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There is a resurgence of anger directed toward TrueCar with the announcement of a law suit charging that the web website is engaging in false advertising. But most of the comments that I hear or have read don’t center on false advertising. This one is pretty typical –
Note that the issue discussed isn’t TrueCar’s advertising, it’s their business model.
Here’s another comment –
And this gets to the heart of the problem, there are a lot of consumers that don’t want to negotiate. For a growing number of buyers, a TrueCar type of deal isn’t about the money they can save; it’s about a “kinder, gentler” buying process.
If you run a more traditional dealership with a more traditional process, for a lot of reasons I think you attract a more traditional buyer – the type of buyer that really wants to negotiate. And when that traditional buyer comes into your dealership armed with real ammunition (a TrueCar printout) as their ceiling, and you decide to throw some more money at the potential deal, well, you end up with the worst of both worlds.
This “collision of worlds” isn’t going to away, even if TrueCar does. And I think this is only going to get more painful for the “traditional dealership” while the more progressive dealerships will be taking more and more advantage of changing consumer shopping practices.