TrueCar announces its users have bought over 2 million vehicles from TrueCar Certified Dealers
Milestone comes 19 months after initial 1 million-unit mark, amid industry poised for record $48 billion revenue in June
SANTA MONICA, Calif., June 29, 2015 /PRNewswire/ -- TrueCar, Inc. (NASDAQ: TRUE), the negotiation-free car buying and selling mobile marketplace, announced that its users have purchased over 2 million vehicles from TrueCar Certified Dealers in transactions originating on its platform since inception. The milestone comes amid the strongest U.S. auto market conditions in a decade.
The total value of vehicles bought by TrueCar users from its nationwide network of TrueCar Certified Dealers since the company's founding in 2005 exceeds $50 billion. In the process, TrueCar estimates its users have also saved more than $5 billion off the Manufacturer's Suggested Retail Price, or MSRP.
"It took eight years to hit the 1 million sales mark, and 19 months for the second million," said Scott Painter, TrueCar's founder and chief executive officer. "We're thrilled that modern consumers are responding to transparency in vehicle pricing and a better car-buying experience -- delivered by our nearly 11,000 franchise and independent Certified Dealers, the best in the industry."
More than 6 million consumers visit TrueCar's desktop and mobile sites and auto-buying programs operated by TrueCar for its affinity partners each month.
"There's no question TrueCar Certified Dealers, by taking friction out of the car-buying process, are aiding the higher industry volumes we're seeing this year," Painter said.
June ATP and incentive outlook
TrueCar's cumulative volume accomplishment comes amid U.S. market conditions that remain favorable for automakers.
The average transaction price, or ATP, for new light vehicles is $31,948 in June, up 1 percent from a year ago, based on TrueCar's analysis. At the same time, average incentive spending per unit appears to be up by $98 this month to $2,846. TrueCar estimates the ratio of incentive spending to ATP should hit 8.9 percent, up from 8.7 percent a year ago, based on TrueCar's analysis.
TrueCar estimates U.S. new vehicle retail sales will grow by 7.9 percent this month, with the total industry Seasonally Adjusted Annual Rate (SAAR) reaching 17.4 million units, on pace to reach 17.1 million this year. That's the highest volume for new light vehicle sales since 2001.
Industrywide revenue for new vehicles in June will likely reach a best-ever $48 billion for the month as auto demand, particularly for premium and utility vehicles, remains healthy. This is a 7.3 percent increase compared to the same period last year.
"We're projecting all-time record June transaction prices, which translate to an epic $48 billion month for the industry," said TrueCar President John Krafcik. "Two things are helping drive this growth: more transparent, lower friction retail processes, such as those delivered by TrueCar Certified Dealers, and greater availability of high-demand, high-margin crossover vehicles."
The trend is evident by searches on the TrueCar platform. Small utility/crossover consumer interest is up by 9.7 percent this month from the level in May, while interest in small cars dropped by 1.6 percent.
"Honda's all-new HR-V compact crossover is extremely hot on our platform, with a 205 percent jump in consumer interest compared to last month," Krafcik said. "We're already seeing the HR-V flying off the lots of TrueCar Certified Dealers. With the Mazda CX-3 and Fiat 500x lined up right behind it, small crossover buyers have a wealth of choice in this red-hot segment."
Average Transaction Price (ATP)
| Manufacturer |
June 2015 Forecast |
June 2014 |
May 2015 |
Percent Change vs. Jun. 2014 |
Percent Change vs. May 2015 |
| FCA (Chrysler, Dodge, Jeep, Ram, Fiat) |
$32,654 |
$31,354 |
$32,661 |
4.1% |
0.0% |
| Ford (Ford, Lincoln) |
$33,837 |
$32,467 |
$33,381 |
4.2% |
1.4% |
| GM (Buick, Cadillac, Chevrolet, GMC) |
$34,518 |
$34,762 |
$34,203 |
-0.7% |
0.9% |
| Honda (Acura, Honda) |
$26,855 |
$26,718 |
$27,237 |
0.5% |
-1.4% |
| Hyundai |
$23,146 |
$23,758 |
$23,291 |
-2.6% |
-0.6% |
| Kia |
$23,718 |
$23,460 |
$23,589 |
1.1% |
0.5% |
| Nissan (Nissan, Infiniti) |
$28,483 |
$26,686 |
$27,267 |
6.7% |
4.5% |
| Subaru |
$26,983 |
$26,035 |
$26,995 |
3.6% |
0.0% |
| Toyota (Lexus, Scion, Toyota) |
$29,743 |
$29,652 |
$29,728 |
0.3% |
0.1% |
| Volkswagen (Audi, Porsche, Volkswagen) |
$38,430 |
$40,260 |
$38,644 |
-4.5% |
-0.6% |
| Industry |
$31,948 |
$31,644 |
$31,812 |
1.0% |
0.4% |
TrueCar estimates the average incentive for light vehicles in June will increase $98, or 3.6 percent, from a year ago, while only increasing $12, or 0.4 percent, from May 2015
Incentive per Unit Spending
| Manufacturer |
June 2015 Forecast |
June 2014 |
May 2015 |
Percent Change vs. June 2014 |
Percent Change vs. May 2015 |
| FCA (Chrysler, Dodge, Jeep, Ram, Fiat) |
$3,384 |
$3,426 |
$3,277 |
-1.2% |
3.3% |
| Ford (Ford, Lincoln) |
$2,668 |
$3,334 |
$2,674 |
-20.0% |
-0.2% |
| GM (Buick, Cadillac, Chevrolet, GMC) |
$3,729 |
$3,397 |
$3,766 |
9.8% |
-1.0% |
| Honda (Acura, Honda) |
$1,979 |
$1,824 |
$1,939 |
8.5% |
2.1% |
| Hyundai |
$2,461 |
$1,829 |
$2,330 |
34.5% |
5.6% |
| Kia |
$2,755 |
$2,333 |
$2,724 |
18.1% |
1.2% |
| Nissan (Nissan, Infiniti) |
$2,962 |
$2,255 |
$3,415 |
31.4% |
-13.3% |
| Subaru |
$743 |
$712 |
$751 |
4.4% |
-1.0% |
| Toyota (Lexus, Scion, Toyota) |
$2,058 |
$2,052 |
$2,020 |
0.3% |
1.9% |
| Volkswagen (Audi, Porsche, Volkswagen) |
$3,015 |
$2,913 |
$2,947 |
3.5% |
2.3% |
| Industry |
$2,846 |
$2,748 |
$2,834 |
3.6% |
0.4% |
This month's ratio of incentive to ATP for light vehicles was 8.9 percent, up 2.6 percent from June 2014 and unchanged from May 2015, based on TrueCar analysis. Ford and FCA showed the most improvement in ATP ratio in June versus the year-earlier month.
Incentive Spending as a Percentage of ATP
| Manufacturer |
June 2015 Forecast |
June 2014 |
May 2015 |
Percent Change vs. Jun. 2014 |
Percent |
| FCA (Chrysler, Dodge, Jeep, Ram, Fiat) |
10.2% |
10.9% |
10.0% |
-6.4% |
2.0% |
| Ford (Ford, Lincoln) |
7.7% |
10.3% |
8.0% |
-25.1% |
-4.0% |
| GM (Buick, Cadillac, Chevrolet, GMC) |
10.2% |
9.8% |
11.0% |
4.6% |
-7.1% |
| Honda (Acura, Honda) |
7.3% |
6.8% |
7.1% |
7.3% |
2.9% |
| Hyundai |
10.5% |
7.7% |
10.0% |
36.1% |
4.7% |
| Kia |
11.7% |
9.9% |
11.5% |
17.3% |
1.0% |
| Nissan (Nissan, Infiniti) |
10.3% |
8.4% |
12.5% |
22.5% |
-17.4% |
| Subaru |
2.7% |
2.7% |
2.8% |
-1.3% |
-2.9% |
| Toyota (Lexus, Scion, Toyota) |
6.8% |
6.9% |
6.8% |
-1.1% |
0.7% |
| Volkswagen (Audi, Porsche, Volkswagen) |
7.5% |
7.2% |
7.6% |
4.3% |
-1.0% |
| Industry |
8.9% |
8.7% |
8.9% |
2.6% |
0.0% |
Total Net Revenue
| Manufacturer |
June 2015 Forecast |
June 2014 |
Percent |
| FCA (Chrysler, Dodge, Jeep, Ram, Fiat) |
$6,268,121,820 |
$5,394,518,408 |
16.2% |
| Ford (Ford, Lincoln) |
$7,931,062,116 |
$7,188,063,932 |
10.3% |
| GM (Buick, Cadillac, Chevrolet, GMC) |
$10,359,976,360 |
$9,297,479,282 |
11.4% |
| Honda (Acura, Honda) |
$3,743,559,435 |
$3,447,236,514 |
8.6% |
| Hyundai |
$1,491,237,810 |
$1,601,455,506 |
-6.9% |
| Kia |
$1,275,591,240 |
$1,188,108,240 |
7.4% |
| Nissan (Nissan, Infiniti) |
$3,531,457,784 |
$2,925,933,098 |
20.7% |
| Subaru |
$1,274,579,273 |
$1,076,989,845 |
18.3% |
| Toyota (Lexus, Scion, Toyota) |
$6,248,456,646 |
$5,981,223,528 |
4.5% |
| Volkswagen (Audi, Porsche, Volkswagen) |
$2,093,265,768 |
$2,014,489,620 |
3.9% |
| Industry |
$48,241,014,207 |
$44,965,934,136 |
7.3% |
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding projected auto sales and other activity industry-wide, as well as the operating performance of TrueCar and its dealer partners for June 2015 and later. Actual results could differ materially from those contemplated by these forward-looking statements. Refer to the Risk Factors sections of TrueCar's annual report on Form 10-K for 2014 and subsequent quarterly report on Form 10-Q filed with the Securities and Exchange Commission for a discussion of the factors that could cause results to differ materially. All forward-looking statements in this press release are based on information available to management as of the date hereof. TrueCar disclaims any obligation to update these forward-looking statements.
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.
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