New-vehicle sales gaining momentum since April
Posted on Tuesday, July 1, 2014 at 9:50:05 AM
The second quarter of 2014 has been a good one for buyers interested in affordable auto financing and new vehicles. Sales have been steadily gaining momentum since April, and the last few months have set up the industry for a strong and stable summer.
According to Cars.com, June's Average Transaction Price, or ATP, was at $30,108 for all new light vehicles. That represents a 1.2 percent increase compared to the previous month, although a 3 percent decrease on a yearly basis. This change could prevent auto dealers from turning to incentives to lure in additional buyers.
"The pace of new-vehicle sales picked up in the second quarter of 2014, preventing what previously looked to be an inevitable incentives war this summer," said Jesse Toprak, chief analyst for Cars.com. "Despite the relative year-over-year decline, ATPs have also seen steady improvement in recent months. This combination of lower incentives and higher ATPs means we can reasonably expect improved profitability for the industry in the second quarter."
In addition, TrueCar reported that the average incentive for light vehicles was estimated at $2,735 in June. That is a 1.6 percent year-over-year increase and a 2.4 percent uptick compared to May. Overall, the ATPs and incentives have been relatively steady while sales continue to be strong.