Automaker Incentive Spending Estimated at $2,772 Per Vehicle
TrueCar, Inc., the negotiation-free car buying and selling platform, reported today that the estimated average transaction price (ATP) for light vehicles in the U.S. was $31,610 in August 2014, up $751 (2.4 percent) from August 2013 and down $125 (-0.4 percent) from July 2014.
“While it has become fashionable to criticize incentive spending levels, the reality is the ratio of incentive spending to transaction price this summer is consistent with the healthy industry levels we’ve seen since 2011,” said John Krafcik, president of TrueCar. “GM is the poster child here, with their industry-leading average transaction price increase of 12.9% comfortably outpacing a modest incentive increase of 3.5%.”
In addition, TrueCar estimated that the average incentive for light vehicles was $2,772 in August, up $236 (9.3 percent) from August 2013 and down $57 (-2.0 percent) from July 2014.
TrueCar estimated the ratio of incentive to average transaction price for light vehicles was 8.8 percent in August 2014, up 6.7 percent from August 2013 and down 1.6 percent from July 2014. GM and Nissan show the most improvement in average transaction price ratio for August vs. last year.
TrueCar, Inc. (NASDAQ: TRUE) is the negotiation-free car buying and selling platform. TrueCar enables a negotiation-free car buying experience by giving buyers transparent insight into what others actually paid (price confidence), upfront pricing information (price discovery), and access to a network of trusted TrueCar Certified Dealers who provide guaranteed savings certificates and seamlessly complete the car purchase. The reality is that buying a car is painful and buyers fear they are going to overpay or be surprised with hidden fees. TrueCar’s transparent upfront pricing information makes the car buying process simple so there are no surprises and buyers never overpay. TrueCar’s mission is to make car buying simple, fair and fun. Its national network of more than 8,000 TrueCar Certified Dealers, including both new car franchise dealers and non-franchise dealers, is committed to providing negotiation-free savings off MSRP and upfront pricing information for all car-buyers, including members of some of the country’s largest membership and service organizations such as AARP, American Express, AAA, and USAA. Note: Not all program features are available in all states. Go to truecar.com for program details. TrueCar is headquartered in Santa Monica, Calif., with offices in Santa Barbara, Calif., San Francisco, Calif., and Austin, Texas.