Used vehicle sales continue to become its own auto industry market sector; major dealer chains are launching their own branded versions and now TrueCar is going in that direction.
Soon after going public on the stock market, TrueCar is exploring options; the company’s news president John Krafcik (who recently headed Hyundai America) says they’ll be investing in a new service designed to make it easier to sell used vehicles. Dealers will have more resources for finding competitive pricing on makes and models they’re intending to sell.
It’s based on getting multiple dealer quotes and eliminating the need for negotiation or haggling, Krafcik said. TrueCar works with about 8,000 dealer partners and is confident a competitive, balanced marketplace will be created.
TrueCar will have customers upload 10 photographs and answer 20 questions about their vehicle. TrueCar, using the residual value data accumulated by ALG, can tell sellers what you might expect and solicit bids from interested dealers. Larry Dominique, president of TrueCar’s ALG subsidiary, said ALG has developed comprehensive and accurate data about residual values – and it inspires confidence of both buyers and sellers.
Buyers tend to want more late-model used cars, Krafcik said. TrueCar and ALG’s service will be a new way to deliver them; Krafcik says it help shorten buying cycles by giving more buyers confidence they will be getting a fair value when they trade.