TrueCar Changes Billing Model in Virginia in Order to Ensure Immediate Regulatory Compliance

Plans to Revise Billing Model in Other Brokering / Bird Dog States

SANTA MONICA, CA--Jan. 11, 2012: TrueCar, Inc., which is devoted to bringing transparency to the car buying process, today announced that it is adjusting its billing model in the Commonwealth of Virginia as a meaningful step towards seamlessly providing greater transparency and quality service to car buyers and dealers alike while also working within existing regulatory requirements. Working and communicating with the Virginia regulatory authority, TrueCar has changed its billing model in Virginia to a subscription fee that is not tied to sales.  All participating Virginia dealers have been notified of this change that will enable them to operate in the TrueCar marketplace with complete regulatory compliance.

TrueCar is committed to working closely with dealers while also helping consumers in their car-buying process. As such, TrueCar has always aspired to provide true performance-based marketing to its dealer partners in all 50 states, including Virginia.  In TrueCar's performance-based billing model, participating dealers paid TrueCar a flat fee of $299 for every new car sold to a customer using a TrueCar site. TrueCar believes this model effectively shifts marketing risk away from participating dealers while providing customers the best possible car-buying experience.

"TrueCar is committed to never putting our dealer partners at risk, which means we will always work closely with regulators to identify a workable solution or either suspend service," said Scott Painter, Founder and CEO of TrueCar, Inc. "We also want consumers and dealer partners to know that it's business as usual in Virginia and price guarantees will be honored at TrueCar dealerships."

TrueCar has been engaged in discussions with Virginia and other state regulators on its current billing model and will continue these discussions as it identifies solutions that are forward looking while still complying with existing laws. In coming weeks, TrueCar will also implement additional changes to its business practices as needed on a state-by-state basis, primarily related to dealer pricing and advertising.  TrueCar will also phase down current television advertising while it develops new ads that focus less on price and more on dealer attributes like proximity, selection and service.

TrueCar will continue to work with state regulators in an attempt to identify ways to improve current laws and regulations given the availability of data in the digital age in a way that continues to accommodate dealers by giving them what they want -- 100 percent accountability in their partners.