TrueCar Projects Automaker Revenue to Reach $49 Billion in August

TrueCar Inc. said Monday that August’s revenue for new vehicles will likely reach $49 billion for the month, up 0.7% versus the same period last year.

The U.S. economy and auto industry continue to benefit from the best fundamentals in over a decade, and brisk consumer demand for premium and utility vehicles remains steady, TrueCar said. Despite a slight uptick this month, automakers have generally maintained discipline with incentive spending.

TrueCar estimates the average transaction price (ATP) for a new light vehicle in August is $31,825, up 0.7% over a year ago, while average incentive spending per unit grew $79 to $3,066. The ratio of incentive spending to ATP was 9.6%, up 1.9% over a year ago.

“The auto market remains healthy and ATP in August should hit a monthly record,” said TrueCar Executive Vice President Larry Dominique, who also runs TrueCar’s ALG unit. “Consumer confidence remains strong as evidenced by steady demand, particularly for luxury and higher trim level vehicles, which has resulted in $49 billion of revenue for automakers this month.”

Despite the revenue growth, TrueCar estimates retail sales of new vehicles will decline 3% this month, with total industry deliveries, including fleet sales, down 2.9%. The Seasonally Adjusted Annual Rate (SAAR) should reach 17.4 million units, keeping the industry on pace to reach 17.2 million sales this year, the highest volume since 2000.