I am reposting this article from Joe Web because STRONG works with dealers who despise the mere existence of TrueCar . Great job by Joe Webb with the interview and shedding light on the TrueCar write-off policy that just went into effect.
Is This the Beginning of the End for TrueCar
As of September 1st 2013, TrueCar is altering their “Write-Off Policy” for dealers.
Essentially, TrueCar states that their customers are so much more “deep-in-funnel” than all other lead providers, dealers on their Per-Sale payment model will no longer be allowed to request write-offs. Whether or not those sold customer originated in their CRM before becoming a TrueCar lead no longer matters.
In other words, even if you sold a customer four vehicles in the past, and that customer submitted a lead on Edmunds the month prior that arrives in your CRM, AND comes in and speaks to a sales associate, leaves the dealership, goes on TrueCar, submits their information again, and inevitably purchases from your dealership, the dealer will be unable to request a full write-off.
Joe: Do you feel this has broken the relationship and will this affect the longevity of your partnership with them?
eCommerce Director: Right now, they’re on the chopping block. I’m just waiting for permission from the owners to rededicate the money elsewhere. I can spend $20,000 elsewhere and get 25 legitimate units per month, that’s no problem. And probably with higher margins.
I’m not going to waste my time taking screenshots of customers to get only a quarter percent of the write-offs solely so they can double their profits. Not cool.