TrueCar+ offers turnkey online services to dealerships
When TrueCar+ rolls out nationwide later this year to dealerships, it could not only reduce the time F&I and sales staff spend on transactions, but could also protect dealerships from fraud.
As Wards previously reported, TrueCar+ offers a comprehensive online car buying platform. The company’s acquisition of Irvine, Calif.-based Digital Motors has accelerated the development of TrueCar+ and includes additional layers of fraud protection.
Dealers anecdotally say Wards scams against dealers are on the rise. AAbout $7.8 billion in car sales will be made and financed by loans containing false claims on the application, auto fraud experts Point Predictive estimate.
“They have relationships with the banks and they have the technology that we use,” Mike Darrow, president and CEO of TrueCar, talks about his financial partner. “We get that information from our dealers, we put it into the system, and then we use the AutoFi technology and their banking relationships (to finance transactions).
TrueCar was founded in 2005 as a car pricing and information website, something akin to a Zillow for automobiles. Users see what others have paid for new and used vehicles and receive prices from the 15,000 dealers in the TrueCar network.
“The deal goes into the lending arena, and then they’ll start getting returns,” says Darrow. “And what’s nice is that the return goes directly to the consumer. It does not go to the dealership.
This not only protects privacy, but also allows buyers to make informed choices about financing their vehicles. Documents can be signed online or at the dealership. Customers can pick up the car from the dealership or request it to be delivered.
TrueCar+ was established as a turnkey operation so dealerships could avoid the cost of upgrading their infrastructure to accommodate fully digital retail sales. A beta version of the program launched in select Florida cities late last year. Darrow expects to roll out the program for new and used vehicles in the United States by the end of the third quarter.
“WWe’re really trying to bring the automobile into this modern experience where you can go online, you can do things at your own pace,” he says. “That’s what today’s consumer finds everywhere they go. We want to bring that to the automobile.