TrueCar, reported that April’s new vehicle average transaction prices (ATP) are the highest for the month in six years. Many U.S. automakers saw increases over 2014 and this year is on course to be the best year in auto sales since 2001.
The automaker that showed the most improvement over April 2014 was Subaru with a 27.7% increase over 2014 followed Fiat Crysler with a 13.4% increase over 2014, Kia increase 10.7% Ford was up by 9.7% reported TrueCar. Audi, Porsche, Volkswagen is expected show a -6.7% decrease in sales. For more details see chart below.
TrueCar estimates the ATP for new light vehicles(including passenger cars and trucks) is $32,189 this month, up 1.1 percent from a year ago, while average incentive spending per unit grew by $15 to $2,601. Higher transaction prices in the month generated $47 billion of revenue, up 7.2 percent compared to the same period last year.
“April was an earnings delight for automakers; Subaru, FCA, Kia and Ford should all post double-digit revenue gains,” said Eric Lyman, vice president of industry insights for TrueCar.
TrueCar estimates April sales, will rise 6.1 percent from a year ago, and remain on pace to grow to 17.1 million units this year, the highest volume for new light vehicle sales since 2001.
Several key economists predict second-quarter growth will be more favorable, and given the likelihood of strong new vehicle sales and revenue growth this month, these predictions seem highly feasible.
TrueCar estimates the average incentive for light vehicles in April increased $15, or 0.6 percent, from a year ago, while decreasing $120, or 4.4 percent, from March 2015.Inc
Last month’s ratio of incentive to ATP for light vehicles was 8.1 percent, down 0.5 percent from April 2014 and down 4.3 percent from March 2015, based on TrueCar analysis. Ford, Subaru, Honda and GM showed the most improvement in ATP ratio in April versus the year-earlier month.
|Manufacturer||Apr. 2015 Forecast||Apr. 2014||Percent Change vs. Apr. 2014|
|FCA (Chrysler, Dodge, Jeep, Ram, Fiat)||$6,410,005,629||$5,652,335,904||13.4%|
|Ford (Ford, Lincoln)||$7,719,983,808||$7,035,112,620||9.7%|
|GM (Buick, Cadillac, Chevrolet, GMC)||$9,264,899,022||$8,893,168,152||4.2%|
|Honda (Acura, Honda)||$3,785,492,941||$3,599,624,256||5.2%|
|Nissan (Nissan, Infiniti)||$3,064,203,915||$2,812,038,304||9.0%|
|Toyota (Lexus, Scion, Toyota)||$6,216,411,364||$6,017,153,420||3.3%|
|Volkswagen (Audi, Porsche, Volkswagen)||$1,908,409,143||$2,045,344,851||-6.7%|
TrueCar, claims it gives consumers transparent insight into what others paid and access to guaranteed savings off MSRP from TrueCar Certified Dealers. TrueCar powers car-buying programs for some of the largest U.S. membership and service organizations, including AARP, American Express, AAA and USAA. Not all program features are available in all states.