ALG, the industry benchmark for determining the future resale value of a vehicle, projects U.S. revenue from new vehicle sales will reach $49 billion for the month of June, up 1.5 percent from a year ago.

ALG expects a decline of $678 million in revenue for automakers versus June 2016. Additionally, incentive spending is projected to increase 9.7 percent.

"With the exception of Hyundai and Subaru, all automakers are showing gains in Average Transaction Prices (ATP) on a year over year basis. Mercedes-Benz showed the largest gains in ATP, up 5.6% thanks to the success of the all new E Class and red-hot GLC Class," said Eric Lyman, ALG's Chief Industry Analyst. "As a key indicator of retail industry health, ALG is pleased to see incentive spending as a percentage of ATP remain relatively flat. The industry continues to work through high inventory levels, with incentives being utilized to offload aging inventory. The rise in ATP can be attributed to more expensive light trucks and well-equipped new vehicles with high-end features that consumers are increasingly demanding."

ALG estimates ATP for a new light vehicle was $32,900 in June, up 1.5 percent from a year ago. Average incentive spending per unit grew by $315 to $3,550. The ratio of incentive spending to ATP is expected to be 10.8 percent, up from 8.1 percent a year ago.

Average Transaction Price (ATP)
Manufacturer  

June 2017Forecast
  June. 2016   May 2017  

Percent Changevs.June. 2016
 

Percent Changevs.May 2017
BMW (BMW, Mini)   $ 52,500   $ 51,300   $ 52,800   2.3 %   -0.6 %
Daimler (Mercedes-Benz, Smart) $ 59,900 $ 56,700 $ 60,200 5.6 % -0.5 %
FCA (Chrysler, Dodge, Jeep, Ram, Fiat) $ 33,300 $ 32,800 $ 33,100 1.5 % 0.6 %
Ford (Ford, Lincoln) $ 35,300 $ 34,900 $ 35,600 1.1 % -0.8 %
GM (Buick, Cadillac, Chevrolet, GMC) $ 37,700 $ 36,500 $ 37,400 3.3 % 0.8 %
Honda (Acura, Honda) $ 27,300 $ 27,000 $ 27,400 1.1 % -0.4 %
Hyundai $ 22,600 $ 23,500 $ 22,900 -3.8 % -1.3 %
Kia $ 22,700 $ 22,600 $ 22,800 0.4 % -0.4 %
Nissan (Nissan, Infiniti) $ 27,600 $ 27,100 $ 27,800 1.8 % -0.7 %
Subaru $ 27,500 $ 27,600 $ 27,800 -0.4 % -1.1 %
Toyota (Lexus, Scion, Toyota) $ 31,200 $ 31,000 $ 31,100 0.6 % 0.3 %
Volkswagen (Audi, Porsche, Volkswagen)   $ 36,200   $ 34,600   $ 34,700   4.6 %   4.3 %
Industry   $ 32,900   $ 32,400   $ 32,800   1.5 %   0.3 %
 

Incentive per Unit Spending
Manufacturer  

June. 2017Forecast
  June 2016  

May 2017
 

Percent Changevs.June 2016
 

Percent Changevs.May 2017
BMW (BMW, Mini)   $ 4,157   $ 5,405   $ 4,149   -23.1 %   0.2 %
Daimler (Mercedes-Benz, Smart) $ 4,449 $ 4,746 $ 4,590 -6.3 % -3.1 %
FCA (Chrysler, Dodge, Jeep, Ram, Fiat) $ 4,389 $ 4,063 $ 4,434 8.0 % -1.0 %
Ford (Ford, Lincoln) $ 4,157 $ 3,681 $ 4,124 12.9 % 0.8 %
GM (Buick, Cadillac, Chevrolet, GMC) $ 4,361 $ 4,063 $ 4,219 7.3 % 3.4 %
Honda (Acura, Honda) $ 2,056 $ 1,720 $ 2,048 19.5 % 0.4 %
Hyundai $ 3,259 $ 2,291 $ 3,221 42.2 % 1.2 %
Kia $ 3,384 $ 2,707 $ 3,358 25.0 % 0.8 %
Nissan (Nissan, Infiniti) $ 4,148 $ 3,451 $ 4,114 20.2 % 0.8 %
Subaru $ 1,032 $ 632 $ 995 63.4 % 3.8 %
Toyota (Lexus, Scion, Toyota) $ 2,506 $ 2,293 $ 2,591 9.3 % -3.3 %
Volkswagen (Audi, Porsche, Volkswagen)   $ 3,460   $ 3,796   $ 3,432   -8.9 %   0.8 %
Industry   $ 3,550   $ 3,235   $ 3,499   9.7 %   1.4 %
 

Incentive Spending as a Percentage of ATP
Manufacturer  

June 2017Forecast
  June 2016   May 2017  

Percent Changevs.June 2016
 

Percent Changevs.May 2017
BMW (BMW, Mini)   7.9 %   10.5 %   7.9 %   -24.8 %   0.8 %
Daimler (Mercedes-Benz, Smart) 7.4 % 8.4 % 7.6 % -11.3 % -2.6 %
FCA (Chrysler, Dodge, Jeep, Ram, Fiat) 13.2 % 12.4 % 13.4 % 6.4 % -1.6 %
Ford (Ford, Lincoln) 11.8 % 10.5 % 11.6 % 11.6 % 1.7 %
GM (Buick, Cadillac, Chevrolet, GMC) 11.6 % 11.1 % 11.3 % 3.9 % 2.6 %
Honda (Acura, Honda) 7.5 % 6.4 % 7.5 % 18.2 % 0.7 %
Hyundai 14.4 % 9.7 % 14.1 % 47.9 % 2.5 %
Kia 14.9 % 12.0 % 14.7 % 24.5 % 1.2 %
Nissan (Nissan, Infiniti) 15.0 % 12.7 % 14.8 % 18.0 % 1.6 %
Subaru 3.8 % 2.3 % 3.6 % 64.0 % 4.9 %
Toyota (Lexus, Scion, Toyota) 8.0 % 7.4 % 8.3 % 8.6 % -3.6 %
Volkswagen (Audi, Porsche, Volkswagen)   9.6 %   11.0 %   9.9 %   -12.9 %   -3.4 %
Industry   10.8 %   10.0 %   10.7 %   8.1 %   1.1 %
 

(Note: This forecast is based solely on ALG's analysis of industry sales trends and conditions and is not a projection of the company's operations.)

About ALG

Founded in 1964 and headquartered in Santa Monica, California, ALG is an industry authority on automotive residual value projections in both the United States and Canada. By analyzing nearly 2,500 vehicle trims each year to assess residual value, ALG provides auto industry and financial services clients with market industry insights, residual value forecasts, consulting and vehicle portfolio management and risk services. ALG is a wholly-owned subsidiary of TrueCar, Inc., a digital automotive marketplace that provides comprehensive pricing transparency about what other people paid for their cars. ALG has been publishing residual values for all cars, trucks and SUVs in the U.S. for over 50 years and in Canada since 1981.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170703005071/en/

Copyright Business Wire 2010