Transaction Prices Rise, Incentives Fall in September, TrueCar Reports
Despite higher transaction prices and lower incentives, consumers continue to show they're in a buying mood, TrueCar reports.
SANTA MONICA, Calif. — TrueCar.com, a vehicle information site, estimated today that the average transaction price for light vehicles in the United States was $30,282 in September, up $264 (0.9 percent) from the same time last year and up by $8 from August.
"Transaction prices in September are as stable as the sales rate, while still being the highest in years," said Jesse Toprak, vice president of market intelligence at TrueCar.com. "This stability is another indication of consumer demand; the data this month indicates that the automotive marketplace has found a new equilibrium that is sustainable and growing at a healthy pace."
Manufacturer | September 2012 Transaction Price | August 2012 Transaction Price | September 2011 Transaction Price | Percent Change September 2011 to September 2012 | Percent Change August 2012 to September 2012 | |
Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat) | $29,577 | $29,596 | $28,873 | 2.4% | -0.1% | |
Ford (Ford, Lincoln) | $32,048 | $32,196 | $31,793 | 0.8% | -0.5% | |
GM (Buick, Cadillac, Chevrolet, GMC) | $32,274 | $32,391 | $32,512 | -0.7% | -0.4% | |
Honda (Acura, Honda) | $26,760 | $26,767 | $26,551 | 0.8% | 0.0% | |
Hyundai/Kia | $22,345 | $22,378 | $21,122 | 5.8% | -0.1% | |
Nissan (Nissan, Infiniti) | $27,564 | $27,708 | $27,155 | 1.5% | -0.5% | |
Toyota (Lexus, Scion, Toyota) | $27,701 | $27,845 | $27,183 | 1.9% | -0.5% | |
Volkswagen (Audi, Volkswagen) | $33,024 | $33,207 | $32,812 | 0.6% | -0.6% | |
Industry | $30,282 | $30,274 | $30,018 | 0.9% | 0.0% | |
In addition, TrueCar.com estimated that the average incentive for light-vehicles was $2,468 in September, down $176 (6.7 percent) from Sept. 2011 and down $31 (1.2 percent) from August of this year.
"Market conditions continue to be ideal for automakers with lower incentive spending, high average transaction rates and double digit sales growth," Toprak noted.
Manufacturer | September 2012 Incentives | August 2012 Incentives | September 2011 Incentives | Percent Change September 2011 to September 2012 | Percent Change August 2012 to September 2012 |
Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat) | $3,256 | $3,228 | $3,360 | -3.1% | 0.9% |
Ford (Ford, Lincoln) | $2,622 | $2,671 | $2,845 | -7.8% | -1.9% |
GM (Buick, Cadillac, Chevrolet, GMC) | $3,008 | $3,094 | $3,224 | -6.7% | -2.8% |
Honda (Acura, Honda) | $2,270 | $2,419 | $2,337 | -2.9% | -6.2% |
Hyundai/Kia | $1,294 | $1,188 | $1,212 | 6.8% | 8.9% |
Nissan (Nissan, Infiniti) | $2,777 | $2,890 | $2,748 | 1.1% | -3.9% |
Toyota (Lexus, Scion, Toyota) | $1,930 | $1,908 | $2,238 | -13.7% | 1.2% |
Volkswagen (Audi, Volkswagen) | $2,462 | $2,499 | $1,906 | 29.2% | -1.5% |
Industry | $2,468 | $2,499 | $2,645 | -6.7% | -1.2% |
TrueCar.com estimated that the ratio of incentives to average transaction price for light-vehicles slid to 7.5 percent in September, down from 8.2 percent in September 2011 and up from 6.9 percent in August.
Manufacturer | September 2012 Incentives/Avg. Transaction Price | August 2012 Incentives/Avg. Transaction Price | September 2011 Incentives/ Avg. Transaction Price | Percent Change September 2011 to September 2012 | Percent Change August 2012 to September 2012 |
Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat) | 11.0% | 10.9% | 11.6% | -0.6% | 0.1% |
Ford (Ford, Lincoln) | 8.2% | 8.3% | 8.9% | -0.8% | -0.1% |
GM (Buick, Cadillac, Chevrolet, GMC) | 9.3% | 9.6% | 9.9% | -0.6% | -0.2% |
Honda (Acura, Honda) | 8.5% | 9.0% | 8.8% | -0.3% | -0.6% |
Hyundai/Kia | 5.8% | 5.3% | 5.7% | 0.1% | 0.5% |
Nissan (Nissan, Infiniti) | 10.1% | 10.4% | 10.1% | 0.0% | -0.4% |
Toyota (Lexus, Scion, Toyota) | 7.0% | 6.9% | 8.2% | -1.3% | 0.1% |
Volkswagen (Audi, Volkswagen) | 7.5% | 7.5% | 5.8% | 1.6% | -0.1% |
Industry | 8.2% | 8.3% | 8.8% | -0.7% | -0.1% |
More F&I
Modern Technology Objection Handling
In this video, Trent White shares how to confidently handle technology-based objections by helping customers understand the value of protection, even with modern vehicle technology.
Read More →
Consistency at Scale: Driving F&I Performance
With 75 rooftops across the Sunshine State, Morgan Auto Group has proven to Floridians that it knows a thing or two about driving performance in a competitive market. But it didn’t start at the top.
Read More →
Gitty Up on GAP
The foundational finance-and-insurance product hasn’t kept up with the latest conditions for auto dealers. Is the time ripe?
Read More →
How AI-Powered Coaching Is Transforming F&I Performance
See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability
Read More →
Sell Value, Build Trust
In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.
Read More →
F&I Sales Give Dealers First-Half Lift
Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.
Read More →
Targeted Training Drives Results
Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.
Read More →
Double the Change, Double the Chance
When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.
Read More →
Just Do It
F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →