TrueCar Forecasts Automotive SAAR to Hit 16.6 Million in August
Manufacturers Will Spend $2,772 Per Vehicle in Incentives, Down Two Percent from July
SANTA MONICA, Calif., Aug. 27, 2014 /PRNewswire/ -- TrueCar, Inc. the negotiation-free car buying and selling platform, today released its August 2014 sales and incentives forecast, which shows the following:
- Seasonally Adjusted Annualized Rate ("SAAR") of 16.6 million new vehicle sales.
- TrueCar 2014 Annual Sales Forecast remains at 16.4 million vehicles.
- New light vehicle sales in the U.S. (including fleet) are expected to reach 1,501,000 units for the month, flat with last August despite one fewer selling day, resulting in a 3.7% daily selling rate (DSR) increase.
- TrueCar forecasts average incentive spending by automotive manufacturers to be $2,772 per vehicle sold in August 2014, an increase of 9.3% from August 2013 and a decrease of 2.0% from July 2014. Year-over-year incentive spending increases are offset by higher transaction prices as consumer demand shifts from lower-margin cars to higher-margin trucks and crossovers.
- Registration mix expected to be 88.1% retail and 11.9% fleet for the month, compared to 90.0% retail, and 10.0% fleet last August.
- Total used car sales, including franchise and independent dealerships, and private party sales, are estimated to be 3,551,689.
"While we continue to keep close tabs on inventories and incentives, we remain upbeat about auto industry sales, segment mix and profitability," said John Krafcik, president of TrueCar. "Despite one fewer selling day, sales are tracking to match last year's epic August, while incentive spending changes reflect consumer demand shifting to higher-MSRP, higher-profit vehicle segments, which is a net positive for most full-line automakers."
Forecasts for the top nine manufacturers for August 2014:
| Unit Sales |
||
| Manufacturer |
August 2014 Forecast |
% Change vs. August 2013 |
| Chrysler |
191,000 |
15.4% |
| Ford |
213,000 |
-3.4% |
| GM |
273,000 |
-1.0% |
| Honda |
152,000 |
-8.7% |
| Hyundai |
69,000 |
4.4% |
| Kia |
52,000 |
0.0% |
| Nissan |
124,000 |
2.9% |
| Toyota |
220,000 |
-5.0% |
| Volkswagen Group |
50,000 |
-13.3% |
| Industry |
1,501,500 |
-0.1% |
| Market Share |
|||
| Manufacturer |
August 2014 Forecast |
Aug-13 |
Jul-14 |
| Chrysler |
12.7% |
11.0% |
11.7% |
| Ford |
14.2% |
14.7% |
14.8% |
| GM |
18.2% |
18.4% |
17.9% |
| Honda |
10.1% |
11.1% |
9.5% |
| Hyundai |
4.6% |
4.4% |
4.7% |
| Kia |
3.5% |
3.5% |
3.6% |
| Nissan |
8.3% |
8.0% |
8.5% |
| Toyota |
14.7% |
15.4% |
15.1% |
| Volkswagen Group |
3.3% |
3.8% |
3.5% |
| Incentive Spending |
||||
| Manufacturer |
August 2014 |
% Change vs. August 2013 |
% Change vs. July 2014 |
Total Spending |
| Chrysler |
$3,476 |
12.9% |
0.7% |
$663,922,057 |
| Ford |
$3,105 |
5.9% |
-11.3% |
$661,360,358 |
| GM |
$3,676 |
3.5% |
-0.1% |
$1,003,462,274 |
| Honda |
$1,825 |
12.1% |
-0.5% |
$277,329,120 |
| Hyundai |
$1,738 |
14.2% |
-0.3% |
$119,937,211 |
| Kia |
$2,278 |
15.8% |
0.0% |
$118,431,747 |
| Nissan |
$2,273 |
-11.3% |
0.9% |
$281,860,268 |
| Toyota |
$2,186 |
19.4% |
1.0% |
$481,019,372 |
| Volkswagen Group |
$3,171 |
22.0% |
-1.6% |
$158,555,715 |
| Industry |
$2,772 |
9.3% |
-2.0% |
$4,157,451,728 |
TrueCar bases its forecast on actual transaction data. The transaction data-based forecast is refined by other current and historical factors that impact vehicle sales, including inventory, incentives, fuel prices and macro economic data (major stock market indexes, consumer confidence, new home starts and CPI). TrueCar does not adjust for selling days in year-over-year percentage change calculations in unit sales table.
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 8,000 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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