Back to the Future?

2

The Promise of the Internet

New credibility…

Anonymous shopping…

More informed customers…

Time savings…

New differentiation for dealers…

3

Consumer Optimism Prevailed

0

20

40

60

80

Believe Advertised Price?

Newspaper Internet

Source: AutoNation Research, 10/2000

0

20

40

60

80

Not Able to Buy at Ad Price?

Newspaper Internet

4

From Consumer Focus to Lead Gen…

5

To Capitalizing on Stereotypes…

6

Lead Quality Suffers

3rd Party eLeads - Close % (Jan 2000 - Apr 2007)

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

2000

-01

2000

-05

2000

-09

2001

-01

2001

-05

2001

-09

2002

-01

2002

-05

2002

-09

2003

-01

2003

-05

2003

-09

2004

-01

2004

-05

2004

-09

2005

-01

2005

-05

2005

-09

2006

-01

2006

-05

2006

-09

2007

-01

7

Lead Scoring Validates Difference

Conversion Rate by Decile (not Cumulative)

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

De

cile

Conversion Rate

AMTO

IDRT

,EDMBEDPN

8

Other Harm

Wastes associates’ time…

Diverts ad dollars…

Hurts credibility of the good sites and 3rd party leads…

Enriches the slick…

Destroys consumer credibility…

9

Consumers Get It

0

10

20

30

40

50

60

Not Confident in Online Price?

2000 2007

Source: AutoNation Research, 5/2007

10

Credible Inventory?

0

10

20

30

40

50

60

Online Inventory is Available?

Confident Not Confident

Source: AutoNation Research, 5/2007

11

Trust?

0

10

20

30

40

50

60

Fair Value For Trade?

Confident Not Confident

Source: AutoNation Research, 5/2007

12

So What Now?

13

How Would Consumers Like to Shop?

0

10

20

30

40

50

60

Dealership Online

Source: AutoNation Research, 5/2007

14

Appeal of Online Shopping?

0

5

10

15

20

25

30

35

Convenient Facts Available No Pressure

Source: AutoNation Research, 5/2007

15

Appeal of Full Self Service?

0

10

20

30

40

50

60

70

Appealing Not Appealing

Source: AutoNation Research, 5/2007

16

Its Time for Self Service Selling…

17

…and Real Trade In Values…

18

…and “Express Delivery” at Stores…

19

..and Flexible Delivery Options…

20

Use of Internet for Service

0

10

20

30

40

50

60

70

Appointment Research Status Bill Pay Parts

% Likely To Use Internet

Source: AutoNation Research, 5/2007

21

How Would Consumers Like to Service?

0

10

20

30

40

50

60

70

Electronic Menu Express Check In Express Check Out

% Likely To Use

Source: AutoNation Research, 5/2007

22

Its Time for Self Serve Service…

23

…and Parts…

24

Our Opportunities…

Online Standards…

Clean Up…

Real Customer Choice…

Real Customer Guided Services…

OEM – Dealer Partnership…