Lead Generator "TrueCar" Going Public - Vehicle Buyers Are Worth $299
WASHINGTON, DC - April 7, 2014: The AIADA newsletter reported that with John Krafcik former Hyundai chief executive officer joining its board and paperwork filed for an initial public offering, activity is buzzing at TrueCar.
According to Automotive Remarketing, TrueCar indicated the number of common shares to be offered and the price range for the proposed offering have not yet been determined. But according to the registration statement on Form S-1 filed with the SEC, the company is coming off of a year where it generated revenues of $134.0 million and recorded a net loss of $25.1 million.
TrueCar mentioned in its SEC filing that its dealer network consists of more than 7,000 dealerships. “We typically charge TrueCar Certified Dealers $299 upon the sale of a new car to a TrueCar user,” company officials said. “In 2013, the overall industry average advertising expense per new car across all forms of media was $616. TrueCar recapped the challenges it has experienced with its dealer network. “TrueCar Certified Dealers have no contractual obligation to maintain their relationship with us.
Accordingly, these dealers may leave our network at any time or may develop or use other products or services in lieu of ours,” TrueCar officials said in the SEC documents. More on TrueCar’s IPO.