TrueCar announces assistance to its dealer partners
To support its dealer partners during the COVID-19 pandemic, TrueCar announced an extension for May invoices of the previously announced 50% automatic reduction to the April invoices of dealer partners in states where its pay-per-sale or performance-based billing arrangements are not currently available.
In a letter to dealers that are on TrueCar’s subscription billing model, TrueCar president and chief executive officer Mike Darrow said the company will “work tirelessly” to deliver new and innovative products to help dealers meet consumer buying preferences that are rapidly changing.
TrueCar said all dealer partners on its platform have access to the product offerings, and one of them is free buy-from-home badging. That involves custom badging throughout TrueCar.com that lets shoppers know the dealership will facilitate paperwork remotely, provide vehicle sanitation, and deliver the purchased vehicle to the consumer’s designated location.
The company said dealers on its Pay Per Sale model only receive an invoice after a sale is made. Many dealers on TrueCar’s Subscription billing model are switching to TrueCar’s Pay Per Sale or Performance Guarantee models. For Pay Per Sale, if the dealer sells about 25% of cars it sold previously, for example, that dealer’s bill will be 25% of what it used to be.
For TrueCar’s Performance Guarantee subscription model, TrueCar set a monthly rate based on the dealer’s projected sales, and the dealer is billed for what it actually sells up to its guaranteed sales volume.
Darrow starts out in the letter by stating, “We are all adjusting to this new ‘normal,’” and he adds that the pandemic, stay-at-home restrictions and safe social distancing guidelines have significantly affected personal and professional lives.
“Unquestionably, the health and safety of all members of our communities remains our top priority,” Darrow wrote.
He added that in addition to the 50% adjustment, TrueCar will “unwaveringly” continue working to deliver products that will meet the needs of consumers whose need to acquire a new or used vehicle remains strong. TrueCar will work to connect those consumers with “you, our TrueCar Certified Dealers,” Darrow wrote.
Other new products TrueCar is working to deliver to help dealers meet changing consumer buying preferences include:
— Free trial of payments on TrueCar.com. The company says it will provide a “frictionless remote retailing experience” to TrueCar shoppers and “ignite” dealers’ listings with VIN-specific monthly lease and finance payments on TrueCar.com. The service is available at no cost through July 31.
— Free trial of the Remote Retailing Package. Provided at no cost through July 31, website plug-ins and digital retail tools are accessible from TrueCar’s affiliate, DealerScience. With the tools, dealers’ customers can modify VIN-specific lease and finance payments on the dealer’s website and can provide “additional remote work efficiencies” through TrueCar’s Remote Sales Calculator.
— Free virtual communication enhancement. TrueCar says its new text communication platform helps dealers connect with shoppers. The new feature boosts efficiency of communication and delivers “highly motivated shoppers” directly to the dealer’s CRM.