New car transactions prices up 2.7 percent from year ago

(February 3, 2014) SANTA MONICA, Calif. — TrueCar estimated today that the average transaction price (ATP) for light vehicles in the U.S. was $30,934 in January, up $804 (2.7 percent) from January 2013 and down $422 (-1.3 percent) from December 2013.

Average transaction prices continue to rise and are at the highest levels in the last five years.

"The industry couldn't ask for a more ideal start to the year with transaction prices up and incentive spending down," said Larry Dominique, executive vice president of TrueCar and President of ALG. "Whether this type of healthy growth is sustainable remains to be seen."

Average Transaction Price

Manufacturer January
2014
December
2013
January
2013
Percent Change Jan. 2013 vs. Jan. 2014 Percent Change Dec. 2013 vs. Jan. 2014
Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat) $32,154 $32,870 $30,012 7.1% -2.2%
Ford (Ford, Lincoln) $32,839 $34,112 $32,192 2.0% -3.7%
GM (Buick, Cadillac, Chevrolet, GMC) $34,157 $35,156 $32,735 4.3% -2.8%
Honda (Acura, Honda) $28,070 $27,815 $27,030 3.8% 0.9%
Hyundai/Kia $23,927 $23,111 $23,750 0.7% 3.5%
Nissan (Nissan, Infiniti) $26,635 $26,586 $27,600 -3.5% 0.2%
Toyota (Lexus, Scion, Toyota) $30,868 $31,025 $29,694 4.0% -0.5%
Volkswagen (Audi, Porsche, Volkswagen) $34,437 $36,388 $35,338 -2.5% -5.4%
Industry $30,934 $31,356 $30,130 2.7% -1.3%

In addition, TrueCar estimated that the average incentive for light vehicles was $2,452 in January, down $80 (-3.1% percent) from January 2013 and down $284 (-10.4 percent) from December 2013.

Incentive Spending

Manufacturer January
2014
Forecas
t
December
2013
January
2013
Percent Change Jan. 2013 vs. Jan. 2014 Percent Change Dec. 2013 vs. Jan. 2014
Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat) $2,623 $2,915 $3,264 -19.6% -10.0%
Ford (Ford, Lincoln) $3,123 $3,399 $2,724 14.6% -8.1%
GM (Buick, Cadillac, Chevrolet, GMC) $3,376 $3,649 $3,501 -3.6% -7.5%
Honda (Acura, Honda) $1,769 $1,931 $1,571 12.6% -8.4%
Hyundai/Kia $1,649 $1,658 $1,518 8.6% -0.6%
Nissan (Nissan, Infiniti) $2,572 $2,810 $2,400 7.2% -8.4%
Toyota (Lexus, Scion, Toyota) $1,843 $2,055 $1,836 0.4% -10.3%
Volkswagen (Audi, Porsche, Volkswagen) $2,101 $2,370 $2,109 -0.4% -11.3%
Other $2,368 $2,587 $2,565 -8.3% -8.5%
Industry $2,452 $2,736 $2,532 -3.1% -10.4%

TrueCar estimated the ratio of incentive to average transaction price for light vehicles was 7.9 percent in January 2014, down 5.7 percent from January 2013 and down 9.1 percent from December 2013.

Incentive to ATP Ratio

Manufacturer January
2014
Forecast
December
2013
January
2013
Percent Change Jan. 2013 vs. Jan. 2014 Percent Change Dec. 2013 vs. Jan. 2014
Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat) 8.2% 8.9% 10.9% -25.0% -8.0%
Ford (Ford, Lincoln) 9.5% 10.0% 8.5% 12.4% -4.6%
GM (Buick, Cadillac, Chevrolet, GMC) 9.9% 10.4% 10.7% -7.6% -4.8%
Honda (Acura, Honda) 6.3% 6.9% 5.8% 8.4% -9.2%
Hyundai/Kia 6.9% 7.2% 6.4% 7.8% -4.0%
Nissan (Nissan, Infiniti) 9.7% 10.6% 8.7% 11.1% -8.6%
Toyota (Lexus, Scion, Toyota) 6.0% 6.6% 6.2% -3.4% -9.8%
Volkswagen (Audi, Porsche, Volkswagen) 6.1% 6.5% 6.0% 2.2% -6.3%
Industry 7.9% 8.7% 8.4% -5.7% -9.1%