TrueCar, Inc., the most efficient and transparent online destination to find a car, announced today the continuation of financial payment relief for its dealer customers through June. In states where its pay-per-sale or performance-based billing arrangements are not currently available, the company will automatically reduce subscription invoices by 25%. This June discount follows the previously announced 50% reductions to those dealers’ April and May invoices.
“The automotive sector is on the path toward recovery,” said Mike Darrow, President and Chief Executive Officer of TrueCar. “While ALG is projecting U.S. retail new vehicle sales to be down 21% and 20% in May and June, respectively, these figures are outperforming initial estimates and other markets globally.”
Darrow continued, “Since our first quarter earnings call earlier this month, traffic to our marketplace has continued its upward trend, with volumes exceeding pre COVID-19 levels in recent weeks. Moreover, we’re continuing to see state level restrictions ease and dealerships that had previously suspended our services in late March are returning to our marketplace to take advantage of the growing demand.”
“While we are encouraged by the data we are seeing, our priority is to continue supporting our dealer partners through this pandemic. As such, we will extend our billing relief into June,” added Darrow.
Noel Watson, TrueCar’s Chief Financial Officer, added, “The impact of the June discount was contemplated in the financial commentary we provided on the first quarter earnings call in early May. Given the positive recent trends, we are optimistic about second quarter and full year 2020 financial performance.”