TrueCar using Zag Dealer Data to Create Value???

[ryanabbott]

I have to agree with you ewalraven. We mark our inventory on TruCar at __ above invoice. If we have the vehicle in stock that they are inquiring about then we sell it to them. If we don't, we will sell any other vehicle in stock at the same discount. If the customer doesn't want it then they move in. I see it as an opportunity we wouldn't have had.

I am viewing this now as the more dealers that drop TruCar, the more opportunity for us.

 

[Jerry Thibeau]

I could write a book on this. Wait until the advertising machine gets ramped up and more and more customers are coming to your dealership with TrueCar price sheets. Your dealer will get tired of writing a big check to TrueCar every month. Wait until more of your competition jumps on TrueCar and they start undercutting your prices to the point where it's below invoice. This is happening in a lot of markets now. Wait until they start telling the customer what you should be giving them for a trade. Oh and let's not forget the finance and warranty business that TrueCar plans to launch.

There are a lot of very bright people looking at this and they all agree this will hurt the industry. You're dealerships are helping fuel a business model that will radically change the automotive business for the worst. You guys need to take a deeper dive on this.

Ryan, I filled out a TrueCar lead using a Rochester zip code and it went to your dealership. Then TrueCar sold my lead to other third party lead providers and I started getting a bunch of e-mails from Rochester dealers. What do you think of those apples?

 

[ddavis]

Ralph sent me another update on TrueCar. Kansas Automobile Dealers Association has banned it on brokerage violations: more

 

[Alex Snyder]

Wait until they start telling the customer what you should be giving them for a trade. Oh and let's not forget the finance and warranty business that TrueCar plans to launch.

This is the elephant in the other room that hasn't shown it's face yet. This is coming as sure as the sun will rise tomorrow.

TrueCar obtains data directly from car dealers, respected dealer management system (DMS) providers, and well-known data aggregators within the automotive space. We also acquire vehicle configuration data, customer and dealer incentives data, financing and loan data, vehicle registration and insurance data, and much, much more.

Some dots you can connect on your own from their press releases:

Raises $35M http://www.truecar.com/media/references/TrueCar_Financing_July_2010.pdf

Launches ClearBook http://www.truecar.com/media/references/TrueCar_ClearBook_October_2010.pdf

Acquires Honk http://www.truecar.com/media/references/Honk_Acquisition_May_2011.pdf

Acquires ALG http://www.truecar.com/media/references/DealerTrack_ALG_August_2011.pdf

Raises $200M http://www.truecar.com/media/references/TrueCar_Financing_September_2011.pdf

 

[Jeremy Brown]

Wow nothing gets a debate going like Truecar. I just wish in their "transparency they told the customers what they are doing to the dealers. IE making them whore out their vehicles to even get noticed on their site and then charging them a couple of hundred bucks per deal for the opportunity. I don't see any of that in any of their documentation. I'm glad that states like Wisconsin and Virginia (to name a couple) are starting to stand up for the dealers and not allowing truecar to do business there. I am surprised that Maryland hasn't jumped all over this yet. Jeff maybe you can shed some light on to as why they haven't? Merry Christmas guys!

 

[ddavis]

Wow nothing gets a debate going like Truecar. I just wish in their "transparency they told the customers what they are doing to the dealers.

Honestly, they don't care and the customers don't care. I have zero sympathy for the dealers that sign up for it.

 

[Jeremy Brown]

Honestly, they don't care and the customers don't care. I have zero sympathy for the dealers that sign up for it.

Couldnt have said it better. But the question remains is there ever a point when a dealer SHOULD sign up for a program like zag/truecar?

 

[ddavis]

Jeremy, I believe that if you market your cars properly, you will have enough high quality leads.

 

[ryanabbott]

I could write a book on this. Wait until the advertising machine gets ramped up and more and more customers are coming to your dealership with TrueCar price sheets. Your dealer will get tired of writing a big check to TrueCar every month. Wait until more of your competition jumps on TrueCar and they start undercutting your prices to the point where it's below invoice. This is happening in a lot of markets now. Wait until they start telling the customer what you should be giving them for a trade. Oh and let's not forget the finance and warranty business that TrueCar plans to launch.

There are a lot of very bright people looking at this and they all agree this will hurt the industry. You're dealerships are helping fuel a business model that will radically change the automotive business for the worst. You guys need to take a deeper dive on this.

Ryan, I filled out a TrueCar lead using a Rochester zip code and it went to your dealership. Then TrueCar sold my lead to other third party lead providers and I started getting a bunch of e-mails from Rochester dealers. What do you think of those apples?

This my only concern right so far. I checked our Zag sales for November and only 3 of them came from our backyard. If and when this number starts to climb is when I will have to think about dropping. I don't want people using Zag that would have bought from us anyway. The people we are getting are coming from outside our area. This will continue to work for us as long as that remains true.

Ryan, I filled out a TrueCar lead using a Rochester zip code and it went to your dealership. Then TrueCar sold my lead to other third party lead providers and I started getting a bunch of e-mails from Rochester dealers. What do you think of those apples?

Jerry, these "apples" aren't MY leads. They go to the three or so dealers that are on Zag to start with. We only pay when they sell. Nothing more/less. If we don't sell you before a Rochester dealer or any other affiliated Zag customer does then we don't pay.

 

[ddavis]

I leased a lot of cars. Now that they have access to your DMS, what is to prevent them from mining your database for early termination prospects?