Average vehicle transaction price hits $30,000 in June
(July 1, 2011) SANTA MONICA, Calif. (PRNewswire) — TrueCar.com estimated today that the average transaction price for light vehicles in the United States was $30,009 in June, up $845 (2.9 percent) from June 2010 and up $244 (0.8 percent) from May 2011. It is the highest monthly average transaction price ever recorded.
"The upside to a lack of inventory on some vehicles is that incentives decreased and transaction prices soared to the highest levels ever recorded — meaning stronger profits for automakers," said Jesse Toprak, VP of Industry Trends and Insights for TrueCar.com. "The good news for consumers is as dealer inventory levels are replenished and supply levels return to normal, incentives will begin to increase, lowering transaction prices."
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Transaction Pricing Forecast |
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Manufacturer |
June 2011 Transaction Price |
May 2011 Transaction Price |
June 2010 Transaction Price |
Percent Change June 2010 to June 2011 |
Percent Change May 2011 to June 2011 |
|
|
Chrysler (Chrysler, Dodge, Jeep, Ram) |
$29,225 |
$28,774 |
$28,379 |
3.0% |
1.6% |
|
|
Ford (Ford, Lincoln) |
$32,939 |
$32,758 |
$31,296 |
5.2% |
0.6% |
|
|
GM (Buick, Cadillac, Chevrolet, GMC) |
$34,142 |
$33,976 |
$33,355 |
2.4% |
0.5% |
|
|
Honda (Acura, Honda) |
$25,783 |
$25,770 |
$24,476 |
5.3% |
0.1% |
|
|
Hyundai/Kia |
$19,482 |
$19,170 |
$18,749 |
3.9% |
1.6% |
|
|
Nissan (Nissan, Infiniti) |
$28,043 |
$27,628 |
$27,076 |
3.6% |
1.5% |
|
|
Toyota (Lexus, Scion, Toyota) |
$26,019 |
$25,977 |
$25,510 |
2.0% |
0.2% |
|
|
Industry |
$30,009 |
$29,765 |
$29,164 |
2.9% |
0.8% |
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In addition, TrueCar.com estimated that the average incentive for light-vehicles was $2,300 in June 2011, down $569 (19.8 percent) from June 2010 and down $4 (0.2 percent) from May 2011.
"As gas prices have dropped, consumers have started to purchase larger, higher-priced vehicles, contributing to an increase in transaction prices," continued Toprak.
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Incentive Spending Forecast |
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Manufacturer |
June 2011 Incentives |
May 2011 Incentives |
June 2010 Incentives |
Percent Change June 2010 to June 2011 |
Percent Change May 2011 to June 2011 |
|
|
Chrysler (Chrysler, Dodge, Jeep, Ram) |
$2,944 |
$3,002 |
$3,704 |
-20.5% |
-1.9% |
|
|
Ford (Ford, Lincoln) |
$2,373 |
$2,433 |
$3,036 |
-21.8% |
-2.4% |
|
|
GM (Buick, Cadillac, Chevrolet, GMC) |
$3,022 |
$3,085 |
$3,797 |
-20.4% |
-2.0% |
|
|
Honda (Acura, Honda) |
$1,581 |
$1,513 |
$2,136 |
-26.0% |
4.5% |
|
|
Hyundai/Kia |
$1,456 |
$1,511 |
$2,203 |
-33.9% |
-3.6% |
|
|
Nissan (Nissan, Infiniti) |
$2,424 |
$2,248 |
$3,199 |
-24.2% |
7.8% |
|
|
Toyota (Lexus, Scion, Toyota) |
$1,507 |
$1,379 |
$1,983 |
-24.0% |
9.3% |
|
|
Industry |
$2,300 |
$2,304 |
$2,869 |
-19.8% |
-0.2% |
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"The Japanese automakers rebounded from slower sales this month as inventory levels improved and generous incentive offers have kept them from losing loyal customers," said Kristen Andersson, automotive analyst at TrueCar.com. "Despite the relative increase in incentives from Toyota, they still have the lowest average transaction price to incentive ratio, but they may need to be more aggressive in coming months to regain lost market share."
TrueCar.com estimated that the ratio of incentives to average transaction price for light-vehicles was 7.7 percent in June 2011, down from 9.8 percent in June 2010 and flat from May 2011.
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