TrueCar is teaming with Galves Market Data to pilot a trade-in platform.
The company signed a memorandum of understanding to partner with R. Hollenshead Auto Sales and Galves Market Data (a Hollenshead subsidiary) for a six-month pilot of TrueCar Trade.
The platform, powered by Galves Accu-Trade, aims to provide” completely transparent valuation process designed to revolutionize appraisals and valuations for dealers and consumers,” TrueCar said in a news release.
The core Galves Trade Appraiser valuation engine will be available nationwide, with the consumer-facing TrueCar Trade platform starting its pilot with dealers and consumers in a handful of Northeastern markets.
Consumer pilot markets for TrueCar Trade will include eastern Pennsylvania, northern New Jersey, lower New York, Connecticut, Rhode Island and Massachusetts.
Product presentations and demonstrations are planned for the second quarter, with the pilot planned for the third quarter.
“Consumers want strong third party validation of the trade-in value of their car and many successful dealers are leaning in to provide the transparency and validation that consumers desire,” TrueCar president and chief executive officer Chip Perry said in the release posted on Monday.
“The TrueCar Trade platform is being designed to serve as a modern, leading edge tool for consumers and a cost-effective, best-in-class acquisition tool for dealers,” he said. “It will enable dealers to build greater trust with consumers by virtue of its user-friendly design and transparent real-time valuations. The opportunity to partner with Bob Hollenshead and the Galves team allows us to combine the best of the retail and wholesale worlds.”
In 2008, R. Hollenshead Auto Sales invented the online trade-in offer behind the Autotrader Trade-In Marketplace. The valuation tool behind that program, BuyBook Technologies, was sold to Cox Automotive in 2014. Perry founded Autotrader and was its CEO until 2013.
As far as how TrueCar Trade is designed to work, the valuation is done via Accu-Trade, using Galves Market Data. It is designed to provide VIN-specific appraisals and provide such information as real-time mileage, option and condition-specific valuation adjustments; common problems like recall notices; and vehicle history report integration.
When a consumer uses the platform, he or she will be provided a Galves-based offer from local dealers. The consumer can get the offer from TrueCar.com, dealer websites or at the dealership showroom itself.
The valuation ranges on the car automatically adjust when the consumer adjusts the vehicle’s condition and options.
Once a vehicle’s condition is confirmed by the dealer, the consumer receives a check.
If a dealer acquires a car through TrueCar Trade, he or she can keep the car to sell retail; sell it in an exclusive dealer-to-dealer online auction with fellow TrueCar Trade dealers; or sell it to R. Hollenshead Auto Sales at the Galves price if the car doesn’t sell on the auction within 48 hours.
“Our products, Galves Market Data and Accu-Trade, are built to be the agnostic ignition to the transaction chain that commoditizes the VIN regardless of when or how it is used. Instant, packed with proprietary data, transparent and transactional,” said Bob Hollenshead, president of Galves.com, Accu-Trade LLC, and R. Hollenshead Auto Sales.
“Our entities are operated by people with an unrivaled understanding of the wholesale marketplace. We understand the status quo and we believe the status quo will be modified by products that enable process and total transparency,” Hollenshead said. “Working with the TrueCar team and what the TrueCar brand represents will help enable this vision and drive efficiency for consumers, dealers and remarketers.”