GAINESVILLE, Ga. — According to a new report developed by
Black Book and Fitch Ratings, vehicles are likely to depreciate at a greater
degree this year, though not enough to present any major obstacles to U.S. auto
loan and lease ABS.

Black Book said today that vehicle depreciation rates
averaged just below 13 percent in 2012, a level underneath the historical range
of 15 percent to 18 percent.

The firm indicated auto ABS has benefited from relatively
benign depreciation rates during the past two years, which has resulted in very
low loss rates of under 0.45 percent on auto loan ABS, and strong residual
values gains of 11 percent in auto lease ABS transactions through the end of
last year.

Black Book expects vehicle depreciation rates this year to
remain low but rise to the lower end of the historical range previously
mentioned.

Analysts pointed out that the average monthly depreciation
on wholesale values of one to five-year-old vehicles was of 2.1 percent late last
year based on sales volumes during the past 12 months at wholesale vehicle
auctions.

During the last quarter of 2012, even with high gas prices,
compact cars, entry-level cars, entry midsize cars and upper midsize cars (all
more fuel efficient models), depreciated at inflated levels of monthly averages
of 3.3 percent and 1.5 percent, respectively, according to Black Book.

That said, Fitch believes auto loan ABS asset performance
will still benefit from healthy used-vehicle values this year even as vehicle
depreciation rises as higher used-vehicle volumes enter the wholesale vehicle
market.

"A higher amount of auto leases coming due this year will
squeeze auto lease residual values down marginally from current elevated
levels, but not enough to impact auto ABS asset performance materially," Fitch
senior director Hylton Heard said.

The new Black Book-Fitch Vehicle Depreciation report is a
joint venture by the two companies utilizing Black Book's used vehicle
depreciation data. The report will be released quarterly.

"Auto lenders are continuously searching for ways to assess
risks related to changes in values to automobiles backing retail loans and
leases and ultimately loss rates, and this new report helps to identify risk
exposure levels for various individual vehicle segments," Black Book president Tom
Cross.

In the initial report, Black Book discusses among other
items, factors that drive vehicle depreciation rates within individual vehicle
segments, while Fitch focuses on how recent low depreciation has positively
impacted used vehicle values and continues to support auto ABS asset
performance and ratings.

Black Book tracks used vehicle market depreciation rates
providing an understanding of how vehicle prices impact automobile lenders and
lessors, auto ABS transactions, consumers and other auto market constituents.

"Black Book is one of the leading sources for automobile
data and insight that may be instrumental to the auto lender community," Heard said.
"The new report will show key trends tied to auto supply and demand that drives
vehicle depreciation rates and ultimately impacts the auto ABS sector."

To obtain a copy of the Black Book-Fitch Vehicle
Depreciation Report, send an email to LenderSolutions@BlackBookUSA.com
or go to Fitch's website at www.fitchratings.com.

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