TrueCar announced updated standards for its dealer program to help its network of automotive retailers sell vehicles faster while protecting gross margins.
The new framework reinforces pricing transparency, improves accountability across the marketplace, and ensures dealers compete on a level playing field.
"Everything we're doing with these updated terms is in service of the dealer's primary objective, which is selling cars," said Scott Painter, founder and CEO of TrueCar. "When pricing is credible and the rules are consistent, customers show up ready to buy and dealers can move inventory faster without giving away their margin. TrueCar is introducing exactly what the auto retail space needs: a marketplace that actually helps dealers sell cars."
Under the updated program, participating dealers will provide individualized offers to TrueCar shoppers that are lower than their lowest publicly advertised price. By presenting credible offers up front, dealers can engage customers earlier in the buying process and convert leads into sales more quickly. TrueCar data consistently shows that when shoppers trust the pricing and know the dealer will honor the offer, they arrive at the dealership ready to purchase, significantly increasing close rates and reducing time spent negotiating.
The updated program also introduces stronger transparency requirements across the dealer network, including a regular sales verification file originated from individual dealer management system (DMS), that allows TrueCar to verify when and at what price a sale occurs to measure the platform's performance.
Over the coming months, TrueCar will work closely with dealers across its national network to implement the updated standards and ensure a smooth transition.
