October Auto Sales Set to Reach $46 Billion
Average transaction prices likely to rise 2.5%
SANTA MONICA, Calif.--(BUSINESS WIRE)-- TrueCar, Inc. (NASDAQ: TRUE) projects U.S. revenue from new vehicle sales reached $46 billion for the month of October, down 4.2 percent from a year ago.
Despite higher average transaction prices, automakers should post a $2 billion loss in revenue compared to last year due to expectation of lower sales in October 2016.
Average Transaction Prices in October 2016 remained nearly flat compared to the prior month while showing a gain of 2.5% over the prior year.
"With the 2016 model year sell down complete, average transaction prices have increased and incentives are on the decline; both are key metrics indicating continued market strength," said Eric Lyman, TrueCar’s chief industry analyst. "As some automakers begin to manage vehicle production, we expect new vehicle incentives to continue to pull back from recent elevated levels of spending."
The average transaction price (ATP) for Volkswagen Group is up a striking 10.6% in October versus a month ago and earns the automaker its second consecutive month of sizeable year over gains in ATP. Subaru also continues to make gains in ATP thanks to continued robust demand and limited manufacturer discounts.
TrueCar estimates the ATP for a new light vehicle was $33,544 in October, up 2.5 percent from a year ago. Average incentive spending per unit rose by $487 to $3,587. The ratio of incentive spending to ATP was 10.7 percent, up from 9.5 percent a year ago.
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Average Transaction Price (ATP) |
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|
Manufacturer |
Oct. 2016Forecast |
Oct. 2015 |
Sept.2016 |
Percent Changevs.Oct. 2015
|
PercentChangevs. Sept.2016 |
|||||
| BMW (BMW, Mini) | $48,395 | $49,983 | $50,053 | -3.2% | -3.3% | |||||
| Daimler (Mercedes-Benz, Smart) | $58,164 | $59,394 | $57,973 | -2.1% | 0.3% | |||||
| FCA (Chrysler, Dodge, Jeep, Ram, Fiat) | $33,479 | $32,966 | $33,328 | 1.6% | 0.5% | |||||
| Ford (Ford, Lincoln) | $35,682 | $34,793 | $35,469 | 2.6% | 0.6% | |||||
| GM (Buick, Cadillac, Chevrolet, GMC) | $36,681 | $34,979 | $37,150 | 4.9% | -1.3% | |||||
| Honda (Acura, Honda) | $27,649 | $27,986 | $27,464 | -1.2% | 0.7% | |||||
| Hyundai | $22,590 | $24,083 | $22,943 | -6.2% | -1.5% | |||||
| Kia | $23,960 | $23,610 | $23,693 | 1.5% | 1.1% | |||||
| Nissan (Nissan, Infiniti) | $27,103 | $27,523 | $27,447 | -1.5% | -1.3% | |||||
| Subaru | $29,356 | $27,586 | $28,042 | 6.4% | 4.7% | |||||
| Toyota (Lexus, Scion, Toyota) | $32,490 | $30,568 | $31,476 | 6.3% | 3.2% | |||||
| Volkswagen (Audi, Porsche, Volkswagen) | $41,674 | $38,436 | $37,688 | 8.4% | 10.6% | |||||
|
Industry |
$33,544 |
$32,720 |
$33,486 |
2.5% |
0.2% |
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|
Incentive per Unit Spending |
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|
Manufacturer |
Oct. 2016Forecast |
Oct. 2015 |
Sept.2016 |
Percent Changevs. Oct. 2015 |
PercentChange vs.Sept. 2016 |
|||||
| BMW (BMW, Mini) | $6,671 | $4,995 | $7,096 | 33.5% | -6.0% | |||||
| Daimler (Mercedes-Benz, Smart) | $4,548 |
$4,904 |
$4,607 | -7.3% | -1.3% | |||||
| FCA (Chrysler, Dodge, Jeep, Ram, Fiat) | $4,388 | $3,570 | $4,430 | 22.9% | -1.0% | |||||
| Ford (Ford, Lincoln) | $4,404 | $3,391 | $4,452 | 29.9% | -1.1% | |||||
| GM (Buick, Cadillac, Chevrolet, GMC) | $4,417 | $3,881 | $4,629 | 13.8% | -4.6% | |||||
| Honda (Acura, Honda) | $1,952 | $1,909 | $1,910 | 2.2% | 2.2% | |||||
| Hyundai | $2,329 | $2,073 | $2,344 | 12.4% | -0.6% | |||||
| Kia | $3,171 | $2,943 | $3,144 | 7.8% | 0.9% | |||||
| Nissan (Nissan, Infiniti) | $4,109 | $3,564 | $4,237 | 15.3% | -3.0% | |||||
| Subaru | $1,130 | $695 | $1,088 | 62.6% | 3.8% | |||||
| Toyota (Lexus, Scion, Toyota) | $2,504 | $2,273 | $2,641 | 10.2% | -5.2% | |||||
| Volkswagen (Audi, Porsche, Volkswagen) | $4,035 | $3,850 | $4,145 | 4.8% | -2.7% | |||||
|
Industry |
$3,587 |
$3,100 |
$3,685 |
15.7% |
-2.6% |
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|
Incentive Spending as a Percentage of ATP |
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|
Manufacturer |
Oct. 2016Forecast |
Oct. 2015 |
Sept.2016 |
Percent Changevs. Oct. 2015 |
PercentChange vs.Sept. 2016 |
|||||
| BMW (BMW, Mini) | 13.8% | 10.0% | 14.2% | 37.9% | -2.8% | |||||
| Daimler (Mercedes-Benz, Smart) | 7.8% | 8.3% | 7.9% | -5.3% | -1.6% | |||||
| FCA (Chrysler, Dodge, Jeep, Ram, Fiat) | 13.1% | 10.8% | 13.3% | 21.0% | -1.4% | |||||
| Ford (Ford, Lincoln) | 12.3% | 9.7% | 12.6% | 26.6% | -1.7% | |||||
| GM (Buick, Cadillac, Chevrolet, GMC) | 12.0% | 11.1% | 12.5% | 8.5% | -3.4% | |||||
| Honda (Acura, Honda) | 7.1% | 6.8% | 7.0% | 3.5% | 1.5% | |||||
| Hyundai | 10.3% | 8.6% | 10.2% | 19.8% | 0.9% | |||||
| Kia | 13.2% | 12.5% | 13.3% | 6.2% | -0.3% | |||||
| Nissan (Nissan, Infiniti) | 15.2% | 12.9% | 15.4% | 17.1% | -1.8% | |||||
| Subaru | 3.8% | 2.5% | 3.9% | 52.8% | -0.8% | |||||
| Toyota (Lexus, Scion, Toyota) | 7.7% | 7.4% | 8.4% | 3.7% | -8.1% | |||||
| Volkswagen (Audi, Porsche, Volkswagen) | 9.7% | 10.0% | 11.0% | -3.3% | -12.0% | |||||
|
Industry |
10.7% |
9.5% |
11.0% |
12.9% |
-2.8% |
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About TrueCar
TrueCar, Inc. (NASDAQ: TRUE) is a digital automotive marketplace that provides comprehensive pricing transparency about what other people paid for their cars and enables consumers to engage with TrueCar Certified Dealers who are committed to providing a superior purchase experience. TrueCar operates its own branded site and its nationwide network of more than 12,000 Certified Dealers also powers car-buying programs for some of the largest U.S. membership and service organizations, including USAA, AARP, American Express, AAA and Sam's Club. Over one third of all new car buyers engage with the TrueCar network during their purchasing process. TrueCar is headquartered in Santa Monica, California, with offices in San Francisco and Austin, Texas. For more information, go to www.truecar.com. Follow us on Facebook or Twitter.
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TrueCar, Inc
Veronica Cardenas, 424-258-2487
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Source: TrueCar, Inc.