TrueCar Reports Positive Indicators on Industry Health

Incentive Spending as a Percentage of Average Transaction Price Was 9.0% in September 2014

01 Oct, 2014, 09:00 ET from TrueCar

SANTA MONICA, Calif., Oct. 1, 2014 /PRNewswire/ -- TrueCar, Inc. (NASDAQ: TRUE), the negotiation-free car buying and selling platform, reported today that the estimated average transaction price (ATP) for light vehicles in the U.S. was $31,014 in September 2014, down $449 (-1.4 percent) from September 2013 and down $587 (-1.9 percent) from August 2014.  In September 2014, the average incentive was $2,801 and the average transaction price was $31,014.  The ratio of incentive spending to ATP was 9.0 percent for September 2014, down 4.5 percent compared to August.

"The industry is operating within healthy post-recession levels," said Larry Dominique, president of ALG and executive vice president of TrueCar. "The ratio of incentive spending to average transaction price is lower month over month. We'll be watching incentive levels for unhealthy behavior as brands look to steal some year-end market share." 

Average Transaction Price

Manufacturer

Sep. 2014

Forecast

Sep.

2013

Aug.

2014

Percent Change vs.

Sep. 2013

Percent Change vs.

Aug. 2014

Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat)

$32,451

$30,664

$31,875

5.8%

1.8%

Ford (Ford, Lincoln)

$33,514

$33,340

$33,075

0.5%

1.3%

GM (Buick, Cadillac, Chevrolet, GMC)

$35,521

$33,734

$35,854

5.3%

-0.9%

Honda (Acura, Honda)

$27,790

$27,422

$26,832

1.3%

3.6%

Hyundai

$24,396

$23,134

$23,890

5.5%

2.1%

Kia

$23,089

$23,627

$23,066

-2.3%

0.1%

Nissan (Nissan, Infiniti)

$26,192

$27,212

$26,816

-3.7%

-2.3%

Toyota (Lexus, Scion, Toyota)

$29,351

$29,500

$29,899

-0.5%

-1.8%

Volkswagen (Audi, Porsche, Volkswagen)

$33,464

$36,762

$38,519

-9.0%

-13.1%

Industry

$31,014

$31,463

$31,601

-1.4%

-1.9%

In addition, TrueCar estimated that the average incentive for light vehicles was $2,801 in September, up $324 (13.1 percent) from September 2013 and down $186 (-6.2 percent) from August 2014.

Incentive Spending

Manufacturer

Sep.

2014

Forecast

Sep.

2013

Aug.

2014

Percent Change vs.

Sep. 2013

Percent Change vs.

Aug. 2014

Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat)

$3,644

$3,151

$3,845

15.7%

-5.2%

Ford (Ford, Lincoln)

$3,355

$3,005

$3,595

11.6%

-6.7%

GM (Buick, Cadillac, Chevrolet, GMC)

$3,336

$3,248

$3,722

2.7%

-10.4%

Honda (Acura, Honda)

$2,076

$1,477

$2,098

40.5%

-1.1%

Hyundai

$1,397

$1,601

$1,564

-12.7%

-10.7%

Kia

$2,168

$2,103

$2,331

3.1%

-7.0%

Nissan (Nissan, Infiniti)

$2,655

$2,108

$3,012

26.0%

-11.8%

Toyota (Lexus, Scion, Toyota)

$2,192

$1,785

$2,335

22.8%

-6.1%

Volkswagen (Audi, Porsche, Volkswagen)

$2,957

$2,595

$3,199

13.9%

-7.6%

Industry

$2,801

$2,477

$2,987

13.1%

-6.2%

TrueCar estimated the ratio of incentive to ATP for light vehicles was 9.0 percent in September 2014, up 14.7 percent from September 2013 and down 4.5 percent from August 2014.  GM and Hyundai showed the most improvement in ATP ratio for September vs. last year.

Incentive to ATP Ratio

Manufacturer

Sep.

2014

Forecast

Sep.

2013

Aug.

2014

Percent Change vs.

Sep. 2013

Percent Change vs.

Aug. 2014

Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat)

11.23%

10.27%

12.06%

9.3%

-6.9%

Ford (Ford, Lincoln)

10.01%

9.01%

10.87%

11.0%

-7.9%

GM (Buick, Cadillac, Chevrolet, GMC)

9.39%

9.63%

10.38%

-2.5%

-9.5%

Honda (Acura, Honda)

7.47%

5.39%

7.82%

38.7%

-4.5%

Hyundai

5.73%

6.92%

6.55%

-17.2%

-12.5%

Kia

9.39%

8.90%

10.11%

5.5%

-7.1%

Nissan (Nissan, Infiniti)

10.14%

7.75%

11.23%

30.9%

-9.7%

Toyota (Lexus, Scion, Toyota)

7.47%

6.05%

7.81%

23.5%

-4.4%

Volkswagen (Audi, Porsche, Volkswagen)

8.84%

7.06%

8.31%

25.2%

6.4%

Industry

9.03%

7.87%

9.45%

14.7%

-4.5%

 

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



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