Pub. 1 2024 Issue 1

Getting to Know AADA Outgoing Chair JAY DOOLEY III Issue 1 • 2024 2024 Convention Wrap-Up 2024 TIME Dealer of the Year Nominee Dean Sides

Administrative Offices: 10543 South Glenstone Place, Baton Rouge, LA 70810 • (800) 622-6838 • TheVersantGroup.com AADA'S ENDORSED F&I PROVIDER OF PRODUCTS, TRAINING AND INCOME DEVELOPMENT A FEW OF OUR 60+ TEAM MEMBERS: Keith Decell President Jason Rasti Executive Vice President Cole Miller Director of Training Lee Martinez Regional Sales Director Joe Latham Territory Manager Shelley Cavin Client Relations Manager Sunny Mayhall General Counsel

4 PRESIDENT’S MESSAGE Welcome to the First Edition of the New AADA Quarterly Magazine By Greg Kirkpatrick, President, AADA 7 Getting to Know AADA Outgoing Chair Jay Dooley III 10 Sherrie Hess Retires After 38 Years 12 AADA Staff 14 2024 Convention Wrap-Up 15 Thank You 2024 Convention Sponsors! 15 SAVE THE DATE! 2025 AADA Convention July 22-25, 2025 16 Endorsed Providers 18 2024 TIME Dealer of the Year Nominee Dean Sides 22 Arkansas Auto Outlook Second Quarter 2024 26 2024 Grassroots Regional Meetings ©2024 Arkansas Automobile Dealers Association (AADA) | The newsLINK Group LLC. All rights reserved. Arkansas Auto Dealer is published four times a year by The newsLINK Group LLC for AADA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of AADA, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Arkansas Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of AADA. While Arkansas Auto Dealer encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. 3 Arkansas Auto Dealer

PRESIDENT’S MESSAGE WELCOME TO THE FIRST EDITION OF THE NEW AADA QUARTERLY MAGAZINE We would like to welcome you to the first edition of the new AADA quarterly magazine. This publication is an incredible opportunity for our association to move to the next level in terms of member outreach. The goal for this magazine is to highlight all things happening in our industry, including a focus on everything dealers are doing across the state. AADA’s objective has always been to serve and represent the Arkansas franchise dealers. There remains a critical role for a print publication that will both educate and tell the stories about dealers. Developing a forum to promote these stories will allow us to focus more intently on relationships, which are key to giving AADA its strength. Maintaining relationships with the Arkansas Legislature, with key partners in state government, with industry representatives and, most importantly, with each dealer continues to serve as the driving force for our industries success. No industry understands the critical role of marketing to ensure the success of your businesses better than automobile and truck dealers. You work tirelessly to get that message out to your customers, and your association is taking a similar focus. As future editions of this magazine are released, do not be surprised if you get a call or email from us asking for an interview, pictures from an event your dealership supports or just some information on the good things happening at your dealership. There are over 250 new car and truck dealers in Arkansas accounting for over 21,000 jobs — and we cannot wait to promote this industry in the way that it deserves. Greg Kirkpatrick President, AADA 4 Arkansas Auto Dealer

Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Harsha Ramayya, harsha.ramayya@bofa.com business.bofa.com/dealer ©2023 Bank of America Corporation. All rights reserved. DFS-699-AD 5949042 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.

GETTING TO KNOW AADA OUTGOING CHAIR Jay DOOLEY III In the charming and historic town of De Queen, Arkansas, right off Collin Raye Drive, you will find De Queen Auto Group. It has been at this location since 1985, and the owners, Jay Dooley and his wife, Mary Ellen, have been a constant in their community since day one. As business owners, the couple have had a huge impact on the community — the cars they sell keep things moving, the people they employ help support families and keep the local economy strong, and their compassion for others has blessed many. As dealers, they are strong supporters of AADA and have served in various ways. Jay served as the 2024 AADA Chairman, and as his term has come to an end, we want to thank him for his service and leadership. We recently had the opportunity to sit down with Jay and learn more about his work, his hopes for the association and the benefits of membership. The following are excerpts from our conversation. How did you get into the industry? My wife, Mary Ellen, and I were neighbors growing up. We dated all through high school and then attended Louisiana Tech together. It was during this time that we were married. Mary Ellen’s father started buying dealerships in the 80s. I started working for him, which was great because I always loved cars. An opportunity opened in De Queen, and he bought the Ford Mercury dealership there in 1985. My wife and I moved there to run the dealership. He has since passed away, and now we’re the dealers. The year after we opened for business in De Queen, we were blessed with our first child, Lindsey. We had to learn how to run a business and be parents at the same time. It was not easy, and by the grace of God, we made it. As the years went by, we learned a lot. We were blessed with two sons, Jonathan and Grant, and our business continued to grow. In 1993, we purchased the Chrysler-DodgePlymouth-Jeep-Eagle franchises. Why did you join AADA, and what is the benefit? In 2009, my friend Gary Futrell was the AADA president. One day, he said, “Hey, I want you to join AADA.” I realized that everybody should serve in some capacity, and I thought, “OK, this is my opportunity to give back.” So, I joined AADA and was astonished at the benefits and help that was available. 7 Arkansas Auto Dealer

One time, I sold a car on Credit Acceptance. The first payment was never made, and I was getting calls from Credit Acceptance asking for the money for the car. I knew I’d never see the car again, let alone get any money for it, especially since the customer had moved to Las Vegas with the car. For some crazy reason, I thought about AADA and Greg Kirkpatrick, so I called him. Greg immediately said, “Let me call the director of the Nevada Dealers Association.” From that call, Greg connected me with a business in Nevada called The Car Lady. The owner was an old car person who had been around dealerships all her life. She told me, “I can fix this. I’m going to tag that car for you.” Ultimately, the car was tagged, a lien was placed, and I got out of it. That situation would have never been resolved without AADA’s help. There are a lot of stories like this — dealers helping fellow dealers and AADA using their knowledge and connections to help members. Being an AADA member has so many benefits, and it’s just amazing what resources we have with the association. What is your favorite quote? My favorite quote hangs on the wall in my office. It is by Warren Buffett: “An idiot with a plan can beat a genius without a plan.” Having a plan is half the battle. The association is only as strong as its membership. Showing up and doing the work is the other half. I have tried to do both since the day I started working here, and it has paid off. We have been very blessed. What is your favorite book? My favorite book is the Bible, and my goal is to spread its message. As car dealers, we interact with a lot of people and touch so many lives. I have tried to make selling cars my mission field. It started out years ago. We put a small New Testament in every car we sold, and it was called the “Owner’s Manual for Life.”The company we got the scriptures from went out of business. Then, on a visit to my daughter in California, I came across a book in the airport, “Keep Calm and Trust God.” It is a small book that contains scriptures full of hope, encouragement, inspirational quotes and more. I loved the book, and that is what we place in the cars we sell now. When you’re not working, what do you like to do? My son and I have 50 head of cattle. My son takes care of them on a daily basis, but I enjoy helping out when I’m not at work. The way I got them is amusing. About 20 years ago, one of our regular customers, Clay Godfrey, stopped by the dealership for a visit. I said to Clay, “I think I would like some cows.” A few weeks later, he called me and said, “I have the cows you want.” I replied, “OK, good. When can I see them?”To my surprise, Clay was 10 minutes away with a load of them. The cows arrived at the dealership, and I called

Does your CPA firm help drive your business forward? hhmdealership.com Dealerships need the specialized services of a committed and independent CPA firm with a proactive approach to enhancing business and fueling growth. HHM is that kind of firm. a friend and asked if I could borrow a pasture. The rest is history. I enjoy hunting as well. We have deer leases with the local timber company, so we hunt on their property. Do you have any advice for the incoming chair? Keep focusing on bringing the dealer members together. The association is only as strong as its membership. Rely on those around you to help, including Greg, the board and even past chairs. They have many years of experience and are ready to help. We always have issues, whether it be factory or legislative. Our network of dealers throughout the state is our most effective resource when dealing with these issues. I am proud that every new car dealer in Arkansas is a member of AADA. I want to thank Greg and the staff at AADA for the great job they do. 9 Arkansas Auto Dealer

Sherrie HESS RETIRES AFTER 38 YEARS After 38 years of dedicated service, Sherrie Hess retired from the AADA back in July. Sherrie started with AADA in 1986 as a secretary. Within a short time, her dedication to the job and the association was evident, which led to a promotion to director of membership services. From planning conventions to helping members with day-to-day questions, Sherrie took charge and made things happen. Sherrie’s position at the time of her retirement was VP of membership services. None of the titles she held do her justice or tell the story of everything that Sherrie did to make the association a success. From all of us at AADA … thank you, Sherrie! Your cheerful and giving nature will be missed. We wish you well in the next chapter of your life. Congratulations on your retirement! 10 Arkansas Auto Dealer

AADA Staff GREG KIRKPATRICK President Greg has held the position of president of the Arkansas Automobile Dealers Association (AADA) since Jan. 1, 2017. AADA is a trade organization representing the interests of Arkansas’ franchised new car and truck dealers since 1932. Greg is an attorney with almost 20 years of experience in state government. Prior to his current position with AADA, Greg was the director of the Arkansas Motor Vehicle Commission for 12 years. KIM MARTIN Finance Director Kim has served as the finance director at AADA for nearly 21 years. Before her move to AADA, Kim owned and operated a franchised retail business for 10 years. By the time of her hire at AADA, Kim was no stranger to the automotive industry. Her father, Jim Lindsey, spent his entire career working for area Ford dealerships, building and managing their massive parts departments. Kim recalls many nights verifying the inventory of copious auto parts and many summers filling in as an extra set of hands in the parts office. Naturally, Kim’s fondness for accuracy of numbers and organization was ingrained at an early age. Still today, Kim prides herself on the values learned from her father and truly enjoys working for AADA’s franchised dealers. Kim is responsible for all AADA company accounts and serves as the staff liaison for the CAADSSIF Workers Compensation Trust Fund. Kim grew up in central Arkansas. She and her husband of 33 years, Frank, reside in Sherwood. They have two adventurous adult children, Hayden and Haley, and two spoiled Dachshund granddogs, Augie and Winston. 12 Arkansas Auto Dealer

JENNIFER CURLIN Title and Registration Director Jennifer worked for the Arkansas Department of Finance and Administration — Driver Services, Motor Vehicle Division for five years before leaving to join AADA in 2014. Jennifer began her career with AADA as a part-time title clerk to spend precious time with her first child. As the years passed, her responsibilities grew within AADA as well as her family. Today, Jennifer oversees the daily operations of the AADA Quick Title Services, Arkansas Vehicle Information System and Arkansas Registration Services. Jennifer is a quiet, focused and motivated person who enjoys the satisfaction of a job well done. She balances her passion for efficient services with family life and being a proud mother of four girls. KATRINA BURNETT Member Services Director Katrina serves as the new member services director for AADA. Prior to joining AADA in 2024, Burnett spent approximately eight years in management positions within the Arkansas Department of Finance and Administration. This included four years managing the Office of the Secretary. In addition to overseeing the day-to-day operation of the office, she served as a liaison between the department’s leadership and all divisions. In the earlier years of Katrina’s career in state government, she was a gubernatorial appointee for the State and Public-School Life and Health Insurance Board, which she held for five years. Katrina has 16 years of experience with state government. Katrina has focused on caring about people and building trust throughout her career. This, along with her ability to resolve conflict, is the reason she has naturally been selected as a leader and liaison by each employer. A native of Des Arc, Arkansas, she now calls North Little Rock home. She is also a proud mom to her daughter, Macy, along with being “Glammie” to her three grandchildren, Everleigh, Beckham and Reece. 13 Arkansas Auto Dealer

Chairman Jay Dooley kicked off the 2024 AADA Convention at the Little Rock Marriott & Convention Center! Jay wanted to bring things back home this year, and the event truly turned out spectacular with incredible speakers and memorable events. We of course want to thank our sponsors for everything they do for our association, and we encourage every dealer to consider giving them your support — starting with our Premier Priority sponsor, The Versant Group, which is our AADA endorsed F&I provider. The Versant Group is unique in that they were formed by a group of franchised automobile dealers who wanted to offer quality F&I products to their customers. It’s truly dealers working for dealers. Next, our Platinum sponsors include ComplyAuto, an AADA‑endorsed dealership compliance company; Federated Insurance, an AADA-endorsed P&C insurance provider; and Stephens Inc., a dealership advisory practice based in Arkansas. Our Gold sponsors include the AADA‑endorsed warranty reimbursement company, Armatus Dealer Uplift, the accounting firm Forvis Mazars and the accounting firm HHM. Finally, our Silver sponsors include Commerce Bank, Dominion DMS, and Reynolds and Reynolds. One of the keys for every convention is to combine plenty of fun with speakers who offer insight into the issues Arkansas dealers face every day. This year was no exception with the opening session titled “Service Tech Scramble — Dealership Initiatives to Attract Service Technicians.” David Sample from Gwatney Buick GMC, Richard Greene with Parker Automotive and Mike Dingler with the ASU Beebe Career Center presented programs they have established within their dealerships to attract, train and retain technicians. This presentation was followed by a “Market Update and Trends” panel featuring one of our Platinum sponsors, Stephens Inc. Joe Mowery, Matthew Marks and David Jett did a phenomenal job laying out the state of the automotive industry across the country. After a great lunch, we heard from one of our Gold sponsors, Forvis Mazars, with a presentation on “Just the Tax Ma’am.” Kevin Horn and Jon Gee discussed key tax items that impact dealers. The final presentation was from one of our Platinum sponsors and endorsed partners, ComplyAuto. Nick Moyes with ComplyAuto presented on “Compliance Uncomplicated” and went over the critical compliance issues, such as the FTC Safeguards Rule that all dealers are facing. Mixed in with these presentations, we held golf and pickleball tournaments that you should not have missed! The final event of the convention was the annual “Chairman’s Banquet — An Evening With the Arts,” where attendees ate an incredible meal and enjoyed the music of Jacob Flores while experiencing the beautifully renovated Arkansas Fine Arts Center. This was an event you’ll be sad you missed, so mark your calendars for next year’s convention at Big Cedar Lodge in Ridgedale, Missouri, on July 22‑25, 2025! 2024 Convention WRAP-UP 14 Arkansas Auto Dealer

SAVE THE DATE! 2025 AADA CONVENTION July 22-25, 2025 PREMIER PRIORITY PLATINUM GOLD SILVER Thank You 2024 CONVENTION SPONSORS! 15 Arkansas Auto Dealer

ENDORSED PROVIDERS The companies listed below have been “endorsed” by AADA to provide products and services to its members, each having been examined and critiqued by the Services Committee and approved by the board of directors. These relationships also provide funding for AADA programs throughout the year such as the annual convention, membership directory and much more. THE VERSANT GROUP Lee Martinez/Joe Latham (318) 934-3121, (501) 838-9717 lee.martinez@theversantgroup.com joe.latham@theversantgroup.com The Versant Group, formed in 2000, is a “dealer‑owned” F&I company organized for the purpose of providing “best in class” F&I products, service, income development and training to automobile dealers in Arkansas and the southeast United States. AMERICAN FIDELITY Steve O’Kane (913) 486-7005 steve.o’kane@americanfidelity.com Benefit plans include long and short-term disability, Section 125, cancer and more. CAADSSIF (CENTRAL ARKANSAS AUTOMOBILE DEALERS SELECTIVE SELF-INSURANCE FUND) Kim Martin (501) 372-2596 kmartin@arkautodealers.com CAADSSIF has provided Arkansas new car and truck dealers workers’ compensation insurance for 40 years. As Arkansas’ most successful group self-insured program, CAADSSIF has returned nearly 60% of surplus premiums annually. FEDERATED INSURANCE COMPANY Zach Ours (816) 885-5673 zwours@fedins.com Federated Insurance Company provides garage liability, property and casualty insurance. Federated marketing representatives use a “Right Report” to tailor coverage to meet individual dealers’ specific needs, and coverage is updated thoroughly each year with an “Annual Client Review.” REYNOLDS & REYNOLDS Richard McClain (501) 269-1593 richard_mcclain@reyrey.com Over 4,000 computer business forms are available, including the LAW F&I Library. The forms are regularly reviewed by industry experts and legal advisors. Customized forms are also available. JTS FINANCIAL SERVICES Charles Angel (501) 227-0194 charles.angel@jtsfs.com JTS is a true partner for your business, providing dependable, personal service as they guide Arkansas businesses through the complicated world of employee benefits. They work to protect the interests of their clients through unique and innovative approaches to employee benefits and human resources. 16 Arkansas Auto Dealer

ARMATUS DEALER UPLIFT Jordan Jankowski (443)391-5702 jordanj@dealeruplift.com Armatus Dealer Uplift is the largest provider of Retail Warranty Reimbursement submission services in the country. The company has worked with nearly 7,000 dealers, has over 16,000 successful submissions in all 50 states, assisted with drafting 17 warranty reimbursement statutes and is endorsed by 23 state dealer associations. A commitment to technological advancement makes Armatus the only turn-key solution in the industry capable of handling large volumes of work with precision and accuracy. With state‑of‑the‑art, proprietary software, Armatus assures dealers get optimal results. The mission of Armatus is to ensure dealerships get paid at the highest rate, in the shortest period of time and with as little disruption as possible. For more information, visit www.dealeruplift.com or call (877) 477-2228. COMPLYAUTO Nick Moyes (661) 213-9054 nick.moyes@complyauto.com The only true “all-in-one” FTC Safeguards compliance solution. Compliance is automatically performed, logged and demonstrated in one simple platform. AADA FORMS COMPANY AADA (501) 372-2596 frontdesk@arkautodealers.com Dealership forms, such as odometer statements, TIMA forms, etc., are shipped through UPS for fast delivery. AADA QUICK TITLE SERVICE Jennifer Curlin (501) 372-2596 jcurlin@arkautodealers.com The title service provides duplicates, corrected titles, transfers and title & registrations, usually within a week. Assistance with “suspense” files is also available. ARS (ARKANSAS REGISTRATION SERVICES) Kim Martin/Jennifer Curlin (501) 372-2596 info@arstemptags.com ARS is a state-approved vendor for the web-based SecureETag Temporary Tag System in Arkansas. ARS allows dealers to provide their customers with paper temporary tags as required by law. AVIS (ARKANSAS VEHICLE INFORMATION SYSTEM) Jennifer Curlin (501) 372-2596 jcurlin@arkautodealers.com Franchise dealers, banks, credit unions and finance companies qualify for this unique program. The service allows for direct access to the DFA Motor Vehicle Web Portal to file direct liens and perform vehicle inquiries. 17 Arkansas Auto Dealer

2024 TIME DEALER OF THE YEAR NOMINEE Dean SIDES “Our employees are our most important asset, and we wouldn’t be where we are today without the loyal and dedicated team at George Kell Motors,” he said. “They share our unwavering commitment to going the extra mile for customers and the community.”

Dean Sides was one of a select group of 49 dealer nominees from across the country who were honored at the 107th annual National Automobile Dealers Association (NADA) Show in Las Vegas, Nevada, on Feb. 3, 2024. The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. The award recognizes the nation’s most successful auto dealers who also demonstrate a long-standing commitment to community service. Sides was chosen to represent the Arkansas Automobile Dealers Association in the national competition — one of only 49 auto dealers nominated for the 55th annual award from more than 16,000 nationwide. “Coming from a humble beginning, I always felt I wanted to do something to help people in similar situations,” nominee Sides said. “The auto industry has given me that opportunity, and it has been rewarding to help our employees and their families enjoy better lives.” Sides grew up in southeastern Missouri and learned the importance of hard work and perseverance while helping his parents on their family farm. In 1981, he earned a B.S. in agriculture from Murray State University in Murray, Kentucky, where he also minored in business and achieved a 3.7 GPA. His first job out of school was at the McDonald Equipment Company in Newport, which encompassed a farm equipment business, Chevrolet Buick dealership and a working farm that produced rice, soybeans and wheat. “I managed the farming operation and sold equipment before I was asked to be general manager of McDonald Chevrolet Buick in 1986,” Sides said, “This began my lifelong career in the automotive industry.” For four years, Sides oversaw strong growth at the dealership, winning numerous awards from Chevrolet. In 1990, he was asked by George Kell Sr., the Hall of Fame baseball player and owner of George Kell Motors, to join his team and become a managing partner with a 50% stake. Sides accepted the offer and became the sole owner of the dealership in 2005. Sides moved the dealership from its original downtown location to a larger, newly built facility on the interstate in 2016 to increase access, showroom space and service capabilities. His son, Elliot, runs that store as general manager. In 2023, he added to his portfolio by acquiring the Ford dealership next to his current store, now called George Kell Ford. “Our employees are our most important asset, and we wouldn’t be where we are today without the loyal and dedicated team at George Kell Motors,” he said. “They share our unwavering commitment to going the extra mile for customers and the community.” Sides has held leadership positions on the boards of several local groups and currently serves the Newport Economic Development 19 Arkansas Auto Dealer

Commission (chair), Newport Area Chamber of Commerce, Moving Jackson County Forward, Newport Country Club and St. Paul’s Episcopal Church. “I have been on the board of the Newport Economic Development Commission since its inception in 2002, and I am proud of the impact we have made,” he said. “We worked hard to create over 2,700 jobs in the local area. This has not only helped the economy of my small community but has benefited thousands of families who now can provide for the people they care about.” Sides also puts the focus on children through his philanthropic endeavors. He has provided books, educational materials and funding for local public schools, as well as offering scholarships to graduating high school students. George Kell Motors is the site for several different community events, including an annual car show that benefits the Jackson County Humane Society, luncheons for first responders, food drives and Veterans Day activities that feature complimentary oil changes and free coffee and donuts for area veterans. Dealers were nominated by the executives of state and metro dealer associations around the country. A panel of faculty members from the Tauber Institute for Global Operations at the University of Michigan selected one finalist from each of the four NADA regions and one national Dealer of the Year. Three finalists received $5,000 for their favorite charities and the winner received $10,000 to give to charity, donated by Ally. In its 13th year as an exclusive sponsor, Ally also recognized dealer nominees and their community efforts by contributing $1,000 to each nominee’s 501(c)3 charity of choice. Nominees were recognized on AllyDealerHeroes.com, which highlights the philanthropic contributions and achievements of TIME Dealer of the Year nominees. “At TIME, we are proud to uphold the decades-long tradition of honoring automotive dealers who make a positive impact and show dedication to their communities through our TIME Dealer of the Year award,” said TIME CEO Jessica Sibley. “We are excited to keep this tradition of applauding these community contributions together with our partners at Ally.” Doug Timmerman, president of Ally, said, “Auto dealers nominated for the TIME Dealer of the Year award have demonstrated an unwavering commitment to not only the industry but to their respective communities through volunteerism, sponsorships and supporting charitable causes, no matter the market climate. Whether their clients are purchasing a first car or upgrading for a growing family, these selected dealers have successfully extended their relationships beyond the showroom and have been steadfast in driving their communities forward.” Sides was nominated for the TIME Dealer of the Year award by Greg Kirkpatrick, president of the Arkansas Automobile Dealers Association. Sides and his wife, Cindy, have three children. BUILD YOUR BRAND, CONTACT US TODAY! (855) 747-4003 sales@thenewslinkgroup.com 20 Arkansas Auto Dealer

Safety Training Resources and HR Support at Your Fingertips Access industry-specific training, sample forms and policies, an employee handbook builder tool, and more 24/7 with mySHIELD®. Commercial Insurance Property & Casualty | Life & Disability Income | Workers Compensation | Business Succession and Estate Planning | Bonding Federated Mutual Insurance Company and its subsidiaries** | federatedinsurance.com 23.02 Ed. 12/22 *View A.M. Best Rating Guide information at www.ambest.com. **Not licensed in all states. © 2022 Federated Mutual Insurance Company Scan to learn more about mySHIELD®. The content of this publication is for general information purposes only. Consult with a qualified professional when you have detailed questions regarding any topic in this publication. AN ASSOCIATION MEMBER BENEFIT FOR 119 YEARS DIRECT, LOCAL MARKETING REPRESENTATIVES AUTO PROPERTY AND CASUALTY SELF-INSURED RETENTION POLICYHOLDER SURPLUS LIVE VOICE CUSTOMER SERVICE TAILORED, INDUSTRY-SPECIFIC COVERAGE BUSINESS SUCCESSION AND ESTATE PLANNING STABLE FACE-TO-FACE RELATIONSHIPS FINANCIAL STRENGTH MUTUAL COMPANY DIRECT CLAIMS REPRESENTATIVES 500+ EXCLUSIVE ASSOCIATION RECOMMENDATIONS ESTATE PLANNING ATTORNEY NETWORK ANNUITIES WE’RE BETTER TOGETHER LIFE AND DISABILITY INCOME PRIVATE BONUS PLANS KEY PERSON COVERAGE WORKERS COMPENSATION HIRING PRACTICES FEDERATED DRIVESAFESM TELEMATICS SOLUTION RISK MANAGEMENT RESOURCE CENTER EMPLOYMENT RELATED PRACTICES LIABILITY EMPLOYMENT LAW ATTORNEY NETWORK BONDING EMPLOYEE SAFETY TRAINING RISK MANAGEMENT ACADEMY CLIENT CONTACT CENTER FIELD RISK CONSULTANTS CERTIFICATE CENTER SURETY SPECIALISTS MANAGED CARE CYBER MYSHIELD® IT’S OUR BUSINESS TO PROTECT AADA MEMBERS

116,316 93,150 100,196 103,200 2021 Actual 2022 Actual 2023 Actual 2024 Forecast Second Quarter 2024 Released July, 2024 Market Summary Forecast for State New Retail Light Vehicle Registrations Domestics consist of vehicles sold by GM, Ford, Stellantis (excluding Alfa Romeo and FIAT), Tesla, Rivian, and Lucid. Data sourced from Experian Automotive. The graph above shows annual new retail light vehicle registrations from 2021 through 2023 and Auto Outlook’s projection for all of 2024. Historical data sourced from Experian Automotive. UP 7.6% vs. ‘20 DOWN 19.9% vs. ‘21 UP 7.6% vs. ‘22 UP 3.0% vs. ‘23 Arkansas Auto Outlook Coverage of the Arkansas new vehicle market TM YTD '23 YTD '24 % Chg. Mkt. Share thru June thru June '23 to '24 YTD '24 TOTAL 48,860 49,604 1.5% Car 7,383 7,201 -2.5% 14.5% Light Truck 41,477 42,403 2.2% 85.5% Domestic 24,714 23,935 -3.2% 48.3% European 2,410 2,627 9.0% 5.3% Japanese 16,830 17,123 1.7% 34.5% Korean 4,906 5,919 20.6% 11.9% FORECAST Arkansas New Vehicle Market Predicted to Increase 3% in 2024 Key Trends in Arkansas New Vehicle Market Key factors boosting new vehicle sales Key factors holding back new vehicle sales » Forecast summary: replacement demand and falling transaction prices will provide some momentum for the new vehicle market for the rest of ‘24, while the negative factors will limit growth. » State new retail light vehicle registrations are predicted to increase 3.0% for all of this year versus 2023. » Registrations approached 25,000 units in the Second Quarter of 2024 but declined 5.2% versus 2Q ‘23. » Top five selling models in the state during the first half 2024: GMC Sierra, Ford F-Series, Chevrolet Silverado, Ram Pickup, and Toyota RAV4 (see page 5). » Volkswagen, Hyundai, Buick, Kia, and Lexus had the largest percentage increases so far this year (see page 4). GMC, Ford, Ram, Chevrolet, and Nissan are strong performers in the state market based on a comparison to U.S. market share (see page 5). Existing vehicle fleet is old. Average age of vehicles in operation has reached an all-time high. No question, modern vehicles are built better and last longer, but today’s models offer many upgraded features vs. the average 12.5 year old car. Passive and active safety technology, advanced infotainment options, and alternative powertrains are just a few examples. Many vehicle owners have a strong incentive to upgrade. Transaction prices are falling. Right now, affordability is a deterrent for new vehicle sales (see right), but increased inventories and rising incentives have pushed down vehicles prices which will spur demand. Economy is hanging in there. After significant interest rate increases in 2022 and 2023, fingers were crossed for a soft landing. GDP has remained positive, employment levels continue to move higher, and household incomes have largely kept pace with inflation. Interest rates are elevated and prices have risen sharply since 2021, but recession seems unlikely. Heightened uncertainty. There are always unexpected events lurking that can impact the market. The CDK outage is a recent example. In addition to these surprises, there are ongoing and upcoming events with uncertain outcomes that cloud the sales forecast. The presidential election is at the top of the list. As we have already seen, events related to the campaign are rightfully leading to heightened anxiety and uneasiness. This will last up until election day, and hopefully, for a relatively short period afterwards. Geopolitical unrest surrounding the Ukraine and Middle East conflicts are other examples. Consumer confidence takes a hit when the list of things to worry about lengthens, and this is a negative for new vehicle sales. New vehicle affordability is a drag. Monthly finance and lease costs remain elevated due to higher interest rates. As noted on the left, vehicle transaction prices have fallen and household incomes are increasing, but inflation has eroded purchasing power. Monthly new vehicle payments as a percent of consumer income will move lower in the coming months, but are high right now and it’s holding back sales.

Page 2 Arkansas Auto Outlook Arkansas Auto Outlook Published by: Auto Outlook, Inc. PO Box 390, Exton, PA 19341 Phone: 610-640-1233 EMail: jfoltz@autooutlook.com Editor: Jeffrey A. Foltz Information quoted must be attributed to Arkansas Auto Outlook, published by Auto Outlook, Inc. on behalf of the Arkansas Automobile Dealers Association and must also include the statement: “Data sourced from Experian Automotive.” At Auto Outlook, we strive to provide sound and accurate analyses and forecasts based upon the data available to us. However, our forecasts are derived from thirdparty data and contain a number of assumptions made by Auto Outlook and its management, including, without limitation, the accuracy of the data compiled. As a result, Auto Outlook can make no representation or warranty with respect to the accuracy or completeness of the data we provide or the forecasts or projections that we make based upon such data. Auto Outlook expressly disclaims any such warranties, and undue reliance should not be placed on any such data, forecasts, projections, or predictions. Auto Outlook undertakes no obligation to update or revise any predictions or forecasts, whether as a result of any new data, the occurrence of future events, or otherwise. KEY TRENDS IN ARKANSAS NEW VEHICLE MARKET Arkansas UP 1.5% U.S. UP 3.4% % Change In New Retail Market YTD 2024 thru June vs. YTD 2023 New retail light vehicle registrations in the state increased 1.5% during the first six months of this year vs. year earlier, lower than the 3.4% improvement in the Nation. Data sourced from Experian Automotive. Data sourced from Experian Automotive. SAAR estimates: Auto Outlook. QUARTERLY RESULTS Arkansas Quarterly Registrations Seasonally Adjusted Annual Rate, Converted to Equivalent U.S. New Vehicle Market SAAR (millions of units) The graph on the left provides an easily recognizable way to gauge the strength of the state market. It shows quarterly registrations based on a seasonally adjusted annual rate. These figures are then indexed to SAAR sales figures for the U.S. new vehicle market. So just like in the national market, when the quarterly SAAR is above 17 million units, the state market is strong, 15 million is about average, and below 13 million is weak. Equivalent SAAR levels in the state slipped from 15.3 million in the First Quarter of this year to 15.0 million in the Second Quarter. % Change in quarterly registrations vs. year earlier (2Q ‘24 vs. 2Q ‘23) UP 0.9% DOWN 5.2% % Change in registrations vs. previous quarter (2Q ‘24 vs. 1Q ‘24) STATE MARKET VS. U.S. 13.5 12.8 13.9 15.3 15.1 14.6 15.3 15.0 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Millions

Second Quarter 2024 Page 3 8.8% 8.0% 7.2% 6.0% 5.7% 5.1% 5.1% 4.9% 4.8% 4.2% 3.6% 3.4% 3.2% 1.5% 0.9% 0.4% 0.1% -0.3% -1.2% -7.0% KEY TRENDS IN ARKANSAS NEW VEHICLE MARKET Market Share by Type of Vehicle Combining the blue and orange sections in the graph above corresponds to the standard industry definition of light trucks. Small crossovers are broken out, however, since many are more similar to compact hatchbacks than to trucks. Light truck share (excluding small CUVs) was 68.2% so far this year, above the 56.6% share in the U.S. Data sourced from Experian Automotive. Domestic brand market share (which includes Tesla and Rivian) in the state was higher than U.S. levels: 48.3% vs. 38.8%. State Japanese brand share was 34.5% in the first half of this year. Korean brands accounted for a higher share of the state market than in the Nation. Data sourced from Experian Automotive. VEHICLE AND BRAND SEGMENTS - State AND U.S. (YTD ‘24 thru June) Domestic, European, Japanese, & Korean Brand Share COMPARISON OF STATE MARKETS Percent Change in New Retail Light Vehicle Registrations - YTD 2024 thru June vs. YTD 2023 Data sourced from Experian Automotive. 68.2% 56.6% 17.3% 24.7% 14.5% 18.7% 0.0% 25.0% 50.0% 75.0% 100.0% State U.S. Light trucks (excl. Small CUVs) Small CUVs Passenger Cars 48.3% 38.8% 34.5% 39.9% 11.9% 10.9% 5.3% 10.4% 0.0% 25.0% 50.0% 75.0% 100.0% State U.S. Domestic Japanese Korean European Observations and Key Facts • Arkansas registrations increased 1.5% in the first half of this year, below the average for other markets. The Oregon market improved by 8.8%. • BEV market share in Arkansas was just 1.7% vs. 8.5% in the Nation. BEV penetration was highest in California- 23.1% • Ford was the best-selling brand in the state during the first six months of this year. Arkansas was the only state where Ford was the leader.

Page 4 Arkansas Auto Outlook % Change in State Registrations for Top 20 Brands- YTD '24 thru June vs. YTD '23 Brands Gaining Ground Largest % increases from 1Q '24 to 2Q '24 Tesla Up 20.9% Volkswagen Up 17.1% Hyundai Up 16.5% Dodge Up 13.8% GMC Up 10.0% Brands Losing Ground Largest % declines from 1Q '24 to 2Q '24 Lexus Down 31.3% Mazda Down 24.8% Ram Down 24.1% BMW Down 15.6% Chevrolet Down 9.9% Arkansas and U.S. Market Shares for Top 15 Brands in State - YTD '24 thru June Jeep, -30.9% Tesla, -28.6% Mercedes, -8.2% Cadillac, -6.0% GMC, -4.8% Nissan, -3.3% Mazda, -2.9% Ford, -0.9% Dodge, 1.7% Chevrolet, 3.2% Honda, 4.8% Toyota, 4.9% BMW, 5.7% Subaru, 7.1% Ram, 7.3% Lexus, 8.6% Kia, 10.5% Buick, 12.3% Hyundai, 32.1% Volkswagen, 37.8% 13.4 12.6 11.7 9.9 7.5 6.3 5.8 5.7 4.1 3.9 3.3 2.1 1.9 1.5 1.3 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 U.S. State BRANDS AND MODELS The primary metric used to identify winning and losing brands is the percent change in registrations vs. year earlier, shown on the graph below. VW and Hyundai were the biggest gainers in the state market in the first six months of this year among the top 20 brands. BUT this snapshot does not capture the shorter term trend in sales, and this matters! Registrations for a brand may have posted a big year-over year increase (definitely a positive), but if growth has stalled during the most recent quarter, that’s significant. The tables to the right of the graph show results from the First to the Second Quarters of 2024. WINNERS AND LOSERS TOP SELLING BRANDS Largest % increases during YTD ‘24 vs. YTD ‘23: Volkswagen, Hyundai, Buick, Kia, and Lexus. Largest % increases in 2Q ‘24 vs. 1Q ‘24: Tesla, Volkswagen, Hyundai, Dodge, and GMC. Data sourced from Experian Automotive. Data sourced from Experian Automotive. Red circles show Arkansas market share. U.S. market share is represented by the gray bars. Ford, Toyota, Chevrolet, GMC, and Honda were the top five selling brands in the state so far this year. GMC state share was well above U.S. levels.

2024 GRASSROOTS REGIONAL MEETINGS AADA is excited to announce we are bringing back our regional meetings with a focus on rebuilding our grassroots connection with dealers across the state. These meetings are long overdue, and with all the challenges our industry is facing, the timing is perfect. The goal for each grassroots stop is to give an update on the work AADA is doing on behalf of dealers and hear from each of you on what we can do better! We hope to see every dealer at one of the meetings. All meetings are 11:00 a.m.-1:00 p.m. OCT. 29 Laredo Grill 200 E. Main St., El Dorado OCT. 30 Hardscrabble Country Club 5211 S. Cliff Dr., Fort Smith NOV. 5 Mama’s Little Italy 1020 Airport Rd., Hot Springs NOV. 12 Cooper Alumni Center 2600 Alumni Blvd., Jonesboro NOV. 13 AADA Headquarters 600 Main St., Ste. 200, North Little Rock NOV. 14 Springdale Country Club 608 W. Lakeview Dr., Springdale Register today by emailing Katrina Burnett at kburnett@arkautodealers.com or calling (501) 372-2596. In the email, please include the company name, contact name, address, phone number, email and the number of registrants. There is a $20 registration fee per person and that includes lunch for the day. AADA will send you an invoice once you’ve emailed and registered. 26 Arkansas Auto Dealer

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