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Page 1 of 2 ~1 ~ t, TI'll£ Cc7St t0 Ownsm (TCC}) About True Cost to OwnsM Edmunds.com's True Cost to Ownsm is a proprietary tool that helps you estimate the total five-year cost of buying and owning a vehicle - including some items you may not have taken into consideration. A benefit of using this tool is that you can easily compare the five-year totals for different vehicies and make a more informed choice. The costs that we estimate include depreciation, interest on financing, taxes and fees, insurance premiums, fuel, maintenance and repairs. In order to estimate certain mileage-dependent costs, we assume that vehicles have been driven an average of 15,000 miles per year. For used vehicles, we calculate mileage using the nominal difference between the current calendar year and the vehicle's model year. Note that TCO is a comparative tool, not a predictive tool - your actual five-year cost of owning a particular vehicle will vary depending on your personai circumstances, such as your driving history and the number of miles you drive. How We Calculate True Cost to OwnsM The True Cost to Ownsm calculations use the following set of assumptions: • Ownership expenses are considered over a five-year time span • You will drive an average of 15,000 miles per year • You are financing the vehicle using traditional financing, not lease financing • You are in the Gold credit tier for the purpose of determining your finance rate • You are putting a 10% down payment on the vehicle at purchase • Your retail contract term is 60 months • You represent the average demographic for insurance rate consideration Using proprietary formulas, we calculate the five-year costs for the seven cost categories that make up the TCO (depreciation, insurance, financing, taxes & fees, fuel, maintenance and repairs). We take into account widely available manufacturer to customer cash rebates on new cars, which may result in a lower net cost of ownership. However, we do not account for other types of cash rebates or incentives due to the variability in the offers as well as the eligibility rules for such offers. Explanation of True Cost to Ownsm Terms Depreciation This is the amount by which the value of a vehicle deciines from its purchase price. The purchase price employed for new cars is the vehicle's True Market Valueo price in your state (including typical equipment and destination charge). The purchase price employed for used cars is the vehicle's Private Party True Market Valueo price in your state. The resale value assumes the vehicle will be in "clean" condition, will be driven an average of 15,000 miles per year, and will be sold to a private party. Insurance This is the estimated average annual insurance premium being charged by insurers in your state. The premium has been determined based on annual premium data for defined driver profiles and coverages (liability, comprehensive and collision) from the four largest insurers in each state (except Massachusetts, which is based on premium data from one large insurer). While this information is specific to vehicle make, model, model year and body type, your personal information is not taken into consideration and could greatly alter the actual premium quoted by an insurer. Factors that will affect your rate include your age, marital status, credit history, driving record, and the garaging address of your vehicle. Financing This is the interest expense on a loan in the amount of the True Market Valuee purchase price (including typical equipment) plus the destination charge (for new cars) and the base sales tax and initial fees for your state, assuming a 10% down payment and a loan term of 60 months. The interest rate used is the prevailing rate that banks and other direct automotive lenders are charging consumers in your geographic region who are in the Gold credit tier (which encompasses the majority of the car-buying population) of the Edmunds.com Finance Rate Estimator. Note: Even if you do not finance your vehicle, the inclusion of financing cost in determining True Cost to OwnSM is still appropriate because http://www.edmunds.com/popupinfo/aboutcto.html 10/9/2008 T 000366 - - - - - - - - -~--F _ . n .