[April 01, 2016]

TrueCar Finds March Auto Sales Revenue Poised to Hit $55 Billion, Marking 27th Consecutive Month of Expansion

TrueCar, Inc. (NASDAQ: TRUE) estimates that U.S. new vehicle sales totaled $55 billion in March, up 9.7 percent from a year ago and the highest for the month. March also marks the auto industry's 27^th consecutive month of year-over-year revenue expansion.

Record average transaction prices last month helped automakers post a $4.8 billion gain in revenue compared with March 2015, despite a projected 10.4 percent increase in incentive spending. As previously announced, TrueCar estimates sales of new cars and light trucks grew 7.6 percent last month.

"The first quarter of the year appears to have ended nicely for automakers, marked by healthy consumer demand and solid transaction price growth," said Eric Lyman, TrueCar's vice president of industry insights. "For the quarter, we expect sales to outpace the year-ago period by 5 percent and each month in 2016 has set a year-over-year revenue record."

TrueCar estimates the average transaction price (ATP (News - Alert)) for a new light vehicle was $32,887 in March, up 2 percent from a year ago. Average incentive spending per unit rose by $284 to $3,005. The ratio of incentive spending to ATP was 9.1 percent, up from 8.4 percent a year ago.

"The incentive to average transaction price ratio remains healthy, and we are not near the alarming levels the industry hit during the recession in 2009," said Stacey Doyle, TrueCar's senior industry analyst. "While some automakers are incentivizing consumers more aggressively, these increases are offset by a richer mix of vehicles sold, particularly in the mid- to full-size pickup truck and luxury utility segments."

TrueCar projects average transaction prices for new vehicles will reach $33,925 in 2016, up 4.2 percent from a year ago. Incentive spending will grow more moderately, rising 3 percent compared to 2015. Average incentive spend per unit should reach $3,011. Overall industry revenue from new vehicles should hit $610.6 billion, up 7.3 percent compared to 2015.

TrueCar estimates the average incentive for light vehicles in March will increase $284, or 10.4 percent, from a year ago, and decrease $29, or 0.9 percent, from February 2016.

This month's ratio of incentive to ATP for light vehicles was 9.1 percent, up 8.3 percent from March 2015 and down 1.4 percent from February 2016, based on TrueCar analysis. Subaru, Hyundai and Honda show the most improvement in ATP ratio in March versus the year-earlier month.

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 (News - Alert), 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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160401005200/en/

[ Back To TMCnet.com's Homepage ]