CA Dealer Group Sues TrueCar

[JessicaRuth]

Says TrueCar is acting as a dealer and broker.

Agree or disagree?

 

[craigh]

Is TrueCar writing up a car deal?
I was under 2 impressions:

1. You have to be the one writing up a deal in order to "sell a car"
2. A "dealer" is someone who buys and sells things

Maybe I'm mistaken here, but I don't think TrueCar is actually selling cars?

I could maybe see "broker" because the legal definition allows for a broker to be defined as someone who negotiates contracts, but then MakeMyDeal and many other companies would be in the same hot water because they're helping to negotiate contracts.

 

[JessicaRuth]

Valid points. Why do you think they filed the lawsuit?

 

[craigh]

Hard to say. People love to hate TrueCar.

 

[Tallcool1]

It is about the California Vehicle Code which is pretty "wordy" in their definition of the words Dealer and Broker.

Common sense told me that there was no way the TrueCar could be implicated in any way, but once I actually read part of the Complaint that was filed......whole different story.

With the way that the California Vehicle Code is written, TrueCar is absolutely in violation.

The California New Car Dealers Association is not seeking any type of monetary settlement, which really gets my wheels spinning. I can't help but wonder if this case is being argued for the sole purpose of establishing a precedent. If that precedent is established, it could be open season on TrueCar! In my opinion (which isn't worth a whole lot), there is a lot riding on this for TrueCar. This isn't about someone trying to force TrueCar to apply for a Dealer or Broker's license. This is about getting them set up for the knock out punch.

 

[craigh]

Clint, can you link me to a copy of the complaint that was filed?
Alternatively you can quote some of the good bits, but I would love to read it.

 

[Tallcool1]

Clint, can you link me to a copy of the complaint that was filed?
Alternatively you can quote some of the good bits, but I would love to read it.

http://www.autonews.com/assets/PDF/CA99615520.PDF

 

[yagoparamo]

The California New Car Dealers Association is not seeking any type of monetary settlement, which really gets my wheels spinning. I can't help but wonder if this case is being argued for the sole purpose of establishing a precedent. If that precedent is established, it could be open season on TrueCar! In my opinion (which isn't worth a whole lot), there is a lot riding on this for TrueCar. This isn't about someone trying to force TrueCar to apply for a Dealer or Broker's license. This is about getting them set up for the knock out punch.

Without intent to cast an opinion on whether TC is good or bad, what the CA New car Dealer Association may be trying to do is to stop companies to "wedge" themselves in between the customer and the dealer with a pretext (cheaper car, better deal, different buying experience, etc) and making a profit while doing it.

 

[Tallcool1]

Without intent to cast an opinion on whether TC is good or bad, what the CA New car Dealer Association may be trying to do is to stop companies to "wedge" themselves in between the customer and the dealer with a pretext (cheaper car, better deal, different buying experience, etc) and making a profit while doing it.

I am not sure I follow you on this.

 

[yagoparamo]

I am not sure I follow you on this.

TC is not positioning itself as a lead provider but as a "broker" that can facilitate the transaction with better pricing or incentives thus making the customer think it is better if they use their service. Traditional lead providers don't offer an incentive to use their websites other than easy search.