It doesn’t seem like TrueCar is going to have such a Merry Christmas this year.
Since Jeff wrote about TrueCar and some of their tatics back in June – Edmunds TMV vs TrueCar – Dealers, wake up! , others are helping to bring this situation to the fore front. It’s great to see our industry come together and express our concerns and opinions around this TrueCar debacle. I can’t recall another time where dealers and industry goo-roos have reached and leverage so many channels of online news and social to not only express their opinions but also help amplify the message.
The automotive industry has been energized and polarized surrounding the TrueCar business model. Since dealers are for and against the model, it is very important to follow the legal implications of the TrueCar process.
As promised, I told you that various State regulators and Dealer Associations were drafting letters to their constituents and members warning of potential legal concerns.
The Colorado Department of Revenue issued this letter on December 15, 2011 and I expect more similar letters to follow. The TrueCar discussion is now moving into a legal discussion with dealers facing potential fines for participating on a model that regulators may deem as violating State laws.
Take a peek at this letter and share your thoughts. I’ll have a few more letters to share in the coming weeks as they are drafted and published.
For a larger version of the letter view it on the Colorado Government site.
Addition by Jeff Kershner…
Another TrueCar UPDATE: Group 1, the nation’s fourth-largest auto retailer, last week ordered all participating stores to cut ties with TrueCar.com – Click here to read the article. I had heard about this last friday and sent out a tweet that received several responses (follow @dealerrefresh on twitter). This apparently was brought to light during a meeting with their local Honda Representatives.