TrueCar Finds Huge Year-End Auto Sales Close Generates Record $58 Billion Revenue in December

Average transaction price rises on rich vehicle mix amid best-ever
annual industry volume


SANTA MONICA, Calif.–(BUSINESS WIRE)–TrueCar,
Inc. (NASDAQ: TRUE)
projects U.S. revenue from new vehicle sales reached a record high for
the month of $58 billion in December, up 15.4 percent from a year ago,
capping a year of revenue and unit sales peaks. December marked the 24th
consecutive month of record-setting revenue for the auto industry.

Despite a likely increase in incentive spending, robust sales and higher
average transaction prices helped automakers post a $7.7 billion gain in
revenue versus December 2014.

As previously announced, TrueCar projects that sales of new cars and
light trucks grew by 12.8 percent last month.

“This revenue figure is a remarkable conclusion to a historic year for
auto sales,” said Eric Lyman, TrueCar’s vice president of industry
insights. “Looking ahead, automakers are in an excellent position to
kick off 2016. Interest rates remain low, the employment outlook is
strong and Millennials continue to enter the market in greater numbers,
supporting our expectation of 18 million new vehicle sales this year.”

TrueCar estimates the average transaction price (ATP) for a new light
vehicle was $34,081 in December, up 2.4 percent from a year ago. Average
incentive spending per unit rose by $114 to $3,063. The ratio of
incentive spending to ATP was 9 percent, up from 8.9 percent a year ago.

“Average transaction prices topped $34,000 for the first time ever last
month,” said Stacey Doyle, TrueCar’s senior industry analyst. “A rich
mix of luxury vehicles and full-size pickups helped fuel this increase.
We expect average transaction prices in 2016 to rise at a similar pace,
around 2 percent.”

Full-size pickups were popular among consumers on the TrueCar platform.
Ford’s F-Series, FCA’s Ram and the Chevrolet Silverado all made the top
10 models last month as the automakers continue to fight for market
share in this popular category. While F-Series remains the best-selling
pickup this year, Silverado gained 2.2 percentage points of market share
in the full-size pickup segment compared to last year.

Average Transaction Price (ATP)

Manufacturer      

Dec. 2015

Forecast

      Dec. 2014       Nov. 2015      

Percent

Change vs.

Dec. 2014

     

Percent

Change vs.

Nov. 2015

BMW (BMW, Mini)       $51,898       $47,873       $50,918       8.4%       1.9%
Daimler (Mercedes-Benz, Smart)       $59,640       $56,681       $59,410       5.2%       0.4%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)       $33,539       $32,469       $33,327       3.3%       0.6%
Ford (Ford, Lincoln)       $35,663       $34,333       $35,064       3.9%       1.7%
GM (Buick, Cadillac, Chevrolet, GMC)       $37,713       $36,486       $36,176       3.4%       4.2%
Honda (Acura, Honda)       $28,388       $27,471       $27,953       3.3%       1.6%
Hyundai       $23,671       $24,014       $23,449       -1.4%       0.9%
Kia       $24,121       $24,135       $24,021       -0.1%       0.4%
Nissan (Nissan, Infiniti)       $28,282       $27,395       $27,965       3.2%       1.1%
Subaru       $27,727       $27,178       $27,719       2.0%       0.0%
Toyota (Lexus, Scion, Toyota)       $32,333       $31,848       $31,511       1.5%       2.6%
Volkswagen (Audi, Porsche, Volkswagen)       $40,756       $37,706       $39,266       8.1%       3.8%
Industry       $34,081       $33,297       $33,310       2.4%       2.3%
                             

TrueCar estimates the average incentive for light vehicles in December
will increase $114, or 3.9 percent, from a year ago, and decreasing $13,
or 0.4 percent, from November 2015.

Incentive per Unit Spending

Manufacturer      

Dec. 2015

Forecast

      Dec. 2014       Nov. 2015      

Percent

Change vs.

Dec. 2014

     

Percent

Change vs.

Nov. 2015

BMW (BMW, Mini)       $5,019       $5,733       $5,012       -12.4%       0.1%
Daimler (Mercedes-Benz, Smart)       $4,712       $5,693       $4,870       -17.2%       -3.3%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)       $3,553       $3,185       $3,523       11.5%       0.9%
Ford (Ford, Lincoln)       $3,162       $3,093       $3,238       2.2%       -2.3%
GM (Buick, Cadillac, Chevrolet, GMC)       $3,710       $3,509       $3,813       5.7%       -2.7%
Honda (Acura, Honda)       $1,847       $2,241       $1,826       -17.6%       1.1%
Hyundai       $2,163       $1,731       $2,184       24.9%       -1.0%
Kia       $2,997       $2,748       $2,990       9.1%       0.2%
Nissan (Nissan, Infiniti)       $3,716       $3,672       $3,746       1.2%       -0.8%
Subaru       $582       $769       $574       -24.3%       1.5%
Toyota (Lexus, Scion, Toyota)       $2,284       $1,965       $2,357       16.2%       -3.1%
Volkswagen (Audi, Porsche, Volkswagen)       $3,506       $2,683       $3,533       30.7%       -0.7%
Industry       $3,063       $2,949       $3,076       3.9%       -0.4%
                             

This month’s ratio of incentive to ATP for light vehicles was 9 percent,
up 1.5 percent from December 2014, and down 2.7 percent from November
2015, based on TrueCar analysis. Subaru, Daimler and Honda show the most
improvement in ATP ratio in December versus the year-earlier month.

Incentive Spending as a Percentage of ATP

Manufacturer      

Dec. 2015

Forecast

      Dec. 2014       Nov. 2015      

Percent

Change vs.

Dec. 2014

 

     

Percent

Change vs.

Nov. 2015

BMW (BMW, Mini)       9.7%       12.0%       9.8%       -19.2%       -1.8%
Daimler (Mercedes-Benz, Smart)       7.9%       10.0%       8.2%       -21.3%       -3.6%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)       10.6%       9.8%       10.6%       8.0%       0.2%
Ford (Ford, Lincoln)       8.9%       9.0%       9.2%       -1.6%       -4.0%
GM (Buick, Cadillac, Chevrolet, GMC)       9.8%       9.6%       10.5%       2.3%       -6.7%
Honda (Acura, Honda)       6.5%       8.2%       6.5%       -20.2%       -0.4%
Hyundai       9.1%       7.2%       9.3%       26.7%       -1.9%
Kia       12.4%       11.4%       12.4%       9.1%       -0.2%
Nissan (Nissan, Infiniti)       13.1%       13.4%       13.4%       -2.0%       -1.9%
Subaru       2.1%       2.8%       2.1%       -25.8%       1.4%
Toyota (Lexus, Scion, Toyota)       7.1%       6.2%       7.5%       14.5%       -5.6%
Volkswagen (Audi, Porsche, Volkswagen)       8.6%       7.1%       9.0%       20.9%       -4.4%
Industry       9.0%       8.9%       9.2%       1.5%       -2.7%
                             

Total Net Revenue

Manufacturer          

Dec. 2015

Forecast

          Dec. 2014          

Percent

Change vs.

Dec. 2014

BMW (BMW, Mini)           $2,719,464,266           $2,307,574,346           17.8%
Daimler (Mercedes-Benz, Smart)           $2,653,960,124           $2,169,181,870           22.3%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat)           $7,824,631,230           $6,320,837,637           23.8%
Ford (Ford, Lincoln)           $8,534,154,088           $7,531,595,877           13.3%
GM (Buick, Cadillac, Chevrolet, GMC)           $11,604,289,455           $10,014,786,738           15.9%
Honda (Acura, Honda)           $4,306,520,192           $3,771,246,351           14.2%
Hyundai           $1,737,478,395           $1,549,071,098           12.2%
Kia           $1,418,312,976           $1,100,242,245           28.9%
Nissan (Nissan, Infiniti)           $3,911,464,907           $3,213,926,610           21.7%
Subaru           $1,441,782,856           $1,356,807,294           6.3%
Toyota (Lexus, Scion, Toyota)           $7,740,473,025           $6,849,135,336           13.0%
Volkswagen (Audi, Porsche, Volkswagen)           $2,127,440,595           $2,153,465,072           -1.2%
Industry           $57,923,375,721           $50,189,866,683           15.4%
                             

About TrueCar

TrueCar, Inc. (NASDAQ: TRUE) gives consumers transparent insight into
what others paid and access to guaranteed savings off MSRP from TrueCar
Certified Dealers. TrueCar’s network of more than 10,000 trusted
Certified Dealers is committed to providing upfront pricing information
and a hassle-free buying experience. TrueCar powers car-buying programs
for some of the largest U.S. membership and service organizations,
including AARP, American Express, AAA, Sam’s Club and USAA. Not all
program features are available in all states. TrueCar is headquartered
in Santa Monica, California, with offices in San Francisco and Austin,
Texas. For more information about TrueCar and industry analysis please
visit www.truecar.com
and insights.true.com.
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