TrueCar.com: Average Transaction Prices Reach Historic Highs in July
Despite continued weakness in the economy and concerns over the debt ceiling, consumers continued to purchase vehicles packed with options in July, according to TrueCar.com.
TrueCar.com estimated that the average transaction price for light vehicles in July increased 2 percent to $29,761 from the year-ago period. On a month-to-month basis, transaction prices increase 0.3 percent from June 2011.
“Despite continued weakness in the economy and the ongoing concern over the debt ceiling, consumers continued to purchase vehicles packed with options in July,” said Jesse Toprak, vice president of industry trends and insights for TrueCar.com. “Tightened inventories, lower dealer discounting and manufacturer incentives, along with a more expensive product mix resulted in the highest transaction prices we have recorded in the industry.”
The new-car pricing and trends Website estimated that the average incentive for light-vehicles was $2,418 in July 2011, down 15.1 percent from July 2010 and up 0.7 percent from June 2011.
“July is typically the beginning of the summer sell-down for automakers, but with inventories lacking on dealership lots, incentives are down significantly this year,” said Kristen Andersson, automotive analyst at TrueCar.com. “There just aren’t enough cars to sell, as in years past.”
TrueCar.com estimated that the ratio of incentives to average transaction price for light vehicles was 8.1 percent in July 2011, down from 9.8 percent in July 2010 and flat from June 2011.
Transaction Pricing Forecast | |||||
Manufacturer | July 2011 Transaction Price | June 2011 Transaction Price | July 2010 Transaction Price | Percent Change July 2010 to July 2011 | Percent Change June 2011 to July 2011 |
Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat) | $28,834 | $28,568 | $28,591 | 0.9% | 0.9% |
Ford (Ford, Lincoln) | $32,714 | $32,599 | $31,353 | 4.3% | 0.4% |
GM (Buick, Cadillac, Chevrolet, GMC) | $33,804 | $33,842 | $33,145 | 2.0% | -0.1% |
Honda (Acura, Honda) | $25,836 | $25,763 | $24,957 | 3.5% | 0.3% |
Hyundai/Kia | $20,575 | $20,510 | $19,878 | 3.5% | 0.3% |
Nissan (Nissan, Infiniti) | $27,464 | $27,595 | $26,862 | 2.2% | -0.5% |
Toyota (Lexus, Scion, Toyota) | $25,710 | $25,842 | $25,421 | 1.1% | -0.5% |
Industry | $29,761 | $29,659 | $29,179 | 2.0% | 0.3% |
Incentive Spending Forecast | |||||
Manufacturer | July 2011 Incentives | June 2011 Incentives | July 2010 Incentives | Percent Change July 2010 to July 2011 | Percent Change June 2011 to July 2011 |
Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat) | $3,162 | $3,095 | $3,656 | -13.5% | 2.2% |
Ford (Ford, Lincoln) | $2,747 | $2,641 | $3,062 | -10.3% | 4.0% |
GM (Buick, Cadillac, Chevrolet, GMC) | $3,026 | $2,948 | $3,818 | -20.8% | 2.7% |
Honda (Acura, Honda) | $1,901 | $1,766 | $2,231 | -14.8% | 7.6% |
Hyundai/Kia | $1,452 | $1,364 | $2,029 | -28.4% | 6.4% |
Nissan (Nissan, Infiniti) | $2,412 | $2,214 | $3,139 | -23.2% | 8.9% |
Toyota (Lexus, Scion, Toyota) | $1,942 | $1,891 | $2,022 | -4.0% | 2.7% |
Industry | $2,418 | $2,401 | $2,849 | -15.1% | 0.7% |
Ratio of Incentives to Average Transaction Price | |||||
Manufacturer | July 2011 Incentives/Avg. Transaction Price | June 2011 Incentives/ Avg. Transaction Price | July 2010 Incentives/ Avg. Transaction Price | Percent Change July 2010 to July 2011 | Percent Change June 2011 to July 2011 |
Chrysler (Chrysler, Dodge, Jeep, Ram, Fiat) | 11.0% | 10.8% | 12.8% | -1.8% | 0.1% |
Ford (Ford, Lincoln) | 8.4% | 8.1% | 9.8% | -1.4% | 0.3% |
GM (Buick, Cadillac, Chevrolet, GMC) | 9.0% | 8.7% | 11.5% | -2.6% | 0.2% |
Honda (Acura, Honda) | 7.4% | 6.9% | 8.9% | -1.6% | 0.5% |
Hyundai/Kia | 7.1% | 6.7% | 10.2% | -3.1% | 0.4% |
Nissan (Nissan, Infiniti) | 8.8% | 8.0% | 11.7% | -2.9% | 0.8% |
Toyota (Lexus, Scion, Toyota) | 7.6% | 7.3% | 8.0% | -0.4% | 0.2% |
Industry | 8.1% | 8.1% | 9.8% | -1.6% | 0.0% |
More Auto Finance
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →