Car Company LLC

OUR MISSION

“Car Company is dedicated to providing an unparalleled used car shopping experience. To offer reasonable financing solutions and competitively priced vehicles to those that feel such things are out of reach. To hold an impeccable reputation for integrity and honest business dealings in its local community. To become the destination for all used car purchases.”

BUSINESS PLAN

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Car Company LLC TABLE OF CONTENT

Contents OUR MISSION ..................................................................................................................................... 1 TABLE OF CONTENT ........................................................................................................................ 2 EXECUTIVE SUMMARY .................................................................................................................. 3 USE OF FUNDS ................................................................................................................................... 4 COMPANY OVERVIEW .................................................................................................................... 5 COMPANY OWNERSHIP AND LOCATION ............................................................................... 5 INDUSTRY ANALYSIS: USED CARS DEALERSHIPS IN THE US .............................................. 6 USED VS NEW CAR PURCHASING BEHAVIOR ...................................................................... 7 INTERNET TRENDS ...................................................................................................................... 7 MARKET SEGMENTATION ......................................................................................................... 8 LOCAL MARKET ANALYSIS........................................................................................................... 8 COMPETITORS ............................................................................................................................... 9 OUR ADVANTAGE ...................................................................................................................... 10 MANAGEMENT SUMMARY .......................................................................................................... 10 MARKETING PLAN ......................................................................................................................... 11 PROJECTIONS .................................................................................................................................. 12 PROJECTED INCOME STATEMENT ............................................................................................. 13 BREAK-EVEN ANALYSIS .............................................................................................................. 14 PERSONNEL PLAN .......................................................................................................................... 15 PROJECTED CASH FLOW .............................................................................................................. 16 PROJECTED BALANCE SHEET ..................................................................................................... 17 APPENDIX: YEAR ONE FINANCIALS .......................................................................................... 18

BUSINESS PLAN

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Car Company LLC

EXECUTIVE SUMMARY In 2014, one in three adults with subprime credit believe they will qualify for an auto loan. Of those that try, the vast majority of consumers will simply overpay as they believe they are desperate. At Car Company, neither bankruptcy nor bad credit will prevent customers from purchasing a quality vehicle at a fair price. All that is required is a monthly gross income of $1,800 and a valid driver’s license. In fact, since its inception in 2013 Credit Car Select has helped over 90% of its applicants secure reasonable loans to purchase competitively priced cars. It is precisely this ethical treatment of an otherwise vulnerable market segment in the Springfield community that has earned Car Company its outstanding reputation. The company will continue to use these same tried and tested values to expand in its local market. The market conditions in Virginia for used cars are projected to be extremely favorably.IBISWorldreports industry revenue is expected to increase at an annualized rate of 2.5% in the five years to 2015, lifted by an estimated 1.7% increase in 2015. At the same time, IBISWorld forecasts a 2.5% increase in disposable income over the same five-year period. Customers with poor credit are expected to represent 41.8% of revenue in 2015. Virginia is expected to compose 3.5% of all used car sales in the US. After incorporating all the variables mentioned thus far, the total addressable market for the Company is over $1.4B. While more traditional dealership models may shy from or exploit deep subprime and subprime credit customers, Car Company embraces them. The Company recognizes a gap in its local market and has modeled its business to offer credit to even the riskiest credit consumer. To achieve this end, theCompany has partnered with AFC lending. The results have been outstanding as Credit Car Selects customer’s default rate has been consistent below estimates, demonstrating a viable long term solution. To expand and improve the Company’s profitability, the Company has partnered with its E-2 Investor Mr. Ricky Tony. Mr. Tony will provide an immense strategic advantage by lending both his expertise and capital investment totaling to $300K. These funds will enhance the Company’s capital structure by enabling Car Companyto purchase more inventory and save over $200 in interest payments per vehicle. In the next five years, the savings along accumulates to $239,400. The Company expects to increase the number of Vehicles sold from 69 in 2014 to 417 in year 5. The company projects a $2.6M in sales in its 5th, profiting over $10K or 11.9%

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Car Company LLC USE OF FUNDS Car Company is looking to decrease its interest expense on purchased vehicle inventory. A direct owner investment of $300K will decrease inventory cost by $200 per unit. Mr. 2Tony has recently invested $115K and is looking to invest an addition $185K in return for 80% ownership. The Company has a credit line of $250K that it will exercise. The use of funds is listed as below:

Startup Requiements Startup Expenses to Fund Startup Assets to Fund Total Funding Required Assets Non-cash Assets from Startup Cash Requirements from Startup Cash balance on Starting Date Total Assets

Amount $16,414 $378,755 $395,169

$247,055 $131,700 $131,700 $378,755

Liabilities and Capital

Startup Requiements Startup Expenses Consultation Fees Immigration Lawyer Bill Advances Business Attorney Total Startup Expenses

Amount $2,800 $4,000 $8,114 $1,500 $16,414

Startup Assets Cash Requied Inventory purchases Other Current Assets Longterm Assets Total Assets

$131,700 $227,604 $0 $19,451 $378,755

Total Requirements

$395,169

Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities

$174,669 $0 $0 $35,500 $210,169

Capital Planned Investment Investor Additional Investment Requirement Total Planned Investment

$185,000 $0 $185,000

Loss at Startup (Startup Expenses) Total Capital

($16,414) $168,586

Total Capital and Liabilities

$378,755

Total Funding

$395,169

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Car Company LLC COMPANY OVERVIEW Car Company is a used car dealership that sells a breadth of used makes and models. Established on January 1st 2013, the Company purchases cars at deep discounts from its local auction house, makes the necessary repairs to bring it up to commercial standards, and passes its savings directly to the consumer. The Company offers an outstanding shopping experience for customers in Springfield County, Virginia and surrounding areas by incorporating superior customer service and ethical business practices to its client base. Car Company is conveniently on a busy road located at West Shirley Ave. There is ample parking and visible signage to easy locate the dealership. Car Company specializes in helping its customers attain the best financing possible for the “right car”. Where most car dealers either reject or manipulate customers with bad credit, Car Company is able to approve nearly 90% of loan applicants through the credit company AFC. The Company holds by strong ethical practices as it does not tolerate exorbitant rates that other dealers will exploit on uninformed consumers. The company holds a twofold distinct advantage amongst its competitors. 1) the ability to grant better and more reasonable access to credit for its consumers and 2) leveraging equity capital to reduce the burden of interest expenses while capitalizing on a free net 60 credit line to expand its business. In addition to the two items mentioned above, the following provides an overview of Car Company advantages:     

Focus on lower end vehicle car segment: lower cost per unit with increase in average gross margin and higher inventory turnover rate. Inventory inspection: A standard checklist to ensure the appraisals are completed consistently and accurately, and free from major defects. Bad Debt Allowances: Strategic partnership with AFC financial lending institution, reduces the risk of bad debt and collectables. Experienced Staff: Knowledgeable staff and Management team, able to cater to customers unique requirements. Complete online Inventory updated every few days.

COMPANY OWNERSHIP AND LOCATION Car Company is a Limited Liability Company registered in the State of Virginia. The Company will be owned by Ricky Tony (80%), Eric Muller (10%) and Henry Lewis (10%). Car Company LLC used car dealership is located in the heart of Springfield at 000 Maple Dr.

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Car Company LLC INDUSTRY ANALYSIS: USED CARS DEALERSHIPS IN THE US As noted, Car Company LLC. is operating in a 1$106.9bn dollar industry, which is projected to grow at a healthy rate will industry profit at $2.7bn despite a decrease to 1.8% down from 2.5% from the previous five years. The industry is also enjoying higher sales due to increase in disposable incomes and decreasing unemployment rate. The firm provides the following industry overview and forecasts.

1

“Used Car Dealers in the US” Industry Report” IBISWorld, Jan 2015 www.ibisworld.com

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Car Company LLC Between new and used vehicle prices, the retail price of a one-year-old used vehicle is now below 80 percent of the cost of a new vehicle. Older model vehicle supply will increase, but overall supply will continue to fall as sales of used cars continue. Despite the growth in late-model supply, the supply of units up to eight years in age is expected to decrease by 2% or more. Newer used vehicles (vehicles that are three years or under) will still be roughly 25 percent below where it was previously. While the growth in late-model supply will have an adverse effect on younger used vehicle prices, the continued slide in early-model supply will benefit prices of older models. Overall key trends are listed as below:    

Increasingly competitive lending environment will continue to see credit standards loosen and availability grow. Employment will continue to improve as disposable incomes increase. The recovery in housing and construction will pick up steam, benefiting both the economy and employment. This will increase demand for traditional used car and truck consumers. Vehicle age remains on the rise, with the average vehicle age at approximately 11.4 years.

USED VS NEW CAR PURCHASING BEHAVIOR Compared to other car market segments, the typical customers who purchased used cars had less income on average. The average annual income for used vehicle purchasers was $48,004 compared with $72,992 for lessees and $69,875 for new-vehicle purchasers. Among consumers that bought or leased a vehicle, 80.9% of lower wage earners are likely to purchase a used vehicle compared to 36% of those who lease or buy in the highest income quintile for new vehicle purchases. Down payments and monthly payment amounts influence whether the consumer will purchase a new or used car. 76 % of used-vehicle purchasers paid down payments of $1,147 on average and only 30 percent of the amount that a new-vehicle purchaser put for a down payment was $2,914 including new car incentives and discounts. The maximum down payment was $8,500 for lessees, $37,000 for new-vehicle purchasers, and $19,000 for used-vehicle purchasers. The average monthly payment was $353 for lessees, $399 for new-vehicle purchasers, and $273 for used-vehicle purchasers.

INTERNET TRENDS Internet usage has changed the way shoppers search for used vehicles. A J.D Power and Associates survey concluded that 64% of potential clients first searched the internet before visiting the dealership. In addition 88% of buyers that went to a dealership to test drive a car had spent time researching information on the internet prior to their visit.

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Car Company LLC MARKET SEGMENTATION Within the Used Car Dealers industry, dealers compete mainly on the basis of vehicle offering and price. For the consumer credit availability and access is paramount in the purchasing decision. Credit availability will continue to expand further fueling used cars sales. Data from the Federal Reserve Board’s Senior Loan Officer Survey shows that lenders have loosened auto loan standards for five years running, a trend that helped see loan portfolios grow. Experian data also shows that the subprime share of used vehicle financing improved by over 2%. Used car dealers classify customers’ credit worthiness in five different credit rating segments, with deep subprime customers possessing the worst credit. Customers choose to purchase vehicles from used car dealers for different reasons, depending on their credit score. During the economic downturn, contractions in credit availability made it more difficult and expensive for these customers to get financing. Customers with the worst credit scores are largely unable to purchase vehicles on traditional credit, facing interest rates 6.0% or more above prime rates. LOCAL MARKET ANALYSIS The following Table provides pertinent figures for the population within Fauquier County which encompasses 647.45 sq. miles. Income data for the region is highlighted in yellow below. Springfield County, Virginia People QuickFacts Population, 2013 estimate Population, 2010 (April 1) estimates base Population, percent change - April 1, 2010 to July 1, 2013 Population, 2010 Persons under 5 years, percent, 2013 Persons under 18 years, percent, 2013 Persons 65 years and over, percent, 2013 Female persons, percent, 2013 Per capita money income in past 12 months (2013 dollars), 2009-2013 Median household income, 2009-2013 Persons below poverty level, percent, 2009-2013 Geography QuickFacts Land area in square miles, 2010 Persons per square mile, 2010

Springfield County 67207 65203 0.031 65203

0.057 0.242 0.144 0.506 39600 88409

0.056 Springfield County 647.45 100.7

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Car Company LLC COMPETITORS The Company will experience direct competition from other used vehicle dealerships in the Springfield area. Our main competitors who hold similar inventory and compete based on price and offerings are listed as below. Anzo Motors- http://www.anzo-motors.com Overview:Anzo Motors is a locally operated used car dealership that offers a range of used cars as well as in house financing option.





Advantages:Anzo Motors operates in the low and mid end price segment of the used car industry aimed at appealing to a broader customer base. Anzo motors also offers extended credit services to customers with bad credit. Disadvantages:Anzo Motors has a weak internet presence, and with little to no reviews. The current climate of internet based shopping is hampering the Company and currently there is no inventory online for view.

Summit Motors - www.summitmotorsinc.com Overview: Summit Motors is a larger used car dealership operating out of Warrenton and is a division of Country Chevrolet. Summit Motors inventory consists of higher end used vehicles.  

Advantages: Summit Motors offers additional warranty services and extended hours of operations. Disadvantages: Financing options are slightly more limited, customers in the deep subprime credit rating will have difficulty finding approval.

Wells Auto Sales- www.wellsautos.com Overview: Wells Auto Sales specializes in later model and low mileage used cars. Wells Auto Sales inventory is geared towards the higher end used car consumer, with offerings included in its inventory at $40K or more.

 

Advantages: Wells Auto Sales was founded in 1997 and has a larger local client base. Disadvantages: The higher end market has a lower inventory turnover rate, and high inventory costs using up much of current assets.

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Car Company LLC OUR ADVANTAGE Car Company is located on a prime lot right off Lincoln Ave, which runs through the heart of downtown Springfield. The Company has have a very easy to navigate website with an online credit approval form that is linked to the business email. Car Company caters heavily to potential customers with bad credit that have been rejected for car loans everywhere else due to lack of credit or significant down payment. The approval success rate is over 90% and adding to a large customer referral base. Car Company focuses on the following main advantages:      

Little or no down payment required to purchase Ease of credit access Ability to service the Deep-Subprime and Subprime used cars consumers market Liabilities are held with AFC financial institution, relieving Credit Card Select of potential Bad Debt expenses. Large inventory of cars on its website for easy viewing, with inventory updated every few days. Located in prime busy location on a main street in Springfield, Virginia.

MANAGEMENT SUMMARY Ricky Tony comes from a strong entrepreneurial background. He holds a bachelor’s degree in commerce and 7 years of international business experience. John started out as a manager at his father’s gas station and later became a managing partner. Soon after, John took his ambitions to Dubai, known as the business hub of the world. There he became a managing director and partner of Transport enterprise, dealing with vehicles on a daily basis, John foresaw an opportunity to take his entrepreneur spirit to the next level. In July of 2009, the conception of Ricky Tony Motors became a reality. Ricky Tony Motors specialized in purchasing cars from the US, UK and Japan. The car business venture did very well for John, and within a year, Car Company LLC opened its doors. After four years of owning and operating multiple successful dealerships, Joh Tony set his ambitions for America. He had always heard about great opportunities in America and he wanted to pursue his passion here. On October of 2014, Ricky Tony successfully sold both of his used car dealerships in Dubai and set sail for the USA.

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Car Company LLC MARKETING PLAN Car Company will benefit from utilizing traditional marketing methods including online initiatives. Networking As with any service oriented business, the Company will benefit from developing businessrelationships by participating actively in community events. Car Company will attend a variety of events to gauge prospective clients, including fairs and trade shows. Word of mouth Referral marketing will be an integral part in maintaining long lasting relationships and increasing brand awareness. Current clients will increase leads by word of mouth advertising, which is considered the most effective and trustworthy form of advertising. Internet Independent sites drive roughly half (45%) of all dealer walk-in traffic by the internet, followed by dealer sites (32%), search sites (14%), manufacturer sites (6%) and other sites (3%). The Company will be heavily advertising on well-known internet sites that potential buyers frequent including, kijiji.com, Autotrader, Cars.com, craigslist, Facebook and Yelp.

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Car Company LLC PROJECTIONS The following table and graph illustrate the financial goals for Car Company during the next five years. Sales Forecast

Year 1

Year 2

Year 3

Year 4

Sal

Year 5

Car Sold

99

153

219

309

417

Total Unit Sales

99

153

219

309

417

Unit Prices Vehicle

$

6,260.00

$

6,260.00

$

6,260.00

$

6,260.00

$

$

619,740

$

957,780

$

1,370,940

$

1,934,340

$

2,610,420

Total Sales

$

619,740

$

957,780

$

1,370,940

$

1,934,340

$

2,610,420

$

4,695.00

$

4,695.00

$

4,420.00

$

4,420.00

$

4,420.00

Direct Cost of Sales Renovations

$

464,805

$

718,335

$

967,980

$

1,365,780

$

1,843,140

Subtotal Direct Cost of Sales

$

464,805

$

718,335

$

967,980

$

1,365,780

$

1,843,140

*unit sales were based on historical sales volumes and increase in marketing expenditure, general assumptions include: 1. Avg. price of sales: $6,260 2. COS 3. During year 3 in-house mechanic was hired cutting outside paid labor paid reducing Parts cost from $826 to $551.

Fees $42

Towing + Tag + Misc title $123 $159

Parts $826

Vehicle 4,713

(50% Parts, 50% Labor ($413, $413) outside labor $56.25 per hour, In-house $18.75 per hour, $413+$138 = $551 a avg. savings of $275 per vehicle.

BUSINESS PLAN

Uni Veh

6,260.00

Sales Vehicle

Direct Unit Costs Vehicle

Car

12

Sale Veh Tota

Dire Veh

Dire Sale Veh Sub Cos

Car Company LLC PROJECTED INCOME STATEMENT

Pro Forma Income Statement Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales

Year 1 $619,740 $464,805 $0 $464,805

Year 2 $957,780 $718,335 $0 $718,335

Year 3 $1,370,940 $967,980 $0 $967,980

Year 4 $1,934,340 $1,365,780 $0 $1,365,780

Year 5 $2,610,420 $1,843,140 $0 $1,843,140

Gross Margin Gross Margin %

$154,935 25.00%

$239,445 25.00%

$402,960 29.39%

$568,560 29.39%

$767,280 29.39%

$117,600 $14,400 $3,888 $42,000 $3,264 $1,296 $3,612 $1,812 $3,264 $3,132 $5,376 $199,644

$141,600 $17,600 $3,888 $42,000 $3,264 $1,296 $3,612 $1,812 $3,264 $3,132 $5,376 $226,844

$177,600 $20,600 $3,888 $42,000 $3,264 $1,296 $3,612 $1,812 $3,264 $3,132 $5,376 $265,844

$199,200 $23,600 $3,888 $42,000 $3,264 $1,296 $3,612 $1,812 $3,264 $3,132 $5,376 $290,444

$229,200 $26,600 $3,888 $42,000 $3,264 $1,296 $3,612 $1,812 $3,264 $3,132 $5,376 $323,444

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

($44,709) ($44,709) $0 $0

$12,602 $16,489 $0 $3,780

$137,116 $141,004 $0 $41,135

$278,116 $282,004 $0 $83,435

$443,836 $447,724 $0 $133,151

Net Profit Net Profit/Sales

($44,709) -7.21%

$8,821 0.92%

$95,981 7.00%

$194,681 10.06%

$310,685 11.90%

Expenses Payroll Marketing/Promotion Depreciation Rent Cable & Internet Dues & Subscriptions Insurance Telephone Utilities Postage & Delivery Others



Investment of $300K from Ricky Tony ($115K+$185K) reduced over all expenditure by $200 per vehicle increasing revenues by the same amount.

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Car Company LLC BREAK-EVEN ANALYSIS

Break-even Analysis Monthly Revenues Break-even

$

Value 66,548

Assumption Estimated Monthly Fixed Cost

$

16,637

*As depicted above Monthly Break even sales of $66,548 was sufficient to cover break even fixed costs.

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Car Company LLC PERSONNEL PLAN

Personnel Plan General Manager/Sales Operations Manager Finance Manager/Sales* Office Assistant* Junior Sales Consultant On-Site Mechanic Sales Consultant Total People Total Payroll

Year 1 72,000 24,000 12,000 9,600 4 $ 117,600 $ $ $ $ $ $ $

$ $ $ $ $ $ $ $

Year 2 72,000 24,000 12,000 9,600 24,000 5 141,600

$ $ $ $ $ $ $ $

Year 3 72,000 24,000 12,000 9,600 24,000 36,000 6 177,600

$ $ $ $ $ $ $ $

Year 4 72,000 24,000 24,000 19,200 24,000 36,000 6 199,200

$ $ $ $ $ $ $ $

Year 5 72,000 24,000 24,000 19,200 24,000 36,000 30,000 7 229,200

*Finance Manager and Office Assistant hired on as part time basis until year 3. During year 3 in mechanic hired to reduce Parts & Labor costs on average by $275 per vehicle. Junior Sales Consultant Hired in year 2, and experienced consultant hired in 5.

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Car Company LLC PROJECTED CASH FLOW

Pro-Forma Cash Flow Cash Received

Year 1

Year 2

Year 3

Year 4

Pro

Year 5

Ca

Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations

$619,740 $0 $619,740

$957,780 $0 $957,780

$1,370,940 $0 $1,370,940

$1,934,340 $0 $1,934,340

$2,610,420 $0 $2,610,420

Additional Cash Received New Current Borowing Subtotal Cash Received

$0 $619,740

$0 $957,780

$0 $1,370,940

$0 $1,934,340

$0 $2,610,420

Expenditure Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations

Year 1

Year 2

Year 3

Year 4

Ex

Year 5

$117,600 $301,393 $418,993

$141,600 $898,025 $1,039,625

$177,600 $1,104,028 $1,281,628

$199,200 $1,582,689 $1,781,889

$229,200 $2,102,518 $2,331,718

Additional Cash Spent $34,932 Principal Repayment of Current Borrowing Long-term Liabilities Principal Repayment$7,100 $461,025 Subtotal Cash Spent

$34,932 $7,100 $1,081,657

$34,932 $7,100 $1,323,660

$34,932 $7,100 $1,823,921

$34,932 $7,100 $2,373,750

$158,715 $290,415

($123,877) $166,539

$47,280 $213,818

$110,419 $324,238

$236,670 $560,907

Net Cash Flow Cash Balance

BUSINESS PLAN

Ca Ca Ca Su Su

16

Ex Ca Bill Su

Ad Sa Pa Pri Cu Oth Re Lo Re Pu As Pu Div Su

Car Company LLC PROJECTED BALANCE SHEET

Pro Forma Balance Sheet Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Other Assets Other Assets Total Assets Liabilities and Capital

Year 1

Year 2

Year 3

Year 4

Pro Forma B

Year 5

Assets $290,415 $0 $42,255 $0 $332,670

$166,539 $0 $155,975 $0 $322,514

$213,818 $0 $183,264 $0 $397,082

$324,238 $0 $270,748 $0 $594,986

$560,907 $0 $349,467 $0 $910,374

$19,451 $3,888 $15,563

$19,451 $7,776 $11,675

$19,451 $11,664 $7,787

$19,451 $15,552 $3,899

$19,451 $19,440 $11

$0 $348,233

$0 $334,188

$0 $404,869

$0 $598,885

$0 $910,386

Year 2

Year 3

Year 4

Year 5

Year 1

Current Asset Cash Accounts Rec Inventory Other Current Total Current

Long-term As Long-term As Accumulated Total Long-te Total Assets

Liabilities and

Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities

$56,219 $139,737 $28,400 $224,356

$75,386 $104,805 $21,300 $201,491

$92,117 $69,873 $14,200 $176,190

$133,484 $34,941 $7,100 $175,525

$176,331 $9 $0 $176,340

Long-term Liabilities Total Liabilities

$0 $224,356

$0 $201,491

$0 $176,190

$0 $175,525

$0 $176,340

Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital

$185,000 ($16,414) ($44,709) $123,877 $348,233

$185,000 ($61,123) $8,821 $132,698 $334,188

$185,000 ($52,302) $95,981 $228,679 $404,869

$185,000 $43,679 $194,681 $423,360 $598,885

$185,000 $238,360 $310,685 $734,045 $910,386

Net Worth

$123,877

$132,698

$228,679

$423,360

$734,045

BUSINESS PLAN

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Current Liabil Accounts Pay Current Borro Other Current Subtotal Curr

Long-term Lia Total Liabilitie

Paid-in Capita Retained Earn

Car Company LLC APPENDIX: YEAR ONE FINANCIALS Sales Forecast Unit Sales Vehicle Row 2 Total Unit Sales

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

8 0 8

9 0 9

10 0 10

10 0 10

8 0 8

7 0 7

8 0 8

6 0 6

9 0 9

8 0 8

7 0 7

9 0 9

Unit Prices Vehicle Row 2

Month 1 $6,260.00 $0.00

Month 2 $6,260.00 $0.00

Month 3 $6,260.00 $0.00

Month 4 $6,260.00 $0.00

Month 5 $6,260.00 $0.00

Month 6 $6,260.00 $0.00

Month 7 $6,260.00 $0.00

Month 8 $6,260.00 $0.00

Month 9 $6,260.00 $0.00

Month 10 $6,260.00 $0.00

Month 11 $6,260.00 $0.00

Month 12 $6,260.00 $0.00

Sales Vehicle Row 2 Total Sales

$50,080 $0 $50,080

$56,340 $0 $56,340

$62,600 $0 $62,600

$62,600 $0 $62,600

$50,080 $0 $50,080

$43,820 $0 $43,820

$50,080 $0 $50,080

$37,560 $0 $37,560

$56,340 $0 $56,340

$50,080 $0 $50,080

$43,820 $0 $43,820

$56,340 $0 $56,340

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$4,695.00 $0.00

$4,695.00 $0.00

$4,695.00 $0.00

$4,695.00 $0.00

$4,695.00 $0.00

$4,695.00 $0.00

$4,695.00 $0.00

$4,695.00 $0.00

$4,695.00 $0.00

$4,695.00 $0.00

$4,695.00 $0.00

$4,695.00 $0.00

$37,560 $0 $37,560

$42,255 $0 $42,255

$46,950 $0 $46,950

$46,950 $0 $46,950

$37,560 $0 $37,560

$32,865 $0 $32,865

$37,560 $0 $37,560

$28,170 $0 $28,170

$42,255 $0 $42,255

$37,560 $0 $37,560

$32,865 $0 $32,865

$42,255 $0 $42,255

Direct Unit Costs Vehicle Row 2 Direct Cost of Sales Vehicle Row 2 Subtotal Direct Cost of Sales

75.00% 0.00%

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Car Company LLC Personnel Plan General Manager/Sales Operations Manager Finance Manager/Sales * Office Assistant * Junior Sales Consultant On-Site Mechanic Sales Consultant Total People Total Payroll

Month 1 $6,000 $2,000 $1,000 $800 $0 $0 $0 4

Month 2 $6,000 $2,000 $1,000 $800 $0 $0 $0 4

Month 3 $6,000 $2,000 $1,000 $800 $0 $0 $0 4

Month 4 $6,000 $2,000 $1,000 $800 $0 $0 $0 4

Month 5 $6,000 $2,000 $1,000 $800 $0 $0 $0 4

Month 6 $6,000 $2,000 $1,000 $800 $0 $0 $0 4

Month 7 $6,000 $2,000 $1,000 $800 $0 $0 $0 4

Month 8 $6,000 $2,000 $1,000 $800 $0 $0 $0 4

Month 9 $6,000 $2,000 $1,000 $800 $0 $0 $0 4

Month 10 $6,000 $2,000 $1,000 $800 $0 $0 $0 4

Month 11 $6,000 $2,000 $1,000 $800 $0 $0 $0 4

Month 12 $6,000 $2,000 $1,000 $800 $0 $0 $0 4

$9,800

$9,800

$9,800

$9,800

$9,800

$9,800

$9,800

$9,800

$9,800

$9,800

$9,800

$9,800

BUSINESS PLAN

19

Car Company LLC Pro Forma Profit and Loss Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales

Month 1 $50,080 $37,560 $0 $37,560

Month 2 $56,340 $42,255 $0 $42,255

Month 3 $62,600 $46,950 $0 $46,950

Month 4 $62,600 $46,950 $0 $46,950

Month 5 $50,080 $37,560 $0 $37,560

Month 6 $43,820 $32,865 $0 $32,865

Month 7 $50,080 $37,560 $0 $37,560

Month 8 $37,560 $28,170 $0 $28,170

Month 9 $56,340 $42,255 $0 $42,255

Month 10 $50,080 $37,560 $0 $37,560

Month 11 $43,820 $32,865 $0 $32,865

Month 12 $56,340 $42,255 $0 $42,255

$12,520 25.00%

$14,085 25.00%

$15,650 25.00%

$15,650 25.00%

$12,520 25.00%

$10,955 25.00%

$12,520 25.00%

$9,390 25.00%

$14,085 25.00%

$12,520 25.00%

$10,955 25.00%

$14,085 25.00%

$9,800 $1,200 $324 $3,500 $272 $108 $301 $151 $272 $261 $448

$9,800 $1,200 $324 $3,500 $272 $108 $301 $151 $272 $261 $448

$9,800 $1,200 $324 $3,500 $272 $108 $301 $151 $272 $261 $448

$9,800 $1,200 $324 $3,500 $272 $108 $301 $151 $272 $261 $448

$9,800 $1,200 $324 $3,500 $272 $108 $301 $151 $272 $261 $448

$9,800 $1,200 $324 $3,500 $272 $108 $301 $151 $272 $261 $448

$9,800 $1,200 $324 $3,500 $272 $108 $301 $151 $272 $261 $448

$9,800 $1,200 $324 $3,500 $272 $108 $301 $151 $272 $261 $448

$9,800 $1,200 $324 $3,500 $272 $108 $301 $151 $272 $261 $448

$9,800 $1,200 $324 $3,500 $272 $108 $301 $151 $272 $261 $448

$9,800 $1,200 $324 $3,500 $272 $108 $301 $151 $272 $261 $448

$9,800 $1,200 $324 $3,500 $272 $108 $301 $151 $272 $261 $448

Total Operating Expenses

$16,637

$16,637

$16,637

$16,637

$16,637

$16,637

$16,637

$16,637

$16,637

$16,637

$16,637

$16,637

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

($4,117)

($2,552)

($987)

($987)

($4,117)

($5,682)

($4,117)

($7,247)

($2,552)

($4,117)

($5,682)

($2,552)

($3,793) $0 $0

($2,228) $0 $0

($663) $0 $0

($663) $0 $0

($3,793) $0 $0

($5,358) $0 $0

($3,793) $0 $0

($6,923) $0 $0

($2,228) $0 $0

($3,793) $0 $0

($5,358) $0 $0

($2,228) $0 $0

Net Profit Net Profit/Sales

($4,117) -8.22%

($2,552) -4.53%

($987) -1.58%

($987) -1.58%

($4,117) -8.22%

($5,682) -12.97%

($4,117) -8.22%

($7,247) -19.29%

($2,552) -4.53%

($4,117) -8.22%

($5,682) -12.97%

($2,552) -4.53%

Gross Margin Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Rent Cable & Internet Dues & Subscriptions Insurance Telephone Utilities Postage & Delivery Other

BUSINESS PLAN

20

Car Company LLC Pro Forma Cash Flow

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations

$50,080 $0 $50,080

$56,340 $0 $56,340

$62,600 $0 $62,600

$62,600 $0 $62,600

$50,080 $0 $50,080

$43,820 $0 $43,820

$50,080 $0 $50,080

$37,560 $0 $37,560

$56,340 $0 $56,340

$50,080 $0 $50,080

$43,820 $0 $43,820

$56,340 $0 $56,340

Expenditures

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$9,800 $217 $10,017

$9,800 $6,513 $16,313

$9,800 $6,513 $16,313

$9,800 $6,513 $16,313

$9,800 $7,221 $17,021

$9,800 $27,975 $37,775

$9,800 $35,153 $44,953

$9,800 $47,986 $57,786

$9,800 $26,545 $36,345

$9,800 $62,071 $71,871

$9,800 $39,222 $49,022

$9,800 $35,466 $45,266

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$2,911

$2,911

$2,911

$2,911

$2,911

$2,911

$2,911

$2,911

$2,911

$2,911

$2,911

$2,911

$591

$591

$591

$591

$592

$592

$592

$592

$592

$592

$592

$592

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0 $13,519

$0 $19,815

$0 $19,815

$0 $19,815

$0 $20,524

$0 $41,278

$0 $48,456

$0 $61,289

$0 $39,848

$0 $75,374

$0 $52,525

$0 $48,769

$36,561 $168,261

$36,525 $204,786

$42,785 $247,571

$42,785 $290,356

$29,556 $319,912

$2,542 $322,454

$1,625 $324,078

($23,729) $300,350

$16,492 $316,842

($25,294) $291,548

($8,705) $282,844

$7,572 $290,415

Cash Received

Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance

BUSINESS PLAN

21

Car Company LLC Pro Forma Balance Sheet Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$131,700 $0 $227,604 $0 $359,304

$168,261 $0 $190,044 $0 $358,305

$204,786 $0 $147,789 $0 $352,575

$247,571 $0 $100,839 $0 $348,410

$290,356 $0 $53,889 $0 $344,245

$319,912 $0 $37,560 $0 $357,472

$322,454 $0 $32,865 $0 $355,319

$324,078 $0 $37,560 $0 $361,638

$300,350 $0 $28,170 $0 $328,520

$316,842 $0 $42,255 $0 $359,097

$291,548 $0 $37,560 $0 $329,108

$282,844 $0 $32,865 $0 $315,709

$290,415 $0 $42,255 $0 $332,670

$19,451 $0

$19,451 $324

$19,451 $648

$19,451 $972

$19,451 $1,296

$19,451 $1,620

$19,451 $1,944

$19,451 $2,268

$19,451 $2,592

$19,451 $2,916

$19,451 $3,240

$19,451 $3,564

$19,451 $3,888

$19,451 $378,755

$19,127 $377,432

$18,803 $371,378

$18,479 $366,889

$18,155 $362,400

$17,831 $375,303

$17,507 $372,826

$17,183 $378,821

$16,859 $345,379

$16,535 $375,632

$16,211 $345,319

$15,887 $331,596

$15,563 $348,233

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Starting Balances

Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities

$0 $174,669 $35,500 $210,169

$6,296 $171,758 $34,909 $212,963

$6,296 $168,847 $34,318 $209,461

$6,296 $165,936 $33,727 $205,959

$6,296 $163,025 $33,136 $202,457

$26,819 $160,114 $32,544 $219,477

$33,527 $157,203 $31,952 $222,682

$47,142 $154,292 $31,360 $232,794

$24,450 $151,381 $30,768 $206,599

$60,758 $148,470 $30,176 $239,404

$38,065 $145,559 $29,584 $213,208

$33,527 $142,648 $28,992 $205,167

$56,219 $139,737 $28,400 $224,356

Long-term Liabilities Total Liabilities

$0 $210,169

$0 $212,963

$0 $209,461

$0 $205,959

$0 $202,457

$0 $219,477

$0 $222,682

$0 $232,794

$0 $206,599

$0 $239,404

$0 $213,208

$0 $205,167

$0 $224,356

Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital

$185,000 ($16,414) $0 $168,586 $378,755

$185,000 ($16,414) ($4,117) $164,469 $377,432

$185,000 ($16,414) ($6,669) $161,917 $371,378

$185,000 ($16,414) ($7,656) $160,930 $366,889

$185,000 ($16,414) ($8,643) $159,943 $362,400

$185,000 ($16,414) ($12,760) $155,826 $375,303

$185,000 ($16,414) ($18,442) $150,144 $372,826

$185,000 ($16,414) ($22,559) $146,027 $378,821

$185,000 ($16,414) ($29,806) $138,780 $345,379

$185,000 ($16,414) ($32,358) $136,228 $375,632

$185,000 ($16,414) ($36,475) $132,111 $345,319

$185,000 ($16,414) ($42,157) $126,429 $331,596

$185,000 ($16,414) ($44,709) $123,877 $348,233

Net Worth

$168,586

$164,469

$161,917

$160,930

$159,943

$155,826

$150,144

$146,027

$138,780

$136,228

$132,111

$126,429

$123,877

BUSINESS PLAN

22