Average transaction prices likely to fall 1.9%
TrueCar, Inc. (NASDAQ: TRUE) projects U.S. revenue from new
vehicle sales reached $45 billion for the month of November, up 1.6
percent from a year ago.
Despite lower average transaction prices, automakers should post
a $712 million gain in revenue compared to last year due to two
more selling days in November 2016 versus a year ago.
Average Transaction Prices in November 2016 are growing by 1.2
percent compared to the prior month while showing a loss of 1.9
percent over the prior year.
“Despite healthy economic fundamentals and strong demand for new
vehicles, incentive spending is expected to be up by a record 13
percent year-over-year, affecting transaction prices negatively for
the outgoing 2016 model year,” said Oliver Strauss, TrueCar’s chief
economist. “Nevertheless, two more selling days in November 2016
are helping the automakers generate more overall revenue than a
year ago.”
Ford and GM are expected to grow by 2.9 and 1.7 percent in
average transaction prices year-over-year, respectively. Volkswagen
Group continues to accelerate by 3.1 percent versus November 2015,
a possible indication of continued signs of recovery from the TDI
emissions issues a year ago.
TrueCar estimates the average transaction price (ATP) for a new
light vehicle was $32,667 in November, down 1.9 percent from a year
ago. Average incentive spending per unit grew by $399 to $3,475.
The ratio of incentive spending to ATP was 10.6 percent, up from
9.2 percent a year ago.
Average Transaction Price (ATP)
Manufacturer
Nov. 2016Forecast
Nov. 2015
Oct.2016
PercentChangevs.
Nov. 2015
PercentChangevs. Oct.2016
BMW (BMW, Mini) $49,810 $50,894 $49,594
-2.1% 0.4% Daimler (Mercedes-Benz, Smart) $58,443
$59,665 $57,864 -2.0% 1.0% FCA
(Chrysler, Dodge, Jeep, Ram, Fiat) $33,263 $33,304
$33,701 -0.1% -1.3% Ford (Ford, Lincoln)
$35,978 $34,954 $36,750 2.9%
-2.1% GM (Buick, Cadillac, Chevrolet, GMC) $36,774
$36,148 $36,701 1.7% 0.2% Honda (Acura, Honda)
$28,031 $27,908 $27,753 0.4%
1.0% Hyundai $22,649 $23,419 $22,993
-3.3% -1.5% Kia $24,029 $24,041 $24,174
0.0% -0.6% Nissan (Nissan, Infiniti) $26,693
$27,862 $28,306 -4.2% -5.7% Subaru
$28,059 $27,519 $28,429 2.0%
-1.3% Toyota (Lexus, Scion, Toyota) $31,438 $31,468
$30,463 -0.1% 3.2% Volkswagen (Audi, Porsche,
Volkswagen) $41,339 $40,080 $41,630
3.1% -0.7%
Industry
$32,667
$33,305
$32,279
-1.9%
1.2%
Incentive per Unit Spending
Manufacturer
Nov. 2016Forecast
Nov. 2015
Oct. 2016
Percent Changevs. Nov. 2015
PercentChange vs.Oct. 2016
BMW (BMW, Mini) $6,279 $5,012 $6,472
25.3% -3.0% Daimler (Mercedes-Benz, Smart) $4,660
$4,870 $4,770 -4.3% -2.3% FCA
(Chrysler, Dodge, Jeep, Ram, Fiat) $4,154 $3,523
$4,185 17.9% -0.7% Ford (Ford, Lincoln)
$3,982 $3,238 $4,060 23.0% -1.9% GM
(Buick, Cadillac, Chevrolet, GMC) $4,305 $3,819
$4,456 12.7% -3.4% Honda (Acura, Honda)
$1,936 $1,826 $1,899 6.0% 1.9% Hyundai
$2,468 $2,184 $2,467 13.0% 0.0%
Kia $3,164 $2,990 $3,133 5.8%
1.0% Nissan (Nissan, Infiniti) $4,209 $3,746
$4,236 12.4% -0.6% Subaru $1,145 $574
$1,097 99.5% 4.4% Toyota (Lexus, Scion,
Toyota) $2,420 $2,357 $2,429 2.7%
-0.4% Volkswagen (Audi, Porsche, Volkswagen) $3,751
$3,533 $3,855 6.2% -2.7%
Industry
$3,475
$3,076
$3,525
13.0%
-1.4%
Incentive Spending as a Percentage of
ATP
Manufacturer
Nov. 2016Forecast
Nov. 2015
Oct. 2016
Percent Changevs. Oct.
2015
PercentChange vs.Oct.
2016
BMW (BMW, Mini) 12.6% 9.8% 13.0% 28.0%
-3.4% Daimler (Mercedes-Benz, Smart) 8.0% 8.2%
8.2% -2.3% -3.3% FCA (Chrysler, Dodge, Jeep,
Ram, Fiat) 12.5% 10.6% 12.4% 18.1%
0.6% Ford (Ford, Lincoln) 11.1% 9.3%
11.0% 19.5% 0.2% GM (Buick, Cadillac, Chevrolet, GMC)
11.7% 10.6% 12.1% 10.8% -3.6%
Honda (Acura, Honda) 6.9% 6.5% 6.8%
5.6% 0.9% Hyundai 10.9% 9.3% 10.7%
16.8% 1.6% Kia 13.2% 12.4% 13.0%
5.9% 1.6% Nissan (Nissan, Infiniti) 15.8%
13.4% 15.0% 17.3% 5.4% Subaru
4.1% 2.1% 3.9% 95.6% 5.8% Toyota
(Lexus, Scion, Toyota) 7.7% 7.5% 8.0%
2.8% -3.5% Volkswagen (Audi, Porsche, Volkswagen)
9.1% 8.8% 9.3% 3.0% -2.0%
Industry
10.6%
9.2%
10.9%
15.2%
-2.6%
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 13,000 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.
TrueCar media line: +1-844-469-8442 (US toll-free) | Email:
pressinquiries@truecar.com
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version on businesswire.com: http://www.businesswire.com/news/home/20161201005436/en/
TrueCar, Inc.Veronica Cardenas,
424-258-2487VCardenas@truecar.compressinquiries@truecar.com
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