Car Sales Projected Down, CU Market Share Up

TrueCar, Inc. reported the online car-buying service expects total new vehicle industry sales to reach 1,166,569 units in June 2022, down 14% from a year ago and down 3% from May 2022, when adjusted for the same number of selling days. This month's seasonally adjusted annualized rate for total light vehicle industry sales is an estimated 13 million, down 13% from June 2021. Excluding fleet sales, TrueCar expects U.S. retail deliveries of new cars and light trucks to be 1,023,466 units, down 15% from a year ago and down 5% from May 2022.

And credit unions’ piece of that pie is growing! Just a few weeks ago, TrueCar had reported that credit unions’ auto finance market share had hit 22.06%, up from 18.55% the prior year.

Joe Winn, president of GreenProfit Solutions - an end-to-end auto loan revenue growth service exclusive to credit unions - said he wasn’t surprised. “As cars get more expensive and shortages continue, it’s great to see credit unions earning a larger share of auto loans at their lower-than-average rates. It’s more important than ever to be part of members’ car-buying journey, and our partner, TrueCar, helps them accomplish just that.”

Joe Winn

CEO, GreenProfit Solutions

It’s not just about getting the financing in this current crazy market, but comprehensively serving members with auto loan ancillary products that support credit unions’ mission and financial empowerment.

“Besides financing, our partner credit unions serve a crucial role in financial empowerment and protection with their ancillary products,” Winn continued. “Members who understand their value early will consider them at closing. Building mission-driven revenue while protecting members during challenging times? I don’t know what’s more credit union than that!”

New Car Inventory

"As we head into the July fourth weekend, inventory across the industry remains at or near the constrained levels we've been seeing throughout 2022, although demand for vehicles remains strong," said Nick Woolard, Lead Industry Analyst at TrueCar. "We continue to see rapid growth in demand for new electric vehicles amid soaring fuel prices, with that segment's mix of leads up over 100% from last June. This remains one of the areas in particular that is seeing limited inventory."

"With interest rates rising, consumers who are entering the market for a vehicle for the first time in a while might see rates very different from the ones they saw in 2018 or 2019," said Justin Colon, Vice President of OEM Solutions at TrueCar. "We're seeing consumers opting for longer loan terms to offset the impact of rising APRs. Specifically, there has been a 30% increase in the mix of loan terms of 84 months or more from last year."

More Insights (from TrueCar):

• Total sales for June 2022 are expected to be down 14% from a year ago and down 3% from May 2022 when adjusted for the same number of selling days.

• Fleet sales for June 2022 are expected to be down 8% from a year ago and up 14% from May 2022 when adjusted for the same number of selling days.

• Incentive spend is down 57% from last year.

• Average transaction price is projected to be up 13% from a year ago and up 2% from May 2022.

• Total SAAR is expected to be down 13% from a year ago at 13 million units.

• Used vehicle sales for June 2022 are expected to reach 2.9 million, down 16% from a year ago and down 13% from May 2022.

• The average interest rate on new vehicles is 5.2% compared to May 2022 at 5.1% and the average interest rate on used vehicles is 8%.

• The average loan term on a new vehicle for June 2022 is about 71 months and the average loan term on a used vehicle is also about 71 months, both up about one month since last June.

• Quarterly average transaction price is projected to be up 15% from a year ago and up 2% from Q1 2022.

• Quarterly incentive spend is down 59% from Q2 2021.