SANTA MONICA, Calif.TrueCar Inc., the car buying and selling platform, is forecasting new car and light truck sales could hit 17 million units next year, based on a convergence of favorable economic circumstances.
New car sales of 17 million would be the highest level since 2005, TrueCar said.
We see a convergence of favorable economic circumstances pushing auto demand up to pre-recession levels, including continued gains in the job market, the best consumer sentiment in eight years and low fuel prices, said TrueCar President John Krafcik. This year has been remarkable in terms of growth and revenue coming from big gains in pickup, utility and luxury vehicle sales. We think 2015 will be even better.
Market sales, including new and used, should rise 3.4 percent to 55.4 million units over about 54 million in 2014. This translates into $1.2 trillion of revenue based on average transaction prices, which is a 5.5-percent annual increase, TrueCar said.
New vehicle revenue, based on transaction prices, is projected to reach $553 billion next year, a 5-percent increase over the $526 billion generated from an estimated 16.5 million new vehicle sales in 2014.
The average transaction price (ATP) of new vehicles in 2015 will rise 2.4 percent to a record $32,589, based on TrueCar data. The used vehicle ATP should increase 2.1 percent to $16,678 next year. Used vehicle volume will grow 3.8 percent to 38.4 million units, up from 37 million in 2014.
Luxury auto sales will lead growth with a 9.8-percent segment increase, which should rise to $116.7 billion in 2015 over $106.3 billion in 2014. Non-luxury utility vehicles are projected to rise 5 percent to $192.1 billion, and pickups should reach $95.7 billion, up 4.5 percent.
Santa Monica-based TrueCar describes itself as a negotiation-free car buying and selling platform.