When TrueCar+ rolls out nationally later this year to dealers, it may not only cut the time F&I and sales staff spend on deals but also might protect dealerships from fraud.
As Wards previously reported, TrueCar+ offers a complete online car-buying platform. The company’s acquisition of Irvine, CA-based Digital Motors accelerated the development of TrueCar+ and includes extra layers of protection against fraud.
Dealers anecdotally tell Wards scams against dealers are on the uptick. Approximately $7.8 billion in car sales will be completed and financed with loans containing misrepresentation on the application, automotive fraud experts Point Predictive estimate.
“They have the relationships with the banks, and they have the technology that we use,” TrueCar President and CEO Mike Darrow says of its 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 deals).”
TrueCar was founded in 2005 as an automotive pricing and information website, something akin to a Zillow for automobiles. Users see what others paid for new and used vehicles and receive pricing from the 15,000 dealers in TrueCar’s network.
“The deal goes into the lending arena and then they'll start getting returns back,” says Darrow. “And the beauty of it is, the return comes directly to the consumer. It doesn't go to the dealer.”
That not only protects privacy but also allows buyers to make educated choices on financing their vehicles. Paperwork can be signed online or at the dealership. Customers can take delivery of the car at the dealership or ask for it to be delivered.
TrueCar+ was established as a turnkey operation so dealers can skip the cost of upgrading their infrastructure to accommodate full digital retail sales. A beta version of the program launched in select cities in Florida late last year. Darrow expects to roll out the program for both used and new vehicles across the U.S. by the end of the third quarter..
“We're really trying to bring automotive into that modern experience where you can go online, you can do things at your own pace,” he says. “That’s what the modern-day consumer finds everywhere else they go. We want to bring that to automotive.”
