August 20-21, 2013 Hyatt Regency

Dallas, TX

SUMMER ROUNDTABLE

Thank you to our SPONSORS

Lead Sponsor

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Platinum Sponsors

Thank you to our SPONSORSGold Sponsors

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Silver Sponsors Bronze Sponsor

Thank you to our SPONSORSGeneral Sponsors

Benefits of Belonging to the IARA

Bottom line – when you belong to the IARA, you become a better remarketer; a professional that learns and understands all facets of remarketing and how it will positively affect your company’s financial performance, as well as your value to your clients.

Benefits of Belonging to the IARA

Here are a few ways that IARA membership will assist you in increasing your financial performance: • Education and specific training

courses resulting in a remarketing certification.

• Network with other remarketing professionals to learn best practices and benchmarks in your market segment.

• Learn about opportunities for improvement, problem solving, and other issues that may hinder your business.

• Have input on industry changes (before they happen) on standards, such as arbitration and certification.

• Participate in discussions about dozens of topics including: – Maximizing net returns.– Education/training your

remarketing staff. – Auction performance.– Transportation.– Upstream remarketing.– Vehicle inspections.– Exporting techniques.– Guidebooks.– Reconditioning issues.– Vehicle history reports.– Vehicle sourcing.

Opening Remarks

Robert WagnerPresident

Thank You!

A Long, Long Time Ago – 6 Years

• 6 Years Ago – IARA was at 56 members• 6 Years Ago – Only 3 Certified Automotive

Remarketers• 6 Years Ago – IARA was still sorting out its

financial viability• 6 Years Ago – IARA was 6 Years Old• 6 Years Ago . . .some thought that IARA

might not make it . . .maybe just maybe . . .

Then just like that –

• 5 Years Ago – I became a Second VP for IARA

• 2 Years Ago – I became President & Levi McCoy V.P.

• . . .just maybe . . .

Ten Year Anniversary

• Then just like that it was here in Dallas, 2011. It was Cowboy Stadium.

• It was . . . Just like that . . .

• IARA HAD ARRIVED!

• A Decade . . .

Enhanced Conference Registration

Then just like that – here we are 2013.

• Today – Canada Committee – comes along with 24 new members

• Today – IARA has $$$$$ in it Financial Statement, VERY SOLID INDEED!

• Today – CAR is over 64 STRONG!

Tomorrow . . . Soon, Levi is President!

just maybe, just maybe – IARA!

2013 Accomplishments• Creation and growth of IARA Canada.• Auto IMS improvement recommendations.• Integrating with NAAA on critical Industry issues.• Working with NAAA to improve Policy Guidelines for Arbitrations & Online Purchases.• Working with NAAA Standards Committee to standardize Auction Announcements &

Disclosures.• Partnered with the NAAA the present survey results to improve language in Vehicle

History Reports.• Published an industry position paper on the future vision for Multiple Online Selling

Venues.• Initiated initial audit template to be used for a Standardized CFPB Audit Process.• IARA Analysis to improve Remote Rep features.• Tremendous growth in CAR Certification enrollments & Certification Graduates.• IARA website FORUM BLOG created.• Twitter and Facebook presence created for IARA.• Strengthening of IARA Financial position.• Growth in Membership• Standard membership fees of $1,250 for all members to be billed out annually in January.

Membership

IARA 2012-2013 New U.S. Members

• 166 Auto Auction

• America’s Auto Auction

• Auction Edge

• Capital One

• Caprock Auto Remarketing

• Complete Auto Services, Inc.

• Dealer’s Auto Auction of the

South

• DEKRA Inspections

• Diversified Vehicle Services

• FLD, Inc.

• Grow Financial Credit Union

• Harley-Davidson Financial

• Hearst Business Media• Hyundai Motor America• Liquid Motors, Inc.• Motor Lease Corp.• Porsche Cars North

America• RSA-FiServ• Southeastern Auto

Auction• Statewide Auto Auction

Canadian Committee Update

IARA Summer RoundtableAugust 2013

Canadian Committee

• Drive change to strengthen the Canadian Remarketing industry• Co-Develop industry guidelines for corporate performance

standards• Conduct educational and training programs • Discuss and develop industry best practices• Provide a networking forum for remarketers• Assist international growth and exposure• Support and participate in industry events & seminars

Canadian Committee Meetings & Events

On track to hit our goal of hosting 3 annual IARA Canadian Committee Meetings in Canada

Proposed & Planned Events in 2013

March CAR Conference - Las VegasApril Auto Remarketing Canada Conference – Toronto

IARA General Meeting IARA Canadian Remarketing Remarketer of the Year Award

June Canadian Committee Meeting – Toronto Standardizing Condition Reports – Panel Discussion Disclosures & Declarations – VHR Panel Discussion

August IARA 2013 Summer Round Table - DallasOctober Canadian Committee Meeting – TorontoDecember Canadian Committee Meeting – Toronto

AutoRemarketing Canada Conference

• AutoRemarketing Canada Conference in Toronto – over 700 attendees!– Hosted an IARA Canadian Committee meeting with over 100 in attendance– Presented our current IARA Canadian initiatives, conducted a membership drive– 7 new prospective members approached us after meeting– Hosted our first “Consignors Only Meeting”

• IARA Canadian Committee Award Presented at AR Canada Conference

John Carere – National Remarketing Manager – RBC Automotive Finance (ALLY)

IARA / AR Canada – Remarketer of the Year Award 2013

Canadian Committee Accomplishments

• Met our goal of hosting three Canadian Committee meetings in Toronto in 2012 and are on track for 2013.

• Each meeting / event hosted record attendance!• Hosted 2 “Consignor Only” events• Continue to host monthly Canadian Committee conference calls.• Canadian committee leads are joining U.S. Committee conference calls.• Created a NEW membership enrollment process.

Canadian Sub-Committee Teams•   

Education and CertificationJohn Paonessa – Lead (GM Financial)Gerry Corcoran - Pattison LeaseClaudio De Angelis – FossSteve Langdon - ADESABrent Burpee - CarFaxDave Sutton 

Membership DevelopmentDoug Collis – Lead (Ford)Marty Meadows - CarProofStu Ralph - North TorontoKathy Ward – Canadian Black Book 

Press & PRJosh Bailey – Lead (Canadian Black Book)Stu Ralph – North TorontoRemy Rousseau – Rousseau Publications  

Industry Recognition and RewardsAlex Johnston – Lead (Hyundai)Larry Shred – Canadian Black BookRichard Pasta – Kia Canada

Technology and StandardsVolunteer Needed!!!!Don Wallace – Co-Lead (Manheim)Kim Thomson - PorscheBernard de Souza - NissanLarry Shred – CBBLisa Scott – ADESA / Openlane - NAAA

Current & Completed Canadian Initiatives

• Post Sale Inspection standardization– Recent panel discussion

• Disclosure & Declaration standardization– Recent VHR panel discussion

• Monitor/provide industry input into pending provincial MVDA legislation– NS, SK and MB updates

• Central Repository for OEM Build Data– New Initiative

Current/Completed US/Cdn Initiatives

• Multi-Platform Selling facilitation

• Internet-based resources for remarketers

• Align IARA and NAAA (Cdn) standards– Pending NAAA (US) draft and meeting July 1, 2013

• Structural Damage Policy revisions and clarifications– NAAA (US) draft revisions

• Used Vehicle Condition Report & Grading System Standardization – panel discussion

IARA Canadian Committee Membership

• Current Canadian membership consists of 24 companies

• Identified 28 new potential members

• Will continue to expand membership base over the coming year.

2012-2013 New Canadian Members

• ADESA / OpenLane Canada• Ally Bank / RBC• ARI• BMW Canada• Canadian Black Book• Canadian Dealer Services• CarFax• CarProof• Data Scan• Ford of Canada• Foss National Leasing• GM Financial Canada

• Honda Finance Canada• Hyundai Auto Canada• Jim Pattison Lease• Kia Canada, Inc.• Manheim Canada• Mitsubishi Canada• Nissan Canada• North Toronto Auction• Pareto Corporation• Porsche Cars Canada• RSR Canada

Membership News!

• New Membership Registration - $1250 for all Members!

• Membership renewal – a predetermined date will be set for annual renewal

• Now accepting membership dues in Canadian Dollars!

Membership Registration News!

Our Canadian Membership Committee will be sending all current and prospective members an IARA membership package which will include:

• Payment options in Canadian Dollars (invoice / online)• Membership benefits form• Contact info for Membership Committee

On behalf of the IARA Canadian Committee

Thank You for Your Support!

August 20-21, 2013 Hyatt Regency

Dallas, TX

CERTIFIED AUTOMOTIVE REMARKETER (CAR)

PROGRAM

Certified Automotive Remarketer (CAR)The mission of CAR is to enhance and promote the profession of Vehicle Remarketing by providing the premier credential in the industry.Curriculum includes 20 courses in five units:

1. Remarketing Channels2. Pre-sale Activities3. Actual-sale Activities4. Post-sale Activities5. Legal, Ethics, and Terminology

• Each module is 10-20 pages in length (great to read on planes!)

• The test are multiple choice, a score of 75% or better is required to pass

• Testing is available at industry events and throughout the country using CAR graduates and other approved proctors

• Many recent graduates completed all 20 modules in less than 4 months!

Education & Certification UpdateThe IARA Certification program has really taken off!

120 – # of people who have taken at least one module toward certification

41 – # of companies supporting the certification process

20 – Number of companies with at least one CAR Graduate

70 – # of people who have successfully completed all 20 exams YTD

Certified Automotive Remarketers2008 - Sal Terranova Carolina AA Chris Wise Charleston AA 2009 - Ricky Beggs Black Book USA Dave Sutton CARFAX 2010 - Jim Jackson ARI John Elizaga Emkay Les Lynott Emkay Mona Spoon Emkay David Thompson Emkay Scott Braidwood ARI Steve Johnson ARI Jennifer Schade ARI Jill Tarallo Manheim/DealerTrack Brian McBrearty ARI Dave Seher ARI Chris Slaughter ARI John Wright ARI2011 - Brian Garner ARI Fred Walerski ARI Gus Xamplas Donlen Mike Kreider Credit Acceptance

2012 - Phillip Finley JD Byrider Stephanie Gingras DAASW Irina Toader Manheim Rob Wagner Hyundai Bill McCready Charleston AA Laura Taylor Charleston AA Don Roccia Credit Acceptance Fred Uhter TSAA Jeannie Chiaromonte Bank of America Randy Gold CARFAX Mike Bradley 166 Auto Auction Jackie Malik Credit Acceptance Jiles Wanna TPC MGMNT Mark Hopkins Dealers AA Chuck Novince Manheim Scott Kolb United Road Jackie Matejewski Credit Acceptance Diane Scharafin CARFAX Juan Spears Credit Acceptance Rod Feuell Credit Acceptance

2013 (YTD) - Matthew Yoo CARFAX Mark Pelech Credit Acceptance Laura Westray Black Book USA Terry Park Black Book USA Drew Smith GM Financial Steve Collins Black Book USA Bill Boutwell Manheim-New England John McDavid Black Book USA Josh Giles Black Book USA David Heslet GM Financial Tim West Black Book USA Heather Crawford Black Book USA Scott Yarborough Black Book USA Eric Lawrence Black Book USA Zach Staruch Black Book USA Stacey Scarnati DAA Rockies Michelle Noblitt DAA Rockies Charles Cathey Black Book USA Mark Simpson Black Book USA John Carter GM Financial Joshua Hunt GM Financial Jimmy Marino GM Financial Chris Watkins GM Financial Levi McCoy LeasePlanUSA Randall Harshman LeasePlanUSA Spence Couch MidSouth AA Stephen "Derik" Page Black Book USA Brett Swanson Black Book USA Linda Amerman Black Book USA

Online Remarketing Courses

• Remarketing Orientation Courses – Online 24/7• Delivered via Northwood University – CEU’s• More than 150 Participants to Date• Twelve Courses:

• Terminology• Transportation• VIN description• Ethics• Resale Channels• Titling

• Introduction to Remarketing• Inspections• Reconditioning• Guidebooks• Technology• Factors Affecting Values

More information regarding both programs can be found at: www.iaraonline.org/training

August 20-21, 2013 Hyatt Regency

Dallas, TX

Introductions!

IARA Officers

Robert Wagner, CARPresident

Levi McCoy, CARVice President

Gus Xamplas, CARDirector

Jeff Bescher Treasurer

Mike AntichSecretary

Bob GrahamChairman of the Board

IARA Directors

Jeannie Chiaromonte, CAR

Don Fowler

David Alfonso Eric Autenreith Dick Curtis

Mary Haller Dan Heinrich

IARA Directors

Layne Weber

Mike Kreider, CAR

Chuck Novince, CAR

Scott Kolb, CAR Tim Meta

Jack Rennels

Jason Herman

IARA Committee Chairs

Dave Alfonso Industry Recognition

& Awards

Mike Antich Press & Public

Relations Communication

Dave Sutton, CARIARA CAR Certification

Don Fowler - Membership Development & Recruitment

Stephanie Gingras, CAR Technology & Social Media

Dan Heinrich - Remarketing Industry Standards & Vehicle Certification

Scot Kolb , CAR Education & Conference

Management

August 20-21, 2013 Hyatt Regency

Dallas, TX

SUMMER ROUNDTABLE

NIADA Update

Chase TidwellVice President of Media Services

NIADA Overview PresentationChase Tidwell

VP of Media ServicesNIADA

IARA Meeting, Dallas, TX 8-20-13

INTRODUCING NIADA

Today’s Agenda

About NIADA Benefits of Membership NIADA Partnerships with NAAA and IAA Membership Profile Industry Trends Regulatory Challenges Auto Remarketing Challenges Q&A

About NIADA Founded in 1946 5th largest trade association in the US Focused on:

Legislative Advocacy Regulatory Compliance Support Member Education Member Services Programs Member Consulting Services Industry Relations

Voice of the Independent Auto Retail Industry

Benefits of Membership Discounts on products & services Legislative Advocacy Educational Opportunities

Certified Master Dealer Program NIADA National Convention & Expo NIADA.TV Education Resources NEW! Twenty Group Program NIADA Leadership Conference

Industry News Used Car Dealer Magazine Annual Used Car Industry Report NIADA Member Benefits Mailings and e-Newsletters

Business Resources Expert advice on financing, marketing, taxes, legal matters and more.

NIADA Partnership with NAAA NIADA’s Used Car Dealer Magazine and NAAA’s On the Block

Newsletter Merge. One publication will be shared with all NAAA auctions /members and all NIADA

Dealer Members Cost effective and efficient way to inform and educate both auctions and used

car dealers about each other’s side of the industry. A great way to unify the remarketing industry and the dealers you do business

with everyday.

New discounted Auction Directory Listing Packages available to all NAAA Members. Greater exposure and promotion of all of your consignment and lane sales at auctions nationwide.

NAAA’s Annual Report will merge with NIADA’s Annual Used Car Industry Report in 2014.

The release and availability of NAAA’s upcoming new arbitration policies to all NIADA Dealer Members

NIADA & IAG Member Benefits NIADA has recently worked with existing NIADA vendor

discount programs that were originally designed for dealers to expand their services and provide similar discount programs specifically for the smaller independent auctions.

IAG and NIADA now offer excellent member benefits to help IAG members grow their business, protect their assets and enhance their profitability.

For a complete listing of over 20 IAG member benefit and discount programs through NIADA, visit www.independentauctiongroup.com and click on the member benefits tab from the home page.

About our Members & the Used Vehicle Industry Almost 38,000 Used Dealers Nationwide, according to

CNW Research. (those that sell 10+ vehicles per month) NIADA Members represent approximately 40% of the

used vehicle retail market 14M units sold in 2012 worth $125-B dollars (CNW- 2012) Average annual retail sales were at 370 units and at an

average price of $8,916 (CNW- 2012) 82% of NIADA dealer member inventory sourced via

auto auctions Dealer Consignment Represented 58% of auction sales

in 2012 (NAAA 2013 Annual Report) Diverse Membership: Used Retail Operators, BHPH

Dealers, New Car Franchise Dealers, Wholesalers

Industry Trends Increased competition from new vehicle franchise

dealers. New dealers are holding onto and selling more used units instead of sending their trades to auction.

The Non-prime auto finance market continues to expand: 57% of used vehicle retail originations reported in 2012

F&I regulatory burden is growing: items such as adverse risk notice, red flags, risk based pricing, CFPB actions, etc. are keeping dealers and our entire industry on high alert.

Used vehicle demand is strong, There were 40M used retail units sold in 2012 (CNW 2012). For every new vehicle sold there were nearly three used sales.

Regulatory Issues

FTC Used Car Rule Updates: Issues NIADA is monitoring: Consumer groups continue to push for vehicle history data on

every buyers guide The need for Spanish Buyers Guides OEM warranty remaining on all Buyers Guides.

CFPB Actions: Issues NIADA is monitoring: ”Large market participants rule” effecting BHPH Dealers 2013 focus payday lenders, BHPH dealers Adverse Risk, Risk Based Pricing, and Red Flags compliance Rental Car Recall Vehicle Legislation

Member Auto Remarketing Challenges

Becoming more familiar and comfortable with the online remarketing channels. Our Dealers still like to go to the auctions and kick those wheels.

Dealers are looking for auctions to provide more retail ready vehicles that they can place directly on the front line without having to take the time and energy to recondition them.

Finding the right market analytics tools to determine the correct inventory levels for the right customer at the right price

Competitive floorplan financing resources due to heightened level of wholesale investment

Questions?

Chase TidwellVP Media Services

NIADATelephone: 817-640-3838Email: chase@niada.com

August 20-21, 2013 Hyatt Regency

Dallas, TX

SUMMER ROUNDTABLE

NAAA Update

Ira Silver, Ph.D.Economist

THE ECONOMY, AUTO SALES & AUTO AUCTIONS

Dr. Ira SilverNAAA Economist

Slow Real GDP Growth

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 22008 2009 2010 2011 2012 2013

-11.0

-9.0

-7.0

-5.0

-3.0

-1.0

1.0

3.0

5.0

7.0

0.3

3.1 2.7

1.5

-2.7

2.0

-2.0

-8.3

-5.4

-0.4

1.3

3.9

1.6

3.92.8 2.8

-1.3

3.2

1.4

4.93.7

1.2

2.8

0.11.1

1.7

Percent Change From Prior Quarter at Annual Rate

Recession

Percent Change From Prior Year

Is this all bad?

Slow Growth Does Not Quickly Create The Excesses That Lead To Recessions

67 70 73 76 79 82 85 88 91 94 97 00 03 06 09 122.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

RecessionUnemployment Rate

Recessions are preceded by very low unemployment

And the economy is growing

Institute for Supply ManagementIndexes Indicate Continued Growth

Three-Month Moving Averages

78798081828384858687888990919293949596979899000102030405060708091011121325.0

30.0

35.0

40.0

45.0

50.0

55.0

60.0

65.0

70.0

Recession

Manufacturing Activity

Recession Level

Nonmanufacturing Activity

Employment Is GrowingChange (thousand of Jobs)

1 3 5 7 9 11

1 3 5 7 9 11

1 3 5 7 9 11

1 3 5 7 9 11

1 3 5 7 9 11

1 3 5 7 9 11

1 3 5 7

2007 2008 2009 2010 2011 2012 2013

-1,000

-800

-600

-400

-200

0

200

400

600

Recession

Auto Sales Recover

(MILLIONS OF UNITS, SEASONALLY ADJUSTED AT ANNUAL RATE)

79808182838485868788899091929394959697989900010203040506070809101112138.0

10.0

12.0

14.0

16.0

18.0

Recession

Light Vehicle (right scale)

Auto Sales Recover

(MILLIONS OF UNITS, SEASONALLY ADJUSTED AT ANNUAL RATE)

Housing Recovery Starts

79808182838485868788899091929394959697989900010203040506070809101112130.2

0.7

1.2

1.7

2.2

8.0

10.0

12.0

14.0

16.0

18.0

Recession

Housing Starts (left axis)

Light Vehicle (right scale)

Households Reduce Financial Obligations

Financial Obligations as a Percent of Disposable Personal IncomeBack to Early 1980s Levels – Consumer Spending Will Grow

80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 1310.0

10.5

11.0

11.5

12.0

12.5

13.0

13.5

14.0

14.5

Recession

Household Wealth RecoversSupports Future Spending

Stock Prices Surge & Home Prices Turn Up

33239332703329833329333593339033420334513348233512335433357333604336353366433695337253375633786338173384833878339093393933970340013402934060340903412134151341823421334243342743430434335343663439434425344553448634516345473457834608346393466934700347313475934790348203485134881349123494334973350043503435065350963512535156351863521735247352783530935339353703540035431354623549035521355513558235612356433567435704357353576535796358273585535886359163594735977360083603936069361003613036161361923622036251362813631236342363733640436434364653649536526365573658636617366473667836708367393677036800368313686136892369233695136982370123704337073371043713537165371963722637257372883731637347373773740837438374693750037530375613759137622376533768137712377423777337803378343786537895379263795637987380183804738078381083813938169382003823138261382923832238353383843841238443384733850438534385653859638626386573868738718387493877738808388383886938899389303896138991390223905239083391143914239173392033923439264392953932639356393873941739448394793950839539395693960039630396613969239722397533978339814398453987339904399343996539995400264005740087401184014840179402104023840269402994033040360403914042240452404834051340544405754060340634406644069540725407564078740817408484087840909409404096941000410304106141091411224115341183412144124441275100

120

140

160

180

200

220

300

500

700

900

1,100

1,300

1,500

1,700Recession

House Price (right axis)

S&P500 Stock Price (left axis)

89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 -

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Nonfinancial Corporate Cash

Bank Excess Reserves

Corporate Profitability At Record LevelsWill Support Business Investment & Hiring

60 63 66 69 72 75 78 81 84 87 90 93 96 99 02 05 08 113

4

5

6

7

8

9

10

Recession

After-tax Profit Margin

Other Economic DriversContinued Monetary Stimulus If Needed

“the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent”

Other Economic DriversContinued Monetary Stimulus If Needed

“the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent”

Other Economic DriversContinued Monetary Stimulus If Needed

“the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent”

Other Economic DriversThe World Is Looking Better

Other Economic DriversU.S. Energy Production Soars (Quadrillion BTU)

00 01 02 03 04 05 06 07 08 09 10 11 12 131.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

2.0

2.1

2.2

0.8

0.9

1.0

1.1

1.2

1.3

1.4

Natural GasOil

Other Economic Drivers

A potential game changer!Federal Energy Regulatory Commission

Natural Gas PricesDollars per Thousand Cubic Fee

Better Times Are Ahead! Real GDP Percent Change

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

-0.3

-2.8

2.51.8

2.81.5

3.02.0

3.5

Auto Sales Recover (MILLIONS OF UNITS, SEASONALLY ADJUSTED AT ANNUAL

RATE)

79808182838485868788899091929394959697989900010203040506070809101112138.0

10.0

12.0

14.0

16.0

18.0

Recession

Light Vehicle (right scale)

Auto Sales Drivers

• Pent-up demand created during recession• Continued easy/cheap credit • Low household debt service burden• Household wealth increasing• Improving labor market• New attractive, fuel efficient vehicles• Housing construction increasing

New Vehicle Sales Continue Strong Recovery

Millions of Units

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

16.6 16.9 16.9 16.5 16.1

13.2

10.4 11.612.7

14.415.6

16.7

-1%1% 0%

-3% -3%

-18%

-21%

11% 10%

13%

8% 7%

New Vehicle Sales Percent Change

AUCTION UNIT VOLUMEPERCENT CHANGE FROM PREVIOUS YEAR

1 2 3 4 1 2 3 4 1 2 3 4 1 22010 2011 2012 2013

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

Dealer Consignment Commercial Consignment TotalAuctionNet

Strong new car sales

AUCTION UNIT VOLUMEPERCENT CHANGE FROM PREVIOUS YEAR

1 2 3 4 1 2 3 4 1 2 3 4 1 22010 2011 2012 2013

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

Dealer Consignment Commercial Consignment TotalAuctionNet

Weak past new car sales

Strong new car sales

AUCTION UNIT VOLUMEPERCENT CHANGE FROM PREVIOUS YEAR

1 2 3 4 1 2 3 4 1 2 3 4 1 22010 2011 2012 2013

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

9.4

Dealer Consignment Commercial Consignment TotalAuctionNet

Weak past new car sales

Strong new car sales

Strong past new car sales

Turnaround in Commercial Consignment Adds to Strong Dealer Consignment

Millions of Units Sold

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

10.0 9.7 9.4 9.5 9.5 9.58.9

8.37.7 7.9

8.49.0

4.6%

-3.0% -2.8%

1.2%0.3%

-0.6%

-5.9%-7.1% -7.6%

3.3%

6%8%

Units Sold Percent Change NAAA Survey, NAAA

Bottom LineBetter Times Are Ahead!

• The economic recovery will strengthen

• Auto sales will approach past levels

• Auction volume will increase this year and next– And probably further on

• Auctions need to ramp up to be able handle the increased business

THE ECONOMY, AUTO SALES & AUTO AUCTIONS

Dr. Ira SilverNAAA Economist

Used Retail Sales Continue RecoveringMillions of Units & Percent Change

Source: CNW Research, NAAA

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

43.6 42.7 44.1 42.6 41.4

36.5 35.5 37.039.0 40.5 42.6

44.1

1.3%

-2.0%

3.4%

-3.6%-2.7%

-11.8%

-2.8%

3.9%5.2% 4.5% 5.0%

3.5%

Used Vehicle Sales Percent Change

August 20-21, 2013 Hyatt Regency

Dallas, TX

SUMMER ROUNDTABLE

Keynote Speaker

Mike BroePresident, CEOAuto IMS

Vehicle Buying TrendsFor the Independent Auto Remarketers AssociationAugust 21, 2013

Industry shifts to customer demands

Historical Industry Shifts

1945:First Physical

Auctions

1980s:First Reconditioning

Centers

2003:First Simulcast

Auctions

1990s:Floor Planning for

Wholesale Purchases

2003 2012

3,400 Buyers

41,000 Buyers

CAGR:32%

(Source: Manheim)

Number of Buyers Purchasing Online

A 12X Increase in Ten Years

Number of Cars Purchased: Simulcast(Source: Manheim)

2003 2012

43,000 cars(Simulcast only)

553,000 cars(Simulcast only)

CAGR:34%

A 13X Increase in Ten Years

Number of Cars Purchased: Total Online

A 22X Increase in Ten Years

(Source: Manheim)

A 22X Increase in Ten Years

2003 2012

43,000 cars(Simulcast only)

906,000 cars(Simulcast & OVE)

CAGR:40%

No. of Dealers Buying Exclusively Online (Source: Manheim)

A 22X Increase in Ten YearsBuyers are getting more comfortable buying online

2003 2012

- 0 -(No Dealers wereexclusively only)

10,500 Dealers(15% of all Dealers)

YearPage Views Visits

2009 14.8M 2.9M

2012 20.0M 4.1M

OVE Dealer Traffic

Buyers are getting more comfortable buying online

(Source: Manheim)

YearAvg.

Monthly Views

2009 342,000

2012 677,000

Retail View

More and more dealers are shopping

(Source: Manheim)

The Industry Does Move!

Historical Industry Shifts

1945:First Physical

Auctions

1980s:First Reconditioning

Centers

2003:First Simulcast

Auctions

1990s:Floor Planning for

Wholesale Purchases

Mobile technology Multi-platform Exclusive online buying Upstream buying

2013 shifts coming faster and faster:

IARA 2013 Summer Roundtable Sponsors

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SUMMER ROUNDTABLE