Market Overview

July Auto Sales Revenue to Hit $48.9 Billion

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

TrueCar, Inc. (NASDAQ: TRUE) projects U.S. revenue from new vehicle sales reached $48.9 billion for the month of July, up 0.9 percent from a year ago. Despite a likely increase in incentive spending and a slight dip in retail sales, automakers should post a $428 million gain in revenue compared to last year fueled by higher average transaction prices.

Honda Motor Co. leads the industry in lowering their incentive to average transaction price ratio. The ratio dropped to 6.6 percent in July, down from 7.4 percent a year earlier. This decline was driven by Honda's efforts to pull back incentive spending. The July incentive spend was likely down by 11.4 percent compared to last year. Additionally, strong consumer demand for the newly redesigned Civic and CR-V remained robust last month.

"Honda continues to roll out new vehicles with their aggressive product launch cadence," said Patrick Min, TrueCar's senior industry insights analyst. "The radically redesigned Civic bucks the trend of softening demand across the car segments with strong sales and dramatically lowered incentive support. Even though the CR-V is nearing the end of its lifecycle, Honda is benefiting from robust demand for the largest segment in the industry, compact utility vehicles."

TrueCar estimates the average transaction price (ATP) for a new light vehicle was $32,518 in July, up 1.3 percent from a year ago. Average incentive spending per unit rose by $159 to $3,225. The ratio of incentive spending to ATP was 9.9 percent, up from 9.6 percent a year ago.

"What is interesting to note is that while overall national retail spending remains strong and consumer confidence is relatively unchanged, we are probably seeing some attempts in incentive spending to boost auto sales beyond its organic demand," said Oliver Strauss, TrueCar's chief economist.

 

Average Transaction Price (ATP)

Manufacturer

     

Jul. 2016
Forecast

   

Jul. 2015

   

Jun. 2016

   

Percent
Change vs.
Jul. 2015

   

Percent
Change vs.
Jun. 2016

BMW (BMW, Mini)       $52,405     $49,937     $52,372     4.9%     0.1%
Daimler (Mercedes-Benz, Smart)       $59,866     $56,952     $59,866     5.1%     0.0%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)       $33,071     $32,638     $33,065     1.3%     0.0%
Ford (Ford, Lincoln)       $36,006     $34,460     $36,095     4.5%     -0.2%
GM (Buick, Cadillac, Chevrolet, GMC)       $34,368     $35,111     $35,740     -2.1%     -3.8%
Honda (Acura, Honda)       $27,229     $27,304     $27,381     -0.3%     -0.6%
Hyundai       $22,935     $23,484     $23,302     -2.3%     -1.6%
Kia       $22,356     $23,596     $22,741     -5.3%     -1.7%
Nissan (Nissan, Infiniti)       $27,502     $27,387     $27,647     0.4%     -0.5%
Subaru       $26,788     $26,662     $27,158     0.5%     -1.4%
Toyota (Lexus, Scion, Toyota)       $30,566     $30,353     $31,111     0.7%     -1.8%
Volkswagen (Audi, Porsche, Volkswagen)       $35,066     $38,744     $38,093     -9.5%     -7.9%

Industry

     

$32,518

   

$32,104

   

$32,993

   

1.3%

   

-1.4%

                     
                             

Incentive per Unit Spending

Manufacturer

     

Jul. 2016
Forecast

     

Jul. 2015

     

Jun. 2016

     

Percent Change
vs. Jul. 2015

     

Percent
Change vs.
Jun. 2016

BMW (BMW, Mini)       $5,178       $4,151       $5,405       24.7%       -4.2%
Daimler (Mercedes-Benz, Smart)       $4,538       $4,784       $4,746       -5.1%       -4.4%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)       $3,996       $3,535       $4,063       13.0%       -1.6%
Ford (Ford, Lincoln)       $3,632       $3,018       $3,681       20.3%       -1.3%
GM (Buick, Cadillac, Chevrolet, GMC)       $4,338       $4,257       $4,063       1.9%       6.8%
Honda (Acura, Honda)       $1,794       $2,031       $1,720       -11.6%       4.3%
Hyundai       $2,328       $2,668       $2,291       -12.7%       1.6%
Kia       $2,699       $3,022       $2,707       -10.7%       -0.3%
Nissan (Nissan, Infiniti)       $3,439       $3,576       $3,451       -3.9%       -0.4%
Subaru       $644       $696       $632       -7.5%       1.9%
Toyota (Lexus, Scion, Toyota)       $2,228       $2,127       $2,290       4.7%       -2.7%
Volkswagen (Audi, Porsche, Volkswagen)       $3,796       $3,090       $3,796       22.9%       0.0%

Industry

     

$3,225

     

$3,066

     

$3,231

     

5.2%

     

-0.2%

 
                             

Incentive Spending as a Percentage of ATP

Manufacturer

     

Jul. 2016
Forecast

     

Jul. 2015

     

Jun. 2016

     

Percent Change
vs. Jul. 2015

     

Percent
Change vs.
Jun. 2016

BMW (BMW, Mini)       9.9%       8.3%       10.3%       18.9%       -4.3%
Daimler (Mercedes-Benz, Smart)       7.6%       8.4%       7.9%       -9.8%       -4.4%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)       12.1%       10.8%       12.3%       11.6%       -1.7%
Ford (Ford, Lincoln)       10.1%       8.8%       10.2%       15.2%       -1.1%
GM (Buick, Cadillac, Chevrolet, GMC)       12.6%       12.1%       11.4%       4.1%       11.0%
Honda (Acura, Honda)       6.6%       7.4%       6.3%       -11.4%       4.9%
Hyundai       10.2%       11.4%       9.8%       -10.6%       3.3%
Kia       12.1%       12.8%       11.9%       -5.7%       1.4%
Nissan (Nissan, Infiniti)       12.5%       13.1%       12.5%       -4.3%       0.2%
Subaru       2.4%       2.6%       2.3%       -7.9%       3.3%
Toyota (Lexus, Scion, Toyota)       7.3%       7.0%       7.4%       4.0%       -1.0%
Volkswagen (Audi, Porsche, Volkswagen)       10.8%       8.0%       10.0%       35.8%       8.6%

Industry

     

9.9%

     

9.6%

     

9.8%

     

3.8%

     

1.3%

 

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

View Comments and Join the Discussion!