Renaissance In U.S. Auto Sector Continues Into February

Reduced incentives, sales and transaction price growth bolster revenue gains for automakers

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Mar 03, 2015, 09:00 ET

SANTA MONICA, Calif., March 3, 2015 /PRNewswire/ -- TrueCar, Inc. (NASDAQ: TRUE), the negotiation-free car buying and selling mobile marketplace, finds that amid the best auto industry and economic fundamentals in a decade, higher new vehicle sales and transaction prices in February generated $41.8 billion of revenue for automakers, an 11.6 percent jump over a year ago.

The average transaction price (ATP) for light vehicles was $32,245, up 2.8 percent over a year ago, while average incentive spending per unit decreased by $79 to $2,623. The ratio of incentive spending to ATP was 8.1 percent, contracting from 8.6 percent versus the prior year.

TrueCar estimates sales of new cars and light trucks expanded 8.5 percent last month, reaching the best February volume since 2002. The average transaction price (ATP) for light vehicles was $32,245, up 2.8 percent over a year ago, while average incentive spending per unit decreased by $79 to $2,623. The ratio of incentive spending to ATP was 8.1 percent, contracting from 8.6 percent versus the prior year.

"February yielded attractive net revenue gains for auto manufacturers during this second consecutive month of double-digit growth," said Eric Lyman, vice president of industry insights for TrueCar. "With West Coast port labor disputes resolved, strong new vehicle sales and industry incentive spending to average transaction prices at reasonable levels, the health of the industry and automotive outlook for 2015 remain remarkably bright."

Robust automotive sector performance coupled with personal savings growth and a slight increase in inflation-adjusted consumer spending signal a strong footing for the U.S. economy, Lyman said.

Average Transaction Price (ATP)

Manufacturer	Feb. 2015 Forecast	Feb. 2014	Jan. 2015	Percent Change vs. Feb. 2014	Percent Change vs. Jan. 2015
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)	$31,531	$30,404	$31,967	3.7%	-1.4%
Ford (Ford, Lincoln)	$34,508	$33,597	$34,667	2.7%	-0.5%
GM (Buick, Cadillac, Chevrolet, GMC)	$35,293	$33,276	$35,275	6.1%	0.1%
Honda (Acura, Honda)	$28,085	$27,368	$28,299	2.6%	-0.8%
Hyundai	$24,397	$23,199	$24,740	5.2%	-1.4%
Kia	$23,375	$23,086	$23,485	1.2%	-0.5%
Nissan (Nissan, Infiniti)	$26,862	$26,436	$26,953	1.6%	-0.3%
Subaru	$28,304	$26,411	$28,121	7.2%	0.7%
Toyota (Lexus, Scion, Toyota)	$30,416	$29,949	$30,460	1.6%	-0.1%
Volkswagen (Audi, Porsche, Volkswagen)	$36,929	$39,307	$40,554	-6.0%	-8.9%
Industry	$32,245	$31,352	$32,572	2.8%	-1.0%

TrueCar estimates the average incentive for light vehicles in February decreased $79, or 2.9 percent, from a year ago, while increasing $36, or 1.4 percent, from January 2015.

Incentive per Unit Spending

Manufacturer	Feb. 2015 Forecast	Feb. 2014	Jan. 2015	Percent Change vs. Feb. 2014	Percent Change vs. Jan. 2015
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)	$3,145	$3,248	$3,090	-3.2%	1.8%
Ford (Ford, Lincoln)	$2,888	$3,184	$2,808	-9.3%	2.8%
GM (Buick, Cadillac, Chevrolet, GMC)	$3,247	$3,514	$3,129	-7.6%	3.8%
Honda (Acura, Honda)	$1,871	$1,923	$1,776	-2.7%	5.4%
Hyundai	$1,844	$1,683	$1,791	9.6%	3.0%
Kia	$3,000	$2,222	$2,910	35.0%	3.1%
Nissan (Nissan, Infiniti)	$2,554	$2,787	$2,943	-8.4%	-13.2%
Subaru	$808	$864	$779	-6.5%	3.7%
Toyota (Lexus, Scion, Toyota)	$1,811	$1,802	$1,811	0.5%	0.0%
Volkswagen (Audi, Porsche, Volkswagen)	$2,394	$2,514	$2,302	-4.8%	4.0%
Industry	$2,623	$2,702	$2,587	-2.9%	1.4%

Last month's ratio of incentive to ATP for light vehicles was 8.1 percent, down 5.6 percent from February 2014 and up 2.4 percent from January 2015, based on TrueCar analysis. GM, Subaru and Ford showed the most improvement in ATP ratio in February versus the year-earlier month.

Incentive Spending as a Percentage of ATP

Manufacturer	Feb. 2015 Forecast	Feb. 2014	Jan. 2015	Percent Change vs. Feb. 2014	Percent Change vs. Jan. 2015
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)	10.0%	10.7%	9.7%	-6.7%	3.2%
Ford (Ford, Lincoln)	8.4%	9.5%	8.1%	-11.7%	3.3%
GM (Buick, Cadillac, Chevrolet, GMC)	9.2%	10.6%	8.9%	-12.9%	3.7%
Honda (Acura, Honda)	6.7%	7.0%	6.3%	-5.2%	6.2%
Hyundai	7.6%	7.3%	7.2%	4.2%	4.4%
Kia	12.8%	9.6%	12.4%	33.3%	3.6%
Nissan (Nissan, Infiniti)	9.5%	10.5%	10.9%	-9.8%	-12.9%
Subaru	2.9%	3.3%	2.8%	-12.8%	3.0%
Toyota (Lexus, Scion, Toyota)	6.0%	6.0%	5.9%	-1.0%	0.1%
Volkswagen (Audi, Porsche, Volkswagen)	6.5%	6.4%	5.7%	1.4%	14.2%
Industry	8.1%	8.6%	7.9%	-5.6%	2.4%

Total Net Revenue

Manufacturer	Feb. 2015 Forecast	Feb. 2014	Percent Change vs. Feb. 2014
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)	$5,319,220,448	$4,733,994,012	12.4%
Ford (Ford, Lincoln)	$6,677,249,946	$6,159,976,353	8.4%
GM (Buick, Cadillac, Chevrolet, GMC)	$8,283,245,126	$7,390,732,704	12.1%
Honda (Acura, Honda)	$3,210,145,948	$2,747,884,040	16.8%
Hyundai	$1,232,038,118	$1,136,820,597	8.4%
Kia	$1,070,553,231	$951,558,748	12.5%
Nissan (Nissan, Infiniti)	$3,258,409,484	$3,049,656,960	6.8%
Subaru	$1,132,154,045	$921,981,599	22.8%
Toyota (Lexus, Scion, Toyota)	$5,696,954,488	$4,770,396,516	19.4%
Volkswagen (Audi, Porsche, Volkswagen)	$1,672,889,911	$1,629,078,615	2.7%
Industry	$41,776,710,112	$37,419,530,096	11.6%

About TrueCar
TrueCar, Inc. (NASDAQ: TRUE), the negotiation-free car buying and selling mobile marketplace, gives consumers transparent insight into what others paid and access to guaranteed savings off MSRP from TrueCar Certified Dealers. TrueCar's network of more than 10,000 trusted Certified Dealers is committed to providing upfront pricing information and a hassle-free buying experience. TrueCar powers car-buying programs for some of the largest U.S. membership and service organizations, including AARP, American Express, AAA and USAA. Not all program features are available in all states. 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: [email protected]

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SOURCE TrueCar, Inc.