TrueCar projects 2015 U.S. new auto sales to reach decade-high 17 million, set all-time record revenue of $553 billion
New vehicles to rebound as total industry volume, including used autos, is poised to hit 55.4 million units
SANTA MONICA, Calif., Dec. 22, 2014 /PRNewswire/ -- TrueCar, Inc., the negotiation-free car buying and selling platform, expects a healthy U.S. auto industry in 2015 with sales of new cars and trucks rising at least 2.6 percent to 17 million units, the highest level since 2005.
"We see a convergence of favorable economic circumstances pushing auto demand up to pre-recession levels, including continued gains in the job market, the best consumer sentiment in eight years and low fuel prices," said John Krafcik, president of TrueCar. "This year has been remarkable in terms of growth and revenue coming from big gains in pickup, utility and luxury vehicle sales. We think 2015 will be even better."
Total market sales, including new and used, should rise 3.4 percent to 55.4 million units over about 54 million in 2014. This translates into $1.2 trillion of revenue based on average transaction prices, which is a 5.5 percent annual increase.
New vehicle revenue, based on transaction prices, is projected to reach $553 billion next year, a 5 percent increase over the $526 billion generated from an estimated 16.5 million new vehicle sales in 2014.
The average transaction price (ATP) of new vehicles in 2015 will rise 2.4 percent to a record $32,589, based on TrueCar data. The used vehicle ATP should increase 2.1 percent to $16,678 next year. Used vehicle volume will grow 3.8 percent to 38.4 million units, up from 37 million in 2014.
Luxury auto sales will lead growth with a 9.8 percent segment increase, which should rise to $116.7 billion in 2015 over $106.3 billion in 2014. Non-luxury utility vehicles are projected to rise 5 percent to $192.1 billion, and pickups should reach $95.7 billion, up 4.5 percent.
"Ford's redesigned F-Series pickups, Mazda's CX-3 crossover as well as the Mercedes GLA luxury crossover should be standout models in their respective segments next year," Krafcik said. "Mass-market cars, pickups, utility vehicles and premium autos—the four 'Super Segments' TrueCar identified previously––will grow next year, though cars will cede market share as more consumers move to utilities and luxury."
About TrueCar
TrueCar, Inc. (NASDAQ: TRUE) is the negotiation-free car buying and selling platform. TrueCar enables a negotiation-free car buying experience by giving buyers transparent insight into what others actually paid (price confidence), upfront pricing information (price discovery), and access to a network of trusted TrueCar Certified Dealers who provide guaranteed savings certificates and seamlessly complete the car purchase. The reality is that buying a car is painful and buyers fear they are going to overpay or be surprised with hidden fees. TrueCar's transparent upfront pricing information makes the car buying process simple so there are no surprises and buyers never overpay. TrueCar's mission is to make car buying simple, fair and fun. Its national network of more than 9,000 TrueCar Certified Dealers, including both new car franchise dealers and non-franchise dealers, is committed to providing negotiation-free savings off MSRP and upfront pricing information for all car-buyers, including members of some of the country's largest membership and service organizations such as AARP, American Express, AAA, and USAA. Note: Not all program features are available in all states. Go to www.truecar.com for program details. TrueCar is headquartered in Santa Monica, Calif., with offices in Santa Barbara, Calif., San Francisco, Calif., and Austin, Texas.
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SOURCE TrueCar, Inc.
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