Automakers Should See $48 Billion in Revenue in New Vehicle Sales in April

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Average transaction prices likely to increase 0.9 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 $48
billion for the month of April, down -3.0 percent from a year ago.

Despite higher average transaction prices, lower sales volumes will
result in an expected decline of $1.5 billion in revenue for automakers
versus April 2016. Additionally, incentive spending is projected to
increase 13.9 percent.

“With the spring selling season underway, automakers are starting to
manage production levels and pull back on elevated incentive spending
with expected declines from March 2017,” said Eric Lyman, ALG’s Chief
Industry Analyst.

ALG estimates the average transaction price (ATP) for a new light
vehicle was $33,112 in April, up 0.9 percent from a year ago. Average
incentive spending per unit grew by $424 to $3,465. The ratio of
incentive spending to ATP is expected to be 10.5 percent, up from 9.3
percent a year ago.

 

Average Transaction Price (ATP)

 

Manufacturer

 

Apr. 2017
Forecast

 

Apr. 2016

 

Mar.
2017

 

Percent
Change
vs.

Apr. 2016

 

Percent
Change
vs. Mar.
2017

BMW (BMW, Mini)   $ 51,600   $ 51,809   $ 51,551   -0.4 %   0.1 %
Daimler (Mercedes-Benz, Smart)   $ 62,441   $ 55,155   $ 59,989   13.2 %   4.1 %
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)   $ 33,558   $ 32,892   $ 33,628   2.0 %   -0.2 %
Ford (Ford, Lincoln)   $ 36,325   $ 34,697   $ 36,369   4.7 %   -0.1 %
GM (Buick, Cadillac, Chevrolet, GMC)   $ 36,871   $ 37,297   $ 36,757   -1.1 %   0.3 %
Honda (Acura, Honda)   $ 27,297   $ 27,278   $ 27,674   0.1 %   -1.4 %
Hyundai   $ 22,837   $ 23,825   $ 23,081   -4.1 %   -1.1 %
Kia   $ 22,868   $ 22,737   $ 22,970   0.6 %   -0.4 %
Nissan (Nissan, Infiniti)   $ 27,507   $ 26,806   $ 27,856   2.6 %   -1.3 %
Subaru   $ 27,803   $ 27,793   $ 28,126   0.0 %   -1.2 %
Toyota (Lexus, Scion, Toyota)   $ 31,305   $ 31,515   $ 31,875   -0.7 %   -1.8 %
Volkswagen (Audi, Porsche, Volkswagen)   $ 34,224   $ 33,779   $ 34,048   1.3 %   0.5 %

Industry

 

$

33,112

 

$

32,809

 

$

33,131

 

0.9

%

 

-0.1

%

 
 

Incentive per Unit Spending

 

Manufacturer

 

Mar. 2017
Forecast

 

Mar. 2016

 

Mar. 2017

 

Percent Change
vs. Apr. 2016

 

Percent
Change vs.
Mar. 2017

BMW (BMW, Mini)   $ 4,451   $ 5,290   $ 4,227   -15.9 %   5.3 %
Daimler (Mercedes-Benz, Smart)   $ 4,670   $ 4,000   $ 4,767   16.8 %   -2.0 %
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)   $ 4,482   $ 3,982   $ 4,583   12.6 %   -2.2 %
Ford (Ford, Lincoln)   $ 3,775   $ 3,514   $ 3,809   7.4 %   -0.9 %
GM (Buick, Cadillac, Chevrolet, GMC)   $ 4,717   $ 4,012   $ 4,850   17.6 %   -2.7 %
Honda (Acura, Honda)   $ 1,863   $ 1,604   $ 1,853   16.2 %   0.6 %
Hyundai   $ 2,580   $ 2,008   $ 2,591   28.5 %   -0.4 %
Kia   $ 2,978   $ 2,722   $ 3,004   9.4 %   -0.9 %
Nissan (Nissan, Infiniti)   $ 3,895   $ 3,232   $ 4,036   20.5 %   -3.5 %
Subaru   $ 864   $ 595   $ 907   45.2 %   -4.8 %
Toyota (Lexus, Scion, Toyota)   $ 2,311   $ 1,996   $ 2,430   15.8 %   -4.9 %
Volkswagen (Audi, Porsche, Volkswagen)   $ 3,922   $ 3,443   $ 3,995   13.9 %   -1.8 %

Industry

 

$

3,465

 

$

3,041

 

$

3,556

 

13.9

%

 

-2.5

%

         
 

Incentive Spending as a Percentage of ATP

 

Manufacturer

 

Apr. 2017
Forecast

 

Apr. 2016

 

Mar. 2017

 

Percent Change
vs. Apr. 2016

 

Percent
Change vs.
Mar. 2017

BMW (BMW, Mini)   8.6 %   10.2 %   8.2 %   -15.5 %   5.2 %
Daimler (Mercedes-Benz, Smart)   7.5 %   7.3 %   7.9 %   3.1 %   -5.9 %
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)   13.4 %   12.1 %   13.6 %   10.3 %   -2.0 %
Ford (Ford, Lincoln)   10.4 %   10.1 %   10.5 %   2.6 %   -0.8 %
GM (Buick, Cadillac, Chevrolet, GMC)   12.8 %   10.8 %   13.2 %   18.9 %   -3.1 %
Honda (Acura, Honda)   6.8 %   5.9 %   6.7 %   16.1 %   2.0 %
Hyundai   11.3 %   8.4 %   11.2 %   34.0 %   0.6 %
Kia   13.0 %   12.0 %   13.1 %   8.8 %   -0.4 %
Nissan (Nissan, Infiniti)   14.2 %   12.1 %   14.5 %   17.4 %   -2.3 %
Subaru   3.1 %   2.1 %   3.2 %   45.1 %   -3.7 %
Toyota (Lexus, Scion, Toyota)   7.4 %   6.3 %   7.6 %   16.6 %   -3.1 %
Volkswagen (Audi, Porsche, Volkswagen)   11.5 %   10.2 %   11.7 %   12.4 %   -2.3 %

Industry

 

10.5

%

 

9.3

%

 

10.7

%

 

12.9

%

 

-2.5

%

 

(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.

Contacts

TrueCar, Inc.
pressinquiries@truecar.com
Veronica
Cardenas, 424-258-2487
VCardenas@truecar.com