TrueCar's ALG Finds Automakers Poised to Finish the Year Strong with $56 Billion in Revenue in December
Average transaction prices likely to rise 1.3 percent
SANTA MONICA, Calif., Jan. 3, 2018 /PRNewswire/ -- TrueCar, Inc.'s (NASDAQ: TRUE) data and analytics subsidiary, ALG, projects U.S. revenue for new vehicle sales will reach $56 billion for the month of December, up 1.0 percent from a year ago.
ALG expects a gain of $560 million in revenue for automakers versus 2017. Additionally, incentive spending is projected to decline 5.6 percent year over year.
"The auto industry closed out 2018 on a high note with continued growth in average transaction prices and lower incentive spending in December," said Eric Lyman, chief industry analyst for TrueCar's ALG. "The performance overall for 2018 exceeded expectations with regards to pace of sales and retail indicators of ATPs and incentive spending. We also expect continued sales momentum as we are forecasting 17 million new vehicles and light trucks in 2019."
ALG estimates ATP for a new light vehicle was $35,145 in December, up 1.3 percent from a year ago. Average incentive spending per unit declined by $223 to $3,746. The ratio of incentive spending to ATP is expected to be 10.7 percent, down from 11.4 percent from a year ago.
"Hyundai and GM in particular showed significant improvement in incentive spending as a percentage of ATP, a sign of retail success with their overhauled light truck vehicles in their showrooms," Lyman continued.
Average Transaction Price (ATP)
Manufacturer |
December |
December |
November |
YOY |
MOM |
BMW (BMW, Mini) |
$54,046 |
$51,871 |
$53,350 |
4.2% |
1.3% |
Daimler (Mercedes-Benz, Smart) |
$62,519 |
$60,269 |
$63,055 |
3.7% |
-0.8% |
FCA (Chrysler, Dodge, Jeep, Ram, Fiat) |
$36,133 |
$34,602 |
$35,665 |
4.4% |
1.3% |
Ford (Ford, Lincoln) |
$40,172 |
$38,158 |
$38,748 |
5.3% |
3.7% |
GM (Buick, Cadillac, Chevrolet, GMC) |
$37,720 |
$38,367 |
$38,379 |
-1.7% |
-1.7% |
Honda (Acura, Honda) |
$28,713 |
$28,789 |
$28,889 |
-0.3% |
-0.6% |
Hyundai |
$22,792 |
$22,412 |
$22,560 |
1.7% |
1.0% |
Kia |
$22,827 |
$22,840 |
$22,750 |
-0.1% |
0.3% |
Nissan (Nissan, Infiniti) |
$28,759 |
$28,323 |
$28,527 |
1.5% |
0.8% |
Subaru |
$29,463 |
$27,906 |
$29,207 |
5.6% |
0.9% |
Toyota (Lexus, Scion, Toyota) |
$33,019 |
$32,851 |
$32,725 |
0.5% |
0.9% |
Volkswagen (Audi, Porsche, Volkswagen) |
$37,775 |
$38,403 |
$37,188 |
-1.6% |
1.6% |
Industry |
$35,145 |
$34,685 |
$34,877 |
1.3% |
0.8% |
Incentive per Unit Spending
Manufacturer |
December |
December |
November |
YOY |
MOM |
BMW (BMW, Mini) |
$5,348 |
$5,349 |
$5,463 |
0.0% |
-2.1% |
Daimler (Mercedes-Benz, Smart) |
$6,231 |
$5,174 |
$6,542 |
20.4% |
-4.8% |
FCA (Chrysler, Dodge, Jeep, Ram, Fiat) |
$4,386 |
$4,336 |
$4,373 |
1.1% |
0.3% |
Ford (Ford, Lincoln) |
$4,405 |
$4,431 |
$4,358 |
-0.6% |
1.1% |
GM (Buick, Cadillac, Chevrolet, GMC) |
$4,652 |
$5,548 |
$4,586 |
-16.2% |
1.4% |
Honda (Acura, Honda) |
$2,103 |
$2,087 |
$2,041 |
0.8% |
3.1% |
Hyundai |
$2,548 |
$3,097 |
$2,532 |
-17.7% |
0.7% |
Kia |
$3,329 |
$3,447 |
$3,359 |
-3.4% |
-0.9% |
Nissan (Nissan, Infiniti) |
$4,573 |
$4,572 |
$4,574 |
0.0% |
0.0% |
Subaru |
$1,102 |
$1,257 |
$1,146 |
-12.3% |
-3.8% |
Toyota (Lexus, Scion, Toyota) |
$2,558 |
$2,778 |
$2,572 |
-7.9% |
-0.6% |
Volkswagen (Audi, Porsche, Volkswagen) |
$4,121 |
$3,774 |
$4,074 |
9.2% |
1.1% |
Industry |
$3,746 |
$3,968 |
$3,741 |
-5.6% |
0.1% |
Incentive Spending as a Percentage of ATP
Manufacturer |
December |
December |
November |
YOY |
MOM |
||
BMW (BMW, Mini) |
9.9% |
10.3% |
10.2% |
-4.1% |
-3.4% |
||
Daimler (Mercedes-Benz, Smart) |
10.0% |
8.6% |
10.4% |
16.1% |
-3.9% |
||
FCA (Chrysler, Dodge, Jeep, Ram, Fiat) |
12.1% |
12.5% |
12.3% |
-3.1% |
-1.0% |
||
Ford (Ford, Lincoln) |
11.0% |
11.6% |
11.2% |
-5.6% |
-2.5% |
||
GM (Buick, Cadillac, Chevrolet, GMC) |
12.3% |
14.5% |
11.9% |
-14.7% |
3.2% |
||
Honda (Acura, Honda) |
7.3% |
7.2% |
7.1% |
1.0% |
3.7% |
||
Hyundai |
11.2% |
13.8% |
11.2% |
-19.1% |
-0.4% |
||
Kia |
14.6% |
15.1% |
14.8% |
-3.4% |
-1.2% |
||
Nissan (Nissan, Infiniti) |
15.9% |
16.1% |
16.0% |
-1.5% |
-0.8% |
||
Subaru |
3.7% |
4.5% |
3.9% |
-16.9% |
-4.6% |
||
Toyota (Lexus, Scion, Toyota) |
7.7% |
8.5% |
7.9% |
-8.4% |
-1.4% |
||
Volkswagen (Audi, Porsche, Volkswagen) |
10.9% |
9.8% |
11.0% |
11.0% |
-0.4% |
||
Industry |
10.7% |
11.4% |
10.7% |
-6.8% |
-0.6% |
||
(Note: This forecast is based solely on ALG's analysis of industry sales trends and conditions and is not a projection of the company's operations.)
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 16,000 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 half 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, please visit www.truecar.com, and follow us on Facebook, Instagram, Twitter and get updates on our blog.
TrueCar media line: +1-844-469-8442 (US toll-free) | Email: [email protected]
About ALG
Founded in 1964 and headquartered in Santa Monica, California, ALG is an industry authority on automotive residual value projections in both the United States and Canada. By analyzing nearly 2,500 vehicle trims each year to assess residual value, ALG provides auto industry and financial services clients with market industry insights, residual value forecasts, consulting and vehicle portfolio management and risk services. ALG is a wholly-owned subsidiary of TrueCar, Inc., a digital automotive marketplace that provides comprehensive pricing transparency about what other people paid for their cars. ALG has been publishing residual values for all cars, trucks and SUVs in the U.S. for over 50 years and in Canada since 1981.
Contact
[email protected]
Veronica Cardenas
424-258-8427
[email protected]
SOURCE TrueCar, Inc.; ALG
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article