New Car Pricing Tool from TRUECAR

Replies to This ADM Discussion

Permalink Reply by Stan Sher on July 2, 2009 at 6:21pm

I have been working with this store and seeing that they get zag.com leads from customers from very far locations and even though they are to come in at a set price, the customer still wants to shop their local dealer and end up buying elsewhere because they save an extra $100 and the long trip. The dealer can't afford to take that short of a deal because they have to pay zag.com for the lead. So who wins here? Zag.com, another really stupid idea. I guess if your going to be an automotive vendor company, it would help if you were a real car guy with real front line experience. Maybe, your business would work and be more successful. That is why I always preach, if you have no experience in this line of work, don't try to change the industry. That is what these two sites are, junk.

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Permalink Reply by Stan Sher on July 2, 2009 at 6:17pm

Thanks for the support. This is exactly what I was trying to relay.

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Permalink Reply by David T. Gould on July 2, 2009 at 9:30am

TrueCar.com gives the "customer" what they want... a "tool" to guide them with their purchase. Good, bad or indifferent it is what professional auto people do with that information that make's a deal. If the numbers are wrong from previous incentives or even a typo... The market will not bear that transaction at that price. Price today has fallen to at least third place in todays consumer's purchasing priorities (behind Time, Safety, Location, other depending on the study). This thread reminds me of the days when "invoice" was first posted on the web. Stay on the digital high ground... be prepared with your own "tool" to support your price. Sell value in yourself, your dealership and the product. Price will work itself out. Good Selling! DTG

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Permalink Reply by Clarence U Romero on July 2, 2009 at 10:15am

David, nobody is talking about invoice being advertised. We are talking about a site that instead of helping the dealer and the customer get together, it's working more as a predator type site. Truecar.com does not suggest a dealer, nor does it show live inventory. It sets the customer off with information it thinks is accurate. Because a dealer let's go of a vehicle to attain a bonus, does not make it the normal price. I hope you agree? This is what Truecar.com is telling consumers. It's not a fair level playing field for both parties.

I am completely in favor for complete disclosure. I am sure you will find plenty of dealers that would jump at the chance to sell a vehicle at $100 over invoice. Even at this number the dealer doesn't really make money. They have to pay the salesperson, and prep.

I too am a car guy. I spent 11 years in several Difeo Stores, and a total of 17 years of automotive experience. I do see both sides, and I don't think it's fair to arm customers with wrong information, it's not right. I remember when they published a book that actually told customers to be rude to the dealer, and that will get you a better price. Does anyone remember that? Everyone that ever worked in a store, do you remember having to deal with that customer?

There are several ways to connect a customer with a dealer, at a fair price. Truecar.com is not one of them

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Permalink Reply by Stan Sher on July 2, 2009 at 6:23pm

Yet, truecar.com wants dealer s to sign up with them so that they can provide them with leads. How is it far to work with someone that you crap all over? lol...

Glad you see my point.

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Permalink Reply by Blaine Twilley on July 2, 2009 at 12:29pm

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Permalink Reply by Philip Zelinger on July 10, 2009 at 10:44pm

Hey Matt - and friends,

I spent some time on the TrueCar site and I have a few questions as well as comments that beg to be answered and addressed. My first question is in regard to their data and their assertion within the postings on their site that it factors in the potential for an "over allowance" on a trade by comparing the figure to the book value when computing their supposed net sales transaction prices. With all due respect - I find that hard to believe as being sourced from any real world sampling of any size taken from various third party resources as they claim. I didn't find any credible information on the site to validate their source or process to accumulate their historical sales data by vehicle let alone by zipcode. Frankly, their graphs and basic information regarding MSRP, Invoice, Incentives and their vehicle selection application is very pretty and convincing to a consumer but I remain skeptical as to their accuracy and even honesty in their claims. Of course - I could be wrong, but, I don't think so!

That said, I do think that they provide value to consumers - real or perceived - with some of the "inside" information that they post explaining the sales process from the dealer's perspective along with the customer comments and their explanations to posted replies. Their "professed" transparency and social networking personality to the site will attract consumers who will eventually arrive at a legitimate price after some run-ins with frustrated dealers who take the confusion that the site created personally. The opportunity for a dealership to use the site to their advantage will be for those dealers that are smart enough to build a relationship by explaining the unique advantages that they represent rather than challenging the validity of the site.

Simply put, treat the TruePrice customer the same way that you do with any customer that comes in with a "low ball" offer - if that is the case. Even if you can't match a loser deal posted on TrueCar that may actually have been offered by the dealer down the street who may have a "push" based incentive program from the factory that you can't compete with, or a used car manager who doesn't expect to be there when the dealer realizes that he has placed him underwater on the trade you can at least preserve the service business! You may be able to justify losing the deal, but in this market you can't afford to lose the customer!

Work the customer like any other agressive shopper and profess your common support for the site to make a friend. Differentiate yourself from the "old school" car guys who challenge the site and the customer which only serves to empower the customer to continue shopping to prove them wrong. After those other dealers blow him out and he comes to you with the same TrueCar print out just sell yourself and work the best deal for both and make sure that you are the last salesman - not the first - and make a friend. After all, what are friends for!

PS: I would LOVE it if the principals at TrueCar would provide me and the ADM members some insight into their data collection process to support the validity of their posted sales prices. After all, I could be wrong about my opinion of their data - but, I don't think so!

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Permalink Reply by Clarence U Romero on July 11, 2009 at 10:42am

Hey Philip,

It's always good to read your posts. You’re a fair person that sees the good in all, and I respect that. The Truecar data comes from their sister company Zag.com that runs Truecar.com. They also send out surveys.

I love anything that creates transparency and speeds up the buying cycle. I also believe that all sites give great information to customers. What I don't like about this site is the inaccurate information given to customers, and instead of helping both parties make the process easier, it makes it harder.

I am on the vendor side now, but I have not forgotten my roots, that started in a store in Jersey City NJ. I don't believe it's fair for a vendor to act as a low balling dealer, without selling any cars, and calling it a service for sale, to the very same dealers?

I don't hate the site, just think the information should be adjusted. The new car information can be changed easily, but anyone that has been in the business knows that used vehicle prices change every day, sometimes twice a day. Whoever has been to an auction knows what I am talking about.

Philip you know my product, RedNUmbat. We give prices to consumers as well, but our prices are based on dealers live inventory. I actually reached out to them and offered to help them with their information, and they said Zag.com takes care of the information and it cannot be changed? Zag.com in one of Painter's latest projects that received over 70 million and recently had to lay off most of the company just to keep operating. This just tells you what’s behind Truecar.com.

Again, if they change their information making it more accurate, they will be very successful


Clarence

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Permalink Reply by Philip Zelinger on July 17, 2009 at 11:44am

Thanks Clarence - I LIKE YOU TOO!

Before ADM starts talking about us, I should add that I agree that correct and current information is the key to both of our points. Our common challenge to TrueCar lies in the perception that they give customers as to the accuracy of their pricing information and the mistaken assumption that customers undoubtedly arrive at that they can rely on them to negotiate their best deal.

Thanks for the explanation of the source of TrueCar's pricing data and frankly it evidences my concern that they are neither timely or correct when applied to an actual negotiation for the customer or the dealer.

My considered opinion is that they will create more problems than they solve, however - as is the case with any price objection - a properly trained salesperson should be able to convert the lead to a sale if they make a friend. After all, what are friends for!

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Permalink Reply by Brian Ferris on July 26, 2009 at 1:52pm

You have to admire this guy, Scott Painter. 'Not for his products but his ability to raise capital. The first guy who can match his talent with a real product will be rich.

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Permalink Reply by Stan Sher on July 26, 2009 at 11:47pm

It is talent to be a fraud and release garbage and still raise capital when other people with a better product and business model can't raise a dime.

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