TrueCar: Car Buyers, Dealers Have “Trust Gap”
Car buyers believe that dealers make about five times more profit on the sale of a new car than they actually do, according to a new study commissioned by TrueCar.
SANTA MONICA, Calif. — Consumers believe car dealers make about five times more profit on the sale of a new car than they actually do, according to a new survey commissioned by TrueCar Inc.
Released this week, the first annual TrueCar Buyer Study highlighted the "trust gap" between consumers and dealers. While buyers fear they will overpay on their new-car purchases and believe dealers make about 20% profit on the sale of a $30,000 new car, the reality is that profit margins on new-car sales are shrinking. According to the National Automobile Dealers Association, profits on a new-car sale have fallen from 5.5% in 2003 to 3.8% in 2013.
TrueCar's survey also showed that consumers believe that a "fair" profit margin on a new-car sale would range from 10-12%. In addition, if told that dealers theoretically made zero percent profit on new-car transactions, consumers surveyed said they would be willing to "tip" them 8% on a sale.
"The TrueCar Buyer Study results show that fear and mistrust have a cost in the car-buying process," noted Scott Painter, TrueCar’s founder and CEO. "If consumers believed that they were getting information that they could trust as part of a more transparent process, they would be willing to pay dealers more. These survey results are consistent with the idea that increased transparency in the car buying process can result in higher margins for dealers and greater consumer satisfaction."
The TrueCar Buyer Study was conducted in February 2014 and surveyed more than 3,000 consumers across the United States. The objective of the survey was to identify consumer perceptions regarding perceived profits made by car dealers. The questions were designed to determine what consumers believe a fair profit would be.
According to results, roughly 26% of car buyers feel that they overpaid for their purchase, while 32% of respondents stated that they would not return to the same dealership due to low customer satisfaction with the purchase process. The survey was conducted by Strategic Vision.
"This survey is further validation of something we hold dear at TrueCar — that providing price confidence to buyers and sellers will bridge the trust gap in the car-buying process," says John Krafcik, TrueCar president. "That's what TrueCar is all about — we enable a delightful, negotiation-free car buying experience for car buyers and auto retailers."
More F&I

Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →
Humble and Hungry: 12 Rules for an F&I Life
Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.
Read More →
Focus on the Opening
F&I managers must learn as much as possible about their customers, starting before they walk into their offices. The bulk of today’s consumers expect that, and good results will follow.
Read More →
F&I Reaches for the Sky
The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
The 90/10 Rule
In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.
Read More →
Your Office Is Talking
What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.
Read More →
F&I Training Fundamentals
How can auto dealerships help F&I managers fulfill their vital role in the most effective ways? Industry expert Rick McCormick shares his insights on the best ways to train these professionals and help them maintain good habits.
Read More →
Not Just Any Tire Will Do
More consumers and businesses are opting for all-season options for various reasons as safety, sustainability and convenience push practical change.
Read More →