TrueCar Reports Healthy Incentive Spending as Percentage of Average Transaction Price Levels
Incentive Spending as Percentage of Average Transaction Price Was 8% in October 2014
SANTA MONICA, Calif., Nov. 3, 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 $32,957 in October 2014, up $778 (2.4 percent) from October 2013 and up $870 (2.7 percent) from September 2014. Incentives averaged $2,629 per vehicle last month and the average transaction price was $32,957. The ratio of incentive spending to ATP was 8.0 percent in October, down from 9.3 percent in September.
"Transaction price gains in October continued to outstrip incentive spending, and that's great news for profit margins," said John Krafcik, president of TrueCar. "Looking at the last two months of the year, most automakers have the momentum and margin flexibility they need to deliver their sales targets and a 16.4 million total industry sales volume."
Subaru, which joins TrueCar's forecast table this month, is estimated to have its highest average transaction price in the past six years, reaching $27,104 ($391 more than the previous high in October 2011).
| Average Transaction Price (ATP) |
|||||
| Manufacturer |
Oct. 2014 Forecast |
Oct. 2013 |
Sep. 2014 |
Percent Change vs. Oct. 2013 |
Percent Change vs. Sep. 2014 |
| Fiat-Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat) |
$33,121 |
$31,174 |
$31,493 |
6.2% |
5.2% |
| Ford (Ford, Lincoln) |
$34,777 |
$33,408 |
$33,898 |
4.1% |
2.6% |
| GM (Buick, Cadillac, Chevrolet, GMC) |
$35,946 |
$34,780 |
$35,562 |
3.4% |
1.1% |
| Honda (Acura, Honda) |
$28,282 |
$27,497 |
$26,972 |
2.9% |
4.9% |
| Hyundai |
$24,714 |
$23,473 |
$24,305 |
5.3% |
1.7% |
| Kia |
$23,029 |
$23,446 |
$23,330 |
-1.8% |
-1.3% |
| Nissan (Nissan, Infiniti) |
$26,186 |
$27,013 |
$26,869 |
-3.1% |
-2.5% |
| Subaru |
$27,104 |
$26,375 |
$26,642 |
2.8% |
1.7% |
| Toyota (Lexus, Scion, Toyota) |
$30,031 |
$30,493 |
$30,371 |
-1.5% |
-1.1% |
| Volkswagen (Audi, Porsche, Volkswagen) |
$38,936 |
$38,597 |
$39,346 |
0.9% |
-1.0% |
| Industry |
$32,957 |
$32,179 |
$32,087 |
2.4% |
2.7% |
In addition, TrueCar estimates that the average incentive for light vehicles in October rose $56 (2.2 percent) from October 2013 but declined $345 (-11.6 percent) from September 2014.
| Incentive Spending |
|||||
| Manufacturer |
Oct. 2014 Forecast |
Oct. 2013 |
Sep. 2014 |
Percent Change vs. Oct. 2013 |
Percent Change vs. Sep. 2014 |
| Fiat-Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat) |
$3,150 |
$3,050 |
$3,531 |
3.3% |
-10.8% |
| Ford (Ford, Lincoln) |
$3,254 |
$3,329 |
$3,591 |
-2.2% |
-9.4% |
| GM (Buick, Cadillac, Chevrolet, GMC) |
$3,302 |
$3,404 |
$3,671 |
-3.0% |
-10.0% |
| Honda (Acura, Honda) |
$1,920 |
$1,568 |
$2,191 |
22.5% |
-12.4% |
| Hyundai |
$1,547 |
$1,700 |
$1,662 |
-9.0% |
-6.9% |
| Kia |
$2,350 |
$2,120 |
$2,587 |
10.9% |
-9.1% |
| Nissan (Nissan, Infiniti) |
$2,509 |
$2,152 |
$3,236 |
16.6% |
-22.4% |
| Subaru |
$627 |
$771 |
$690 |
-18.7% |
-9.1% |
| Toyota (Lexus, Scion, Toyota) |
$1,922 |
$1,852 |
$2,175 |
3.8% |
-11.6% |
| Volkswagen (Audi, Porsche, Volkswagen) |
$2,542 |
$2,178 |
$2,784 |
16.7% |
-8.7% |
| Industry |
$2,629 |
$2,573 |
$2,974 |
2.2% |
-11.6% |
Last month's ratio of incentive to ATP for light vehicles was 8.0 percent, down 0.2 percent from October 2013 and down 13.9 percent from September 2014, based on TrueCar analysis. Subaru and Hyundai showed the most improvement in ATP ratio for October vs. last year.
| Incentive Spending as a Percentage of ATP |
|||||
| Manufacturer |
Oct. 2014 Forecast |
Oct. 2013 |
Sep. 2014 |
Percent Change vs. Oct. 2013 |
Percent Change vs. Sep. 2014 |
| Fiat-Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat) |
9.51% |
9.78% |
11.21% |
-2.8% |
-15.2% |
| Ford (Ford, Lincoln) |
9.36% |
9.96% |
10.59% |
-6.1% |
-11.7% |
| GM (Buick, Cadillac, Chevrolet, GMC) |
9.19% |
9.79% |
10.32% |
-6.1% |
-11.0% |
| Honda (Acura, Honda) |
6.79% |
5.70% |
8.12% |
19.1% |
-16.4% |
| Hyundai |
6.26% |
7.24% |
6.84% |
-13.6% |
-8.5% |
| Kia |
10.21% |
9.04% |
11.09% |
12.9% |
-8.0% |
| Nissan (Nissan, Infiniti) |
9.58% |
7.97% |
12.04% |
20.3% |
-20.4% |
| Subaru |
2.31% |
2.92% |
2.59% |
-20.9% |
-10.7% |
| Toyota (Lexus, Scion, Toyota) |
6.40% |
6.07% |
7.16% |
5.4% |
-10.6% |
| Volkswagen (Audi, Porsche, Volkswagen) |
6.53%
|
5.64%
|
7.07%
|
15.7%
|
-7.7%
|
| Industry |
7.98% |
8.00% |
9.27% |
-0.2% |
-13.9% |
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.com
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