Anyone who has ever bought a car from a dealership knows how difficult and time-consuming the process can be. Just when you think you’ve negotiated a fair price and started the financing paperwork, the salesperson handling the deal comes up with “new information” that lets you know that the car will cost more than you initially thought. At best, it is a disaster that can take anywhere from 3 hours to all day or even several days. TrueCar is a technology and information-based platform designed to make the car buying experience more fun, much easier and fair for the consumer who has better things to do with their time than sitting at a car dealership. during hours. It’s a great system, but there are a lot of things that the public doesn’t know about. To help you stay informed, here are 20 things about TrueCar you didn’t know.
1. Most used car dealers don’t like TrueCar
Thanks to TrueCar, more consumers are aware of the average price others are paying for specific makes and models and it gives them an additional tool to negotiate with astute car dealers who are trying to get the highest possible price to increase their commissions. Eliminate the rhetorical nonsense involved in price haggling and give the customer more leverage to get a fair deal.
2. Unlike salespeople, car dealers loved TrueCar at first
When the recent recession hit and car sales began to fall, there were many car dealerships clamoring to become a certified TrueCar dealer. The reason for this is that it increased its sales and helped move inventory from car lots to accommodate new models. Consumers simply find the desired model on TrueCar and print the coupon that guarantees a low price. This can prevent salespeople from enthusiastic haggling, and while they are unhappy because it takes away an element of opportunity, their employers are happy to see the merchandise being sold.
3. Auto dealerships turned their appreciation for TrueCar upside down
In 2012, car dealers realized that TruCar was not a good deal for them after all. While it is true that it helped them move inventory during bad times, the fact is, after overhead, the profit margin on new car sales is very low. On average, the profit percentage is around 3.8 percent. After paying the fee charged by TrueCar, the profit was further reduced.
4. The Virginia Automobile Dealers Association solved it with TrueCar
Most people are not aware of the fact that VADA director Donald Hall has been embroiled in fierce battles with the owner of TrueCar. Realizing that moving inventory wasn’t getting auto dealerships where they needed to be, auto dealers like AutoNation and many other large auto retailers saw the industry disruption that TrueCar is causing translate into a “spiral of death ”for many car dealerships.
5. State Automobile Dealer Associations Banned TrueCar Deal
Even after news of the dangers of dealing with TrueCar was shared with car dealership owners, some continued to honor the agreements they made. Some state associations went so far as to threaten to cut advertising funds for dealerships that had ties to TrueCar and sold “too cheap” cars.
6. YouTube videos were made against TrueCar
Due to the impact that TrueCar had on the profit margin of auto dealerships, many frustrated salespeople and others in the auto sales industry turned to the internet. His message was clear and united and was often expressed in anger by people who expressed their frustrations in videos that were uploaded to YouTube and other social media sites.
7. The association with TrueCar may violate some laws.
Most people are not aware of the fact that some states have enacted franchise laws that are designed to protect car brand dealers from undercutting strategies. When a car dealer sells a certain brand at very cheap prices, it dries up the business for others and the integrity of the brand may be damaged, forcing prices to be lowered …