SANTA MONICA, Calif.,
Jan. 14, 2021 /PRNewswire/
-- TrueCar, Inc. projects 16 million new light vehicle sales
for 2021, an increase of 10% from the previous year. Retail sales
are expected to reach 13.9 million, an increase of 9.6% from
2020.
"The year 2020 was a challenging one for the automotive industry
and the economy at large, but the recovery came faster than most
expected, providing strong momentum and pent-up demand going into
2021," said Nick Woolard, Lead Industry Analyst
at TrueCar. "Retail demand is healthy and will remain the
driving force for total vehicle sales in 2021. Fleet sales will
also increase, but at a much slower pace, due to the uncertainty
surrounding travel."
Q4 2020 saw record-breaking average transaction prices for new
vehicles, as incentives eased and consumers opted for more
expensive SUVs and trucks. The trend towards more expensive
vehicles continues in 2021. Average transaction prices are
projected to increase 3.1% year over year to $37,925. In previous years, the average
transaction increased roughly 4% year over year.
"As the K-shaped recovery takes shape in 2021, we expect
higher-income households, who have not been financially impacted by
the pandemic, to continue making new vehicle purchases," added
Woolard. "Continued trends towards large trucks, SUVs, and a
growing array of electric vehicles as well as additional safety and
technology content will lead to even higher average transaction
prices in 2021."
Average interest rates for new vehicles in 2020 were 4.74%, and
interest rates for used vehicles were 8.47%. TrueCar
forecasts that interest rates for 2021 will remain similar to those
we saw in Q4 2020.
"Car shoppers in 2021 can expect interest rates for new and used
vehicles to remain at the low levels we saw towards the latter part
of 2020 with support from the Federal Reserve," said Alain
Nana-Sinkam, Vice President of Strategic Initiatives
at TrueCar. "The Fed is signaling continued support into 2021
as the U.S. economy recovers from the pandemic. The low interest
rates are likely to stay at least through the end of the year."
|
2019
ACTUAL
|
2020
ACTUAL
|
2021
FORECAST
|
YOY%
|
TOTAL
SALES
|
17.0 M
|
14.6 M
|
16.0 M
|
10%
|
|
|
|
|
|
RETAIL
|
13.8 M
|
12.7 M
|
13.9 M
|
9.6%
|
|
|
|
|
|
FLEET
|
3.2 M
|
1.8 M
|
2.1 M
|
12.6%
|
|
|
|
|
|
AVERAGE
TRANSACTION PRICE
|
$35,317
|
$36,786
|
$37,925
|
3.1%
|
|
|
|
|
|
INCENTIVES
|
$3,801
|
$3,937
|
$3,876
|
-1.6%
|
(Note: This forecast is based solely on TrueCar, Inc.'s
analysis of industry sales trends and conditions and is not a
projection of TrueCar, Inc.'s operations.)
About TrueCar
TrueCar is a leading automotive digital marketplace that
enables car buyers to connect to our nationwide network of
Certified Dealers. We are building the industry's most personalized
and efficient car-buying experience as we seek to bring more of the
purchasing process online. Consumers who visit our marketplace will
find a suite of vehicle discovery tools, price ratings, and market
context on new and used cars – all with a clear view of what's a
great deal. When customers are ready, TrueCar will enable
them to connect with a local Certified Dealer who shares in our
belief that truth, transparency, and fairness are the foundation of
a great car-buying experience. As part of our marketplace, TrueCar
powers car-buying programs for over 250 leading brands, including
AARP, Sam's Club, and American Express. Nearly half of all
new-car buyers engage with TrueCar-powered sites, where they
buy smarter and drive happier. TrueCar is headquartered
in Santa Monica, California,
with offices in Austin, Texas, and Boston,
Massachusetts.
For more information, please visit www.truecar.com, and
follow us on Facebook or Twitter. TrueCar media
line: +1-844-469-8442 (US toll-free) |
Email: pr@truecar.com
TrueCar PR Contacts:
Shadee Malekafzali
shadee@truecar.com
424.258.8694
Tanya Kohan
tkohan@truecar.com
714.425.6319
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SOURCE Truecar, Inc.