How the TrueCar Price Flex Score Works The TrueCar Price Flex Score measures the elasticity of transaction price by model. The Price Flex Score calcula- tion dynamically incorporates the factors that affect price variance including the model’s transaction price range, current inventory and sales data. A vehicle experiencing extremely low inventory and a small range of transaction prices will have a low Price Flex Score. Don’t expect much of a discount from the TrueCar average transaction price on a vehicle with a low Price Flex Score. If a vehicle has a high Price Flex Score, however, you have the potential to strike a deal significantly below (or above, if you’re not careful!) the TrueCar average transaction price. Here are the 2010 models with the highest and the lowest Price Flex Scores. We also show the models with the highest and lowest Price Flex Score within each vehicle category. The scores range from 1 to 100. A score of 1 corresponds to the lowest Price Flex Score and indicates a very small -if any- negotiation power. A score of 100 indicates the highest Price Flex Score, meaning there is a big range of transaction prices for that model. July 15th, 2010 by Automotive intelligence covering new car prices, best car deals and more. The Truth Will Prevail The TrueTrends monthly report includes TrueCar’s unique Price Flex Score, identifying new cars with the most negotiating room, as well as best deals by Greatest Percentage below MSRP, Total Incentives, Greatest Price Drops and Days in Inventory. Highlights included: • The Greatest Discount section features makes and models that offer the highest discounts on 2010 and 2011 models. • Model year 2010 domestic makes including Chevrolet, Ford, Mercury, GMC, and Chrysler offer the biggest discounts. • Foreign automakers including Toyota, Honda, BMW, and Kia are offering the biggest discounts on 2011 makes. • Wednesday, July 28th will be the day consumers can expect the best buys for the month, with a projected 12.5% discount from MSRP. In addition, the first half of August will see steady discounts over 8%. • BMW is leading the way in sales of 2011 models, with 66.6% of their month’s sales coming on 2011 models. Most of BMW’s offerings are available in 2011 models, including the 3, 5 and 7 Series, M3, X5, X6 and Z4. • Vans, subcompact cars, and sport cars are where the best potential inventory-based discounts will be seen. On average, convertibles are staying in inventory for 137 days, while subcompact cars and sport cars are on-lot for 79 days and 72 days respectively. Meanwhile, Luxury SUVs continue to move off the lots quickly, with an average inventory stay of 31 days. • The Mitsubishi Lancer Sportback is a potential steal, remaining in inventory at an average of 166 days. However, it will be tough finding a Lexus LX 570, which has an average stay of 12 days. • In this edition we’ve added vehicle category breakdowns for least and most flexible vehicles, greatest discounts, greatest price drop, and days in inventory. • These TrueTrends findings will provide consumers with the insights necessary to be better prepared before purchasing their vehicle.
Transcript
How the TrueCar Price Flex Score Works
The TrueCar Price Flex Score measures the elasticity of transaction price by model. The Price Flex Score calcula-tion dynamically incorporates the factors that affect price variance including the model’s transaction price range, current inventory and sales data. A vehicle experiencing extremely low inventory and a small range of transaction prices will have a low Price Flex Score. Don’t expect much of a discount from the TrueCar average transaction price on a vehicle with a low Price Flex Score. If a vehicle has a high Price Flex Score, however, you have the potential to strike
a deal significantly below (or above, if you’re not careful!) the TrueCar average transaction price. Here are the 2010 models with the highest and the lowest Price Flex Scores. We also show the models with the highest and lowest Price Flex Score within each vehicle category. The scores range from 1 to 100. A score of 1 corresponds to the lowest Price Flex Score and indicates a very small -if any- negotiation power. A score of 100 indicates the highest Price Flex Score, meaning there is a big range of transaction prices for that model.
July 15th, 2010
by
Automotive intelligence covering new car prices, best car deals and more.
The Truth Will Prevail
The TrueTrends monthly report includes TrueCar’s unique Price Flex Score, identifying new cars with the most negotiating room, as well as best deals by Greatest Percentage below MSRP, Total Incentives, Greatest Price Drops and Days in Inventory. Highlights included:
• The Greatest Discount section features makes and models that offer the highest discounts on 2010 and 2011 models.
• Model year 2010 domestic makes including Chevrolet, Ford, Mercury, GMC, and Chrysler offer the biggest discounts. • Foreign automakers including Toyota, Honda, BMW, and Kia are offering the biggest discounts on 2011 makes.
• Wednesday, July 28th will be the day consumers can expect the best buys for the month, with a projected 12.5% discount from MSRP. In addition, the first half of August will see steady discounts over 8%.
• BMW is leading the way in sales of 2011 models, with 66.6% of their month’s sales coming on 2011 models. Most
of BMW’s offerings are available in 2011 models, including the 3, 5 and 7 Series, M3, X5, X6 and Z4.
• Vans, subcompact cars, and sport cars are where the best potential inventory-based discounts will be seen. On average, convertibles are staying in inventory for 137 days, while subcompact cars and sport cars are on-lot for 79 days and 72 days respectively. Meanwhile, Luxury SUVs continue to move off the lots quickly, with an average inventory stay of 31 days.
• The Mitsubishi Lancer Sportback is a potential steal, remaining in inventory at an average of 166 days. However, it will be tough finding a Lexus LX 570, which has an average stay of 12 days.
• In this edition we’ve added vehicle category breakdowns for least and most flexible vehicles, greatest discounts, greatest price drop, and days in inventory.
• These TrueTrends findings will provide consumers with the insights necessary to be better prepared before purchasing their vehicle.
The greatest percent below MSRP helps identify the biggest consumer discounts of the month. Below, TrueCar ranks 2010 and 2011 vehicles with average transaction prices that comprise the greatest percent off the make or model’s average MSRP.
Greatest Discounts (continued...)
1
Make
Top Discounts: 2010 Makes Top Discounts: 2011 Makes
Top Discounts: 2010 Models Top Discounts: 2011 Models
This table shows the highest incentive for each brand ranked. Generally, incentives are active throughout the month in which TrueTrends by TrueCar is released. Though active at the time of the reports’ release, incentives are subject to change without notice. Check for updates on the TrueCar price report for each model and with your dealer.
Models with Largest Total Incentives
1
Make / ModelRank Customer Cash Rebate
2
3
4
5
BMW M6
Infiniti QX56
Chevrolet Impala
Volvo XC70
Cadillac Escalade ESV
$0
$0
$0
$5,000
$5,000
$12,500
$7,000
$5,000
$0
$0
Dealer Cash
Best Day of the Month to Buy a Car
Consumer Tip of the Month
Our projections for the best and worst day to buy a new vehicle are rooted in an analysis of historical sales as well as short-term forecasts. Our projections over the next 31 days suggest that the best day to buy a car is actually Wednesday, July 28th. The worst day to buy a car will likely be on Monday, July 19th.
Best Day to Buy a VehicleJuly 28th, 2010Average Discount: 12.47%
Worst Day to Buy a VehicleJuly 19th, 2010Average Discount: 8.14%
2010 Vehicles: Shortest Days in Inventory 2010 Vehicles: Longest Days in Inventory
1
Make / ModelRank Days in Inventory
2
3
4
5
6
7
8
9
10
2
3
4
5
6
7
8
9
10
1
Make / ModelRank Days in Inventory
Shortest to Longest ( by Vehicle Category )
Industry Wide Average Days in Inventory for June: 50 Days
Shortest and Longest Days in Inventory
1
15
Vehicle CategoryRankAverage
Days in Inventory
June’s Shortest and Longest Days in Inventory
TrueCar ranks the vehicles that spend, on average, the shortest and longest days on the lot before they sell. We rank by both overall shortest / longest days in inventory and by category. Vehicles that spend little time in inventory are in high demand, while vehicles that spend an extended time in inventory are in low demand.
2011 Vehicles: Shortest Days in Inventory 2011 Vehicles: Longest Days in Inventory
1
Make / ModelRank Days in Inventory
2
3
4
5
6
7
8
9
2
3
4
5
6
7
8
9
1
Make / ModelRank Days in Inventory
Porsche 911
Ford Fiesta
Jaguar XJ
Chevrolet Camaro
Porsche Cayenne
Porsche Panamera
Jaguar XJL
Subaru Legacy
Chevrolet Traverse
Toyota Camry Hybrid
Toyota Camry
Mercedes-Benz SL550
Volvo C30
Kia Sorento
Infiniti M37
Toyota Sienna
Scion xB
BMW 328 xDrive
5
6
6
6
7
7
8
8
9
49
44
42
42
33
28
26
21
20
Percent Industry Share of Model Year Vehicles
Model Year Share shows the percentage share of 2010 model year vehicles sold within the last month versus vehicles of any other model year sold. Generally, the higher the model year share value, the higher the discount a consumer can expect to receive on that given model. It also reflects that dealers are more likely to cut deals on a 2010 model in order to make room for a 2011. At this time of year, many brand’s model year mix are predominantly comprised of 2010’s. The makes with the highest percentage of 2010 model year share are Lexus, Land Rover, and Mazda.
Model Year Share
Between 2009, 2010, and 2011 vehicles, 2010 shares 87.4% of total sales.
TrueCar is the authority in new-car pricing. We show car buyers and car dealers how much people actually paid for a particular car in a specific local area. With TrueCar pricing, both new car buyers and new car dealers can know at any time what is considered a good or great price on a new car. Consumers no longer need to walk into a dealership partially informed and fully suspicious – using TrueCar they walk in knowing the price of a fair deal. Dealers benefit by TrueCar’s real-time, unbiased information about
Contact Us
TrueCar Inc.225 Santa Monica Blvd, 6th FloorSanta Monica, CA 90401(800) [email protected]
Visit us at www.truecar.com
marketplace pricing, helping them price cars for increased sales, and ultimately gaining market share over other dealers. Our innovative new car pricing service is offered free of charge on our website at www.truecar.com, on our mobile site at mobile.truecar.com, and via syndication of our tools and pricing data to leading automotive research sites throughout the web.
Disclaimer
This report and the information contained herein is for your noncommercial, personal use on an “as-is, as available” basis and may be used by you for informational purposes only. TrueCar makes no representations or warranties, express or implied, with respect to the information contained in this report and the results of the use of such information, including but not limited to implied warranty of merchantability, fitness for a particular purpose, and non-infringement. The information contained in this report may
include technical inaccuracies or typographical errors. Neither TrueCar nor any of its parents, subsidiaries, affiliates, or their respective partners, officers, directors, employees, or agents shall be held liable for any damages, whether direct, incidental, indirect, special, or consequential, including without limitation lost revenues or lost profits, arising from or in connection with your use or reliance on the information presented in this report.
