Happy days are here again.
Increased sales volume and higher transaction prices in January generated $37.6 billion of net revenue for automakers in the U.S., a 17.2 % increase from the year-earlier month. Preliminary estimates show U.S. sales of new cars and light trucks expanded 13.2% last month, reaching the highest January volume since 2000.
The average transaction price (ATP) for light vehicles was $32,812, up 3.5% from a year ago, while average incentive spending per unit increased by $93 to $2,642. The ratio of incentive spending to ATP was 8.1%, expanding slightly from 8.0% compared to the previous year.
“January turned out to be a very healthy month for several automakers, with GM, Honda and Subaru all posting net revenue gains of over 20%,” said Eric Lyman, vice president of industry insights for TrueCar.
“With consumer spending rising at the highest rate since 2006, consumer sentiment at a decade high and low gasoline prices we’re bullish on automakers’ total revenue for the year. We project a 4.8% increase from last year, reaching an astounding $553 billion in new vehicle revenue.”
