“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
August 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
RDE drives volumes in August, with a -1.6% YoY decline to 92,573, but this represents a +21.1% increase
when compared to August 2017. Year-to-date performance down -3.5% and the second consecutive year
legislation alters standard seasonality
45%
36% 29% 44% 35% 30%
30%
43%
32%
26% 31% 29%
44%
32% 28%
43%
32% 26% 43% 32% 26% 40% 30% 26%
40%
29%
39% 32% 38% 32% 38% 30%
51%
59% 64%
52% 61% 65%
65%
53%
63%
68% 64% 65%
52% 62%
66%
53%
62%
67%
52% 62%
66%
55% 62% 64%
55%
64%
56%
61%
57% 61% 57%
64%
4%
6% 7%
4% 4% 6%
6%
4%
5%
6%
6% 6%
4% 6%
7%
4%
7%
7%
6% 7% 8%
5%
8% 10%
5%
7%
5% 7%
5% 7% 6% 6%
174,564
163,615
161,013
83,115
80,805
81,969
562,337
474,069
458,054
152,076
167,911
161,064
186,265
192,649
183,724
243,454
234,945
223,421
161,997
163,898
157,198
76,433
94,094
92,573
426,170
338,834
158,192
153,599
163,541
158,639
152,473
144,089
0
100,000
200,000
300,000
400,000
500,000
600,000
2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2017 2018 2017 2018 2017 2018
January February March April May June July August September October November December
Registrationvolumes
New Registrations - fuel type % share
Diesel Petrol AFV

6. Retail
UK Consumer Confidence decreases three points to -14 for August 2019, highlighting that consumers remain
nervous about the wider economy. Whilst 59% of dealers believe that economic conditions will stay the same
or improve in the coming months, according to the latest Modix survey
-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
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%
-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
NewCarRegistrations(%YoY)
ConsumerConfidence
Consumer Confidence Index vs. New Vehicle Registrations
Consumerconfidence index new vehicle registrations

7. Retail
65% of dealers surveyed reported that consumer demand was the same or better than August 2018, and
while 20% reported that physical footfall had improved, an impressive 39% observed an increase in online
activity YoY
*State of the market dealer survey August ‘19
20%
39%
16%
30%
23%
29%
35%
19%
48%
25%
35%
39%
45%
42%
35%
45%
42%
32%
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. Retail
41% of dealers in the August Monthly Market Survey reported a decrease in overage used cars, with 32%
citing a decrease in stock. This supports a generally stable trading month. The publicised supply and lead
times for new cars resulted in 64% reporting a decrease or level overage and 66% reduction in consignment
stock for new cars
*State of the market dealer survey August ‘19
33%
37%
26%
24%
33%
32%
32%
41%
33%
32%
42%
34%
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. Retail
41% of dealers cited uncertainty over the economic condition over the coming months whilst one in four are
optimistic that sourcing stock will improve, as indicated in the August Monthly Market Survey*
*State of the market dealer survey August ‘19
18%
41%
41%
What are your expectations for economic conditions over
the coming months?
(as a proxy for demand)
Improving Declining About the same
26%
16%
58%
What are your expectations for sourcing used vehicles
over the coming months?
(as a proxy for supply)
Improving Declining About the same

10. RETAIL
• The introduction of WLTP, RDE and the CAFE legislation due in 2020 are all having an impact on the new car market.
In recent months we’ve seen more clarification around company car taxation, but long lead times for the most
popular new car models mean that fleet registrations are still fairly low
• Long new-car lead times for the most desirable models supported used-car market stability
• The used vehicle market held steady in the traditionally quiet month of August, with stable demand in both the
wholesale and retail market
• The automotive retail market continued to face several challenges in August, but dealer sentiment from the latest
Modix survey suggests a stable market across the month
• In an unpredictable market with a lot of forces at play, retailers feel that they can’t let uncertainty stop them from
getting on with the job at hand
Summary

11. WHOLESALE

12. Wholesale
Average part-ex price
£3,388
-8.1% MoM
Average age
85months
3.5% MoM
Average mileage
63,580
3.4% MoM
August saw a slight change in the stock mix with a higher proportion of part-exchange vehicles, and an increase
in average age and mileage MoM. As a result, the average part-exchange vehicle price was down -8.1% on
July’s figure at £3,388

13. Wholesale
Wholesale stock profiles in August show an increase in age and mileage, following the seasonal uplift
experienced from July into August
68
70
72
74
76
78
80
82
84
86
88
90
52000
54000
56000
58000
60000
62000
64000
66000
68000
70000
72000
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
Averageage
Averagemileage
Wholesale Average Age & Mileage
Mileage Age

14. Wholesale
Diesel
Wholesale Used Prices by Fuel Type
£6,845
-10.4% YoY
£4,488
-4.1% YoY
£11,040
-9.7% YoY
£16,007
8.1% YoY*
*EV £/% movements relative to lower volumes observed vs. ICE vehicles
Diesel Hybrid Electric*Petrol
Data shows that diesel values have taken the biggest dip YoY, down -17.8% when compared to last August. In
contrast, the average AFV value has been up YoY every month for the last six months, a sign of dealer and
consumer interest in the vehicles

15. Wholesale
Ford and Vauxhall continue to dominate the top 4 positions for the most vehicles sold in wholesale* for August,
whilst the VW Golf replaces the Fiat 500 in the fifth position and the Audi A3 replaces the BMW 1 series in tenth
place
1
2
3
4
6
5
7
8
10
9
Ford
Fiesta
Ford
Focus
Vauxhall
Corsa
Vauxhall
Astra
Fiat
500
Volkswagen
Golf
Nissan
Qashqai
Mercedes-Benz
C Class
BMW
3 Series
Audi
A3
*Manheim wholesale volumes all plates and mileages – August ‘19

16. WHOLESALE
Summary
• Average values were stable in August, and the realignment of pricing guides that we’ve seen over the past two
months stimulated demand in the wholesale market, generating strong conversion rates across the month
• The proportion of 1 – 3-year old diesel vehicles at auction is falling, and this will naturally affect the average price.
That said, a used diesel is still the best choice for many consumers, and good condition diesel vehicles continue to
sell well at auction
• The MoM drop in average price at Manheim reflects a change in stock mix, rather than a downward pricing trend
• The continued success of Dealer Auction demonstrates a real appetite for digital wholesale, and in August the
business reported that vendor numbers were up 9% YoY
• Dealer Auction, Cox Automotive’s digital wholesale marketplace, saw the average selling price hold steady at £4,459,
up just £57 on the July figure

17. FUNDING

18. Funding
The average vehicle value remained inline both MoM and YoY at £7,312 (down £288 MoM and £84 YoY).
As with the wholesale values, these declines reflect the trade values depreciation the sector has
experienced over recent months
Aug ‘17
£6,746
Aug ‘18
£7,396
Aug ‘19
£7,312
£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 (£)
2017 2018 2019

19. Funding
The average number of days in stock eased to 60.8 (61.8 July 2019 and 60.2 August 2018), maintaining
an average in excess 60 days during 2019
Aug ‘17
57.7
Aug ‘18
60.2
Aug ‘19
60.8
40
45
50
55
60
65
70
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average Holding Days
2017 2018 2019

20. Funding
Over one in five dealers see auction fees and transport costs as the biggest impact on profitability, while
just under one in ten cite costs associated with vehicle preparation and valeting as hitting profit margins
the hardest
*State of the market dealer survey July ‘19
22%
56%
15%
4%
0%
4%
0% 10% 20% 30% 40% 50% 60%
Auction fees/Transport costs
Repairs/refurbishment
Preparation/valeting
Overheads (e.g. proportion of
premises/staff/utilities)
Marketing/advertising costs, including re-listing
fees
Margin on additional products/services sold (e.g.
warranty, service plan, paint protection, etc)
When calculating your profit on a used car sale, which of
the following do you include in your calculations:
11%
61%
7%
4%
11%
0%
0% 10% 20% 30% 40% 50% 60% 70%
Auction fees/Transport costs
Repairs/refurbishment
Preparation/valeting
Overheads (e.g. proportion of
premises/staff/utilities)
Marketing/advertising costs, including re-listing
fees
Margin on additional products/services sold (e.g.
warranty, service plan, paint protection, etc)
Which do you consider to have the biggest impact on
your overall profit from a used car sale?

21. Funding
The average mileage marginally down marginally to 59,695 for vehicles bought using the NextGear
stock funding plan. It also saw the average age of its funded units increase from 5.8 to 6.2 years
August 2018
5.8 years
Ave. Age Funded
59,787
Ave. Mileage
August 2019
6.2 years
Ave. Age Funded
59,695
Ave. Mileage

22. OUTLOOK

23. Retail Outlook
Our viewpoint – 2019 the retail market
Dealers investing in PPC
advertising to drive sales
as consumers turn to
online for their next
vehicle
Increasing appetite for
Manufacturers and
Dealers to embrace
eCommerce
Demand grows for
advanced vehicle
imagery solutions to
drive online buyer
confidence

24. Wholesale Outlook
Our viewpoint – 2019 the wholesale market
Demand for retail-ready
stock will drive efficiencies in
vehicle services, assisted by
enhanced imagery
Buyers will expect increased
transparency to drive stock
confidence, leading to more
detailed vehicle descriptions
and assurance checks
An increasingly agnostic
approach to physical and
digital sales streams will
emerge to complement
changing buyer behaviours

25. Funding Outlook
Our viewpoint – 2019 the funding market
A strong appetite for growth
means cash flow remains a
priority for dealers
Ease and flexibility
remains key for dealers
An increased focus on
digital integration is helping
dealers to purchase stock
hassle free from a variety
of sources

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