US edges China in new-vehicle revenue, but loses on sales
Posted on Tuesday, March 17, 2015 at 8:05:04 AM
It's hard to compete with the sheer volume of China's consumers, but it seems that the U.S. gained an edge on its Asian counterpart when it came to new-vehicle revenue.
According to TrueCar, 2014 new-vehicle sales earned upward of $161 billion more in the U.S. than in China. However, China had the advantage when looking at just sales last year, as the country set its own record with 19.7 million completed deals, roughly 19 percent more than the U.S.
The reason for the U.S. taking the lead in terms of revenue is transaction price. China's average sale cost the equivalent of $20,805, while in the U.S. the average sales price was $34,537 in 2014.
"While the growth of China's new vehicle market over the last decade has been impressive, the total value of that market remains considerably lower than the U.S. and will remain so for some time," said John Krafcik, president of TrueCar.
Believe it or not, U.S. consumers have also received a boost from the cold weather this winter. According to the NADA Used Car Guide, The February 2015 cold streak helped keep prices down by limiting supply and demand.
As a result, buyers who did want a used car and auto financing saw lower average list prices than in years past.