GNYADA November 2016 NY Auto Outlook

RECENT RESULTS IN NEW AND USED VEHICLE MARKETS

Percent Change in New Retail Registrations

% Change YTD '16 Through September vs YTD 15

% Change September '16 vs September '15

PG: 2 new york auto outlook : NEW VEHICLE MARKET November 2016 Issue 2007 Registrations 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 -20% -16% -12% -8% -4% 0% 4% 8% 12% 16% 20% -0.6%

12% 16% 20%

Metro NYC new vehicles

Metro NYC new vehicles

U.S. new vehicles

U.S. new vehicles

0% 4% 8%

1.6%

4.2%

-0.6%

-8% -4%

-20% -16% -12%

Data Source: IHS Markit.

NEWVEHICLE MARKET FORECAST

New York Metro Area Annual New Retail Registrations History and Forecast

Metro area registrations are predicted to exceed 600,000 units this year

603,500

586,981

553,884

531,573

501,070

452,076

449,172

450,850

432,032

384,763

Data Source: IHS Markit.

2008

2009

2010

2011

2012

2013

2014

2015

2016 Forecast

Factors boosting new vehicle sales • Low interest rates

Factors holding sales back • Pent up demand is waning • Trade-in values are expected to soften

Primary factors impacting the metro area new vehicle market:

• Attractive incentive offers • Growth in personal income • New products • Low gasoline prices

Uncertainty for the market: It’s too early to tell how the outcome of the Presidential election will impact new vehicle sales. Some proposed policies could stimulate sales, while others could hold the market back. The potential impact will become clearer when there is specific information on new taxation initiatives, infrastructure spending, and trade policy.