TrueCar Changes Billing Model in Virginia in Order to Ensure Immediate Regulatory Compliance
SANTA MONICA, Calif., Jan. 11, 2012 /PRNewswire/ — TrueCar, Inc., which is devoted to bringing transparency to the car buying process, today announced that it is adjusting its billing model in the Commonwealth of Virginia as a meaningful step towards seamlessly providing greater transparency and quality service to car buyers and dealers alike while also working within existing regulatory requirements. Working and communicating with the Virginia regulatory authority, TrueCar has changed its billing model in Virginia to a subscription fee that is not tied to sales. All participating Virginia dealers have been notified of this change that will enable them to operate in the TrueCar marketplace with complete regulatory compliance.
TrueCar is committed to working closely with dealers while also helping consumers in their car-buying process. As such, TrueCar has always aspired to provide true performance-based marketing to its dealer partners in all 50 states, including Virginia. In TrueCar’s performance-based billing model, participating dealers paid TrueCar a flat fee of $299 for every new car sold to a customer using a TrueCar site. TrueCar believes this model effectively shifts marketing risk away from participating dealers while providing customers the best possible car-buying experience.
“TrueCar is committed to never putting our dealer partners at risk, which means we will always work closely with regulators to identify a workable solution or either suspend service,” said Scott Painter, Founder and CEO of TrueCar, Inc. “We also want consumers and dealer partners to know that it’s business as usual in Virginia and price guarantees will be honored at TrueCar dealerships.”
TrueCar has been engaged in discussions with Virginia and other state regulators on its current billing model and will continue these discussions as it identifies solutions that are forward looking while still complying with existing laws. In coming weeks, TrueCar will also implement additional changes to its business practices as needed on a state-by-state basis, primarily related to dealer pricing and advertising. TrueCar will also phase down current television advertising while it develops new ads that focus less on price and more on dealer attributes like proximity, selection and service.
TrueCar will continue to work with state regulators in an attempt to identify ways to improve current laws and regulations given the availability of data in the digital age in a way that continues to accommodate dealers by giving them what they want – 100 percent accountability in their partners.
TrueCar, Inc. is an automotive solutions provider focused on changing how cars are sold by providing a significantly better customer experience while helping qualified dealer partners gain incremental market share and reduce costs. TrueCar is a transparent, visual publisher of new car transaction data. TrueCar price reports help both dealers and consumers to agree on the parameters of a fair deal by providing an accurate, comprehensive and simple understanding of what others actually paid for the identically equipped new car over the last 30 days both locally and nationally. TrueCar works with a national network of Certified Dealers that provide up-front, no-haggle, competitive pricing to assist some of the nation’s largest and most well respected membership and service organizations to meet the auto buying needs of their members and customers. Collectively, these audiences represent over 1M in-market customers each month. TrueCar is headquartered in Santa Monica, CA and has offices in San Francisco. The company was founded in 2005 and has been profitable since 2009. With 131 percent annual growth since 2006, TrueCar has helped dealers sell over 400,000 vehicles and is developing a suite of transaction oriented products and services centered on transparency and radical clarity as a result of comprehensively analyzing market data and information.
This press release and the information contained herein is for noncommercial use on “as-is, as available” basis and may be used for informational purposes only. TrueCar makes no representations or warranties, express or implied, with respect to the information contained in this press release and the results of the use of such information, including but not limited to implied warranty of merchantability, fitness for a particular purpose and non-infringement. The information contained in this press release may include technical inaccuracies or typographical errors. Neither TrueCar nor any of its parents, subsidiaries, affiliates or respective partners, officers, or directors, employees or agents shall be held liable for any damages, whether direct, incidental, indirect, special or consequential, including without limitation lost revenues or lost profits, arising from or in connection with your use or reliance on the information presented in this press release.
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SOURCE TrueCar, Inc.