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Coronavirus Dealer Relief - TrueCar just cut our rates by half for April. Who's next?

"-- Dealers pay nothing, but their inventory stays live on our site.
-- Leads are not sent in real time. Instead, shopper interest will go into a queue for later delivery. We’ll make clear to shoppers on VDPs and in confirmation emails that they won’t hear back from dealers immediately."

@DrewAment okay, that seems pretty thoughtless by CarGurus. Can you give some clarity @Jeremy Sacco?
 
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Hi @Dan Sayer, @DrewAment - yes I can give a little detail. To help dealers as much as we can during these unusual times, we're focusing on two primary goals: protect the shopping experience for consumers, and protect marketing performance for our paying subscribers.

To protect the shopping experience, we want to make sure it's clear to shoppers whether or not they can get in touch with the dealer when they're looking at a car. For our paying customers, we have a good understanding of that: they either took the 50% discount for April and May are continuing to get leads and build up a pipeline, or they stopped their subscription and moved into our free segment.

It's less clear for dealers who started in our free segment. Since they're not paying us, they're not likely to let us know if they're closed. That could create a bad user experience, since shoppers won't know the dealer isn't available.

As a result, we moved all non-paying users into this new suspended status. We'll make sure consumers understand they won't be getting responses right away.

The key way we're protecting our paused subscribers is queuing up leads for when they reactivate their subscription. In normal times, those queued leads wouldn't be as valuable as real-time leads -- but in a situation where neither the dealer nor the shopper can complete a transaction, they're worth something. In areas where dealers are shut down, by law or by choice, these shoppers won't be able to complete a purchase -- they're shopping now because they have time on their hands, but they can't actually complete the transaction. In those cases, paused leads will still have value: two thirds of car purchases are need-based, and those needs won't have been met in the meantime.

We're hoping this temporary change will be brief and we can all get back to business sooner rather than later. In the meantime, stay safe and stay home.
 
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From what I see, you are not making the customer aware of the "delayed contact" until after they submit a request. And, the way your site is setup, there is no other way to contact the dealer as you don't show contact info. Seems like you are using the inventory from the dealers to bulk-up.

For my dealers that ask -- who/how do they contact to have the inventory completely removed during this time of no-contact?
 
We are making shoppers aware -- see attached screenshot. That messaging should appear on VDPs before and after a shopper submits a lead. We also plan to notify shoppers who've expressed interest when this dealer is active again. That's true for both free and paid dealers -- although dealers who return to the free program when we reactivate it will get anonymous leads, as usual.

If dealers do want to remove their inventory, they can use this form to let us know.

suspended-vdp-2.png
 

Employee Retention Credit Available to Many Small Businesses

APRIL 2 -- The CARES Act includes an Employee Retention Credit available to many small businesses, designed to encourage them to keep employees on the payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. This credit is not available to dealers who participate in the Paycheck Protection Program (PPP). This announcement also includes forms for dealers who are requesting an advance of tax credits under both the Employee Retention Tax Credit and tax credits provided under the FFCRA. See the IRS’s press release with Q&A.

The IRS has issued guidance for claiming the new employee retention credits for emergency paid sick leave and emergency paid childcare leave under the FFCRA. Learn more

The IRS application for obtaining the credits is in a single form, IRS 7200. Download it here.

It’s important to understand the many different aspects of the employee retention credit. You can also find answers to your questions in the Employee Retention Credit FAQs.

Note: The FAQs were prepared by the Republican Finance Committee staff for informational purposes and should not be relied on for legal advice. Employers should consult the IRS or a tax advisor to address questions related to their specific circumstances.