City of Scottsdale: Automotive Dealerships Market Analysis A Market and Feasibility Study of New Car Dealerships in Scottsdale April 2009 Economic Vitality Department SCOTTSDALE Scottsdale Automotive Dealerships Market Analysis April 2009 Scottsdale City Council W.J. “Jim” Lane Mayor Lisa Borowsky Robert Littlefield Wayne Ecton Ron McCullagh Suzanne Klapp Tony Nelssen John C. Little City Manager A publication of: The City of Scottsdale Economic Vitality Department 4021 N 75th Street, Suite 102 Scottsdale, AZ 85251 Phone: (480) 312-7989 Fax: (480) 312-2672 www.scottsdaleaz.gov/economics bberry@Scottsdaleaz.gov Last Updated: April 30, 2009 Scottsdale Automotive Dealership Market Analysis—April 2009 2 TABLE OF CONTENTS I. Executive Summary 5 II. Introduction 6 III. Scottsdale Resident Market 11 IV. Scottsdale Employment Market 15 V. Regional Competition 18 VI. Transportation Factors 27 VII. Vehicle Sales & Registration 29 VIII. Appendix 34 Scottsdale Automotive Dealership Market Analysis—April 2009 3 INDEX Map 1 (North Scottsdale Market Area / Sites) 9 Map 2 (South Scottsdale Market Area / Sites) 10 Table 1 (Population Growth) 12 Table 2 (Median Household Income) 12 Table 3 (Spending Potential Index for Scottsdale) 13 Map 3 (Scottsdale Zip Codes) 14 Table 4 (Scottsdale Employment by Industry & Year) 15 Table 5 (Largest Employers in Scottsdale) 16 Chart 1 (Job, Labor Force, & Population Growth) 17 Chart 2 (Unemployment Rates) 17 Table 6 (Major Car Dealership Clusters: Metro Phoenix) 18 Map 4 (Metro Phoenix Auto Dealership Clusters) 19 Table 7 (Existing Metro Phoenix Car Dealers) 20 Table 8 (Scottsdale Auto Dealership Ownership Patterns 25 Table 9 (Traffic Counts) 27 Map 5 (Metro Area Freeway System) 28 Table 10 (New Vehicle Sales & Market Share by Mfg.) 30 Table 11 (Best Selling Luxury Vehicles in Metro Phoenix) 31 Table 12 (Motor Vehicle Registrations) 33 Table 13 (Scottsdale Sales Tax Receipts: Auto Category) 33 Table 14 (Scottsdale Total Gross Receipts: Auto Category) 33 Appendix A: North Scottsdale Market Area Analysis 35 Appendiz B: South Scottsdale Market Area Analysis 38 Scottsdale Automotive Dealership Market Analysis—April 2009 4 I. EXECUTIVE SUMMARY ◊ The Phoenix metro area is a very dynamic market; it is growing rapidly, possesses a highly diversified economy, and has excellent prospects for the future. ◊ The City of Scottsdale is one of the most desirable areas within metro Phoenix, both for businesses and residents. With its high quality of life, high service levels and competitive costs, it attracts not only affluent residents and tourists, but also businesses looking for a higher-end location. ◊ The resident population base of the market area for the auto corridor in North Scottsdale is rapidly growing. The estimated population within a 10 mile radius is 509,386. The projected population for 2013 is 556,751—over a 9 percent increase. ◊ These residents have an estimated average median household income of $87,120. ◊ The total number of people employed within the 10 mile radius of the North Auto Corridor area is currently 275,403. The Scottsdale Airpark is currently home to nearly 2,800 businesses that employ over 52,000 people. ◊ The resident population base of the market area for the Motor Mile in southern Scottsdale continues to grow; the estimated population, within a 10 mile radius, is 1,033,055. The projected population for 2013 is 1,106,358—over a 7 percent increase. ◊ These residents have an estimated average median household income of $60,504. ◊ Surface transportation improvements that were recently completed and currently underway greatly enhance accessibility to the Scottsdale auto malls. The primary improvement is the Pima Freeway, which includes interchanges north and east of the north Auto Corridor area. Additional lanes are currently being added to this freeway. ◊ The automotive clusters closest in proximity to the Scottsdale market are the Northeast Phoenix, North Phoenix, and East Phoenix. Auto dealers in Scottsdale have an excellent opportunity to serve the rapidly growing and affluent northeast Valley. ◊ The total number of people employed within the 10 mile radius of the Motor Mile is 817,409. The SkySong ASU Scottsdale Innovation Center is a new mixed-use employment and research center located at the heart of Motor Mile, providing increased traffic and visibility to the area. Scottsdale Automotive Dealership Market Analysis—April 2009 5 II. INTRODUCTION Automobile dealers traditionally have located near each other, creating strip commercial development along major arterial streets. By offering a wide variety of makes and models in one general area, these dealers tend to have a competitive advantage and greater sales potential; customers know that they will be able to compare different lines of cars without having to drive all over town. In addition, these areas tend to attract a variety of auto related services that support the dealer base in that area. Examples of this within the metro Phoenix area include the east Camelback corridor in Phoenix and the Motor Mile in the southern part of Scottsdale. Significant restructuring of the automobile industry is currently taking place. The weakness of the national and global economies, changes in buyer preferences, and pressures to development new, more environmentally friendly vehicles have all taken a toll on the industry. Manufacturers have also changed their marketing and location strategies with a new emphasis on locations which have direct freeway access—at least in larger urban areas. With these changes has come relocation of dealerships to locations considered more competitive. Manufacturers have also begun enacting programs to reduce the number of dealerships nationally. This affects relocation decisions for those remaining new car dealerships. In response to these economic and business conditions, Scottsdale and other cities in the metropolitan area have recently experienced substantial changes in the mix and number automobile dealerships through dealership closures, consolidations, and relocations. This report includes six major sections, beginning with an overview of the metropolitan area, the City of Scottsdale and the auto mall market area. The report then examines the residential market and then looks at the employment market in the Scottsdale area. Additionally, this report lists the existing regional competition to the auto malls in the Metro Phoenix area and outlines the transportation factors that make Scottsdale an excellent location for an auto dealership. The final section of the report looks at the automobile sales statistics and registration trends in the state and Metro Phoenix area. Scottsdale Scottsdale Automotive Dealership Market Analysis—April 2009 6 Metro Phoenix Overview Scottsdale Overview The Phoenix metropolitan area is one of the most dynamic and growing areas in the country. Already the hub of the Southwest, Metro Phoenix is rapidly becoming one of the nation’s largest metropolitan areas. Driving this tremendous growth is a strong and diverse employment sector, with hightech manufacturing, research, corporate headquarters, tourism, and business/ personal services forming the economic base. The following is a brief overview of some of the major developments occurring in the Phoenix area today: Scottsdale is considered to be one of the most desirable areas within metropolitan Phoenix, from both a business and a residential viewpoint. The City of Scottsdale has one of the strongest local economies, with low taxes and excellent services. Still, Scottsdale remains strongly committed to maintaining a very high quality of life. Development standards are the strictest in the state. ◊ From 1995 to 2008 the metropolitan population grew 68.3 percent with an actual increase of approximately 1,742,966. The current population in the metro area is roughly 4.3 million. ◊ The 2008 unemployment rate for metro Phoenix was 4.9%. ◊ Tourism remains an important factor in the Metro Phoenix area with over 15.4 million overnight visitors in 2007. There are about 53,000 hotel rooms available in Metro Phoenix, and that figure continues to increase. ◊ In 2007, the Greater Phoenix Economic Council (GPEC) assisted 25 major companies relocate or expand their operations in metro Phoenix, with over 5,496 new targeted jobs to the area (Source: GPEC). ◊ Total retail sales in Metro Phoenix totaled roughly $57.5 billion in 2007 (Source: Eller College of Management). Some specific characteristics that make Scottsdale a unique and desirable location include: ◊ Scottsdale’s estimated population of 230,293 residents has an overall median household income among the highest in the Metro area at $74,504 (Source: SitesUSA). ◊ Retail sales fell nearly 5 percent in 2007/08 and continue to fall in 09/10/ However, over the past ten years., retail sales tax collections in Scottsdale have increased 47 percent over the past ten years (adjusted for a rate increase in 2004/05). ◊ As a tourism destination, Scottsdale hosted 8.4 million visitors in 2007 with an economic impact of $3.7 billion. ◊ Scottsdale issued 1,686 residential housing permits in FY2007/08. This figure includes all new projects and renovations requiring building permits for both single and multi-family units. Scottsdale Automotive Dealership Market Analysis—April 2009 7 Market Area Maps Map 1 (p. 9) delineates the estimated market area for the North Scottsdale Auto Mall. This area includes a ten-mile radius from the Greenway-Hayden Loop and Frank Lloyd Wright Boulevard intersection. Map 2 (p. 10) outlines the estimated market area for the South Scottsdale “Motor Mile”. This area also includes a ten-mile radius extending from McDowell Road and Scottsdale Road. These areas naturally overlap and share portions of other nearby market areas, including Phoenix, Tempe, and Mesa. Demographics for each market area are included in the Appendix (p. 34). The relative locations of both Scottsdale auto market areas as well as the location of other auto clusters throughout the Metro Phoenix area are shown on Map 4 (p. 19). Scottsdale Automotive Dealership Market Analysis—April 2009 8 Map 1 North Scottsdale Market Area North Scottsdale New Car Dealer Locations Map Legend Key 1 2 3 4 5 6 7 8 9 10 11 12 13 Name Pinnacle Nissan/Infiniti Right Toyota Airpark Dodge/Chrysler/Jeep Right Honda Legends Cadillac Power Ford Van Chevrolet Available Saturn of Scottsdale Available Available Motorsports of Scottsdale Scottsdale Lotus Address 7601 E Frank Lloyd Wright 7701 E Frank Lloyd Wright 7801 E Frank Lloyd Wright 7875 E Frank Lloyd Wright 7901 E Frank Lloyd Wright 8555 E Frank Lloyd Wright 8585 E Frank Lloyd Wright 15656 N Hayden Rd 15350 N Hayden Rd 15333 N Hayden Rd 15055 N Hayden Rd 8053 E Raintree Dr 7652 E Acoma Dr Blvd Blvd Blvd Blvd Blvd Blvd Blvd Owner Larry Van Tuyl David Wilson Larry Van Tuyl David Wilson John Lund AutoNation Larry Van Tuyl Dan Januska Javad Maghami Eric Edenholm Scottsdale Automotive Dealership Market Analysis—April 2009 9 Map 2 South Scottsdale Market Area Former Bill Heard site, 2 miles Southern Scottsdale New Car Dealer Locations Map Legend Key 1 2 3 Name Power Subaru Power Chrysler/Jeep Power Isuzu/Hyundai Address 6420 E McDowell Rd 6460 E McDowell Rd 6480 E McDowell Rd Owner AutoNation AutoNation AutoNation 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Powell Volvo Available Available Infiniti of Scottsdale Available Five Star Ford Mark Mitsubishi/Kia Kachina Cadillac/Hummer/Saab Scottsdale Lexus Scottsdale Aston Martin Ferrari/Maserati Scottsdale Available Chapman Dodge/Volkswagen Available 6500 E McDowell Rd 6640 E McDowell Rd 6850 E McDowell Rd 6910 E McDowell Rd 7000 E McDowell Rd 7100 E McDowell Rd 1000 N Scottsdale Rd 1200 N Scottsdale Rd 6905 E McDowell Rd 6825 E McDowell Rd 6825 E McDowell Rd 6725 E McDowell Rd 6601 E McDowell Rd 8705 E McDowell Rd Stan Powell Ken Schatzberg Dr. Kenneth Scholz Mark Debowy John Lund Penske Penske Penske Baxter Chapman - Motor Mile dealers 2 miles Scottsdale Automotive Dealership Market Analysis—April 2009 10 III. SCOTTSDALE RESIDENT MARKET The most important component of the overall demand for new car dealerships within a market area is the resident base within that area. This section of the study looks at the residential market in the northeast Valley, in terms of the number of residents and socioeconomic breakdowns. Overall, the population of the Phoenix metro area grew by approximately 68 percent during from 1995 through 2008, growing from 2.6 million in 1995 to 4.9 million in 2008. During the period between 1995 and 2008, the City of Scottsdale grew nearly 37 percent. Because Scottsdale is approaching buildout, population growth has begun to temper relative to historical growth rates. However, Scottsdale’s population and the Metro area’s population is expected to grow by 9 percent and 15 percent, respectively, over the next five years. Scottsdale’s population has grown nearly 14 percent over the last 8 years The median household income level of Scottsdale residents is among the highest in the Valley at $74,504, compared to approximately $57,228 for the Metro area in 2008. These higher income households typically have greater disposable income, and, therefore, greater disposition toward new car purchases. Overall, the population located within metropolitan area market is rapidly growing, and the residents of Scottsdale tend to have high-income levels and excellent demographic characteristics that make them more likely to consider a new car purchase than any other population base in the Valley. Table 1 (p. 12) shows Scottsdale’s population growth from 1995 through 2008 with projections for 2013. Table 2 (p. 12) shows the median household income of Scottsdale residents since 1995 with a 2013 projection. Table 3 (pg. 13) illustrates the spending potential index for Scottsdale residents by postal zip code, and Map 3 (p. 14)shows the locations of these zip codes within the City of Scottsdale. Scottsdale Automotive Dealership Market Analysis—April 2009 11 Table 1 Population Growth 1995 - 2008 / 2013 Projection Scottsdale Metro Area N. Scottsdale S. Scottsdale Market Area* Market Area** n/a n/a 1995 168,176 2,551,765 2000 202,705 3,251,876 448,885 981,839 2008 230,293 4,294,731 509,386 1,033,055 20.5% 27.4% n/a n/a 13.6% 32.1% 13.5% 5.2% 36.9% 68.3% n/a n/a 251,792 4,929,541 556,751 1,106,358 9.3% 14.8% 9.3% 7.1% % Change 1995-2000 % Change 2000-2008 % Change 1995-2008 2013 Projected Projected % Change 2008-2013 Sou r ce : U.S. Census Bureau, SitesUSA *North Scottsdale Market Area includes portions of NE Phoenix, Fountain Hills, & Paradise Valley. **South Scottsdale Market Area includes portions of SE Phoenix, Tempe, & Mesa. Table 2 Median Household Income 1995 - 2008 / 2013 Projection Year Scottsdale Metro Area N. Scottsdale Market Area* 1995 $48,319 $35,623 n/a S. Scottsdale Market Area** n/a 2000 $57,969 $44,794 $66,950 $47,663 2008 % Change 1995-2000 % Change 2000-2008 % Change 1995-2008. 2013 Projected Projected % Change 2008-2013 $74,504 $57,228 $87,120 $60,504 20.0% 25.7% n/a n/a 28.5% 27.8% 30.1% 26.9% 54.2% 60.6% n/a n/a $84,590 $64,044 $97,998 $67,271 13.5% 11.9% 12.5% 11.2% Sou r ce : U.S. Census Bureau, SitesUSA *North Scottsdale Market Area includes portions of NE Phoenix, Fountain Hills, & Paradise Valley. **South Scottsdale Market Area includes portions of SE Phoenix, Tempe, & Mesa. Scottsdale Automotive Dealership Market Analysis—April 2009 12 Major Appliances Computers & Hardware Lawn & Garden Home Repair Retirement Plans Investments Home Loan Auto Loan Sou r ce : The Sourcebook of Zip Code Demographics, 2008 Electronics 121 106 323 180 285 63 88 195 229 190 304 104 100 Furniture 115 107 280 162 242 61 88 178 203 168 273 100 100 115 107 276 163 237 61 88 175 203 169 267 100 100 Restaurants 117 97 306 165 269 62 85 187 210 171 306 100 100 99 90 263 151 232 56 77 157 190 157 236 88 100 Sporting Goods 114 108 308 171 268 61 89 186 217 178 276 101 100 123 106 347 183 300 59 89 196 237 192 312 100 100 Fees & Tickets 125 99 314 169 275 60 87 191 215 173 329 99 100 111 103 268 165 232 64 87 167 206 173 250 101 100 Toys & Games 124 95 371 180 324 59 84 207 238 189 352 100 100 122 104 340 176 300 59 88 200 226 183 323 100 100 Travel 122 98 352 191 312 59 86 197 247 201 320 99 100 117 107 265 156 226 61 89 174 193 160 274 99 100 Cable TV 139 106 426 202 358 56 90 222 273 212 387 101 100 97 90 243 141 208 51 74 149 177 146 226 84 100 Apparel & Service 121 95 340 183 302 62 86 191 237 193 314 100 100 Entertainment Personal 117 105 290 163 255 62 88 187 204 168 291 101 100 Auto Repairs 112 101 259 163 229 66 86 173 201 170 265 103 100 The Home 124 105 271 152 236 60 90 185 188 155 311 101 100 Health Insurance 85250 85251 85253 85254 85255 85256 85257 85258 85259 85260 85262 Arizona U.S. Zip Code Financial Services Table 3 Spending Potential Index for Scottsdale 2008 123 103 303 173 270 66 90 193 217 178 312 105 100 Pets & Supplies Scottsdale Automotive Dealership Market Analysis—April 2009 13 Map 3 Scottsdale Zip Codes Scottsdale Automotive Dealership Market Analysis—April 2009 14 IV. SCOTTSDALE EMPLOYMENT MARKET The employment market in the northeast Valley is an important component to all car dealerships in the Scottsdale auto market. Not only do area employees represent potential vehicle sales, but they also provide a base for parts and service business. The Scottsdale Airpark is the third largest employment center in metro Phoenix, and will continue to be a major force in the overall economy of the Valley in the years to come. According to Colliers International’s “Greater Scottsdale Airpark 2010 Report,” there are currently over 2,800 businesses employing 52,000 people within the Scottsdale Airpark. Table 4 provides a breakdown of total Scottsdale employment by industry for 2007, and employment projections for 2020. Table 5 (p. 16) lists the 30 largest employers in Scottsdale in 2009. The businesses listed are technology companies, retailers, resorts, insurance companies, health care, education, and other service organizations. Table 4 Scottsdale Employment by Industry and Year Agriculture, Mining, & Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation & Warehousing Information Finance, Insurance, & Real Estate Professional & Business Services Education & Health Services Leisure & Hospitality Other Services Government TOTAL 2007 2020 Employment Percent Employment Percent 275 0.2% 336 0.2% 10,332 6.6% 12,612 6.5% 12,797 8.1% 15,340 7.9% 5,826 3.7% 6,984 3.6% 18,674 11.9% 21,674 11.1% 1,704 1.1% 2,043 1.1% 3,058 1.9% 3,966 2.0% 21,678 13.8% 28,090 14.4% 34962 22.3% 44,973 23.1% 18,880 12.0% 23,732 12.2% 20,183 12.8% 24,031 12.4% 5,621 3.6% 6,619 3.4% 3,110 2.0% 4,152 2.1% 157,100 100.0% 194,552 100% Sou r ce : Gruen Gruen & Associates, "Analysis & Forecast of Employment & Building Space Demand & Strategic Policy Recommendations for Greater Airpark Study Area," March 2009 Scottsdale Automotive Dealership Market Analysis—April 2009 15 Table 5 Largest Employers in Scottsdale - 2009 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Company Name Employees Scottsdale Healthcare 6,650 Mayo Clinic** 4,900 General Dynamics*** 3,600 Scottsdale Unified School District* 3,126 City of Scottsdale 2,971 CVS - CareMark 2,048 Go Daddy Group 1,915 The Vanguard Group 1,899 Troon Golf LLC 1,539 Scottsdale Insurance Company 1,400 Fairmont Resort 1,000 Dial Corporation 700 Desert Mountain Properties 650 United Blood Services 647 Coventry Health Care 631 The Boulders Resort 620 USPS - Scottsdale 595 Hyatt Regency at Gainey Ranch 583 Pulte Homes 545 Nordstrom 500 JDA Software Group 451 Wal-Mart 450 McKesson 450 Scottsdale Medical Imaging 380 Taser 355 Sage Software 350 Costco 313 Scottsdale Conference Resort* 312 Hotel Valley Ho 305 Dillard's 290 Sou r ce : City of Scottsdale, Economic Vitality Department * = Full-time equivalent (FTE) employees, as of Jan/Feb 2009 ** = Includes all Mayo Clinic employees in Metro Phoenix *** = Includes all employees that report to Scottsdale site Scottsdale Automotive Dealership Market Analysis—April 2009 16 Chart 1 compares job growth, labor force growth, and population growth for metro Phoenix and Scottsdale. Between 1990 and 2005 the total number of jobs in the Metro area grew by 66 percent. There are currently over 275,403 jobs in the north Scottsdale market area, and over 817,409 in the south Scottsdale market area. Both labor force and population growth in the market areas are expected to be slower than the rate of job increase, so it appears that this area will become more important in terms of jobs over time. Chart 2 provides an overview of unemployment rates for Scottsdale, metro Phoenix, and the State of Arizona since 1999. Between 1999 and 2008, Scottsdale’s unemployment rate ranged between 4.1 percent and 1.9 percent. Scottsdale generally has moved in parallel to the metro Phoenix and Arizona state rates, but at a significantly lower level. The unemployment rate for Scottsdale has consistently been about 30 percent lower than the rate for the entire metro Phoenix area, and about 40 percent lower than the rate for the State of Arizona. % Change 1990‐2005 Chart 1 Job Force, Labor Force, & Population Growth 100% 80% 60% 40% 20% 0% Job Growth Labor Force Growth Scottsdale Population Growth Maricopa County Chart 2 Unemployment Rates 8.0% 6.0% 4.0% 2.0% 0.0% 1999 2000 2001 Arizona 2002 2003 2004 Metro Phoenix 2005 2006 2007 Scottsdale 2008 Scottsdale Automotive Dealership Market Analysis—April 2009 17 V. REGIONAL COMPETITION Currently, there are 12 major new car dealership clusters serving the metro Phoenix area. These dealership clusters are shown in Table 6. The metro area lost roughly 15 new car dealerships in the last year through closures and consolidations. Table 6 summarizes the current distribution of dealerships by cluster. Information about the individual dealerships is included on Maps 1, 2, and 4 (pp. 9, 10, & 19) and in Tables 7 and 8 (pp. 20-26). The clusters closest in proximity to the Scottsdale market are the Northeast Phoenix, North Phoenix, and East Phoenix clusters. This leaves auto dealers in Scottsdale with an excellent opportunity to serve the rapidly growing and affluent northeast Valley. Table 6 Major New Car Dealership Clusters: Metro Phoenix Area 2009 Key Area Location # Dealerships 1 2 3 4 5 6 North Scottsdale Southern Scottsdale Northeast Phoenix North Phoenix East Phoenix Central Phoenix 10 12 8 14 9 4 7 Tempe 10 18 8 Mesa/ Apache Junction 16 16 9 Chandler/ Gilbert 15 17 10 11 Peoria Glendale 17 6 20 11 12 West Valley Frank Lloyd Wright Blvd. & Hayden Rd area 68th St. & McDowell Rd area (Motor Mile) Scottsdale Rd & Loop 101 area Bell Rd & I-17 area 12th St. & Camelback Rd area Camelback Rd & I-17 area (a) Elliot Rd & I-10 area (Autoplex); (b) Baseline Rd & Rural/McClintock Rd area (a) Broadway Rd & Alma School Rd. area; (b) Main St. & Mesa Dr. area; (c) Superstition Springs Rd & US Hwy 60 area (a) Arizona Ave & Baseline Rd area; (b) Ray Rd & I-10 area; (c) Gilbert Rd & Loop 202; (d) Val Vista Rd & Loop 202 areas Bell Rd & Loop 101 area 51st Ave & Glendale Rd area (a) I-10 & SW of Loop 101 area (b) I-10 & Litchfield Rd area # Makes Represented 27 23 9 23 13 6 17 19 Scottsdale Automotive Dealership Market Analysis—April 2009 18 Map 4 Metro Phoenix Auto Dealership Clusters Scottsdale Automotive Dealership Market Analysis—April 2009 19 Table 7 Existing Metro Phoenix New Car Dealers - 2008 North Scottsdale Dealer Address Make Airpark Chrysler/Jeep/Dodge Legends Cadillac 7801 E Frank Lloyd Wright Blvd 7901 E Frank Lloyd Wright Blvd Motorsports of Scottsdale 8053 E Raintree Dr Pinnacle Nissan/Infiniti Power Ford Right Honda Right Toyota Saturn of Scottsdale 7601 E Frank Lloyd Wright 8555 E Frank Lloyd Wright 7875 E Frank Lloyd Wright 7701 E Frank Lloyd Wright 15350 N Hayden Rd Scottsdale Lotus 7652 E Acoma Dr Van Chevrolet 8585 E Frank Lloyd Wright Blvd Dealer Blvd Blvd Blvd Blvd South Scottsdale Address Chapman Dodge/Volkswagen Ferrari/Maserati Scottsdale Five Star Ford Infiniti of Scottsdale Kachina Cadillac/Hummer/Saab Mark Mitsubishi/Kia Power Chrysler/Jeep Power Isuzu/Hyundai Power Subaru Powell Volvo 6601 E McDowell Rd 6825 E McDowell Rd 7100 E McDowell Rd 6910 E McDowell Rd 1200 N Scottsdale Rd 1000 N Scottsdale Rd 6460 E McDowell Rd 6480 E McDowell Rd 6420 E McDowell Rd 6500 E McDowell Rd Scottsdale Aston Martin 6825 E McDowell Rd Scottsdale Lexus 6905 E McDowell Rd Chrysler / Jeep / Dodge Cadillac / Hummer / Saab Aston-Martin / Bentley / BMW / Ferrari / Lamborghini / Mercedes Benz / Panoz / Porsche / Rolls Royce / Murcielargo / Spyker Nissan / Infiniti Ford Honda Toyota Saturn Porsche / Audi / Ferrari / Maserati / Aston Martin / Jaguar / Bentley / Mercedes Benz / BMW / Lotus Chevrolet Make Dodge / Volkswagen Ferrari / Maserati Ford Infiniti Cadillac / Saab / Hummer Mitsubishi / Kia Chrysler / Jeep Isuzu / Hyundai Subaru Volvo Jaguar / Rolls Royce / Bentley / Land Rover / Aston Martin Lexus Scottsdale Automotive Dealership Market Analysis—April 2009 20 Table 7 (Continued) Northeast Phoenix Address Dealer Acura North Scottsdale Audi North Scottsdale BMW North Scottsdale Jaguar North Scottsdale Land Rover North Scottsdale Porsche North Scottsdale Schumacher European, Ltd Volkswagen N. Scottsdale 7007 E Chauncey Ln 18088 N Scottsdale Rd 18018 N Scottsdale Rd 18118 N Scottsdale Rd 18100 N Scottsdale Rd 18000 N Scottsdale Rd 18530 N Scottsdale Rd 7001 E Chauncey Ln Make Acura Audi BMW Jaguar Land Rover / Range Rover Porsche Mercedes Benz Volkswagen North Phoenix Address Dealer Big Kia Bell Ford Bell Honda Chapman Hyundai Chapman Mitsubishi Bell Lexus Bell Road Toyota Chapman Mazda Lund Cadillac/Hummer/Saab Midway Chevrolet Midway Nissan Midway Pontiac/GMC/Buick Power Chrysler/Jeep/Dodge Sanderson Lincoln/Mercury/Volvo Dealer ABC Nissan Camelback Toyota Camelback Volkswagen/Subaru/Mazda Chapman BMW Camelback Ford/Lincoln/Mercury Coulter Cadillac Courtesy Chevrolet Showcase Honda Showcase Mazda Make 2121 E Bell Rd 2401 W Bell Rd 701 W Bell Rd 999 W Bell Rd 999 W Bell Rd 1901 E Bell Rd 2020 W Bell Rd 1234 W Bell Rd 1311 E Bell Rd 2323 W Bell Rd 2201 W Bell Rd 2201 W Bell Rd 16406 N 26th Ave 2121 W Bell Rd Kia Ford Honda Hyundai Mitsubishi Lexus Toyota Mazda Cadillac / Hummer / Saab Chevrolet / Isuzu Nissan Pontiac / GMC / Buick Chrysler / Jeep / Dodge Lincoln / Mercury / Volvo 1300 E Camelback Rd 1333 E Camelback Rd Nissan Toyota 1499 E Camelback Rd Volkswagen / Subaru / Mazda 1144 E 1330 E 1188 E 1233 E 1500 E 1521 E BMW Ford / Lincoln / Mercury Cadillac Chevrolet Honda Mazda East Phoenix Address Camelback Camelback Camelback Camelback Camelback Camelback Rd Rd Rd Rd Rd Rd Make Scottsdale Automotive Dealership Market Analysis—April 2009 21 Table 7 (Continued) Central Phoenix Address Dealer Bill Luke Chrysler/Jeep/Dodge Camelback Hyundai/Kia Performance Chrysler/Jeep/Dodge Phoenix Motor Company 2425 W Camelback Rd 2223 W Camelback Rd 4240 W Glendale Ave 225 W Indian School Rd Tempe Address Dealer Acura of Tempe Chapman Chevrolet/Isuzu Coulter Motor Company Hyundai of Tempe Power Nissan Saturn of Tempe Tempe Dodge Tempe Honda Tempe Lincoln/Mercury Power Toyota/Scion 7800 S 1717 E 7780 S 8050 S 7755 S 7799 S 7975 S 8030 S 7777 S 7970 S Dealer Berge Ford Brown & Brown Chevrolet Power Chevrolet Cardinale Way Mazda Coury Buick/Pontiac/GMC Darner Chrysler/Jeep Earnhardt Nissan Earnhardt Toyota/Scion Fiesta Lincoln/Mercury Infiniti of Superstition Springs Riverview Toyota/Scion Riverview Nissan Robert Horne Ford Superstition Springs Chrysler/Jeep Superstition Springs Honda Superstition Springs Lexus Make Chrysler / Jeep / Dodge Hyundai / Kia Chrysler / Jeep / Dodge Mercedes Benz Make Autoplex Loop Baseline Rd Autoplex Loop Autoplex Loop Autoplex Loop Autoplex Loop Autoplex Loop Autoplex Loop Test Dr Autoplex Loop Acura Chevrolet / Isuzu Pontiac / GMC / Buick / Cadillac Hyundai Nissan Saturn Dodge / Chrysler / Jeep Honda Lincoln / Mercury Toyota / Scion Mesa/ Apache Junction Address Make 460 E Auto Center Dr Ford 145 E Main St Chevrolet 6330 E Superstition Springs Blvd Chevrolet 6343 E Test Dr Mazda 6315 E Auto Park Dr Buick / Pontiac / GMC 837 W Main St Chrysler / Jeep 6354 E Test Dr Nissan 6136 E Auto Loop Dr Toyota / Scion 1720 S Mesa Dr Lincoln / Mercury 6225 E Test Dr Infiniti 2020 W Riverview Auto Dr Toyota / Scion 2025 W Riverview Auto Dr Nissan 3400 S Tomahawk Rd (AJ) Ford 6130 Auto Park Dr Chrysler / Jeep 6229 E Auto Park Dr Honda 6206 E Test Dr Lexus Scottsdale Automotive Dealership Market Analysis—April 2009 22 Table 7 (Continued) Chandler/ Gilbert Address Dealer Audi of Chandler Berge Volkwagen Big Two Toyota/Scion Chapman BMW Earnhardt Dodge Earnhardt Ford/Mazda Freeway Chevrolet Henry Brown Buick/Pontiac/GMC Lexus of Chandler Mercedes Benz of Chandler Power Nissan Chandler San Tan Ford San Tan Honda Superstore San Tan Hyundai Thorobred Chevrolet 7460 W Orchid Ln 385 W Baseline Rd 1250 S Gilbert Rd 7455 W Orchid Ln 1301 N Arizona Ave 7300 W Orchid Ln 1150 N 54th St 1550 E Driver's Way 7430 W Orchid Ln 7450 W Orchid Ln 1350 S Gilbert Rd 1429 E Motorplex 1150 S Gilbert Rd 3252 S Auto Way 2121 N Arizona Ave Peoria Address Dealer Acura of Peoria Arrowhead Honda Arrowhead Lexus Biddulph Mazda Infiniti of Peoria Larry Miller Dodge Larry Miller Hyundai Larry Miller Toyota Liberty Buick Mercedes Benz of Arrowhead Moore Chrysler/Jeep Power Chevrolet Arrowhead Peoria Kia Peoria Nissan Peoria Pontiac/GMC Saturn of Arrowhead Sunset Ford 9190 W Bell Rd 8380 W Bell Rd 9238 W Bell Rd 8424 W Bell Rd 9167 W Bell Rd 8665 W Bell Rd 8633 W Bell Rd 8425 W Bell Rd 8737 W Bell Rd 9260 W Bell Rd 8600 W Bell Rd 9055 W Bell Rd 17431 N 91st Ave 9151 W Bell Rd 8660 W Bell Rd 8801 W Bell Rd 9130 W Bell Rd Glendale Address Dealer Glendale Pontiac/GMC Mark Mitsubishi Performance Chrysler/Jeep/Dodge Sanderson Ford / Lincoln / Mercury Sands Chevrolet Coulter Nissan 4150 W Glendale Ave 4434 W Glendale Ave 4240 W Glendale Ave 6400 N 51st Ave 5418 NW Grand Ave 4850 W Glendale Ave Make Audi Volkswagen Toyota / Scion BMW Dodge Ford / Mazda Chevrolet Buick / Pontiac / GMC Lexus Mercedes Benz Nissan Ford Honda Hyundai Chevrolet Make Acura Honda Lexus Mazda Infiniti Dodge Hyundai Toyota / Scion Buick Mercedes Benz Chrysler / Jeep Chevrolet Kia Nissan Pontiac / GMC Saturn Ford Make Pontiac / GMC Mitsubishi Chrysler / Jeep / Dodge Ford / Lincoln / Mercury Chevrolet Nissan Scottsdale Automotive Dealership Market Analysis—April 2009 23 Dealer Avondale Chrysler/Jeep Avondale Dodge Avondale Mitsubishi / Suzuki Avondale Nissan Avondale Toyota Gateway Chevrolet Dan Grubb Ford Earnhardt Honda Larry Miller Mazda Larry Miller Volkswagen Michael Crawford Kia Michael Crawford Subaru Pioneer Ford Sands Chevrolet Saturn of Avondale Tom Jones Ford Yates Buick/Pontiac/GMC Table 7 (Continued) West Valley Address 10055 W Papgo Fwy (Avondale) 10101 W Papago Fwy (Avondale) 803 E Van Buren St (Avondale) 10305 W Papago Fwy (Avondale) 10005 W Papago Fwy (Avondale) 9901 W Papago Fwy (Avondale) 7501 W McDowell Rd (Phoenix) 10151 W Papago Fwy (Avondale) 10675 W Papago Fwy (Avondale) 10205 W Papago Fwy (Avondale) 10501 W Papago Fwy (Avondale) 10601 W Papago Fwy (Avondale) 13680 W Test Drive (Goodyear) 16991 W Waddell Rd (Surprise) 10685 W Papago Fwy (Avondale) 23454 W Hwy 85 (Buckeye) 13845 W Test Dr (Goodyear) Make Chrysler / Jeep Dodge Mitsubishi / Suzuki Nissan Toyota / Scion Chevrolet Ford Honda Mazda Volkswagen Kia Subaru Ford Chevrolet Saturn Ford Buick / Pontiac / GMC Scottsdale Automotive Dealership Market Analysis—April 2009 24 Scottsdale Automotive Dealership Market Analysis—April 2009 25 Chapman Ferrari/Maserati Scottsdale Five Star Scottsdale Hummer Power Infiniti of Scottsdale Power Scottsdale Aston Martin Power Mark Mitsubishi/Kia Scottsdale Lexus - Dodge Ferrari / Maserati Ford GMC Honda Hummer Hyundai Infiniti Isuzu Jaguar Jeep Kia Lamborghini Land Rover Lexus Mazda - Power Chrysler Mercedes Benz - - Buick Chevrolet - BMW Kachina - Audi Cadillac Scottsdale Aston Martin South Scottsdale (Scottsdale/McDowell) - Aston Martin Acura Make - - Penske - - Mark Debowy AutoNation Penske AutoNation Ken Schatzberg AutoNation John Lund - - Kenneth Scholz Penske Baxter Chapman AutoNation - John Lund - - - Penske - Ownership Javad Maghami/ Schumacher European - - Penske Javad Maghami - Coye Porter Penske - Larry Van Tuyl - John Lund David Wilson - AutoNation Eric Edemholm - Coye Porter Larry Van Tuyl John Lund - Penske Penske Javad Maghami Penske Ownership Motorsports of Scottsdale/Schumacher European* - Land Rover N Scottsdale* Motorsports of Scottsdale - Airpark Chrysler / Jeep / Dodge Jaguar N Scottsdale* - Pinnacle - Legends Right - Power Scottsdale Lotus - Airpark Chrysler / Jeep / Dodge Van Legends - BMW N Scottsdale* Audi N Scottsdale* Motorsports of Scottsdale North Scottsdale (Frank Lloyd Wright Area) Acura N Scottsdale* Table 8 Scottsdale Auto Dealership Ownership Patterns Status of South & North Auto Dealers: 2009 Scottsdale Automotive Dealership Market Analysis—April 2009 26 Mark Mitsubishi/Kia Kachina Power Chapman Powell Mitsubishi Nissan Pontiac Porche Rolls Royce/Bentley Saab Saturn Subaru Toyota Volk swagen Volvo *Located in Phoenix South Scottsdale (Scottsdale/McDowell) Make Stan Powell Baxter Chapman - AutoNation - John Lund - - - - Mark Debowy Ownership - Volkswagen N Scottsdale* Right - Saturn of Scottsdale Legends - Penske David Wilson - Dan Januska John Lund Javad Maghami Penske Motorsports of Scottsdale/Porsche N Scottsdale* Motorsports of Scottsdale - Larry Van Tuyl - Ownership - Pinnacle - North Scottsdale (Frank Lloyd Wright Area) Table 8 (Continued) Scottsdale Auto Dealership Ownership Patterns Status of South & North Auto Dealers: 2009 VI. TRANSPORTATION FACTORS Traffic Counts Table 9 shows average daily traffic counts, and 2020 estimated traffic counts for the North Scottsdale Auto Corridor and the South Scottsdale Motor Mile. Map 5 (p. 28) depicts the metro Phoenix regional freeway system including planned construction. Table 9 Traffic Counts / Projections North Scottsdale Auto Mall Segment 2000 2002 2004 2006 2030* Frank Lloyd Wright Blvd between Scottsdale Rd & Greenway-Hayden Loop 46,000 53,400 36,800 39,100 39,800 Frank Lloyd Wright Blvd between Greenway-Hayden Loop & Loop 101 47,100 51,300 47,250 49,900 49,200 Scottsdale Rd between Greenway-Hayden Loop & Frank Lloyd Wright 47,900 40,200 41,800 42,100 43,000 Greenway/Hayden Loop between Scottsdale Rd & Frank Lloyd Wright Blvd n/a n/a n/a n/a 11,450 Pima Freeway between Scottsdale Rd & Frank Lloyd Wright Blvd n/a n/a n/a 128,000 216,400 South Scottsdale Auto Mall Segment 2000 2002 2004 2006 2030* McDowell Rd between 64th St & Miller Rd 40,100 32,600 35,800 35,900 41,050 Scottsdale Rd between Roosevelt & Oak 46,100 43,350 40,900 42,700 48,650 Sou r ce : City of Scottsdale Transportation Department; ADOT *= projection Scottsdale Automotive Dealership Market Analysis—April 2009 27 Map 5 Metro Area Freeway System Scottsdale Automotive Dealership Market Analysis—April 2009 28 VII. VEHICLE SALES & REGISTRATION The following section examines sales and registration statistics on national, state and local levels. After years of strong growth both nationally and locally, auto sales have slowed dramatically with the struggling economy. Table 10 (p. 30) lists the number of car sales in the US from 2000-2007 by make. Table 11 (p. 31) shows the best selling luxury vehicles in 2007 in Maricopa County. Table 12 (p. 33) gives an overview of motor vehicle registrations in Maricopa County from 1998/99 through 2007/08, showing a 33 percent increase in passenger vehicles over a 10-year period. Metro Phoenix accounted for 57 percent of all passenger vehicle registrations and 56 percent of total vehicle registrations in Arizona in Fiscal Year 2008/09 (to date). This year is expected to have the first across-theboard decrease in auto registrations in both Metro Phoenix and Arizona. Table 13 (p. 33) gives sales tax receipts in the “automotive” category for the City of Scottsdale. Recent Scottsdale dealerships closures, coupled with the dramatic downturn in the auto industry and overall economy, resulted in a decrease of 14.4% from 2006/07 in total sales tax receipts from autos for the City. However,. total receipts have still grown by 23.9 percent over the past 10 years. Table 14 (p. 33) gives the total gross receipts in the “automotive” category for both the northern and southern auto clusters in the City of Scottsdale. Scottsdale has seen several dealership closures in the past year, resulting in the decreases shown in Table 14. However, its strategic location within the Valley and the excellent demographics of its residents make Scottsdale a prime location for automotive dealerships. Scottsdale Automotive Dealership Market Analysis—April 2009 29 Scottsdale Automotive Dealership Market Analysis—April 2009 30 Daimler Chrysler 2,522,700 14.54% 2,273,200 13.10% 2,205,450 12.71% 2,313,464 14.60% 2,206,000 13.08% 2,304,900 13.60% 2,142,500 13.32% 2,076,100 12.90% 2,577,759 13.38% 4,147,700 23.91% 3,915,500 22.57% 3,576,250 20.61% 3,807,722 24.03% 3,271,100 19.39% 3,106,900 18.34% 2,848,100 17.70% 2,502,000 15.55% 3,882,182 20.15% Ford Sou r ce : N.A.D.A. Industry Analysis Division Average 2000-2007 2007 2006 2005 2004 2003 2002 2001 2000 Year General Motors 4,911,700 28.31% 4,852,500 27.97% 4,815,150 27.75% 4,716,050 28.35% 4,657,400 27.61% 4,456,800 26.30% 4,067,600 25.28% 3,824,550 23.77% 5,185,964 26.92% 1,619,200 9.33% 1,741,300 10.04% 1,756,150 10.12% 1,866,300 11.22% 2,060,050 12.21% 2,260,300 13.34% 2,542,500 15.80% 2,620,800 16.29% 2,352,371 12.21% Toyota 1,158,900 6.68% 1,207,600 6.96% 1,247,850 7.19% 1,349,850 8.11% 1,394,400 8.27% 1,462,500 8.63% 1,509,400 9.38% 1,551,550 9.64% 1,554,579 8.07% Honda 752,800 4.34% 703,700 4.06% 739,850 4.26% 764,800 4.78% 855,000 5.07% 1,076,900 6.36% 1,019,500 6.34% 1,068,500 6.64% 997,293 5.18% Nissan 435,900 2.51% 438,900 2.53% 423,850 2.44% 389,100 2.34% 334,050 1.98% 307,250 1.81% 325,300 2.02% 324,050 2.01% 425,486 2.21% Volkswagen Table 10 U.S. New Vehicle Sales and Market Share by Manufacturer Other Imports 1,800,800 10.38% 1,989,200 11.47% 2,052,950 11.83% 1,953,450 11.74% 2,088,500 12.38% 1,969,450 11.62% 2,047,900 12.73% 2,121,750 13.19% 2,289,143 11.88% 19,264,777 16,089,300 16,502,800 16,945,000 16,866,500 17,160,736 16,817,500 17,121,900 17,349,700 Total Table 11 Best Selling Luxury Vehicles In Metro Phoenix - 2008 Rank Rank 2008 2007 1 2 2 1 3 6 4 5 5 3 6 4 7 12 8 7 9 14 10 8 11 10 12 20 13 - 14 17 15 13 16 15 17 18 18 16 19 11 20 - Model EXAMPLE MODEL Infiniti G35 Lexus RX (SUV) BMW 325 Lexus ES Lexus IS Acura TL Acura MDX (SUV) Cadillac Escalade (SUV) Mercedes-Benz C-Class Cadillac CTS Cadillac DTS BMW 335 Lexus LS460/LS600h Infiniti FX35 (SUV) Audi A4 BMW X5 (SUV) Mercedes-Benz E-Class Lincoln Navigator (SUV) Infinit M35 Mercedes-Benz GL Class (SUV) # of Sales 2007 2006 1,808 1,689 1,636 1,738 1,328 1,073 1,294 1,224 1,162 1,391 908 1,251 888 713 837 998 811 631 783 856 762 785 745 550 580 312 575 595 565 669 516 622 505 588 504 614 503 734 461 273 Local Dealerships EXAMPLE DEALER Pinnacle; Midway; Infiniti of Superstition Springs Infiniti of Peoria Scottsdale Lexus; Bell Lexus; Arrowhead Lexus; Superstition Springs Lexus; Lexus of Chandler Motorsports of Scottsdale; Chapman; BMW North Scottsdale Scottsdale Lexus; Bell Lexus; Arrowhead Lexus; Superstition Springs Lexus; Lexus of Chandler Scottsdale Lexus; Bell Lexus; Arrowhead Lexus; Superstition Springs Lexus; Lexus of Chandler Acura North Scottsdale; Acura of Tempe; Acura of Peoria Acura North Scottsdale; Acura of Tempe; Acura of Peoria Legends Cadillac; Lund Cadillac; Coulter Motorsports of Scottsdale; Scottsdale Lotus; Schumacher European; Phoenix Mercedes-Benz Legends Cadillac; Lund Cadillac; Coulter Legends Cadillac; Lund Cadillac; Coulter Motorsports of Scottsdale; Chapman; BMW North Scottsdale Scottsdale Lexus; Bell Lexus; Arrowhead Lexus; Superstition Springs Lexus; Lexus of Chandler Pinnacle; Midway; Infiniti of Superstition Springs Infiniti of Peoria Scottsdale Lotus; Audi North Scottsdale; Audi of Chandler Motorsports of Scottsdale; Chapman; BMW North Scottsdale Motorsports of Scottsdale; Scottsdale Lotus; Schumacher European; Phoenix Mercedes-Benz Sanderson; Chapman Lincoln; Tempe Lincoln; Fiesta Lincoln; Sanderson West Pinnacle; Midway; Infiniti of Superstition Springs Infiniti of Peoria Motorsports of Scottsdale; Scottsdale Lotus; Schumacher European; Phoenix Mercedes-Benz Scottsdale Automotive Dealership Market Analysis—April 2009 31 Table 11 (Continued) Best Selling Luxury Vehicles In Metro Phoenix - 2008 Rank 2008 Rank 2008 2007 21 25 22 9 23 19 24 21 25 24 Model EXAMPLE Mercedes-Benz M-Class Lincoln Town Car Lexus GS Acura TSX Mercedes-Benz S-Class # of Sales 2007 2006 437 458 436 789 420 554 402 539 390 464 Local Dealerships EXAMPLE Motorsports of Scottsdale; Scottsdale Lotus; Schumacher European; Phoenix Mercedes-Benz Sanderson; Chapman Lincoln; Tempe Lincoln; Fiesta Lincoln; Sanderson West Scottsdale Lexus; Bell Lexus; Arrowhead Lexus; Superstition Springs Lexus; Lexus of Chandler Acura North Scottsdale; Acura of Tempe; Acura of Peoria Motorsports of Scottsdale; Scottsdale Lotus; Schumacher European; Phoenix Mercedes-Benz Sou r ce : Phoenix Business Journal, Book of Lists 2009 Scottsdale Automotive Dealership Market Analysis—April 2009 32 Table 12 Motor Vehicle Registrations Maricopa County Arizona Fiscal Passenger % Total % Passenger % Total % Year Vehicles Change Vehicles Change Vehicles Change Vehicles Change 1999/00 1,942,063 3.9% 2,484,835 4.0% 3,458,989 5.8% 4,407,098 6.0% 2000/01 1,999,033 2.9% 2,648,559 6.6% 3,551,417 2.7% 4,639,405 5.3% 2001/02 1,988,351 -0.5% 2,662,006 -0.5% 3,535,790 -0.4% 5,118,115 10.3% 2002/03 2,048,527 3.0% 2,742,367 3.0% 3,635,963 2.8% 5,311,590 3.8% 2003/04 2,133,309 4.1% 2,870,961 4.7% 3,784,992 4.1% 5,638,799 6.2% 2004/05 2,279,723 6.9% 3,466,453 20.7% 3,951,513 4.4% 5,945,131 5.4% 2005/06 2,405,188 5.5% 3,682,234 6.2% 4,142,287 4.8% 6,318,402 6.3% 2006/07 2,466,241 2.5% 3,793,646 3.0% 4,272,349 3.1% 6,608,726 4.6% 2007/08 2,474,129 0.3% 3,831,138 1.0% 4,311,653 0.9% 6,733,610 1.9% 2008/09* 2,456,458 -0.7% 3,772,677 -1.5% 4,294,865 -0.4% 6,685,479 -0.7% Sou r ce : Arizona Department of Transportation, Motor Vehicle Division * = Point-in-time data as of 1/31/2009. Table 13 Scottsdale Sales Tax Receipts Automotive Category Fiscal Year 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 Sales Tax Receipts $18,465,879 $20,290,784 $20,740,566 $20,448,612 $20,819,168 $25,095,778 $27,250,276 $26,710,840 $22,873,892 % Change 22.0% 9.9% 2.2% -1.4% 1.8% 20.5% 8.6% -2.0% -14.4% Sou r ce : City of Scottsdale, Financial Services Dept. Table 14 Scottsdale Total Gross Receipts Automotive Category* Fiscal Year 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 North South $1,170,065,386 $1,206,046,850 $1,213,310,902 $1,382,301,167 $1,485,164,365 $1,675,170,146 $1,626,039,574 $1,712,509,790 $1,541,262,650 $1,238,476,673 $1,381,410,337 $1,372,234,459 $1,270,567,561 $1,314,403,861 $1,562,275,454 $1,366,757,465 $1,543,776,066 $1,368,271,476 Sou r ce : City of Scottsdale, Financial Services Dept. *Includes sales of cars, motorcycles, boats, RV's, parts, repair service, automotive leases, car washes, and gasoline stations Scottsdale Automotive Dealership Market Analysis—April 2009 33 VIII. APPENDIX This section contains demographic analysis of the North Scottsdale and South Scottsdale market areas. The North Scottsdale Auto Market Area (p. 35) comprises a 10-mile radius around the intersection of Frank Lloyd Wright Boulevard and Greenway -Hayden Loop. The South Scottsdale Auto Market Area (p. 38) consists of a 10-mile radius surrounding the McDowell Road / Scottsdale Road intersection. The data is derived from a SitesUSA data report based on the 2000 U.S. Census. Scottsdale Automotive Dealership Market Analysis—April 2009 34 APPENDIX A: POPULATION 2008 Est. Households 2013 Proj. Households 2000 Census Households 1990 Census Households Historical Annual Growth 1990 to 2008 Projected Annual Growth 2008 to 2013 2008 Est. Population 0 to 9 Years 2008 Est. Population 10 to 19 Years 2008 Est. Population 20 to 29 Years 2008 Est. Population 30 to 44 Years 2008 Est. Population 45 to 59 Years 2008 Est. Population 60 to 74 Years 2008 Est. Population 75 Years Plus 2008 Est. Median Age 13.1% 12.5% 11.3% 23.3% 22.6% 11.5% 5.7% 38.1 2008 Est. Male Population 2008 Est. Female Population 49.3% 50.7% 2008 Est. Never Married 2008 Est. Now Married 2008 Est. Separated or Divorced 2008 Est. Widowed 22.6% 57.5% 14.7% 5.2% INCOME MARITAL STATUS & SEX 2008 Estimated Population 2013 Projected Population 2000 Census Population 1990 Census Population Historical Annual Growth 1990 to 2008 Projected Annual Growth 2008 to 2013 HOUSEHOLDS 10 mile radius AGE North Scottsdale Market Area 2008 Est. HH Income $200,000 or More 2008 Est. HH Income $150,000 to 199,999 2008 Est. HH Income $100,000 to 149,999 2008 Est. HH Income $75,000 to 99,999 2008 Est. HH Income $50,000 to 74,999 2008 Est. HH Income $35,000 to 49,999 2008 Est. HH Income $25,000 to 34,999 2008 Est. HH Income $15,000 to 24,999 2008 Est. HH Income $0 to 14,999 2008 Est. Average Household Income 2008 Est. Median HH Income 2008 Est. Per Capita Income 2008 Est. Number of Businesses 2008 Est. Total Number of Employees 509,386 556,751 448,885 299,019 3.9% 1.9% 199,206 211,951 184,671 120,965 3.6% 1.3% 11.8% 7.8% 17.1% 13.2% 17.9% 12.6% 7.6% 6.4% 5.6% $ 108,260 $ 87,120 $ 42,701 22,817 275,403 Scottsdale Automotive Dealership Market Analysis—April 2009 35 2008 Est. White Population 2008 Est. Black Population 2008 Est. Asian & Pacific Islander 2008 Est. American Indian & Alaska Native 2008 Est. Other Races Population 89.8% 1.9% 3.2% 1.0% 4.1% 2008 Est. Hispanic Population 2008 Est. Hispanic Population Percent 2013 Proj. Hispanic Population Percent 2000 Hispanic Population Percent 86,258 16.9% 20.4% 8.5% HOME VALUES HOMES BUILT BY YEAR HOUSING EDUCATION (Adults 25 or Older) RACE 10 mile radius HISPANIC Northern Scottsdale Auto Market Area (cont.) 2008 Est. Adult Population (25 Years or Older) 2008 Est. Elementary (0 to 8) 2008 Est. Some High School (9 to 11) 2008 Est. High School Graduate (12) 2008 Est. Some College (13 to 16) 2008 Est. Associate Degree Only 2008 Est. Bachelor Degree Only 2008 Est. Graduate Degree 353,739 2.8% 4.6% 20.0% 21.5% 7.7% 27.7% 15.8% 2008 Est. Total Housing Units 2008 Est. Owner Occupied Percent 2008 Est. Renter Occupied Percent 2008 Est. Vacant Housing Percent 224,553 62.6% 26.1% 11.3% 2000 Homes Built 1999 to 2000 2000 Homes Built 1995 to 1998 2000 Homes Built 1990 to 1994 2000 Homes Built 1980 to 1989 2000 Homes Built 1970 to 1979 2000 Homes Built 1960 to 1969 2000 Homes Built 1950 to 1959 2000 Homes Built Before 1949 2000 Home Value $1,000,000 or More 2000 Home Value $500,000 to $999,999 2000 Home Value $400,000 to $499,999 2000 Home Value $300,000 to $399,999 2000 Home Value $200,000 to $299,999 2000 Home Value $150,000 to $199,999 2000 Home Value $100,000 to $149,999 2000 Home Value $50,000 to $99,999 2000 Home Value $25,000 to $49,999 2000 Home Value $0 to $24,999 2000 Median Home Value 2000 Median Rent 5.1% 18.1% 12.9% 29.8% 22.7% 7.8% 2.8% 0.7% 2.3% 7.4% 5.4% 10.5% 22.5% 21.0% 21.4% 9.0% 0.4% 0.1% $ 241,984 $ 773 Scottsdale Automotive Dealership Market Analysis—April 2009 36 LABOR FORCE 2008 Est. Labor: Population Age 16+ 2008 Est. Civilian Employed 2008 Est. Civilian Unemployed 2008 Est. in Armed Forces 2008 Est. not in Labor Force 2008 Labor Force: Males 2008 Labor Force: Females OCCUPATION 2000 Occupation: Population Age 16+ 2000 Mgmt, Business, & Financial Operations 2000 Professional and Related 2000 Service 2000 Sales and Office 2000 Farming, Fishing, and Forestry 2000 Construction, Extraction, & Maintenance 2000 Production, Transport, & Material Moving 2000 Percent White Collar Workers 2000 Percent Blue Collar Workers TRANSPORTATION TO WORK 2000 Drive to Work Alone 2000 Drive to Work in Carpool 2000 Travel to Work by Public Transportation 2000 Drive to Work on Motorcycle 2000 Walk or Bicycle to Work 2000 Other Means 2000 Work at Home 80.2% 9.6% 1.1% 0.3% 1.8% 0.8% 6.2% TRAVEL TIME 10 mile radius 2000 Travel to Work in 14 Minutes or Less 2000 Travel to Work in 15 to 29 Minutes 2000 Travel to Work in 30 to 59 Minutes 2000 Travel to Work in 60 Minutes or More 2000 Average Travel Time to Work 22.5% 38.0% 35.3% 4.3% 23.9 CONSUMER EXPENDITURE Northern Scottsdale Auto Market Area (cont.) 402,546 67.6% 2.0% 0.0% 30.4% 48.8% 51.2% 236,175 22.0% 23.0% 11.6% 31.4% 0.1% 6.2% 5.6% 76.4% 23.6% 2008 Est. Total Household Expenditure (in Millions) 2008 Est. Apparel 2008 Est. Contributions & Gifts 2008 Est. Education & Reading 2008 Est. Entertainment 2008 Est. Food, Beverages & Tobacco 2008 Est. Furnishings And Equipment 2008 Est. Health Care & Insurance 2008 Est. Household Operations & Shelter & Utilities 2008 Est. Miscellaneous Expenses 2008 Est. Personal Care 2008 Est. Transportation $ 14,730.6 $ 715.7 $ 1,079.3 $ 460.4 $ 834.6 $ 2,251.8 $ 672.1 $ 1,005.3 $ 4,422.2 $ 235.6 $ 210.3 $ 2,843.3 Scottsdale Automotive Dealership Market Analysis—April 2009 37 APPENDIX B: POPULATION 2008 Est. Households 2013 Proj. Households 2000 Census Households 1990 Census Households Historical Annual Growth 1990 to 2008 Projected Annual Growth 2008 to 2013 2008 Est. Population 0 to 9 Years 2008 Est. Population 10 to 19 Years 2008 Est. Population 20 to 29 Years 2008 Est. Population 30 to 44 Years 2008 Est. Population 45 to 59 Years 2008 Est. Population 60 to 74 Years 2008 Est. Population 75 Years Plus 2008 Est. Median Age 14.4% 13.9% 16.6% 21.8% 18.3% 9.4% 5.4% 33.3 2008 Est. Male Population 2008 Est. Female Population 51.0% 49.0% 2008 Est. Never Married 2008 Est. Now Married 2008 Est. Separated or Divorced 2008 Est. Widowed 33.2% 44.0% 17.6% 5.3% INCOME MARITAL STATUS & SEX 2008 Estimated Population 2013 Projected Population 2000 Census Population 1990 Census Population Historical Annual Growth 1990 to 2008 Projected Annual Growth 2008 to 2013 HOUSEHOLDS 10 mile radius AGE Southern Scottsdale Auto Market Area 2008 Est. HH Income $200,000 or More 2008 Est. HH Income $150,000 to 199,999 2008 Est. HH Income $100,000 to 149,999 2008 Est. HH Income $75,000 to 99,999 2008 Est. HH Income $50,000 to 74,999 2008 Est. HH Income $35,000 to 49,999 2008 Est. HH Income $25,000 to 34,999 2008 Est. HH Income $15,000 to 24,999 2008 Est. HH Income $0 to 14,999 2008 Est. Average Household Income 2008 Est. Median HH Income 2008 Est. Per Capita Income 2008 Est. Number of Businesses 2008 Est. Total Number of Employees 1,033,055 1,106,358 981,839 839,859 1.3% 1.4% 376,694 392,455 378,921 329,837 0.8% 0.8% 5.4% 4.0% 11.5% 11.6% 19.3% 16.2% 11.0% 10.3% 10.7% $ 74,562 $ 60,504 $ 28,030 55,124 817,409 Scottsdale Automotive Dealership Market Analysis—April 2009 38 2008 Est. White Population 2008 Est. Black Population 2008 Est. Asian & Pacific Islander 2008 Est. American Indian & Alaska Native 2008 Est. Other Races Population 2008 Est. Hispanic Population 2008 Est. Hispanic Population Percent 2013 Proj. Hispanic Population Percent 2000 Hispanic Population Percent 353,791 34.2% 37.2% 27.1% 2008 Est. Adult Population (25 Years or Older) 2008 Est. Elementary (0 to 8) 2008 Est. Some High School (9 to 11) 2008 Est. High School Graduate (12) 2008 Est. Some College (13 to 16) 2008 Est. Associate Degree Only 2008 Est. Bachelor Degree Only 2008 Est. Graduate Degree 653,647 8.2% 8.1% 23.2% 20.9% 7.3% 20.0% 12.3% 2008 Est. Total Housing Units 2008 Est. Owner Occupied Percent 2008 Est. Renter Occupied Percent 2008 Est. Vacant Housing Percent 422,428 48.3% 40.8% 10.8% HOME VALUES HOMES BUILT BY YEAR HOUSING EDUCATION (Adults 25 or Older) RACE 10 mile radius HISPANIC Southern Scottsdale Auto Market Area (cont.) 77.7% 5.3% 3.5% 2.4% 11.0% 2000 Homes Built 1999 to 2000 2000 Homes Built 1995 to 1998 2000 Homes Built 1990 to 1994 2000 Homes Built 1980 to 1989 2000 Homes Built 1970 to 1979 2000 Homes Built 1960 to 1969 2000 Homes Built 1950 to 1959 2000 Homes Built Before 1949 2000 Home Value $1,000,000 or More 2000 Home Value $500,000 to $999,999 2000 Home Value $400,000 to $499,999 2000 Home Value $300,000 to $399,999 2000 Home Value $200,000 to $299,999 2000 Home Value $150,000 to $199,999 2000 Home Value $100,000 to $149,999 2000 Home Value $50,000 to $99,999 2000 Home Value $25,000 to $49,999 2000 Home Value $0 to $24,999 2000 Median Home Value 2000 Median Rent 2.3% 5.7% 6.4% 25.6% 27.4% 14.9% 11.5% 6.3% 1.2% 3.7% 2.5% 4.6% 11.5% 15.7% 33.3% 25.0% 2.1% 0.5% $ 171,427 $ 592 Scottsdale Automotive Dealership Market Analysis—April 2009 39 LABOR FORCE 2008 Est. Labor: Population Age 16+ 2008 Est. Civilian Employed 2008 Est. Civilian Unemployed 2008 Est. in Armed Forces 2008 Est. not in Labor Force 2008 Labor Force: Males 2008 Labor Force: Females OCCUPATION 2000 Occupation: Population Age 16+ 2000 Mgmt, Business, & Financial Operations 2000 Professional and Related 2000 Service 2000 Sales and Office 2000 Farming, Fishing, and Forestry 2000 Construction, Extraction, & Maintenance 2000 Production, Transport, & Material Moving 2000 Percent White Collar Workers 2000 Percent Blue Collar Workers TRANSPORTATION TO WORK 2000 Drive to Work Alone 2000 Drive to Work in Carpool 2000 Travel to Work by Public Transportation 2000 Drive to Work on Motorcycle 2000 Walk or Bicycle to Work 2000 Other Means 2000 Work at Home 73.1% 14.6% 2.9% 0.4% 4.5% 0.9% 3.5% TRAVEL TIME 10 mile radius 2000 Travel to Work in 14 Minutes or Less 2000 Travel to Work in 15 to 29 Minutes 2000 Travel to Work in 30 to 59 Minutes 2000 Travel to Work in 60 Minutes or More 2000 Average Travel Time to Work 28.3% 42.6% 24.9% 4.3% 21.5 CONSUMER EXPENDITURE Southern Scottsdale Auto Market Area (cont.) 801,225 64.6% 3.1% 0.0% 32.2% 50.9% 49.1% 484,979 14.6% 20.7% 15.5% 29.1% 0.2% 9.6% 10.4% 64.4% 35.6% 2008 Est. Total Household Expenditure (in Millions) 2008 Est. Apparel 2008 Est. Contributions & Gifts 2008 Est. Education & Reading 2008 Est. Entertainment 2008 Est. Food, Beverages & Tobacco 2008 Est. Furnishings And Equipment 2008 Est. Health Care & Insurance 2008 Est. Household Operations & Shelter & Utilities 2008 Est. Miscellaneous Expenses 2008 Est. Personal Care 2008 Est. Transportation $ 21,305.6 $ 1,031.9 $ 1,413.0 $ 611.9 $ 1,192.1 $ 3,377.8 $ 936.5 $ 1,499.2 $ 6,382.0 $ 352.3 $ 307.9 $ 4,201.0 Scottsdale Automotive Dealership Market Analysis—April 2009 40