TrueCar Sees September Sales Drop Of 0.3% To $47 Billion

TrueCar, Inc. TRUE estimates revenue from new vehicle sales to fall 0.3 percent to $47 billion in September from the previous year period despite higher average transaction prices.

The company also estimates a loss of $138 million in revenue from last September, citing low expectation of sales in the current year period. On a month-over-month basis, the average transaction prices (ATP) remained nearly flat while it advanced 2.0 percent on a year-over-year basis.

TrueCar expects ATP for a new light vehicle of $33,090 in September representing 2.0 growth from the previous year period, while average spending on incentive per unit grew $245 to $3,387. The company indicated the ratio of incentive spending to ATP rose from 9.7 percent to 10.2 percent.

The company's chief industry analyst, commented, "Going forward TrueCar is keeping a close eye on Incentive Spending as a Percent of ATP which exceeded the 10% level for the second straight month. We expect this figure to drop as the sell down of 2016 model year vehicles is completed in Q4."