Q4'15 COMPANY UPDATE

Q4'15 COMPANY UPDATE 1 LITHIA MOTORS FEBRUARY 2016

DISCLOSURE Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as project, outlook, "expect," "anticipate," "intend," "plan," "believe," estimate, may, "seek," would, should, likely, goal, strategy, future, maintain, continue, remain, target or "will" and similar references to future periods. Examples of forward-looking statements in this press release include, among others, statements regarding: Expected operating results, such as improved store efficiency and performance; generating 2016 first quarter earnings per share of $1.47 to $1.51 per diluted share and 2016 full year earnings of $7.30 to $7.50 per diluted share and all projections set forth under the headings 2016 Outlook ; The increase in our annual revenues that we estimate will result from dealerships that we acquired; Anticipated ability to improve store performance; Anticipated additions of dealership locations to our portfolio in the future; and Anticipated availability of liquidity from our credit facility and unfinanced operating real estate. By their nature, forward-looking statements involve risks and uncertainties because they relate to events that depend on circumstances that may or may not occur in the future. Forwardlooking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this press release. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation, future economic and financial conditions (both nationally and locally), changes in customer demand, our relationship with, and the financial and operational stability of, vehicle manufacturers and other suppliers, risks associated with our indebtedness (including available borrowing capacity, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms), government regulations, legislation and others set forth throughout Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and in Part I, Item 1A. Risk Factors of our most recent Annual Report on Form 10-K, and from time to time in our other filings with the SEC. We urge you to carefully consider this information and not place undue reliance on forward-looking statements. We undertake no duty to update our forward-looking statements, including our earnings outlook, which are made as of the date of this presentation. Non-GAAP Financial Measures This presentation contains non-gaap financial measures such as adjusted net income and diluted earnings per share from continuing operations, adjusted SG&A as a percentage of revenues and gross profit, adjusted operating margin, adjusted operating profit as a percentage of gross profit, and adjusted pre-tax margin. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. As a result, we review any non-gaap financial measures in connection with a review of the most directly comparable measures calculated in accordance with GAAP. We caution you not to place undue reliance on such non-gaap measures, but also to consider them with the most directly comparable GAAP measures. We present cash flows from operations in the attached tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-gaap financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures. 2 LITHIA MOTORS FEBRUARY 2016

LITHIA MOTORS OVERVIEW Nationwide Geographic Footprint 3 LITHIA MOTORS FEBRUARY 2016

LITHIA MOTORS OVERVIEW 139 Dealerships in the United States NATIONAL MARKET SHARE LITHIA NEW VEHICLE UNIT MIX Honda 20% Import 47% 54% Domestic 45% 33% Luxury 8% 13% Toyota 19% Subaru 7% Nissan 4% Other Import* 4% Chrysler 19% GM 9% Ford 5% BMW 6% Mercedes 2% Lexus 1% Other Luxury** 4% Note: 2015 national market share for December 2015 from the Auto Unit Sales & SAAR report published by Stephens Inc.; Lithia market share based on new vehicle unit sales for the twelve months ended December 31, 2015. * Other import includes Hyundai, Volkswagen, Kia, Mazda and Mitsubishi ** Other luxury includes Porsche and Volvo Two growth paths: exclusive markets for Lithia, metro markets for DCH Performance-based entrepreneurial culture 4 LITHIA MOTORS FEBRUARY 2016

CORNERSTONES OF SUCCESS Path to $8.00 Earnings Per Share FINANCIAL DISCIPLINE OPERATIONAL GROWTH ACQUISITION OPPORTUNITIES OPERATIONAL GROWTH ACQUISITION OPPORTUNITIES FINANCAL DISCIPLINE New vehicle recovery continues Used market 3x bigger than new market Service work driven by SAAR recovery Unconsolidated industry Target 20% after tax ROE per year Balance investment and shareholder return Ample liquidity to deploy 5 LITHIA MOTORS FEBRUARY 2016

GROWTH MILESTONES Delivers $8.00 Earnings Per Share ADJUSTED EARNINGS PER SHARE Achieved with organic growth and acquisitions Completed first Milestone in 2013; Milestone 2 in 2014; Milestones 3 and 4 in 2015 Target completing Milestone 5 in 1-3 years FCST 2016 FY 2015 FY 2014 2012 Base Milestone 1 $4.00 ORGANIC REVENUE GROWTH ($B) FCST 2016 FY 2015 FY 2014 2012 Base Milestone 2 $5.00 Milestone 1 $4.0 ACQUISITION REVENUE GROWTH ($B) FCST 2016 FY 2015 FY 2014 2012 Base Milestone 1 $.01 $2.72 Milestone 2 $1.0 $5.11 Milestone 3 $6.00 Milestone 2 $4.3 Milestone 3 $2.3 Milestone 3 $4.5 Milestone 4 $3.1 Milestone 4 $7.00 $7.50 $7.02 Milestone 5 $8.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $3.4 $4.5 $4.8 Milestone 4Milestone 5 $4.9 $5.1 $3.0 $3.5 $4.0 $4.5 $5.0 $0.9 $3.1 $3.4 $5.1 Milestone 5 $4.1 $0.0 $1.0 $2.0 $3.0 $4.0 Note: See appendix for reconciliation of adjusted earnings per share. 6 LITHIA MOTORS FEBRUARY 2016

OPERATIONAL GROWTH

STABLE, PROFITABLE INDUSTRY Four Separate Diversified Businesses Recession-tested Variable cost structure PROFITABILITY AND SAAR 20.0% 13% 11% 11% 10.0% 7% 6% 2.0% 1.9% 1.5% 2.1% 2.5% 2.6% 2.8% 2.7% 0.0% 2007 2008 2009 2010 2011 2012 2013 2014-3% -10.0% -20.0% -18% -21% -30.0% Peer Group PTI % SAAR Growth Rate Diverse and complimentary gross profit mix Service business consistent Note: Margin based on reported adjusted pre-tax income as a percentage of revenue. Peer group average includes Lithia, AutoNation, Sonic, Asbury, Penske, and Group 1. PROFITABILITY MIX 2015 Revenue Mix 2015 Gross Profit Mix New vehicles 58% 24% Used vehicles 28% 21% Service, body and parts 9% 31% F&I and other 5% 24% Note: Used vehicles includes both used retail and wholesale vehicles. 8 LITHIA MOTORS FEBRUARY 2016

NEW VEHICLE MARKET Opportunities Remain Despite Recovery After recessionary periods, SAAR performed above the long-run average HISTORICAL NEW VEHICLE SAAR PERFORMANCE 20 Recovery spikes above long-run average 15 SAAR Trend Live 10 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 Source: US Department of Commerce, Bureau of Economic Analysis, data as of February 3, 2016 Geographic and economic diversification 2015 NEW VEHICLE UNIT STATE MIX 22% 18% 17% 15% 6% 5% 5% 3% 3% 3% 2% 2% 1% CA NY/NJ OR TX MT WA AK IA NV ID HI ND NM 9 LITHIA MOTORS FEBRUARY 2016

USED VEHICLE MARKET Largest Future Opportunity Used vehicle market 3x larger than new Franchised dealers 37% of used vehicle market USED MARKET SIZE Retail Units sold (in Millions) 2.7x 3.4x 3.2x 3.1x 2.8x 38.8 40.5 36.5 35.5 36.9 13.2 10.4 11.6 12.7 2008 2009 2010 2011 2012 New 14.4 Used Source: WardsAuto Group U.S. Market Used Vehicle Sales report LITHIA USED WATERFALL USED MARKET SHARE Franchised Dealers,37% CarMax, 1% Private Party, 28% Independent Dealers, 34% Source: 2012 data from WardsAuto Group U.S. Market Used Vehicle Sales report Same store sale in Units Retail Sale Retailed Trade-ins % Sold w/ Retailed Trade 2015 New Vehicles 96,556 38,622 40% 75% of 2015 used retail sales originate from new vehicle sale 1 st Trade-in Retailed 38,622 14,483 15% 2 nd Trade-in Retailed 14,483 4,828 5% 3 rd Trade-in Retailed 4,828 1,931 2% Aggregate Retailed Trades 57,933 2015 Used Retail 77,552 75% 10 LITHIA MOTORS FEBRUARY 2016

USED VEHICLE GROWTH Target 75 Used Units Per Store Per Month 2015 SAME STORE USED UNIT MIX 2015 USED MIX DETAILS Achieving 75 unit goal increases unit sales 21% CPO, 23% Value Auto, 26% Core, 51% CPO Core Value Auto 17% 12% 9% CPO: Manufacturer certified pre-owned vehicles Core: 3 to 7 year old vehicles Value Auto: Vehicles over 80,000 miles Same Store Revenue Growth 2015 AVERAGE USED RETAIL UNITS SOLD PER MONTH 71% of stores sell less than 75 unit goal 13 44 Average: 62 units 39 Goal: 75 units 27 13 <=25 26-25 51-75 76-100 100+ Store Distribution of Average Used retail Units Sold per Month 11 LITHIA MOTORS FEBRUARY 2016

VEHICLE SALES GROWTH Opportunity Exists in F&I F&I per unit $141 lower than peer average F&I products increase service retention 2015 F&I PER UNIT $1,196 Lithia $1,337 Peer Average Note: Peer average includes AutoNation, Sonic, Asbury, Penske, and Group 1. 2015 VEHICLE SALES SAME STORE DETAILS F&I PENETRATION RATES 42% 42% Service Contracts 2013 2014 2015 43% 36% 37% 25% Lifetime Oil Contracts Note: Penetration rates are on a same store basis. 2015 LOF penetration rates diluted by DCH, as product offering at DCH stores started in 2015. Total gross profit per unit of $3,583 up $68 from 2014 Revenue Growth Unit Growth Gross Profit Growth GP per Retail Unit GP per Retail Unit Y-o-Y Change New 9% 7% 5% $2,131 $(42) Used retail 13% 9% 11% $2,545 $37 F&I 15% NA 15% $1,244 $73 Total vehicle* 10% 8% 10% $3,583 $68 * Total vehicle metrics include sales and gross profit for new, used retail, used wholesale and F&I and new and used retail units 12 LITHIA MOTORS FEBRUARY 2016

SERVICE MARKET Tailwind as Units in Operation Expand TRAILING SAAR/SERVICE GROWTH Service growth correlated with SAAR growth 15 10 5 0-5 -10 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 Trailing 5-year SAAR Growth Trailing 3-year Industry SB&P Growth LITHIA MARKET UIO OPPORTUNITY Increasing service work as installed units grow 130,000 120,000 110,000 100,000 90,000 80,000 70,000 60,000 6.5% 6.7% 4.5% 0.7% 74,825 74,668 75,025 76,220 79,149-4.3% 11.3% 85,431 10.3% 95,145 112,134 5% 10% 5% 0% -5% 50,000-10% 2009 2010 2011 2012 2013 2014 2015 2016E 10 - Year Avg SB&P Y-o-Y SS Sales Growth* Note: Forecasted same store service, body and parts growth for FY 2016 13 LITHIA MOTORS FEBRUARY 2016

SERVICE GROWTH Improving Retention Increases Service Revenue % OF VEHICLES SOLD RETURNING FOR SERVICE Average 41% new and 24% used retention in service over 8 years Across all vehicles sold, cumulative service GP per unit is $724 Ex defections, cumulative GP per unit is $2,287 Avg GP Across All Units Sold Avg GP per Sold Units Retained % New Vehicle % Used Vehicle $76 $193 $140 46% 32% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 $126 $265 $105 65% 39% $86 $75 $284 $64 $52 56% 31% $298 45% 25% $311 35% 20% $314 30% 17% CUMULATIVE SERVICE GROSS PROFIT PER VEHICLE Total $724 26% 14% $312 21% 11% $310 Total $2,287 $ (Millions) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 14 LITHIA MOTORS FEBRUARY 2016

SERVICE GROWTH Retaining Customers Longer Service revenue increasing due to more units in operation SAME STORE SALES YEAR-OVER-YEAR COMPARISON 2010 2011 2012 2013 2014 2015 Customer Pay 4.8% 3.9% 6.9% 5.2% 9.1% 7.9% Warranty (8.5)% (4.2)% (2.7)% 13.9% 23.4% 25.3% Wholesale Parts (0.6)% 9.8% 8.7% 7.2% 8% 4.6% Body Shop (2.2)% 14.0% 15.1% 3.8% 10.5% 3.7% Total 0.7% 4.5% 6.5% 6.7% 11.4% 10.3% Average age of vehicles serviced increased 1 year since 2008 SAME STORE SALES YEAR-OVER-YEAR COMPARISON 4.4 4.5 4.8 4.9 4.9 4.9 5.0 4.0 2008 2009 2010 2011 2012 2013 2014 2015 Avg # of Veh Srv per month 0-1 Yrs 2-3 Yrs 4-5 Yrs 6-7 Yrs 8-9 Yrs 10+ Yrs Serviced Vehicle Mix 2012 67,695 21% 21% 23% 15% 9% 11% 2013 71,957 24% 16% 21% 16% 10% 13% 2014 78,288 26% 18% 15% 16% 11% 14% 2015 83,357 28% 22% 13% 10% 11% 17% 15 LITHIA MOTORS FEBRUARY 2016

LEVERAGING COST STRUCTURE Target Throughput of 45% to 50% on a Same Store Basis Throughput is incremental % of gross profit to operating income after SG&A expenses 2014 and 2015 SG&A as a % of gross profit impacted by DCH acquisition ADJUSTED SG&A AS A % OF GROSS PROFIT 69.4% 67.2% 67.7% 67.9% 2012 2013 2014 2015 Note: See appendix for reconciliation of adjusted SG&A expense ADJUSTED SG&A DETAILS SAME STORE THROUGHPUT Target 45-50% 51% 51% $MM 2014 % of GP 2015 % of GP $ Change Personnel $375 45.5% $538 45.7% $163 Advertising 47 5.7 70 6.0 23 Rent 17 2.1 24 2.0 7 Facility Cost 34 4.1 46 3.9 12 Other 85 10.3 121 10.3 36 Total $558 67.7% $799 67.9% $241 43% 50% 2012 2013 2014 2015 Gross Profit $823 $1,176 353 Throughput % 32% Same store throughput % 50% 16 LITHIA MOTORS FEBRUARY 2016

ACQUISITION OPPORTUNITIES

UNCONSOLIDATED INDUSTRY Abundant Acquisition Opportunities DEALERSHIPS IN THE US Over 17,800 dealerships in the country 21,761 21,461 20,453 18,607 17,653 17,767 17,851 17,838 2007 2008 2009 2010 2011 2012 2013 2014 Source: Automotive News, number of Light Vehicle Dealerships in the U.S. HIGHLY FRAGMENTED MARKET 10 largest dealers own 1,300 stores Top 10 Dealers 7% All Other 93% Source: Automotive News 2014 Top 150 Dealership Groups 18 LITHIA MOTORS FEBRUARY 2016

FUTURE GROWTH STRATEGY Two Growth Paths, Over Double the Acquisition Targets Micro Small Medium Large Extra Large Mega Vehicle Registrations in Market 0-5K 5K-25K 25K-50K 50K-100K 100K-200K 200K+ Est. Store Count in US 3,950 3.5 1,600 1,700 2,400 4,650 Domestic Import Luxury Est. Acq Targets 210 680 310 30 470 960 1,230 1,430 Lithia: exclusive franchises in medium markets for domestic/import stores and large markets for luxury stores DCH: extra large and mega markets to cluster domestic, import and luxury stores 19 LITHIA MOTORS FEBRUARY 2016

ACQUISITION GROWTH Targeting 20% After Tax Return on Equity Improve performance through common systems and measurements ACCUMULATED RETURN ON EQUITY 201% 83% 54% 36% 19% Year 5 Year 4 Year 3 Year 2 Year 1 Acq Year 3% INVESTMENT METRICS 75-100% 5-year after tax ROE 3x-5x EV/EBITDA 10%-20% of annual revenues 2010 2011 2012 2013 2014 2015 Note: Return based on net income assuming all real estate is leased at actual rent or, if owned, at 7% capitalization rate. Years are based on calendar years. Acquisition year reflects partial year results from acquisition date forward and most recent period results are year-to-date through December 31, 2015 ACQUISITION METRICS 2012 2013 2014 2015 $MM Multiple $MM Multiple $MM Multiple $MM Multiple # of Store 6 8 36 8 Equity* $26 $33 $320 $31 Est. EBITDA** $8 3.3x $9 3.7x $69 4.7x $8 3.7x Est. Rev** $265 10% $273 12% $2,715 12% $270 12% *Equity defined as investment costs, excluding new vehicles and assuming all real estate is leased at actual rent or if owned, a 7% capitalization rate **Assumes steady state revenues 2 years after acquisition, EBITDA adjusted to include flooring interest as an operating expense 20 LITHIA MOTORS FEBRUARY 2016

FINANCIAL DISCIPLINE

FINANCIAL DISCIPLINE Positioned for Continued Growth BALANCE SHEET LEVERAGE Leverage increased in 2014 due to DCH acquisition Debt to Total Capital 65.0% 55.0% 45.0% 35.0% 25.0% 2.5x 44% 1.9x 41% 1.3x 32% 2.5x 49% 1.8x 44% 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Debt/ Adjusted EBITDA 2011 2012 2013 2014 2015 Ample liquidity levels with minimal near term debt maturities Note: Total capital includes outstanding debt excluding vehicle floor plan financing and total shareholder s equity. Adjusted EBITDA is defined as earnings before interest excluding floor plan interest, taxes, depreciation and amortization. Debt to adjusted EBITDA calculation is based on outstanding debt as of the end of the period and TTM adjusted EBITDA FUNDS FOR GROWTH $MM Q4 2015 Cash and Cash Equivalents $45 Availability on Line of Credit 134 Unfinanced Real Estate* 159 Total $338 $ (Millions) FUTURE MORTGAGE MATURITIES $ $25 $31 $34 $27 $29 $242 *Unfinanced real estate represents 80% of the net book value of unfinanced real estate used in operations. 2016 2017 2018 2019 2020 2021 Beyond Note: Outstanding mortgage amounts as of December 31, 2015 22 LITHIA MOTORS FEBRUARY 2016

FINANCIAL DISCIPLINE Balance Investment and Shareholder Return CAPITAL EXPENDITURES FREE CASH FLOW AND ACQUISITIONS $MM 2013 2014 2015 FCST 2016 Post-Acq. Improv. $12 $21 $33 $40 Free Cash Flow** Acquisition Equity Value $320 Facilities for Open Points 5 7 3 Lease Buy-outs 7 25 10 17 Existing Facility Improv. 14 20 20 19 Maintenance 12 13 17 24 $28 $41 $34 $130 $26 $33 $87 $164 $31 Total $50 $86 $83 $100 DIVIDENDS PAID 2011 2012 2013 2014 2015 **Free cash flow defined as earnings before interest, taxes, depreciation and amortization (EBITDA) add back stock compensation less cash paid for taxes, interest, dividends and capital expenditures. SHARE REPURCHASES Dividends Paid Dividend per Share Share Repurchases Price per Share $MM $20.0 $15.0 $10.0 $5.0 $0.0 $0.26 $7 $0.37 $10 $0.49 $13 $0.61 $16 $0.76 $20 $0.8 $0.6 $0.4 $0.2 $0.0 $ per Share $MM $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 $24.41 $21 $40.76 $5 $70.52 $16 $102.84 $32 $79.11 $47 $120 $100 $80 $60 $40 $20 $0 $ per Share 2011 2012 2013 2014 2015 *Q4 12 dividend was accelerated and paid in December 2012 rather in 2013. Data has been normalized to include the $0.10 dividend in 2013 2012 2013 2014 2015 YTD 2016 # of Shares 848,092 127,900 226,729 306,386 595,000 23 LITHIA MOTORS FEBRUARY 2016

Q4 2015 UPDATE

Q4 15 FINANCIAL RESULTS Income Statement Summary Increased revenue 11% and EPS 23% Q4 2015 HIGHLIGHTS Revenue ($MM) 11% Gross Profit ($MM) Adjusted Diluted EPS 12% 23% $1,793 $1,993 $261 $293 $1.42 $1.74 Q4 2014 Q4 2015 Q4 2014 Q4 2015 Q4 2014 Q4 2015 Note: See appendix for reconciliation of adjusted diluted EPS SAME STORE QUARTER-OVER-QUARTER GROWTH Grew total same store sales 9% Revenue Gross Profit New vehicles 7% 8% Used retail vehicles 12% 11% F&I 13% 13% Service, parts and body 10% 11% Total 9% 10% 25 LITHIA MOTORS FEBRUARY 2016

4.4% 4.1% 2.7% Q4 15 FINANCIAL RESULTS Peer Comparisons SAME STORE GROSS PROFIT GROWTH ADJUSTED NET PROFIT MARGIN 10.3% 2.3% 2.0% 2.0% 1.4% 1.3% 1.2% 0.8% 0.6% Lithia Sonic Asbury Penske Group1 AutoNation Lithia AutoNation Asbury Penske Group1 Sonic Note: See appendix for reconciliation of adjusted net profit margin SAME STORE SALES GROWTH ADJUSTED SG&A AS A % OF GROSS PROFIT LAD ABG AN GPI PAG SAH 79.2% 79.6% New Vehicles 6.5% 6.4% 2.1% (0.2)% 1.7% 4.4% 72.7% 76.2% 75.3% 75.5% Used Vehicles 12.2% 6.4% 2.2% 7.9% 6.2% 7.2% 70.3% 70.0% 70.5% 70.0% F&I 13.0% 8.6% 7.4% 3.0% 15.4% 9.7% 68.2% 67.9% SB&P 10.2% 7.3% 3.9% 2.7% 3.2% 8.1% Total 8.8% 6.5% 2.6% 1.9% 4.6% 5.5% bps reduction (increase) Lithia AutoNation Asbury Group1 Sonic Penske 90 (210) (50) (260) (70) (40) Q4 2014 Q4 2015 Note: See appendix for reconciliation of adjusted SG&A 26 LITHIA MOTORS FEBRUARY 2016

2016 GUIDANCE PROJECTED EARNINGS RANGE*: Q1 16: $1.47 - $1.51 FY 16: $7.30 - $7.50 2016 PERFORMANCE ASSUMPTIONS: Annual Assumptions Total Revenues $8.4 to $8.5 billion New vehicle sales increase 5.5% Used vehicle sales increase 6.0% Service body and parts sales increase 5.0% Finance and insurance per unit $1,210 per unit New vehicle margins 5.8% to 6.0% Used vehicle margins 12.4% to 12.6% Service body and parts margins 49.0% to 49.4% Tax rate 40.0% Average diluted shares outstanding 26.0 million *Excludes the impact of future acquisitions, dispositions and any potential non-core items 27 LITHIA MOTORS FEBRUARY 2016

APPENDIX

SUPPLEMENTAL INFORMATION Balance Sheet $K As of December 31, 2015 As of December 31, 2014 Cash and cash equivalents 45,008 29,898 $K As of December 31, 2015 As of December 31, 2014 Floor plan notes payable 48,083 41,047 Accounts receivable 308,462 295,379 Floor plan notes payable: non-trade 1,265,872 1,137,632 Inventories, net 1,470,987 1,249,659 Other current assets 54,408 32,010 Assets held for sale 8,563 Total current assets 1,878,865 1,615,509 Property and equipment, net 876,660 816,745 Goodwill 213,220 199,375 Franchise value 157,699 150,892 Other non-current assets 100,855 98,411 Total assets 3,227,299 2,880,932 Current maturities of long-term debt 38,891 31,912 Trade payables 70,871 70,853 Accrued liabilities 167,108 153,661 Deferred income taxes 2,603 Liabilities related to assets held for sale 4,892 Total current liabilities 1,590,825 1,442,600 Long-term debt, less current maturities 606,463 609,066 Deferred revenue 66,734 54,403 Deferred income taxes 53,129 42,795 Other long-term liabilities 81,984 58,963 Total liabilities 2,399,135 2,207,827 Total stockholders equity 828,164 673,105 Total liabilities and stockholder s equity 3,227,299 2,880,932 29 LITHIA MOTORS FEBRUARY 2016

SUPPLEMENTAL INFORMATION 2015 Income Statement $K Q4 2015 Q3 2015 Q2 2015 Q1 2015 FY 2015 New vehicle 1,167,893 1,227,080 1,149,512 $ 1,007,816 4,552,301 Used vehicle 469,399 505,885 488,801 462,931 1,927,016 Wholesale used vehicles 63,054 69,472 66,796 62,208 261,530 Finance and insurance 69,318 76,633 72,463 64,604 283,018 Service, body and parts 193,024 189,796 182,695 173,475 738,990 Fleet and other 30,594 15,979 36,680 18,144 101,397 Total revenues 1,993,282 2,084,845 1,996,947 1,789,178 7,864,252 New vehicle 72,097 77,157 69,342 61,774 280,370 Used vehicle 56,827 62,287 62,693 59,442 241,249 Wholesale used vehicles 310 580 1,406 2,161 4,457 Finance and insurance 69,318 76,633 72,463 64,604 283,018 Service, body and parts 94,783 93,950 90,749 84,439 363,921 Fleet and other 88 580 996 955 2,619 Total gross profit 293,423 311,187 297,649 273,375 1,175,634 Asset impairment charges 5,733 4,131 6,130 4,130 20,124 Selling, general and administrative 200,219 223,728 195,610 191,618 811,175 Depreciation and amortization 11,056 10,531 10,287 9,726 41,600 Operating Income 76,415 72,797 85,622 67,901 302,735 Floor plan interest expense 5,279 4,951 4,655 4,649 19,534 Other interest expense 4,791 4,900 4,972 4,828 19,491 Other income, net (25) 307 356 368 1,006 Income (loss) before taxes 66,370 62,639 75,639 58,056 262,704 Income tax expense (benefit) 18,638 19,248 24,416 17,403 79,705 Income (loss) from continuing operations 47,732 43,391 51,223 40,653 182,999 30 LITHIA MOTORS FEBRUARY 2016

SUPPLEMENTAL INFORMATION 2014 Income Statement $K Q4 2014 Q3 2014 Q2 2014 Q1 2014 FY 2014 New vehicle $1,071,543 $732,121 $694,484 $579,522 $3,077,670 Used vehicle 409,591 340,522 310,475 301,893 1,362,481 Wholesale used vehicles 59,867 48,853 44,286 42,693 195,699 Finance and insurance 60,057 46,855 43,838 39,631 190,381 Service, body and parts 172,398 120,772 114,337 104,617 512,124 Fleet and other 19,851 7,988 14,382 9,750 51,971 Total revenues 1,793,307 1,297,111 1,221,802 1,078,106 5,390,326 New vehicle 65,518 47,648 45,994 39,024 198,184 Used vehicle 50,492 43,898 44,067 40,796 179,253 Wholesale used vehicles 307 504 1,504 1,331 3,646 Finance and insurance 60,057 46,855 43,838 39,631 190,381 Service, body and parts 84,301 58,421 56,182 50,832 249,739 Fleet and other 446 514 715 447 2,122 Total gross profit 261,121 197,840 192,300 172,061 823,322 Asset impairment charges 1,853 - - - 1,853 Selling, general and administrative 184,288 131,627 125,463 121,829 563,207 Depreciation and amortization 8,964 6,067 5,825 5,507 26,363 Operating Income 66,016 60,146 61,012 44,725 231,899 Floor plan interest expense 4,535 3,127 3,215 2,984 13,861 Other interest expense 4,848 2,051 1,869 1,974 10,742 Other income, net (89) (1,027) (1,146) (937) (3,199) Income (loss) before taxes 56,722 55,995 57,074 40,704 210,495 Income tax expense (benefit) 15,583 21,458 21,904 16,010 74,955 Income (loss) from continuing operations 41,139 34,537 35,170 24,694 135,540 31 LITHIA MOTORS FEBRUARY 2016

SUPPLEMENTAL INFORMATION 2013 Income Statement $K Q4 2013 Q3 2013 Q2 2013 Q1 2013 FY 2013 New vehicle $589,535 $604,135 $569,487 $493,441 $2,256,598 Used vehicle 253,797 280,734 258,465 239,228 1,032,224 Wholesale used vehicles 37,642 43,396 37,691 39,506 158,235 Finance and insurance 35,994 37,132 34,218 31,663 139,007 Service, body and parts 100,797 97,784 94,462 90,440 383,483 Fleet and other 7,109 6,109 14,182 8,802 36,202 Total revenues 1,024,874 1,069,290 1,008,505 903,080 4,005,749 New vehicle 39,097 38,586 38,788 34,647 151,118 Used vehicle 35,351 41,641 38,893 34,973 150,858 Wholesale used vehicles 332 710 695 974 2,711 Finance and insurance 35,994 37,132 34,218 31,663 139,007 Service, body and parts 48,107 46,991 46,693 43,779 185,570 Fleet and other 412 329 546 402 1,689 Total gross profit 159,293 165,389 159,833 146,438 630,953 Selling, general and administrative 108,416 108,570 109,283 101,131 427,400 Depreciation and amortization 5,316 5,099 4,899 4,721 20,035 Operating Income 45,561 51,720 45,651 40,586 183,518 Floor plan interest expense 2,979 2,909 3,036 3,449 12,373 Other interest expense 2,115 1,933 1,941 2,361 8,350 Other income, net (773) (835) (584) (801) (2,993) Income (loss) before taxes 41,240 47,713 41,258 35,577 165,788 Income tax expense (benefit) 14,080 16,822 15,977 13,695 60,574 Income (loss) from continuing operations 27,160 30,891 25,281 21,882 105,214 32 LITHIA MOTORS FEBRUARY 2016

SUPPLEMENTAL INFORMATION Quarterly Same Store Revenue Changes Q4 Q3 Q2 Q1 FY 2015 New vehicle 6.5% 11.4% 7.7 % 11.5% 8.9% Used vehicle 12.2% 12.8% 16.3 % 11.7% 13.2% Wholesale used vehicles 4.1% 11.3% 11.6 % 5.8% 8.0% Finance and insurance 13.0% 16.1% 15.3 % 12.6% 14.7% Service, body and parts 10.2% 10.2% 9.6 % 11.1% 10.3% Fleet and other 53.7% 1.8% 53.3 % 26.2% 40.4% Total revenues 8.8% 11.7% 11 % 11.5% 10.6% 2014 New vehicle 12.3% 11.1% 12.1 % 10.2% 11.5% Used vehicle 16.7% 13.8% 11.4 % 19.3% 15.2% Wholesale used vehicles 15% 6.9% 11.2 % 4.3% 9.2% Finance and insurance 14.5% 16.6% 17.5 % 18% 16.6% Service, body and parts 12.5% 13.1% 10.4 % 9.4% 11.4% Fleet and other 86.3% 2.2% (10.7)% 10.8% 15.7% Total revenues 14.1% 12% 11.6 % 12.5% 12.5% 2013 New vehicle 10.7% 15.6% 18.5 % 21.8% 16.4% Used vehicle 16% 16.6% 18.5 % 22% 18.3% Wholesale used vehicles 2.7% 18.1% 1.5 % 12.5% 8.6% Finance and insurance 17.7% 14.6% 20.1 % 24.3% 18.9% Service, body and parts 7.9% 5.6% 7.1 % 6.6% 6.8% Fleet and other -4.7% 34.3% 25.3 % -31.8% 0% Total revenues 11.6% 15% 16.7 % 18.8% 15.3% 33 LITHIA MOTORS FEBRUARY 2016

SUPPLEMENTAL INFORMATION Quarterly Gross Margins Q4 Q3 Q2 Q1 FY 2015 New vehicle 6.2% 6.3% 6.0% 6.1% 6.2% Used vehicle 12.1% 12.3% 12.8% 12.8% 12.5% Wholesale used vehicles 0.5% 0.8% 2.1% 3.5% 1.7% Finance and insurance 100.0% 100.0% 100.0% 100.0% 100.0% Service, body and parts 49.1% 49.5% 49.7% 48.7% 49.2% Fleet and other 0.3% 3.6% 2.7% 5.3% 2.6% Total revenues 14.7% 14.9% 14.9% 15.3% 14.9% 2014 New vehicle 6.1% 6.5% 6.6% 6.7% 6.4% Used vehicle 12.3% 12.9% 14.2% 13.5% 13.2% Wholesale used vehicles 0.5% 1.0% 3.4% 3.1% 1.9% Finance and insurance 100.0% 100.0% 100.0% 100.0% 100.0% Service, body and parts 48.9% 48.4% 49.1% 48.6% 48.8% Fleet and other 2.2% 6.4% 5.0% 4.6% 4.1% Total revenues 15.5% 15.5% 15.8% 16.2% 15.8% 2013 New vehicle 6.6% 6.4% 6.8% 7.0% 6.7% Used vehicle 13.9% 14.8% 15.0% 14.6% 14.6% Wholesale used vehicles 0.9% 1.6% 1.8% 2.5% 1.7% Finance and insurance 100.0% 100.0% 100.0% 100.0% 100.0% Service, body and parts 47.7% 48.1% 49.4% 48.4% 48.4% Fleet and other 5.8% 5.4% 3.8% 4.6% 4.7% Total revenues 15.5% 15.5% 15.8% 16.2% 15.8% 34 LITHIA MOTORS FEBRUARY 2016

SUPPLEMENTAL INFORMATION 2015 Adjusted Income Statement Details YTD 12/31/2015 Gain on sale of stores Asset impairment Transition Agreement Equity Investment YTD 12/31/2015 $K As Reported Q1 Q2 Q2 Q4 Q3 Q1 Q2 Q3 Q4 Adjusted Asset impairments $ 20,124 (2,000) (1,603) (4,130) (4,130) (4,131) (4,130) $ Selling, general and administrative $ 811,175 3,349 2,570 (18,296) $ 798,798 Income from operations $ 302,735 (3,349) (2,570) 2,000 1,603 18,296 4,130 4,130 4,131 4,130 $ 253,088 Other income $ (1,006) 1,732 1,733 1,732 $1,733 $ 4,165 Income from continuing operations before income taxes $ 262,704 (3,349) (2,570) 2,000 1,603 18,296 5,862 5,863 5,863 5,863 $ 228,298 Income taxes $ (79,705) 1,004 1,305 (780) (605) (6,507) (7,250) (7,652) (7,414) (8,516) $ (88,361) Net income from continuing operations $ 182,999 (2,345) (1,265) 1,220 998 11,789 (1,388) (1,789) (1,551) (2,653) $ 139,937 Diluted earnings per share from continuing operations $ 6.91 (0.09) (0.05) 0.05 0.03 0.45 (0.05) (0.07) (0.06) (0.10) $ 7.02 Diluted share count 26,490 35 LITHIA MOTORS FEBRUARY 2016

SUPPLEMENTAL INFORMATION 2014 Adjusted Income Statement Details YTD 12/31/2014 Disposal Gain Reserve adjustments Equity Investment Acquisition expenses Tax Attribute YTD 12/31/2014 $K As Q2 Q1 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Adjusted Reported Asset impairments $1,853 - - (1,853) - - - - - - - Selling, general and administrative $563,207 - (3,931) - (163) (883) (819) - - - $557,411 Income from operations $231,899-3,931 1,853 163 883 819 - - - $239,548 Other income 3,199 1,160 $4,359 Income from continuing operations before income taxes $210,495-3,931 3,013 163 883 819 - - - $219,304 Income taxes ($74,955) - (1,545) (6,506) (63) (319) (338) (73) (194) (600) (84,593) Net income from continuing operations $135,540-2,386 (3,493) 100 564 481 (73) (194) (600) $134,711 Net income from discontinued operations $3,180 (3,490) - - - - - - - - ($310) Net income $138,720 (3,490) 2,386 (3,493) 100 564 481 (73) (194) (600) $134,401 Diluted earnings per share from continuing operations $5.14-0.09 (0.13) - 0.02 0.02 - (0.01) (0.02) $5.11 Diluted earnings per share from discontinued operations $0.12 (0.13) - - - - - - - - ($0.01) Diluted earnings per share $5.26 (0.13) 0.09 (0.13) - 0.02 0.02 - (0.01) (0.02) $5.1 Diluted share count 26,382 36 LITHIA MOTORS FEBRUARY 2016

SUPPLEMENTAL INFORMATION 2013 Adjusted Income Statement Details YTD 12/31/2013 Disposal gain Reserve adjustments Tax attribute YTD 12/31/2013 $K As Reported Q4 Q2 Q4 Q2 Q3 Q4 Adjusted Selling, general and administrative $427,400 2,531 (3,812) (2,341) - - - $423,778 Income from operations $183,518 (2,531) 3,812 2,341 - - - $187,140 Income from continuing operations before income taxes $165,788 (2,531) 3,812 2,341 - - - $169,410 Income taxes (60,574) 968 (1,484) (869) (228) (1,284) (1,320) (64,791) Net income from continuing operations $105,214 (1,563) 2,328 1,472 (228) (1,284) (1,320) $104,619 Net income from discontinued operations 786 - - - - - - 786 Net income $106,000 (1,563) 2,328 1,472 (228) (1,284) (1,320) $105,405 Diluted earnings per share from continuing operations $4.02 (0.06) 0.09 0.05 (0.01) (0.05) (0.05) $3.99 Diluted earnings per share from discontinued operations 0.03 - - - - - - 0.03 Diluted earnings per share $4.05 (0.06) 0.09 0.05 (0.01) (0.05) (0.05) $4.02 Diluted share count 26,191 37 LITHIA MOTORS FEBRUARY 2016