2010 Dealer Survey: Online Wholesale Used Car Buying & Shipping March 8, 2010

Why is Auto Transportation Important to Online Sales? Cars are everywhere! Wholesale used car trading is growing rapidly on the web… Upstream, simulcast, 24x7 online Online Auctions are becoming global markets … oddly in many cases, shipping has been left to online buyers to sort out Even with upstream sales…cars must transfer from seller to buyer Online buyers can not ignore transportation so they limit their buying zone Auto Transportation is the silent engine behind the explosion of e-commerce People buy online because it’s easy and they get delivery direct to their home Convenience factor doesn’t yet exist in used car market Online trading fulfills its potential when both buying and shipping are made easy

Survey sent to 5,853 dealers in January 2010 via rental of Automotive News email list 169 responses, 3% response rate Median dealer bought 30% of total used inventory online 41% dealers sell 500-1000 new/used cars per year 90% Franchised 10%Independent 2010 Dealer Survey - Demographics

2010 Dealer Survey - Results Why dealers buy online Saves time & expense It’s easy Better inventory selection available How far away will dealers buy online? 27.2% I shop locally within 200 miles (60% in 2009) 47.8% I shop regionally within 500 miles (30% in 2009) 25.0% I shop nationwide (10% in 2009) Dealers who buy w/in 200-500 miles asked: what factors discourage buying farther away? 54.0% Transportation concerns 30.0% Inventory needs met locally 14.0% Concern with vehicle condition reports 2.0% Other reasons

2010 Dealer Survey - Results What dealers say about auto transportation 64.2% want options. Let me choose between expedited delivery or lowest cost 18.4% I want lowest cost delivery. 17.4% Speed is all that matters. I’ll pay more for faster delivery. If Internet Auctions offered integrated shipping, would you buy more online? 67.4% of dealers surveyed said yes (vs 88% in 2009) Comment: Online shipping of vehicles has gotten easier. Some Internet auctions now offer shipping links and there are more auto transportation web sites. Dealer comments about online trading: “It seems arbitration is further complicated with greater distance” “I would be more comfortable with the transaction [if it were integrated].”

2010 Dealer Survey – Outlook 42% of wholesale cars sourced online 2010 vs 39% in 2009 - trending upward Of those purchasing same or less in 2010, reasons included: Weak economy/sales Good local supply Easier to buy locally

ShipCarsNow = Nationwide Delivery Network Using All Transport Modes Hawaii Alaska Puerto Rico and US Virgin Islands Rail, truck & vessel connecting all U.S. major markets Truck for regional moves; fuel-efficient rail for longer distance shipments Co-loading of new and used cars makes rail more accessible More options, more capacity, better value Easy-to-use; fully transactional online www.ShipCarsNow.com Union Pacific Norfolk Southern CSX

2010 Dealer Survey - Summary In other areas of e-commerce, location of the product is generally irrelevant to the online buyer … but when dealers buy used cars online, they often have to worry about shipping and where the cars are located. It doesn’t have to be that way. ShipCarsNow offers both expedited truck and lower cost rail shipping options. Dealers surveyed said they would buy more if buying and shipping are more integrated online. Dealers, just like other consumers, want shipping options Speedy delivery to protect a customer order Low cost delivery to fill inventory needs while protecting the bottom line

Resources for Used Car Data 2009 Market Report, Mid-Year Edition, Manheim Consulting PULSE, Latest Economic Indicators, 2009 Mid-Year Recap, Adesa US Light Vehicle Outlook, IHS Global Insight, presentation to ShipCarsNow/Union Pacific 1/20/2010 AutoRemarketing Magazine Used Car News Magazine

About We are a Union Pacific Company Trusted name & leader in transportation Delivering over 6 million cars annually We deliver autos nationwide Speedy truck delivery Economical and green rail options We make it easy to ship cars! Easy-to-use, no hassle, online www.shipcarsnow.com One call, we do it all 1-866-207-3360