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COX AUTOMOTIVECAR BUYER JOURNEY STUDY:PANDEMIC EDITIONMedia Summary / February 2021Research & Market Intelligence

Study Background & MethodologyBackground Cox Automotive has been researching the car buying journey for 11 years tomonitor key changes in consumer buying behaviorsGoal Inform strategic decisions for Cox Automotive and OEM & Dealer clientsIn-Field Dates September 10 – September 22, 2020Respondents Buyers/Lessees that took ownership between mid-March and September 2020Used the internet during the shopping/buying processResults are weighted to be representative of the buyer population3,016Recent Vehicle Buyers2,010New Buyers1,006Used Buyers2

2020 Buyer ProfileTotalNew (A)Used (B)Male51%Ç62%BÇ48%ÇFemale49%È38%È52%AÈAvg Age505349Gen Z (1996-2011)2%1%2%Millennial (1982-1995)24%20%25%AGen X (1965-1981)38%34%39%ABaby Boomer (1946-1964)30%37%B29%Pre-Boomer (Pre-1946)6%9%B5%White/Caucasian88%89%88%African American or lNew (A)Used (B)Income Under 75K42%30%È45%AIncome 75K 58%70%BÇ55%Have Children51%Ç47%Ç53%A2020 Pickup Truck Purchase2020 Segment Market Share(among Male Buyers)(Change from 2019)59% ( 14)ÇPickups 3%Ç2020 Pickup Truck Purchase(among Hispanic Buyers)SUVs 2% ÇCars -4% È11% ( 7)Ç*Ethnicity/Race & Income excludes prefer not to answer.Letters indicate significant difference between New and Used at the 95% confidence interval.Arrows indicate significant difference to prior year at the 95% confidence interval.Mastertext stylesSource: Cox Automotive CarEditBuyerJourney- 20203

Our Consumer SegmentsThe GuardedThe VIPThe InformedThe ExperiencerThe Straight ShooterInexperienced andcautious about carshoppingPractical and sticks tobudgetView their car as areflection of their socialstatusPut limited effort in theircar shoppingPrefers the finer things in Enthusiastic about carslifeView car buying asMeticulous and maximize opportunity to learneffort in their car shoppingWell-versed in vehiclebuying processWould never buy a carthey felt they couldn’taffordMore likely to beMillennialsMore likely to be singleGender neutralMore likely to have 75KHHIMore likely to beMillennialsMore likely to have kidsMore likely to be maleEqual distribution of and 75K HHIMore likely to be Gen XMost likely to be aSuburbaniteMore likely to be maleMore likely to have 75KHHIMore likely to be Gen X orBoomersMore likely to be aSuburbaniteGender neutralMore likely to have 75KHHIMore likely to be olderMillennialsMost likely to be UrbaniteMore likely to be maleMore likely to have 75KHHIEditProfilingMaster textstylesSource: 2020 Cox Auto Consumer SegmentationResearch4

“In Market” in 2020Buyer SegmentThe Straight Shooter15%30% Likely Gen X or BoomerThe Informed25%27%The VIP21% 23%The GuardedThe Experiencerbe Straight Shooters tend to18%5% Experienced buyers Financially responsible28%K Household income 7510%2018mid-March to Sept 20202020 saw a spike in pragmatic, experienced buyers, such as The StraightShooters, while cautious and novice buyers – The Guarded and TheExperiencers – tended to steer away from the market. Not Sure removed.Green and Red Circles indicate significant differences from 2018 at the 95% confidence interval.Mastertext stylesSource: Cox Automotive CarEditBuyerJourney- 20205

In 2020, the Global Pandemic 1) Shifted Purchase Motivation2) Revolutionized the Buying ProcessResearch & Market Intelligence6

Overall: Higher Satisfaction and a Shorter Purchase Process % of Buyers Satisfiedwith Shopping Experience74% Ç72% Ç71% Ç69%66%60%58%66%61%58%62%Time Spent in Purchase Process62%60%60%59%13h 13mÈ 14h 53m20202019NEW BUYERUSED BUYER11h 11m È13h 49m È20202019Total20162017NewUsedAB20182019202011h 56m2020201915h 53mDrivers Shifted Purchase Motivationsof Change Revolutionized Buying ProcessArrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.Letters indicate significant differences between New and Used at the 95% confidence interval.Mastertext stylesSource: Cox Automotive CarEditBuyerJourney- 20207

With Decisive Buyers Spending Less Time Shopping OnlineSource:Cox ResearchingAutomotive Car &BuyerJourneyOnlineTimeSpentShopping7h 14m È 9h 29m20202019NEW BUYER5h 34m È202020196h 44mUSED BUYER7h 44m È2020201910h 25mTop ReasonsFor Less Time Online1. Already knew what they wanted“With our previous vehicle, we weren't surewhich one to go with, but with this purchase, Iknew exactly what I wanted in a vehicle andthe make & model.”“There was less searching the internet formakes, models, etc. We had decided ahead oftime what we wanted, if available.”2. Attractive offer3. Dealer reached out with offersArrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.Mastertext stylesSource: Cox Automotive CarEditBuyerJourney- 20208

In 2020, Purchase Motivation Driven More by “Want”. . .% of Buyers PurchasingBecause They “Want” a Vehicle(vs. “Need” a Vehicle)NewATotalBUsed51% 4%201837%39%34%20192020 Not Sure removed.Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.Letters indicate significant differences between New and Used at the 95% confidence interval.Source: Cox Automotive Car Buyer Journey - 20209

. . . And Buyer Certainty Increased% of Buyers Who Knew Exact Vehicle TheyWanted at Start of Shopping ProcessStrategize a plan to maintain a comprehensive2018online presence that includes partysites(29%)*35%Intensify the urgencyin offers andTotalstrategicallyfeature messagesaround20182018New (A)Used (B)special45%dealsandvehicleattributes(38% )*(26%)*Ç32%ÇBB Not Sure removed.*Not asked in 2019 survey.Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.Letters indicate significant differences between New and Used at the 95% confidence interval.Source: Cox Automotive Car Buyer Journey - 202010

More Shoppers Considered Both New and Used in 2020% of Buyers Who Considered BothNew and Used VehiclesStrategize a plan to maintain a comprehensive2019online presence that includes partysites(53%)57%Intensify the urgencyin offers andTotalstrategicallyfeature messagesaround20192019New (A)Used (B)special 30%deals andvehicleattributes(32%)(60%)66%AÇ Not Sure removed.Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.Letters indicate significant differences between New and Used at the 95% confidence interval.Source: Cox Automotive Car Buyer Journey - 202011

In 2020, COVID-19 Safety Concerns Motivated Buyers to Grow Their GaragePurchase Trigger Was“Needed AdditionalVehicles in Household”Usage of Transportation Mediums88% 88%Pre-COVIDDuring COVID13% vs. 8%56%Used48%29%24%31%15%Personal VehicleRide-SharingPublic TransportationTaxi20%12%Car-Sharing% WHO SAY “VERY RISKY FOR COVID”2%32%56%39%34%NewMore than 1 in 4Vehicle ShoppersWho Plan to AddAnother Vehicle totheir Household CitedThey No LongerWant to Use OtherTransportation*Arrows indicates significant difference since last wave or compared to other measures.Mastertext stylesSource: 2020 Cox Automotive COVID-19 Consumer Impact Study; Cox Automotive Car BuyerEditJourneyStudy- 202012

New Buyers Were Enticed by Attractive Deals . . .Top 5 Purchase TriggersNEW BUYERS1. Previous vehicle had high mileage2. Wanted a vehicle with certain features3. Promotional Offer – Attractive Deals(17% Post-COVID vs. 11% Pre-COVID)4. Wanted/Needed a different vehicle type5. Lease expiredUSED BUYERS1. Previous vehicle had high mileage2. Previous vehicle was unreliable or expensive to repair3. Wanted/Needed a different vehicle type4. Wanted a vehicle with certain features5. Previous vehicle was damagedSource: Cox Automotive Car Buyer Journey - 202013

. . . While Trust in “The Deal” Improved% of Buyers Who Trust the Dealership/Retailer Gave Me the Best DealTrust the Dealer Gave the Best Deal Across Time New64%ÇSept 2018 toAug 2019Timeframe(57%)TRUST DEALERGAVE BEST DEAL Lessees69% ( 7)68%59%61%64%Sept. 2019 toMid-March 2020March toMay 202061%55%UsedSept 2018 toAug 2019TotalNew (A)69%BÇ61%71%ÇJune toSept. 2020Heavy IncentivesTimeframeUsed (B)63%ÇNew Purchasers69% ( 8)TOYOTA64% ( 8)CHEVROLET72% ( 12)70% ( 2)57% (-5)73% ( 11) Not Sure removed.Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.Letters indicate significant differences between New and Used at the 95% confidence interval.Mastertext stylesSource: Cox Automotive CarEditBuyerJourney- 202014

In 2020, the Global Pandemic 1) Shifted Purchase Motivation2) Revolutionized the Buying ProcessResearch & Market Intelligence15

Third-Party Sites Remain Popular Among Vehicle BuyersTotal Vehicle BuyersFirst And Last Website Visited(Among Buyers Visiting Multiple Websites)5% Ç13%78%of vehicle buyers visited atleast 2 websites3%6%5%9%New Form Online Retailer53%Google SearchCoxAutomotive19%56%CoxAutomotive23%OEM SitesThird-Party SitesDealership Sites 33%17%FirstLastThird Party excludes Carvana.Dealership includes CarMax.New Form Online Retailer is primarily Carvana.*Data points exclude “Social Sites”, “Other Sites”, and “Not Sure” from analysis.Arrows indicate significant differences from previous timeframe at the 95% confidence interval. Mastertext stylesSource: Cox Automotive CarEditBuyerJourney- 202016

In 2020, Dealership Visitation Dipped to an All-Time Low . . .Number of Dealerships ws indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.Letters indicate significant differences between New and Used at the 95% confidence interval.Source: Cox Automotive Car Buyer Journey - 2020- 202017

. . . While New Form Online Retailing GrewAutomotive Website Category UsageThird Party*76%Dealership60%OEM29%New 1%79%52% È27%26%11% Ç7% Ç2018201924%17%Ç2020*Third Party excludes Carvana.New Form Online Retailer is primarily Carvana.Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.Source: Cox Automotive Car Buyer Journey - 202018

Time Spent at Dealerships Reached a Record Low in 2020. . .UsedNew2:582:532:552:552:5320162:472:51“I interacted by phone with mysalesman and told him the type ofvehicle I was looking to buy. I wasable to test drive immediatelywithout having to look at theirwhole inventory on the 9ÇÇÇTotal“No price negotiation. We hadalready paid and taken care ofmost things online - justneeded to pick up the car!”2020 Outliers Removed.Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.Letters indicate significant differences between New and Used at the 95% confidence interval.Mastertext stylesSource: Cox Automotive CarEditBuyerJourney- 202019

. . . While Satisfaction Reached an All-Time High% of Buyers Satisfiedwith Dealership ExperienceNewA72%70%69%Total 67%Used 66%B73%79% Ç77% Ç76% Ç64%61%67%69%65%60%20162017201820192020 Not Sure removed.Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.Letters indicate significant differences between New and Used at the 95% confidence interval.Source: Cox Automotive Car Buyer Journey - 202020

Dealership Experience Became More Streamlined . . . and Satisfying% of Buyers Satisfied in 2020*( ) year-over-year changeTotalHow Long theProcess TookInteractionswith FinanceTrust DealerGave theBest DealThe PricePaidInteractionswith SalesSelection ofVehicles57%( 10%)Ç69%( 9) Ç64%( 7) Ç74%( 7) Ç76%( 6) Ç69%( 6) Ç81%( 3) ÇThe Test DriveProcessNew (A)62%B ( 14) Ç71% ( 9) Ç69%B ( 8) Ç74% ( 6) Ç78% ( 5) Ç70% ( 1)83% ( 5) ÇUsed (B)56% ( 10) Ç68% ( 8) Ç63% ( 8) Ç74% ( 8) Ç75% ( 6) Ç68% ( 7) Ç81% ( 3)*In-field dates: September 10-22, 2020Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.Mastertext stylesSource: Cox Automotive CarEditBuyerJourney- 202021