TrueCar announces its users have bought over 2 million vehicles from TrueCar Certified Dealers

TrueCar the negotiation-free car buying and selling mobile marketplace, announced that its users have purchased over 2 million vehicles from TrueCar Certified Dealers in transactions originating on its platform since inception. The milestone comes amid the strongest U.S. auto market conditions in a decade. The total value of vehicles bought by TrueCar users from its nationwide …

TrueCar the negotiation-free car buying and selling mobile marketplace, announced that its users have purchased over 2 million vehicles from TrueCar Certified Dealers in transactions originating on its platform since inception. The milestone comes amid the strongest U.S. auto market conditions in a decade.

The total value of vehicles bought by TrueCar users from its nationwide network of TrueCar Certified Dealers since the company’s founding in 2005 exceeds $50 billion. In the process, TrueCar estimates its users have also saved more than $5 billion off the Manufacturer’s Suggested Retail Price, or MSRP.

“It took eight years to hit the 1 million sales mark, and 19 months for the second million,” said Scott Painter, TrueCar’s founder and chief executive officer. “We’re thrilled that modern consumers are responding to transparency in vehicle pricing and a better car-buying experience — delivered by our nearly 11,000 franchise and independent Certified Dealers, the best in the industry.”

More than 6 million consumers visit TrueCar’s desktop and mobile sites and auto-buying programs operated by TrueCar for its affinity partners each month.

“There’s no question TrueCar Certified Dealers, by taking friction out of the car-buying process, are aiding the higher industry volumes we’re seeing this year,” Painter said.

June ATP and incentive outlook

TrueCar’s cumulative volume accomplishment comes amid US market conditions that remain favorable for automakers.

The average transaction price, or ATP, for new light vehicles is US$31,948 in June, up 1% from a year ago, based on TrueCar’s analysis. At the same time, average incentive spending per unit appears to be up by US$98 this month to US$2,846. TrueCar estimates the ratio of incentive spending to ATP should hit 8.9%, up from 8.7% a year ago, based on TrueCar’s analysis.

TrueCar estimates US new vehicle retail sales will grow by 7.9% this month, with the total industry Seasonally Adjusted Annual Rate (SAAR) reaching 17.4 million units, on pace to reach 17.1 million this year. That’s the highest volume for new light vehicle sales since 2001.

Industrywide revenue for new vehicles in June will likely reach a best-ever US$48 billion for the month as auto demand, particularly for premium and utility vehicles, remains healthy. This is a 7.3% increase compared to the same period last year.

“We’re projecting all-time record June transaction prices, which translate to an epic $48 billion month for the industry,” said TrueCar President John Krafcik. “Two things are helping drive this growth: more transparent, lower friction retail processes, such as those delivered by TrueCar Certified Dealers, and greater availability of high-demand, high-margin crossover vehicles.”

The trend is evident by searches on the TrueCar platform. Small utility/crossover consumer interest is up by 9.7% this month from the level in May, while interest in small cars dropped by 1.6%.

“Honda’s all-new HR-V compact crossover is extremely hot on our platform, with a 205 percent jump in consumer interest compared to last month. ” Krafcik said. “We’re already seeing the HR-V flying off the lots of TrueCar Certified Dealers. With the Mazda CX-3 and Fiat 500x lined up right behind it, small crossover buyers have a wealth of choice in this red-hot segment.”

Average Transaction Price (ATP)

Manufacturer June 2015 Forecast June 2014 May 2015 Percent Change vs. Jun. 2014 Percent Change vs. May 2015
FCA (Chrysler, Dodge, Jeep, Ram, Fiat) $32,654 $31,354 $32,661 4.1% 0.0%
Ford (Ford, Lincoln) $33,837 $32,467 $33,381 4.2% 1.4%
GM (Buick, Cadillac, Chevrolet, GMC) $34,518 $34,762 $34,203 -0.7% 0.9%
Honda (Acura, Honda) $26,855 $26,718 $27,237 0.5% -1.4%
Hyundai $23,146 $23,758 $23,291 -2.6% -0.6%
Kia $23,718 $23,460 $23,589 1.1% 0.5%
Nissan (Nissan, Infiniti) $28,483 $26,686 $27,267 6.7% 4.5%
Subaru $26,983 $26,035 $26,995 3.6% 0.0%
Toyota (Lexus, Scion, Toyota) $29,743 $29,652 $29,728 0.3% 0.1%
Volkswagen (Audi, Porsche, Volkswagen) $38,430 $40,260 $38,644 -4.5% -0.6%
Industry $31,948 $31,644 $31,812 1.0% 0.4%

TrueCar estimates the average incentive for light vehicles in June will increase US$98, or 3.6%, from a year ago, while only increasing US$12, or 0.4%, from May 2015

Incentive per Unit Spending

Manufacturer June 2015 Forecast June 2014 May 2015 Percent Change vs. June 2014 Percent Change vs. May 2015
FCA (Chrysler, Dodge, Jeep, Ram, Fiat) $3,384 $3,426 $3,277 -1.2% 3.3%
Ford (Ford, Lincoln) $2,668 $3,334 $2,674 -20.0% -0.2%
GM (Buick, Cadillac, Chevrolet, GMC) $3,729 $3,397 $3,766 9.8% -1.0%
Honda (Acura, Honda) $1,979 $1,824 $1,939 8.5% 2.1%
Hyundai $2,461 $1,829 $2,330 34.5% 5.6%
Kia $2,755 $2,333 $2,724 18.1% 1.2%
Nissan (Nissan, Infiniti) $2,962 $2,255 $3,415 31.4% -13.3%
Subaru $743 $712 $751 4.4% -1.0%
Toyota (Lexus, Scion, Toyota) $2,058 $2,052 $2,020 0.3% 1.9%
Volkswagen (Audi, Porsche, Volkswagen) $3,015 $2,913 $2,947 3.5% 2.3%
Industry $2,846 $2,748 $2,834 3.6% 0.4%

This month’s ratio of incentive to ATP for light vehicles was 8.9%, up 2.6% from June 2014 and unchanged from May 2015, based on TrueCar analysis. Ford and FCA showed the most improvement in ATP ratio in June versus the year-earlier month.

Incentive Spending as a Percentage of ATP

Manufacturer June 2015 Forecast June 2014 May 2015 Percent Change vs.

Jun. 2014

Percent Change vs. May 2015FCA (Chrysler, Dodge, Jeep, Ram, Fiat)10.2%10.9%10.0%-6.4%2.0%Ford (Ford, Lincoln)7.7%10.3%8.0%-25.1%-4.0%GM (Buick, Cadillac, Chevrolet, GMC)10.2%9.8%11.0%4.6%-7.1%Honda (Acura, Honda)7.3%6.8%7.1%7.3%2.9%Hyundai10.5%7.7%10.0%36.1%4.7%Kia11.7%9.9%11.5%17.3%1.0%Nissan (Nissan, Infiniti)10.3%8.4%12.5%22.5%-17.4%Subaru2.7%2.7%2.8%-1.3%-2.9%Toyota (Lexus, Scion, Toyota)6.8%6.9%6.8%-1.1%0.7%Volkswagen (Audi, Porsche, Volkswagen)7.5%7.2%7.6%4.3%-1.0%Industry8.9%8.7%8.9%2.6%0.0%

Total Net Revenue

Manufacturer June 2015 Forecast June 2014 Percent Change vs. June 2014
FCA (Chrysler, Dodge, Jeep, Ram, Fiat) $6,268,121,820 $5,394,518,408 16.2%
Ford (Ford, Lincoln) $7,931,062,116 $7,188,063,932 10.3%
GM (Buick, Cadillac, Chevrolet, GMC) $10,359,976,360 $9,297,479,282 11.4%
Honda (Acura, Honda) $3,743,559,435 $3,447,236,514 8.6%
Hyundai $1,491,237,810 $1,601,455,506 -6.9%
Kia $1,275,591,240 $1,188,108,240 7.4%
Nissan (Nissan, Infiniti) $3,531,457,784 $2,925,933,098 20.7%
Subaru $1,274,579,273 $1,076,989,845 18.3%
Toyota (Lexus, Scion, Toyota) $6,248,456,646 $5,981,223,528 4.5%
Volkswagen (Audi, Porsche, Volkswagen) $2,093,265,768 $2,014,489,620 3.9%
Industry $48,241,014,207 $44,965,934,136 7.3%
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