hardest, despite the slight dip in
stock compared to the previous year
• Supermarkets have more stock YoY, with franchises and independents’ stock
remaining consistent
• Days in stock is up for all models but overall the market remains stable
• Smaller, lower value, vehicles have taken less time to sell than larger, more prestige
ones YoY and month-on-month throughout Q1 2018
*all plates and mileages

13.
Wholesale
Average auction wholesales prices increase 9.4% in March YoY whilst Q1 follows seasonal expectation
March ’16
£5,544
March ’17
£5,911
March ’18
£6,529
£4,000
£4,500
£5,000
£5,500
£6,000
£6,500
£7,000
£7,500
£8,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Averagewholesaleprice Auction Wholesale Price
2016 2017 2018

14.
Wholesale
January ‘18 highest diesel % share at 35% and volume in 3-years whilst February and March ‘18 volumes ease
32%
34%
34%
33%
32%
35%
35%
33%
32%
January February March
DieselVolumes
Wholesale Used Volumes – Diesel
2016 2017 2018
*% denotes share of total quarter volume for the fuel type

15.
Wholesale
Petrol % share remains stable throughout Q1 and ahead of ‘17 in both January & February as volumes ease
31%
32%
37%
31% 31%
38%
33%
32%
35%
January February March
PetrolVolumes
Wholesale Used Volumes – Petrol
2016 2017 2018
*% denotes share of total quarter volume for the fuel type

16.
Wholesale
Top 3 remain constant with the Qashqai substituting the BMW 3 Series in 4th best-seller in Q1 2018
Wholesale best sellers
Top 10 Q1 2017 Top 10 Q1 2018

17.
Wholesale
Wholesale
The data – Summary
• The market continues to remain strong, especially on the 3-year-old
product up to 60k miles and ready to retail stock
• Conversion ratios have remained very strong throughout the quarter
• Higher mileage and sub-standard vehicles are increasingly tougher to
find buyers
• Late plate and low mileage product entering the market in higher
volumes and are in good demand currently
• Scrappage schemes continue to starve to starve the wholesale
market of cheaper, higher mileage vehicles
• Positive growth for part exchange volumes, with double-digit growth
in March ‘18 at 17.5%* compared to February ‘18
*all plates and mileages

18.
Funding
Average cost per unit hits £7,042 in 2018, ahead of 2017 by 4.2% in Q1 with an older profile of vehicles
March
‘17
£6,816
March
‘18
£7,042
£6,400
£6,500
£6,600
£6,700
£6,800
£6,900
£7,000
£7,100
£7,200
£7,300
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Averagecostofunit Average Cost of Unit (£)
2017 Ave. Cost of Unit 2018 Ave. Cost of Unit

19.
Funding
Average holding days -2.9 in March ‘18 as overall Q1 average increase by 2.8 days was driven by January performance
March
‘17
57.8
March
‘18
54.9
30
35
40
45
50
55
60
65
70
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Averageholdingdays
Average Holding Days
2017 2018

20.
Stock
funding
Funding
The average age of vehicles funded increases YOY whilst both mileage and cost per unit increase
YTD 2017
6.7 years
Ave. Age Funded
61,417
Ave. Mileage
YTD 2018
7.3 years
Ave. Age Funded
61,861
Ave. Mileage

21.
Dealers
Overall a challenging quarter, as 69% of dealers surveyed reported a YoY decline in margin retention and stock availability in Q1
19%
70%
14%
24%
27%
14%
60%
12%
69%
40%
59%
69%
21%
18%
17%
36%
14%
17%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Q1 Physical Footfall activity compared to last year?
Q1 On-line activity compared to last year?
Q1 retained margins compared to last year?
Q1 finance penetration compared to last year?
Q1 retail/consumer demand compared to last year?
Q1 stock availability compared to last year?
Increased/Better Decreased/Worse About the same

22.
Dealers
73% of dealers surveyed reported a decrease in overage used cars, and a quarter indicated an increase in new car consignment stock
25%
28%
12%
6%
67%
59%
68%
73%
8%
13%
20%
21%
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

23.
Dealers
56% of dealers report optimism about the economic conditions as Q1 of 2018 closes in contrast to daily pressures
22%
45%
33%
22%
45%
33%
56%
20%
24%
0%
10%
20%
30%
40%
50%
60%
Improving Declining About the same
%respondents What are your expectations for economic conditions over the
coming months (as a proxy for demand)?
Jan-18 Feb-18 Mar-18

24.
Dealers
Expectations of pressure on sourcing stock over the coming months increased throughout Q1
23%
43%
34%
18%
45%
37%
16%
50%
34%
0%
10%
20%
30%
40%
50%
60%
Improving Declining About the same
%respondents
What are your expectations for sourcing used vehicles over
the coming months (as a proxy for supply)?
Jan-18 Feb-18 Mar-18

25.
Dealers
Pre-registrations and Scrappage triggering pressures in Q1 for dealers
NO
14%
YES
86%
Target pressures and lead
times causing higher levels of
pre-registrations
NO
40%
YES
60%
Scrappage causing a
shortage of sub 2K trade cars

26.
Outlook
Our viewpoint – 2018 the retail market
Strong appetite for vehicle
insight from dealers, to
support both buying and
selling
Used cars sales to
improve with consumers
confused over updated
tax rules for new vehicles
Retail
Dealers urged to adjust
stock volumes to match
consumer demand for
smaller used cars

27.
Outlook
Our viewpoint – 2018 the wholesale market
An increase in the diversity
of stock acquisition through
physical and digital channels
An increasing desire for
enhanced imagery and
'ready for retail’
inventory
Scale operations will drive
demand for refurb and
retail-ready through
efficiency and logistics
costs
Wholesale

28.
Outlook
Our viewpoint – 2018 the funding market
Cash flow and digital
integration remain
priority for dealers in
the year ahead
Ease and flexibility
remains key for
dealers
Dealers are looking for
complementary sources
to ensure they have
sufficient liquidity to buy
the stock they need
Funding

29.
Outlook
Our viewpoint – 2018 the Dealers market
Further dealership
consolidation in line with
the long term trend of
declining franchised
dealer numbers
Challenging new car
market whilst
uncertainty remains
Improved analytical
understanding of an ever
diverse sector, to help find
and price stock better
Dealers

30.
THANK YOU