Automakers Expected to Reach $49 Billion in June

Average transaction prices likely to rise 1.5 percent

SANTA MONICA, Calif.--(BUSINESS WIRE)-- ALG, the industry benchmark for determining the future resale value of a vehicle, projects U.S. revenue from new vehicle sales will reach $49 billion for the month of June, up 1.5 percent from a year ago.

ALG expects a decline of $678 million in revenue for automakers versus June 2016. Additionally, incentive spending is projected to increase 9.7 percent.

“With the exception of Hyundai and Subaru, all automakers are showing gains in Average Transaction Prices (ATP) on a year over year basis. Mercedes-Benz showed the largest gains in ATP, up 5.6% thanks to the success of the all new E Class and red-hot GLC Class,” said Eric Lyman, ALG’s Chief Industry Analyst. “As a key indicator of retail industry health, ALG is pleased to see incentive spending as a percentage of ATP remain relatively flat. The industry continues to work through high inventory levels, with incentives being utilized to offload aging inventory. The rise in ATP can be attributed to more expensive light trucks and well-equipped new vehicles with high-end features that consumers are increasingly demanding.”

ALG estimates ATP for a new light vehicle was $32,900 in June, up 1.5 percent from a year ago. Average incentive spending per unit grew by $315 to $3,550. The ratio of incentive spending to ATP is expected to be 10.8 percent, up from 8.1 percent a year ago.

Average Transaction Price (ATP)

Manufacturer		June 2017Forecast			June. 2016			May 2017			Percent Changevs.June. 2016			Percent Changevs.May 2017
BMW (BMW, Mini)		$	52,500		$	51,300		$	52,800		2.3	%		-0.6	%
Daimler (Mercedes-Benz, Smart)		$	59,900		$	56,700		$	60,200		5.6	%		-0.5	%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)		$	33,300		$	32,800		$	33,100		1.5	%		0.6	%
Ford (Ford, Lincoln)		$	35,300		$	34,900		$	35,600		1.1	%		-0.8	%
GM (Buick, Cadillac, Chevrolet, GMC)		$	37,700		$	36,500		$	37,400		3.3	%		0.8	%
Honda (Acura, Honda)		$	27,300		$	27,000		$	27,400		1.1	%		-0.4	%
Hyundai		$	22,600		$	23,500		$	22,900		-3.8	%		-1.3	%
Kia		$	22,700		$	22,600		$	22,800		0.4	%		-0.4	%
Nissan (Nissan, Infiniti)		$	27,600		$	27,100		$	27,800		1.8	%		-0.7	%
Subaru		$	27,500		$	27,600		$	27,800		-0.4	%		-1.1	%
Toyota (Lexus, Scion, Toyota)		$	31,200		$	31,000		$	31,100		0.6	%		0.3	%
Volkswagen (Audi, Porsche, Volkswagen)		$	36,200		$	34,600		$	34,700		4.6	%		4.3	%
Industry		$	32,900		$	32,400		$	32,800		1.5	%		0.3	%

Incentive per Unit Spending

Manufacturer		June. 2017Forecast			June 2016			May 2017			Percent Changevs.June 2016			Percent Changevs.May 2017
BMW (BMW, Mini)		$	4,157		$	5,405		$	4,149		-23.1	%		0.2	%
Daimler (Mercedes-Benz, Smart)		$	4,449		$	4,746		$	4,590		-6.3	%		-3.1	%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)		$	4,389		$	4,063		$	4,434		8.0	%		-1.0	%
Ford (Ford, Lincoln)		$	4,157		$	3,681		$	4,124		12.9	%		0.8	%
GM (Buick, Cadillac, Chevrolet, GMC)		$	4,361		$	4,063		$	4,219		7.3	%		3.4	%
Honda (Acura, Honda)		$	2,056		$	1,720		$	2,048		19.5	%		0.4	%
Hyundai		$	3,259		$	2,291		$	3,221		42.2	%		1.2	%
Kia		$	3,384		$	2,707		$	3,358		25.0	%		0.8	%
Nissan (Nissan, Infiniti)		$	4,148		$	3,451		$	4,114		20.2	%		0.8	%
Subaru		$	1,032		$	632		$	995		63.4	%		3.8	%
Toyota (Lexus, Scion, Toyota)		$	2,506		$	2,293		$	2,591		9.3	%		-3.3	%
Volkswagen (Audi, Porsche, Volkswagen)		$	3,460		$	3,796		$	3,432		-8.9	%		0.8	%
Industry		$	3,550		$	3,235		$	3,499		9.7	%		1.4	%

Incentive Spending as a Percentage of ATP

Manufacturer		June 2017Forecast			June 2016			May 2017			Percent Changevs.June 2016			Percent Changevs.May 2017
BMW (BMW, Mini)		7.9	%		10.5	%		7.9	%		-24.8	%		0.8	%
Daimler (Mercedes-Benz, Smart)		7.4	%		8.4	%		7.6	%		-11.3	%		-2.6	%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)		13.2	%		12.4	%		13.4	%		6.4	%		-1.6	%
Ford (Ford, Lincoln)		11.8	%		10.5	%		11.6	%		11.6	%		1.7	%
GM (Buick, Cadillac, Chevrolet, GMC)		11.6	%		11.1	%		11.3	%		3.9	%		2.6	%
Honda (Acura, Honda)		7.5	%		6.4	%		7.5	%		18.2	%		0.7	%
Hyundai		14.4	%		9.7	%		14.1	%		47.9	%		2.5	%
Kia		14.9	%		12.0	%		14.7	%		24.5	%		1.2	%
Nissan (Nissan, Infiniti)		15.0	%		12.7	%		14.8	%		18.0	%		1.6	%
Subaru		3.8	%		2.3	%		3.6	%		64.0	%		4.9	%
Toyota (Lexus, Scion, Toyota)		8.0	%		7.4	%		8.3	%		8.6	%		-3.6	%
Volkswagen (Audi, Porsche, Volkswagen)		9.6	%		11.0	%		9.9	%		-12.9	%		-3.4	%
Industry		10.8	%		10.0	%		10.7	%		8.1	%		1.1	%

(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 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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170703005071/en/

TrueCar, Inc.
[email protected]
Veronica Cardenas
424-258-2487
[email protected]

Source: ALG

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