Boston, MA 10/02/2014 (wallstreetpr) – Negotiation-free buying and selling platform of car, TrueCar Inc (NASDAQ:TRUE) disclosed that it paid lower incentives in September compared to the previous month. However, on a year-on-year basis, it paid more. On the other hand, the average transaction price witnessed a fall both on a month-over-month and year-over-year basis.
Lower Incentives
TrueCar Inc (NASDAQ:TRUE) stated that the industry average incentive dipped 6.2% to $2,801 in September from $2.987 in August while it increased 13.1% from $2,447 in the year-ago September. On a brand-wise, it paid 11.8% lower incentive for Nissan’s Infiniti though it surged 26% over last year’s September. Similarly it paid 10.7% and 10.4% lower incentives for Hyundai and General Motors Company (NYSE:GM) brands such as Buick, Cadillac, Chevrolet, and GMC. Significantly, Hyundai was the only company to be promoted with less incentive on a year-over-basis too. In fact, the drop was 12.7%, which was more than the month-over-month.
Other major auto companies to attract lower incentive included Ford Motor Company (NYSE:F)‘s brands Ford and Lincoln by 6.7%, Chrysler’s Dodge, Jeep, Ram, and Fiat by 5.2%. Others include Toyota’s Lexus, Scion, Toyota by 6.1% and Volkswagen’s Audi, Porsche and Volkswagen by 7.6%.
On a year-over-year basis, TrueCar Inc (NASDAQ:TRUE) paid more incentives for Honda’s Acura, Honda by 40.5% followed by Nissan by 26.0% and Toyota by 22.8%. As far as General Motors’ cars, the company has paid only 2.7% more incentive over the last year’s September. While Ford and Chrysler attracted 11.6% and 15.7% more incentives respectively over the prior year month.
Average Transaction Price
The industry’s average transaction price fell 1.4% year-on-year and 1.9% month-on-month. Hyundai and Chrysler enjoyed better ATP on both the comparable periods. While Chrysler vehicles’ ATP rose 1.8% in September from August, it increased 5.8% over the year-ago period of September. Similarly, for Hyundai, the month-over-month and year-over-year ATP recorded growth of 2.1% and 5.5% respectively.
GM’s September ATP increased 5.3% over the previous month while it dipped 0.9% from August current year. Ford managed to record 0.5% year-over-year and 1.3% month-on-month growth in its ATP. Toyota witnessed a drop of 1.8% and 0.5% in ATP over the previous month and year respectively.
