Auto Average Transaction Prices Outpace Incentive Spending
According to a new passenger car industry analysis, So far this year, industry-wide transaction prices are up $676 per vehicle, while incentive spending has grown just $203.
According to TrueCar, which issued the report, “that’s great for automakers with broad product ranges, who are seeing improving margins and higher volumes this year.”
The group noted that “while some analysts have cautioned that the industry is reverting to unhealthy incentive spending, the reality is that this behavior is largely confined to commodity segments, such as midsize sedans.”
For automakers with balanced product lineups, the challenges in the midsize sedan segment are more than offset by the price and volume opportunities in crossover and sport-utility segments.
Since 2011, the annual growth rate in average transaction price (ATP) of small and midsize crossover and sport-utility vehicles has greatly outpaced the corresponding growth rate for their sedan counterparts.
Over that period, midsize crossovers have seen about twice the annual growth in ATP as midsize cars, while small crossovers have experienced transaction price growth three times greater than that of small cars.
Category: General Update
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