- May 1, 2005
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Arnold, are you then saying that the OEM is sending a dealers transactional data to companies like TrueCar? Of course not. I'm not sure I understand your argument.
Dealers and industry professionals debate TrueCar's business model, focusing on how the platform uses dealership transactional data to benchmark and publicize pricing, ultimately pressuring margins while charging $300 per sold lead. A consumer commenter defends TrueCar as a necessary counterweight to dealership tactics like bait-and-switch pricing and add-on fees, illustrating the core tension: dealers see TrueCar as a profitability threat they inadvertently empowered by sharing DMS data, while consumers see it as rare protection against opaque sales practices. The key takeaway is a warning from Jeff Kershner that dealers must audit and restrict third-party DMS data access before these platforms gain further leverage.