(June 1, 2015) SANTA MONICA, Calif. — TrueCar, Inc. finds that May's average transaction price (ATP) for new vehicles was likely a record high for the month as U.S. auto demand, particularly for premium and utility vehicles, remains healthy. Amid the best auto industry and economic fundamentals in a decade, TrueCar estimates the ATP for new light vehicles was $32,452 in May, up 4 percent from a year ago.

Average incentive spending per unit shrank by $10 to $2,661. The ratio of incentive spending to ATP was 8.2 percent, down from 8.3 percent a year ago. Higher transaction prices in the month generated $52 billion of revenue, up 3.1 percent compared to the same period last year.

"New vehicle sector and segment preference indicates consumers are confident about the economy and their finances," said TrueCar President John Krafcik. "Not only are these shifts to premium brands and utilities telling from an economic indicator standpoint, they signal sizable revenue gains automakers should reap this year."

TrueCar estimates premium auto sales grew at a faster rate than mass-market auto sales in the first four months of the year. Premium brand sales rose 10.6 percent from a year ago, while mass-market brand sales increased 4.8 percent compared to the same period. Sales at the highest end of the premium utility segment, vehicles priced from $75,000 or more, rose 44 percent from a year ago in the first four months of 2015.

TrueCar estimates May retail sales will grow by 2.4 percent, with the total industry Seasonally Adjusted Annual Rate (SAAR) reaching a yearly high of 17.4 million units, on pace to grow to 17.1 million this year. That's the highest volume for new light vehicle sales since 2001.

Recently revised first-quarter GDP declined by 0.7 percent. However several key economists expect this trend to reverse in the second quarter. Pending home sales in April were the highest in nine years, another indicator of a solid economy. According to the Department of Labor, unemployment remains low at 5.4 percent, the lowest since 2008.