TrueCar’s goal of providing a digital car buying process from start to finish has reached a crucial stage with the formal launch of a pilot in mid-July.
It was a late but still celebrated start date for the vehicle listings company’s enhanced TrueCar+ online car-buying platform.
TrueCar CEO Jantoon Reigersman attributed the delay to CDK Global’s June 19 cyberattacks that crippled dealership management systems for its 15,000 customers in North America over the course of two weeks. A revamp for TrueCar+, which was set to launch in 2022, has been in the works for months, with the pilot expected to begin in the second quarter of 2024.
“Despite the delay caused by the disruption caused by the CDK cyberattacks, we are proud to announce the launch of [TrueCar+] on July 17,” Reigersman said during the company’s second-quarter earnings call on Aug. 6.
Reigersman said the launch is “an important milestone in our quest to become the first digital marketplace where consumers can purchase a new, used or certified car, with or without trade-in, from the comfort of their couch, through a fully digital transaction.”
TrueCar+ will initially provide consumers with more than 3,200 new, used and certified pre-owned vehicles from dealerships in a one-stop online process. Consumers will start with 10 car brands and choose from a variety of lenders, accessories, warranties, maintenance packages and protection products. They can schedule delivery of their vehicles right to their doorstep.
TrueCar+ purchases can be completed 100 percent online through customer signatures on financing and purchase/lease agreements, a TrueCar spokesperson said in an email. But all states do not yet allow electronic signatures on documentation such as title and registration for post-purchase components. Buyers can also sign and submit their documents from their location, the spokesperson said. TrueCar+ has already expanded its ability to sell new and used cars throughout California and to the contiguous 48 states for used cars. The spokesperson said it will roll out its service to other states over time “in a systematic and thoughtful way that works for us and our dealer customers.”
The pilot, initially planned to run during the third quarter, will gradually incorporate expanded inventory and add dealerships across the country over the next 12 months. During that time, TrueCar will work to fine-tune TrueCar+ to maximize consumer benefit, Reigersman said.
“The pilot will allow us to validate and refine the technical solutions we have developed to address each stage of the consumer buying process, test and develop additional ways to remove friction from the consumer experience, and identify and resolve any retailer pain points that may arise,” said Reigersman.
TrueCar+ isn’t the only company selling cars entirely online. Carvana, for example, offers a start-to-finish online buying process for used vehicles. Consumers can have their vehicles delivered or pick them up from one of Carvana’s inspection centers or vending machine towers.
Cars Commerce’s cars.com also allows consumers to purchase a vehicle entirely online if they wish, similar to TrueCar+, through its more than 7,000 dealerships. The company offers digital financing tools, and consumers can get fully approved loans on the Cars.com platform.
With AccuTrade now integrated into the cars.com platform, buyers can get an instant offer on their vehicle and trade it in at their local dealership as part of the buying process. The company also highlights dealerships that offer home delivery, in-home test drives and other perks. A cars.com spokesperson added that many states still require live or “wet” signatures when consumers pick up their new car, even though it is done at the dealership or in the consumer’s driveway.
In March, Jeff Wyler Automotive Family announced what it called “the first new car sold entirely online” through its WylerComplete online tool, which uses e-commerce technology from Cox Automotive. Jeff Wyler operates 23 dealerships in Ohio, Kentucky and Indiana and sells brands including Acura, GMC, Buick, Chrysler, Honda and Toyota.
If successful, the TrueCar+ pilot will enable dozens of dealerships entering the market to do the same with new, pre-owned and certified pre-owned vehicles.
— CJ Moore contributed to this report.