TrueCar, AutoNation End Partnership
July 13, 2015—TrueCar Inc. will end its partnership with AutoNation Inc., effective at the end of July.
In May, TrueCar formally demanded that AutoNation comply fully with the core principals of TrueCar’s network:
- Provide negotiation-free, guaranteed savings off MSRP for all vehicles.
- Provide prompt and accurate inventory and sales data.
- Deliver a transparent, professional, and hassle-free customer experience.
According to an announcement by TrueCar, AutoNation chose not to comply and, because of this, the relationship with the companies will be terminated July 31.
“We have an unwavering and long-term focus on a transparent car-buying experience," said Scott Painter, TrueCar’s chief executive officer and founder. “We’re grateful for the years of cooperation we’ve enjoyed with AutoNation, but could not make an exception for them.”
AutoNation represented 3.1 percent of TrueCar’s total revenue in the first quarter of 2015, down 3.2 percent in Q1 2014. AutoNation had 279 active franchise dealers using TrueCar’s platform at the end of the first quarter, or 3.1 percent of total active franchise dealers on the TrueCar platform. Users of the TrueCar platform who purchased from an AutoNation dealer represented 4.2 percent in the first quarter of 2014.
TrueCar estimates that 7 percent of users of its platform were AutoNation’s Q1 new vehicle sales, up 6 percent in the first quarter of 2014.
“Although we would have preferred that AutoNation abide by our marketplace principles, just like our other Certified Dealer partners, we are prepared for this development,” said John Krafcik, TrueCar’s president. “We are gratified that more than 10,000 dealers share our view of a better, more transparent car-buying process. Our robust dealer network ensures that in markets where AutoNation competes, other TrueCar Certified Dealers will receive the benefit of even greater engagement with TrueCar customers.”