Dallas, Texas 09/10/2014 (FINANCIALSTRENDS) – The online platform for car buyers TrueCar, Inc (NASDAQ:TRUE) has been buoyant about sales forecasts – expecting the volumes to reach 100, 000 to 200,000 units per year, for the next couple of years.
The positive outlook is based on the August spike in car sales, especially the ‘record traffic’ the company saw on Labor Day. “It’s going to be a great year for the industry, and we think the trend will hold,” shares President of TrueCar, John Krafcik.
Commenting on the statistics of the August monthly sales Krafcik added that, “August is about as good as it gets. The sales month had five weekends plus a holiday,” leading to the robust sales figures.
Highlighting the continued efforts by manufacturers to drive demand, TrueCar, Inc (NASDAQ:TRUE) President Krafcik related that manufacturers were offering incentives across all car segments to realize more sales. But he also added that though there was an increase in spending on the incentives, transaction prices have increased comparably. The current demand is at an all-time high for utilities and is expected to return high profit-margins than car segments.
In recent reports by IHS Automotive, the current trend in automotive registrations has been that of SUVs and crossovers, instead of sedans, in the retail consumer segment. While sale of trucks and SUVs were the predominant trend noted in the monthly reports for the year.
Krafcik concludes that, “Leasing is higher than it has been thus far. This is a good thing for manufacturers because more consumers will be coming back on a shorter replacement cycle.”
TrueCar, Inc (NASDAQ:TRUE) is impressed with the rebound in industry caused by the increase in leasing in recent quarters. It remains optimistic about qualitative sales increase in the next two years.