• Stop being a LURKER - join our dealer community and get involved. Sign up and start a conversation.

TrueCar's New Write Off Policy

One thing I would add to what I wrote above is that although I had submitted those write-offs mentioned during the course of about 4 or 5 months, they were the ones we keep getting invoiced for and I kept telling accounting not to pay them. There were many others I had submitted which they quickly and without question wrote off. It was because my CRM screenshots clearly showed that a prior engagement within the past couple of days, or even 30 days or more had taken place, whether they were showroom visits, outbound prospecting calls from our BDC, or other lead sources. They were not difficult to discern. The other 7 or 8 were in my opinion likewise not difficult to discern that we had obvious prior engagement, but for some reason they were not written off until it was taken to a higher level at Truecar and then they were finally written off, all but one and so we didn't continue arguing for that one but just let it go and we paid it.

My point here is that yes there could be different outcomes for different dealers as Michael Timmons said, but that is only because Truecars didn't have a clearly stated policy. It would be easy enough to have a policy that was similar to Autobytel or others. Prior engagement with X number of days (true engagement, not some automated email of course, which is marked as such by most if not all CRMs) with documentation from the CRM via screenshot or CRM report.

Now there seems to be a policy which clearly states what the parameters are as Joe Webb has shown us, but clearly this policy will not be sufficient for a lot of dealers including us.

So that nailed it for us. Had it stayed the way it was, we might have remained with them. But it wasn't meant to be.

Another thing I think needs to be mentioned in this forum for any dealer who opts out of Truecar is to not forget to stop your inventory feed to them. Would really suck if they used your inventory to send leads to competitors like Cars.com apparently does.
 
  • Like
Reactions: 2 people
I'll play a little devil's advocate here, but I should probably mention that I'm not taking sides. I personally have had good and bad experiences with them in the past, but I'm totally neutral on this particular topic. It's just fun to look at it on the other side.

Facts:
- There are plenty of car dealers that do take advantage of the product now
- There wasn't a policy in place before
- TrueCar needed to do something to stop the ones that do take advantage from it.

From a billing side if you are seeing 1000's of cars being written off per month. Why the heck wouldn't you want to do something about it? I would like to know how many on average were getting written off. And how much money was view as a loss because dealers just wrote it off.

From what I understand is you can still write it off, but just because somebody submitted a lead to you at one particular point in time doesn't make it yours until the end of day.
 
Joe,

To be fair, I did call you back as posted below on your website. I am certainly not unwilling to talk or listen to our dealer partners. I have spoken to many dealers over the last few days and was also expecting a call from you. I have also been contacted by many industry thought leaders, media representatives, vendors and even a few competitors. I am happy to share my opinion or answer questions regarding TrueCar either publicly or privately as long as the discussion remains professional. Feel free to call me anytime.

Mike

Joe Webb says:
August 23, 2013 at 11:32 am
Mike Timmons – I appreciate the conversation from last night, as well as you taking the time to post above. I noticed you called today, but I was on a call with one of my dealer clients. I’ll call you back later today.
 
Well, I finally received the email from TRUEcar about the policy change. I agree that this model will hurt them more than is dealers ala Autotrader & Cars. I, for one, will be sitting down with DP and discussing the actual impact to our store. As of today (3 months of being on program) we have sold 24 cars through TC. We have been credited for 11 leads leaving 13 incremental sales. Is it worth it to DP? $7500 for 11 incremental sales under new model plus employee comp is crazy....
 
So what would happen if TrueCar went to a Consumer Subscription based program like Tread Lightly? ($100 gets you 1% below invoice!) To work out deals with OEMs to get discounts for customers without such a fuss on the dealer's side? It would be a great way to "Never Overpay" and would lessen the negative outlook from within the industry. If the OEMs want to blow out units, let it hit their pocket too!
 
Hmm, yeah I think it might be time to cancel. We have been with True Car for several years and we have done quite well with it but this is not going to work.

I had one issue with a customer who has literally bought a dozen vehicles from us. He still does his research and negotiates his price every time before he comes into the dealership. He happened to use True Car to get information on pricing. We had to jump through hoops for months to get that invoice written off because we didn't have "extensive" follow up. We don't need to have extensive follow up. He owns a business and stops in every 6 months or so and buys a car from us.

Another example would be someone who has special Ford Pricing. A and Z plan if anyone works at a Ford store. These customers have a set price that is better than anything they could get online. A lot of them seem to misinterpret True Car as an additional discount on top of that. They almost seem to think it's like applying a coupon for an additional 10% off. It's a misunderstanding which is fine. The problem is, they have their set price. They walk in and buy a vehicle for said price but True Car makes $300 because they clicked a button. This is especially the case for people who use True Car's other affiliates like American Express, AAA, Insurance companies, etc.

Anyway, it was a hassle before but it was a tough decision because we sold cars. Now, it's a fairly easy decision to cancel.
 
I had some dealers tell me they didn't cancel that many leads anyway so they didn't worry about this. I imagine this is different from market to market, lead volume, etc.

Question for those of you canceling:

1) Did the ability to cancel some leads made the ROI work so now is just not there?

2) Did the inability to cancel just show a corporate culture you don't want to support?

3) It wasn't working anyway and this was the last drop?

4) All of the above?
 
1) Did the ability to cancel some leads made the ROI work so now is just not there? Yes (and not just some leads... more like 50 to 60% of them)

2) Did the inability to cancel just show a corporate culture you don't want to support? Yes

3) Do you feel that the short notice of the new policy screws you in some way? Yes, because they lay claim to the attribution of a lead going back 90 days, but the notice of the new policy only came about 2 or 3 weeks prior to its implementation and in fact we were never delivered an official notice at all, only some allusions to it.

4) Do you think you'll sell less cars because of dropping Truecar? Nah. If we lose any, we will more than make it up by putting the marketing dollars into another profitable bucket.

5) IF Truecars were to drop this policy in favor of one that you feel would be more fair to the dealer, would you start back up with them? Maybe. Would have to read the new policy before making a decision.

6) Do you hate Truecars? No. I'm a lover, not a hater.
 
Re: More TRUECar Controversy

I am gonna call this what it is a big smelly pile of crap! If true car survives after this I will be shocked. I know its not them doing the investigation at least thats what they say but I think dealers are going to relate it as it they did.