Market Overview

June Auto Sales Revenue Set to Reach $50.9 Billion

Share:
SANTA MONICA, Calif.--(BUSINESS WIRE)--

TrueCar, Inc. (NASDAQ: TRUE) estimates that U.S. new vehicle sales generated $50.9 billion in June, up 7.4 percent from a year ago and the highest ever recorded for the month, propelled by consumers' continued shift to crossovers and light trucks from midsize sedans.

Stronger average transaction prices last month helped automakers post a $3.5 billion gain in revenue compared with June 2015, amid a projected 8.6 percent increase in incentive spending from a year ago. As previously announced, TrueCar estimates sales of new cars and light trucks expanded by 5.4 percent last month to 1,556,844 units.

"There have been ups and downs in the auto market this year, but consumer demand has kept sales on pace to top 2015's record 17.5 million units," said Patrick Min, TrueCar's senior industry insights analyst. "Much of that growth keeps coming from crossover utility vehicle deliveries and there's no indication that the appeal of compact and midsize models in this category is declining."

TrueCar estimates the average transaction price (ATP) for a new light vehicle was $32,693 in June, up 1.9 percent from a year ago. Average incentive spending per unit rose by $246 to $3,116. The ratio of incentive spending to ATP was 9.5 percent, up from 8.9 percent a year ago.

"The industry is maintaining a reasonably disciplined approach to incentive spending as the overall pace of sales expansion moderates," said Oliver Strauss, TrueCar's chief economist. "Despite turmoil in international equity and currency markets triggered by last week's Brexit vote in the U.K., the overall health of the U.S. economy, sustained low fuel prices and likelihood that the Federal Reserve will keep interest rates low for the foreseeable future should help auto sales remain at or above the current level."

 

June average transaction price

 

Manufacturer

 

June 2016
Forecast

 

June 2015

 

May 2016

 

Change vs.
June 2015

 

Change vs.
May 2016

FCA (Chrysler, Dodge, Jeep, Ram, Fiat)   $33,349   $32,535  

$33,353

  2.5%   0.0%
Ford (Ford, Lincoln)   $35,624   $33,655   $35,005   5.9%   1.8%
GM (Buick, Cadillac, Chevrolet, GMC)   $36,489   $34,273   $37,265   6.5%   -2.1%
Honda (Acura, Honda)   $27,471   $27,289   $27,397   0.7%   0.3%
Hyundai   $22,832   $22,777   $23,137   0.2%   -1.3%
Kia   $22,972   $23,999   $23,389   -4.3%   -1.8%
Nissan (Nissan, Infiniti)   $27,589   $27,739   $27,380   -0.5%   0.8%
Subaru   $27,316   $27,029   $27,187   1.1%   0.5%
Toyota (Lexus, Scion, Toyota)   $31,133   $30,275   $31,182   2.8%   -0.2%
Volkswagen (Audi, Porsche, Volkswagen)   $41,386   $39,594   $39,482   4.5%   4.8%

Industry

 

$32,693

 

$32,082

 

$32,602

 

1.9%

 

0.3%

         

TrueCar estimates the average incentive for light vehicles in June will rise by $246, or 8.6 percent, from a year ago, and decrease $29, or 0.9 percent, from May 2016.

 

June Incentive Spending

 

Manufacturer

 

Incentive per
Unit June 2016
Forecast

 

Incentive per Unit
% Change vs.
June 2015

 

Incentive per Unit
% Change vs. May
2016

 

Total Spending Apr
2016 Forecast

BMW   $5,235   22.0%   -8.6%   $191,066,228
Daimler   $4,499   6.9%   -5.0%   $147,560,240
FCA   $4,101   20.9%   -0.3%   $836,793,138
Ford   $3,516   35.5%   -2.2%  

$824,384,514

GM   $3,991   2.1%   -1.6%   $1,042,356,769
Honda   $1,845   -3.7%   5.1%   $269,889,322
Hyundai   $2,133   -14.2%   1.4%   $152,831,133
Kia   $2,725   1.5%   -0.3%   $163,832,771
Nissan   $3,208   -5.6%   -1.0%   $425,020,652
Subaru   $616   -19.6%   1.1%   $31,501,367
Toyota   $2,108   5.1%   -3.1%   $466,194,758
Volkswagen Group   $3,585   15.7%   -0.6%   $183,102,174
Industry   $3,116   8.6%   -0.9%   $4,851,651,268
       

This month's ratio of incentive to ATP for light vehicles was 9.5 percent, up from 8.9 percent in June 2015 and down from 9.6 percent in May 2016, based on TrueCar analysis. Subaru, Hyundai and Honda show the most improvement in ATP ratio in June versus the year-earlier month.

 

June Incentive Spending as a Percentage of ATP

 

Manufacturer

 

June 2016
Forecast

 

June 2015

 

May 2016

BMW (BMW, Mini)   10.0%   8.2%   10.7%
Daimler (Mercedes-Benz, Smart)   7.7%   7.6%   8.0%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)   12.3%   10.4%   12.3%
Ford (Ford, Lincoln)   9.9%   7.7%   10.3%
GM (Buick, Cadillac, Chevrolet, GMC)   10.9%   11.4%   10.9%
Honda (Acura, Honda)   6.7%   7.0%   6.4%
Hyundai   9.3%   10.9%   9.1%
Kia   11.9%   11.2%   11.7%
Nissan (Nissan, Infiniti)   11.6%   12.3%   11.8%
Subaru   2.3%   2.8%   2.2%
Toyota (Lexus, Scion, Toyota)   6.8%   6.6%   7.0%
Volkswagen (Audi, Porsche, Volkswagen)   8.7%   7.8%   9.1%

Industry

 

9.5%

 

8.9%

 

9.6%

     

About TrueCar

TrueCar, Inc. (NASDAQ: TRUE) is a digital automotive marketplace that provides comprehensive pricing transparency about what other people paid for their cars and enables consumers to engage with TrueCar Certified Dealers who are committed to providing a superior purchase experience. TrueCar operates its own branded site and its nationwide network of more than 11,000 Certified Dealers also powers car-buying programs for some of the largest U.S. membership and service organizations, including USAA, AARP, American Express, AAA and Sam's Club. Over one third of all new car buyers engage with the TrueCar network during their purchasing process. 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: pressinquiries@truecar.com

TrueCar, Inc
pressinquiries@truecar.com
or
Veronica Cardenas, 424-258-2487
VCardenas@truecar.com

View Comments and Join the Discussion!