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TrueCar forecasts total new vehicle sales up 16% for June 2021 | Automotive World

TrueCar, Inc., the most efficient and transparent online destination to find a car, forecasts total new vehicle sales will reach 1,287,536 units in June 2021, up 16% from a year ago but down 16% vs. May 2021, when adjusted for the same number of selling days

TrueCar, Inc., the most efficient and transparent online destination to find a car, forecasts total new vehicle sales will reach 1,287,536 units in June 2021, up 16% from a year ago but down 16% vs. May 2021, when adjusted for the same number of selling days. This month’s seasonally adjusted annualized rate (SAAR) for total light vehicle sales is an estimated 15.2 million, bouncing back from 13.0 million SAAR in June 2020. Excluding fleet sales, TrueCar expects U.S. retail deliveries of new cars and light trucks to be 1,133,299 units, an increase of 11% from a year ago and decrease of 17% from May 2021, when adjusted for the same number of selling days.

“We have been closely watching declining levels of new car inventory since the beginning of the year but until recently sales have remained strong due to overwhelming demand. We still expect June to show strong gains compared to a year ago but we are seeing some softening compared to prior months,” said Nick Woolard, Lead Industry Analyst at TrueCar. “In addition to lower inventory, we continue to see a sharp downward trend in incentives and a corresponding increase in transaction prices which could sway some shoppers to remain on the fence this month,” added Woolard.

“The chip shortage has complicated OEM operations in terms of shifting priorities around what vehicles to build and where to send them.  Looking at the second quarter compared to first quarter, we see large shifts in market share with the biggest benefactors being Honda, Hyundai and Kia,” said Valeri Tompkins, Senior Vice President of OEM Solutions at TrueCar. “Not all brands have been impacted equally, but the common denominator is that everyone wishes they had more vehicles to sell in the current environment.”

Additional Insights (forecast by TrueCar):

  • Total retail sales for June 2021 are expected to be up 16% from a year ago and down 16% from May 2021 when adjusted for the same number of selling days.
  • Fleet sales for June 2021 are expected to be up 73% from a year ago and down 1% from May 2021 when adjusted for the same number of selling days.
  • Incentive spend is down 33% from last year.
  • Average transaction price is projected to be up 5% from a year ago and up 2% from May 2021.
  • Total SAAR is expected to increase 17% from a year ago from 13.0 million units to 15.2 million units.
  • Used vehicle sales for June 2021 are expected to reach 4.0 million, up 9% from a year ago and even with May 2021.
  • The average interest rate on new vehicles is 4.5% and the average interest rate on used vehicles is 7.5%.
  • The average loan term on a new vehicle for June 2021 is 70 months and the average loan term on a used vehicle is 69 months.

Please click here to view the full press release.

SOURCE: TrueCar

 

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