December Auto Sales Likely to Reach $53 Billion

Average transaction prices projected to decline 1.1 percent year-over-year

SANTA MONICA, Calif.--(BUSINESS WIRE)-- ALG, the industry benchmark for determining the future resale value of a vehicle, projects U.S. revenue from new vehicle sales will reach $53 billion for the month of December, down 3.7 percent from a year ago on an unadjusted selling day basis and nearly flat on an adjusted selling basis at 0.2 percent.

Automakers should post a loss of $2 billion in revenue compared to last year, largely due to one less selling day this year.

Average Transaction Prices in December 2016 grew by 1.0 percent compared to the prior month while showing a loss of 1.1 percent over the prior year.

“With inventories on the rise, automakers are relying on hefty incentives to clear dealer stock at the close of 2016,” said Oliver Strauss, ALG’s chief economist. “The slight increase in sales for December (on a daily selling rate basis) just wasn’t enough to offset the decline in transaction prices to beat sales revenue of the previous year.”

ALG estimates the average transaction price (ATP) for a new light vehicle was $33,340 in December, down 1.1 percent from a year ago. Average incentive spending per unit grew by $611 to $3,673. The ratio of incentive spending to ATP was 11 percent, up from 9.1 percent a year ago.

Average Transaction Price (ATP)

Manufacturer			Dec. 2016Forecast			Dec. 2015			Nov. 2016			Percent Changevs.Dec. 2015			Percent Changevs.Nov. 2016
BMW (BMW, Mini)			$56,865			$54,525			$55,860			4.3%			1.8%
Daimler (Mercedes-Benz, Smart)			$58,692			$60,430			$60,074			-2.9%			-2.3%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)			$33,466			$33,095			$34,254			1.1%			-2.3%
Ford (Ford, Lincoln)			$34,765			$35,929			$35,116			-3.2%			-1.0%
GM (Buick, Cadillac, Chevrolet, GMC)			$40,249			$37,639			$38,776			6.9%			3.8%
Honda (Acura, Honda)			$27,368			$27,997			$27,644			-2.2%			-1.0%
Hyundai			$21,604			$24,277			$21,800			-11.0%			-0.9%
Kia			$21,506			$24,302			$21,357			-11.5%			0.7%
Nissan (Nissan, Infiniti)			$26,784			$27,906			$27,387			-4.0%			-2.2%
Subaru			$27,357			$27,439			$25,808			-0.3%			6.0%
Toyota (Lexus, Scion, Toyota)			$32,190			$31,811			$30,892			1.2%			4.2%
Volkswagen (Audi, Porsche, Volkswagen)			$28,507			$37,403			$27,411			-23.8%			4.0%
Industry			$33,340			$33,723			$33,004			-1.1%			1.0%

Incentive per Unit Spending

Manufacturer			Dec. 2016Forecast			Dec. 2015			Nov. 2016			Percent Changevs.Dec. 2015			Percent Changevs.Nov. 2016
BMW (BMW, Mini)			$5,815			$4,769			$5,749			$21.9%			1.2%
Daimler (Mercedes-Benz, Smart)			$4,607			$4,520			$4,798			1.9%			-4.0%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)			$4,291			$3,520			$4,271			21.9%			0.5%
Ford (Ford, Lincoln)			$4,190			$3,124			$4,228			34.1%			-0.9%
GM (Buick, Cadillac, Chevrolet, GMC)			$4,611			$4,053			$4,782			13.8%			-3.6%
Honda (Acura, Honda)			$2,154			$1,731			$2,135			24.4%			0.9%
Hyundai			$2,606			$1,989			$2,619			31.0%			-0.5%
Kia			$3,416			$2,832			$3,369			20.6%			1.4%
Nissan (Nissan, Infiniti)			$4,237			$3,657			$4,308			15.9%			-1.6%
Subaru			$1,162			$571			$1,183			103.4%			-1.8%
Toyota (Lexus, Scion, Toyota)			$2,723			$2,407			$2,788			13.2%			-2.3%
Volkswagen (Audi, Porsche, Volkswagen)			$4,392			$3,559			$4,464			23.4%			-1.6%
Industry			$3,673			$3,062			$3,731			20.0%			-1.6%

Incentive Spending as a Percentage of ATP

Manufacturer			Dec. 2016Forecast			Dec. 2015			Nov. 2016			Percent Changevs.Dec. 2015			Percent Changevs.Nov. 2016
BMW (BMW, Mini)			10.2%			8.7%			10.3%			16.9%			-0.6%
Daimler (Mercedes-Benz, Smart)			7.8%			7.5%			8.0%			4.9%			-1.7%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)			12.8%			10.6%			12.5%			20.5%			2.8%
Ford (Ford, Lincoln)			12.1%			8.7%			12.0%			38.6%			0.1%
GM (Buick, Cadillac, Chevrolet, GMC)			11.5%			10.8%			12.3%			6.4%			-7.1%
Honda (Acura, Honda)			7.9%			6.2%			7.7%			27.3%			1.9%
Hyundai			12.1%			8.2%			12.0%			47.3%			0.4%
Kia			15.9%			11.7%			15.8%			36.3%			0.7%
Nissan (Nissan, Infiniti)			15.8%			13.1%			15.7%			20.7%			0.6%
Subaru			4.2%			2.1%			4.6%			104.0%			-7.4%
Toyota (Lexus, Scion, Toyota)			8.5%			7.6%			9.0%			11.8%			-6.3%
Volkswagen (Audi, Porsche, Volkswagen)			15.4%			9.5%			16.3%			61.9%			-5.4%
Industry			11.0%			9.1%			11.3%			21.3%			-2.5%

(Note: This forecast is based solely on ALG’s analysis of industry sales trends and conditions and is not a projection of the company’s operations.)

About ALG

Founded in 1964 and headquartered in Santa Monica, California, ALG is an industry authority on automotive residual value projections in both the United States and Canada. By analyzing nearly 2,500 vehicle trims each year to assess residual value, ALG provides auto industry and financial services clients with market industry insights, residual value forecasts, consulting and vehicle portfolio management and risk services. ALG is a wholly-owned subsidiary of TrueCar, Inc., a digital automotive marketplace that provides comprehensive pricing transparency about what other people paid for their cars. ALG has been publishing residual values for all cars, trucks and SUVs in the U.S. for over 50 years and in Canada since 1981.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170104005493/en/

TrueCar, Inc.
[email protected]
Veronica Cardenas
424-258-2487
[email protected]

Source: ALG

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Three ultra-luxury projects in Shanghai and Hong Kong set record benchmarks amid an otherwise lack luster market. A record HK$2.2 Billion house sale and twin Shanghai sell-outs underscore the creating
• From Legacy Search to AI Dominance: Two Internet Marketing Pioneers Announce the Evolution of RankPivot.ai
• ‘Sorry, I Forgot’; How a startup is solving one of modern life’s most expensive problems