TrueCar Concludes Partnership With AutoNation
TrueCar's marketplace gives consumers transparent insight into what others paid through its analysis of anonymized transaction data and access to guaranteed savings off of MSRP from its nationwide network of more than 10,000 TrueCar Certified Dealers. This network is committed to a new way of selling cars to the approximately 6 million in-market monthly prospective car buyers who use the TrueCar platform (including through USAA, American Express, Consumer Reports, AARP and others). These dealers abide by certain core principles:
- Provide negotiation-free, guaranteed savings off MSRP for all vehicles.
- Provide prompt and accurate inventory and sales data.
- Deliver a transparent, professional, and hassle-free customer experience.
In May, TrueCar formally demanded that AutoNation comply fully with these core principles in order to have continued access to the TrueCar platform. AutoNation chose not to comply and the business relationship between the companies will be terminated effective July 31.
"We have an unwavering and long-term focus on a transparent car-buying experience," said Scott Painter, TrueCar's chief executive officer and founder. "We're grateful for the years of cooperation we've enjoyed with AutoNation, but could not make an exception for them."
AutoNation represented 3.1 percent of TrueCar's total revenue in the first quarter of 2015, down from 3.2 percent in Q1 2014. AutoNation had 279 active franchise dealers using the TrueCar platform at the end of the first quarter, or 3.1 percent of total active franchise dealers on the TrueCar platform on that date. Users of the TrueCar platform who purchased from an AutoNation dealer represented 4.2 percent of TrueCar's total units in the first quarter, down from 4.6 percent in the first quarter of 2014.
TrueCar estimates that users of its platform were 7 percent of AutoNation's Q1 2015 new vehicle sales, up from 6 percent in the first quarter of 2014.
"Although we would have preferred that AutoNation abide by our marketplace principles, just like our other Certified Dealer partners, we are prepared for this development," said John Krafcik, TrueCar's president. "We are gratified that more than 10,000 dealers share our view of a better, more transparent car-buying process. Our robust dealer network ensures that in markets where AutoNation competes, other TrueCar Certified Dealers will receive the benefit of even greater engagement with TrueCar customers."
TrueCar, Inc. (NASDAQ: TRUE), the negotiation-free car buying and selling mobile marketplace, gives consumers transparent insight into what others paid and access to guaranteed savings off MSRP from TrueCar Certified Dealers. TrueCar's network of more than 10,000 trusted Certified Dealers is committed to providing upfront pricing information and a hassle-free buying experience. TrueCar powers car-buying programs for some of the largest U.S. membership and service organizations, including AARP, American Express, AAA and USAA. Not all program features are available in all states. TrueCar is headquartered in Santa Monica, California, with offices in San Francisco and Austin, Texas. For more information, go to www.truecar.com. Follow us on Facebook or Twitter.
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