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TrueCar sued by dealers

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#21
Jeff Kershner said:
TrueCar Slams $250 Million Dollar Lawsuit As “Meritless”
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It may be. Here's a company that snuck through the system and used it to their advantage. Using the Zag connection they have plenty of dealers who fear leaving their service because they'd lose a good chunk of the military's leads to the competition (think of USAA & Navy Federal). Truecar preys on dealer fear and consumer distrust.

As much as I hate to say it, I agree with the so-called "consumer advocates" in this thread. I especially agree in one main regard: we, as an industry, did this shit to ourselves.

The most feasible option for the industry to stop sucking the Truecar tit is a one price model.
 
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#22
ddavis said:
We have found a consumer advocate! Did you go to business school? If they are teaching that a good business model is to lose $1500+ to sell a car and another $300 to a third party for the privilege, they need to shutter that place.

Everyone that ever bought a car, did so, because they got a good deal. To most of them, that is about invoice. If that was actually true, every dealer in America would have been out of business decades ago.
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This post is beyond hilarious. I think it's even more funny because YES. Unlike most people in this business I did go to college and I finished. AND to top it off. I graduated with a business degree

I posted my thoughts about dealers who are bashing truecar all the time about 4 weeks ago.

Here's my thread:

http://forum.dealerrefresh.com/threads/my-opinion-of-dealers-who-hate-truecar.4310/#post-37196
 
#24
#25
@Alex Snyder nails it: "As much as I hate to say it, I agree with the so-called "consumer advocates" in this thread. I especially agree in one main regard: we, as an industry, did this shit to ourselves."

I wish these sites didn't exists either but can't fault a consumer for going to where they can find the info they need to make a decision. Many of the reasons mentioned in the annoying website thread are the reason people end up there, 1 - New vehicles priced at MSRP 2- No real pictures 3 - No rebates info 4 - Correct equipment not listed. And a host of other reasons. Yes, we created these monsters and have to figure out how to live with them in our marketplace.



 
#26
It's true..
Retailers hated/still hate Amazon because they offer better pricing.
Electronics retailers hated the launch of ShopBot because it put all their pricing side by side.
etc, etc.

If no one was profiting from it I would agree, but as others have already pointed out there are dealers profiting from this and still grossing on vehicles, so it's a matter of being able to use the tool or not being able to - clearly some of the statements in this thread are too often blanket statements.
 
#27
Though we don't use Truecar, I have heard of others having success. I gotta agree with Craigh on this one, clearly many dealers are making money with Truecar, some of us may not like how they do business but hey you don't have to use it then! It would be great if our websites were so awesome they generated all the traffic we could hope for and we didn't have to use third party's but for almost all of us that isn't the case.
 
#28
#29
craigh said:
It's true..
Retailers hated/still hate Amazon because they offer better pricing.
Electronics retailers hated the launch of ShopBot because it put all their pricing side by side.
etc, etc.

If no one was profiting from it I would agree, but as others have already pointed out there are dealers profiting from this and still grossing on vehicles, so it's a matter of being able to use the tool or not being able to - clearly some of the statements in this thread are too often blanket statements.
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I love Amazon. I detest going to the store. I buy something and it is shipped to my house. I get it in a couple of days and usually don't pay shipping.

A friend told me about making $9K on a TrueCar customer. He jumped an incentive, under allowed on the trade, picked up dealer installed options and made $6K on the back. Yes, people do make money on TrueCar deals but I wouldn't compare that to Amazon.
 
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#30
Bill Simmons said:
@Alex Snyder nails it: "As much as I hate to say it, I agree with the so-called "consumer advocates" in this thread. I especially agree in one main regard: we, as an industry, did this shit to ourselves."

I wish these sites didn't exists either but can't fault a consumer for going to where they can find the info they need to make a decision. Many of the reasons mentioned in the annoying website thread are the reason people end up there, 1 - New vehicles priced at MSRP 2- No real pictures 3 - No rebates info 4 - Correct equipment not listed. And a host of other reasons. Yes, we created these monsters and have to figure out how to live with them in our marketplace.
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Talking about salespeople, I heard a Sales Manager say, "they don't have the initiative to take money out of an outstretched hand". With all of the years we have had the internet, most dealers don't have a clue. Doing exactly what you point out, you can develop all the leads you need and not have to depend on parasites like TrueCar.

As I said before, I didn't buy leads from any source. The leads that we developed closed at a much higher percentage. Internet Managers loved those leads and worked them much harder and longer.
 
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