TrueCar and ALG planning to roll out used vehicle service for dealers

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.

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