SOURCE: TrueCar

TrueCar

October 13, 2009 09:00 ET

TrueCar Launches TrueCost(SM)

New Tool Brings Radical Clarity to Dealer Cost Structure

SANTA MONICA, CA--(Marketwire - October 13, 2009) - TrueCar, Inc. (www.truecar.com), the authority on new car pricing, announced today the release of TrueCost(SM), a new, one-of-a-kind tool that reveals the actual dealer cost structure for new vehicles. TrueCost goes beyond transaction and invoice prices and provides in-market consumers with an estimated value of what a dealer really paid for a specific vehicle in their region so consumers can negotiate the best deal and dealers can optimize their sales efforts.

"Until now the dealer cost structure for a new vehicle has been a mystery to many consumers," said Scott Painter, Chief Executive Officer, TrueCar. "With TrueCar's new tool, TrueCost, consumers no longer have to worry about whether they got a great deal on their new car. The information is right at their fingertips. Contrary to the traditional thinking, dealers will also benefit greatly from objective transparency, as it will immensely improve their in-store consumer experience -- resulting in improved profitability."

Traditionally, lack of transparency in dealer cost has created a negative experience for consumers that ended up in stressful negotiations resulting from unrealistically low offers by the consumers and back-and-forth tactics by the dealers who are understandably trying to make a fair profit. It is clear that most dealerships do not make nearly as much profit as most consumers think, as evidenced by hundreds of dealership closings just this year. When consumers are shown the actual cost of a dealer from an objective source, they will likely pay more for the same vehicle. It's all about having full trust in the numbers, which was the reason for the creation of the TrueCost tool.

TrueCost not only educates consumers beyond any other pricing tool available today, but also helps dealers create a pleasant car buying experience -- enabling the dealers to maximize their closing ratios and cut down on valuable sales personnel time wasted on unnecessary haggling. At the same time, it allows for consumers to negotiate a fair, and often, great car price.

When consumers look up the TrueCost of a vehicle on TrueCar, they are provided with a cost breakdown which includes the sticker price of the vehicle, factory invoice (which includes the base cost of the vehicle plus any fees the dealer pays), TrueAverage(SM) (average price of the car), and TrueCost. While every dealer has a different set of fixed and variable costs, TrueCost is calculated by taking the car factory invoice price and subtracting holdbacks and any applicable customer and dealer incentives.

About TrueCar

TrueCar (www.truecar.com) is the authority in new car pricing. TrueCar aggregates data from multiple sources to show car buyers and dealers how much people actually paid for a particular car in their geographic area. TrueCar is offered online, free of charge -- so anyone can know at any time what is considered a good or great price. Consumers no longer need to walk into the dealership only partially informed and fully suspicious: with TrueCar they can walk in knowing the price of a fair deal. Dealers also benefit by gaining real-time, unbiased information about marketplace pricing, helping them price their cars to increase volume of sales and gain market share from other dealers. Led by a highly experienced team from the automotive and technology industries, TrueCar is based in Santa Monica, California.

Contact Information

Multimedia