TrueCar projects May retail auto sales to expand 2.4% following robust holiday weekend demand

Memorial Day weekend volume up 7% from 2014; SAAR poised to reach highest level yet of 2015

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May 28, 2015, 09:00 ET

SANTA MONICA, Calif., May 28, 2015 /PRNewswire/ -- TrueCar, Inc. (NASDAQ: TRUE), the negotiation-free car buying and selling mobile marketplace, projects retail auto sales to consumers will rise 2.4% percent in May from a year ago, buoyed by strong Memorial Day weekend demand. Total volume may fall slightly on lower fleet deliveries, yet the retail uptick indicates sustained industry health.

New vehicle sales, including those to daily rental and commercial fleets, may dip 0.9 percent to 1,594,700 units this month from 1,608,693 a year ago. Deliveries may increase 2.9 percent on a daily selling rate (DSR) basis, adjusting for one less selling day compared to May 2014. Sales during the Memorial Day weekend, typically the peak buying period of the second quarter, were up 7 percent from a year ago, based on a TrueCar analysis. Automakers' holiday promotions remain in effect through June 1, owing to an unusually early Memorial Day weekend this year.

"Retail sales ramped up this month, with strong holiday promotions pulling in shoppers ready to start the summer with a brand new vehicle," said Eric Lyman, vice president of industry insights for TrueCar. "This month solidifies that the industry's expansion continues unabated. With very healthy retail performance and modest incentive spending, the industry is in a solid position to finish the year with 17.1 million units."

Incentive spending by automakers averaged $2,661 per vehicle in May, down 0.4 percent from a year ago and down 0.2 percent over April 2015. Moreover, even with a projected decline in overall industry volume, the seasonally adjusted annualized rate (SAAR) for total light vehicle sales should reach 17.4 million units in May, up 3.7 percent from last year's 16.7 million-unit SAAR and the highest seen so far in 2015.

Strong retail demand was reflected on the TrueCar platform. Unique visitors to TrueCar and the partner sites it powers are on pace to surpass 6.2 million in May, a record for the month. During the Memorial Day weekend, from May 21 through May 24, the total volume of prospective customers visiting TrueCar, USAA and sites of affinity partners including Consumer Reports, AAA, AARP and Next Jump, were the best in company history for any four-day period.

"Over the holiday weekend, TrueCar saw our partnership with USAA, the launch of TrueCash and the power of our incredible dealer network converge to generate a record level of activity for our nationwide network of TrueCar Certified Dealers," said John Krafcik, president of TrueCar. "While Memorial Day sales were notable across the industry, TrueCar and its dealer partners had an extremely strong weekend. We expect to report an all-time sales record over the holiday and to have outpaced the industry by doing so."

Fuji Heavy Industries Inc.'s Subaru may be the biggest gainer in May, followed by General Motors Co., with respective sales increases of 15.5 percent and 3.1 percent. FCA may report a 1.8 percent increase for its brands, extending a streak of consecutive year-over-year gains to 62 months. FCA's Jeep division should set an all-time volume record in May. Kia Motors, the third-largest gainer this month, may also set an all-time monthly record with sales of 61,300 units.

Key economic indicators suggest sustained industry growth. The Conference Board's Consumer Confidence Index® improved by 0.2 point in May, hitting 95.4, while U.S. unemployment in April fell to 5.4 percent, the lowest in seven years. Upbeat new homes sales and orders for manufactured durable goods also underpin economic health.

Other key findings for May sales:

Expected registration mix of 83.4 percent retail sales and 16.6 percent fleet versus 80.7 percent retail and 19.3 percent fleet last May.
Total used auto sales, including franchise and independent dealerships and private-party transactions, may exceed 3,142,262, up 2.7 percent from May 2014.

Forecasts for the 10 largest manufacturers by volume:

Total Unit Sales

Manufacturer	May 2015 Forecast	% Change vs. May 2014	% Change vs. May 2014 (Daily Selling Rate)
FCA	199,000	1.8%	5.7%
Ford	239,500	-5.5%	-1.8%
GM	293,500	3.1%	7.1%
Honda	146,800	-3.8%	-0.1%
Hyundai	68,300	-3.7%	0.0%
Kia	61,300	2.0%	5.9%
Nissan	130,500	-4.0%	-0.3%
Subaru	51,000	15.5%	19.9%
Toyota	237,200	-2.5%	1.3%
Volkswagen Group	51,100	-4.7%	-1.1%
Industry	1,594,700	-0.9%	2.9%

Retail Unit Sales

May 2015 Forecast

% Change vs. May
2014

(Daily Selling Rate)

Industry

1,329,830

2.4%

6.3%

Total Market Share

Manufacturer	May 2015 Forecast	May 2014	April 2015
FCA	12.5%	12.2%	13.1%
Ford	15.0%	15.7%	15.2%
GM	18.4%	17.7%	18.5%
Honda	9.2%	9.5%	8.9%
Hyundai	4.3%	4.4%	4.7%
Kia	3.8%	3.7%	3.7%
Nissan	8.2%	8.4%	7.5%
Subaru	3.2%	2.7%	3.2%
Toyota	14.9%	15.1%	14.0%
Volkswagen Group	3.2%	3.3%	3.6%

Incentive Spending

Manufacturer		Incentive per Unit May 2015 Forecast	Incentive per Unit % Change vs. May 2014	Incentive per Unit % Change vs. April 2015	Total Spending May 2015 Forecast
FCA	$3,190		-0.6%	0.6%	$631,219,477
Ford	$2,836		-14.0%	2.7%	$679,104,292
GM	$3,510		9.1%	2.3%	$1,030,311,544
Honda	$1,737		-10.9%	-1.5%	$254,951,683
Hyundai	$2,354		22.9%	4.4%	$160,795,434
Kia	$2,775		18.7%	3.5%	$170,105,638
Nissan	$2,503		-1.1%	-15.3%	$326,612,500
Subaru	$726		-11.9%	-0.1%	$37,026,717
Toyota	$1,782		-10.5%	0.6%	$422,799,858
Volkswagen Group	$2,931		0.3%	4.4%	$148,900,551
Industry	$2,661		-0.4%	-0.2%	$4,234,326,602

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding projected traffic and other activity industry-wide as well as on the TrueCar platform. 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.