Okla. Commission Says TrueCar Violates Dealer Rules
Oklahoma became the latest state to put the brakes on TrueCar, with the state’s motor vehicle commission deeming the service in violation of the state’s dealer licensing laws.
Oklahoma became the latest state to put the brakes on TrueCar, with the state’s motor vehicle commission deeming the service in violation of the state’s dealer licensing laws.
The commission, which requested that TrueCar immediately suspend its service in the state, ruled yesterday that TrueCar’s service violates Oklahoma’s brokering prohibition. It also raised concerns about possible advertising violations, including TrueCar’s use of the terms “dealer’s cost,” “Invoice,” and “Invoice Price.”
Oklahoma dealers face fines of up to $1,000 per occurrence or suspension of their license if they are found to be in violation of the state’s laws and rules.
The commission’s ruling came a day after Virginia’s dealer board ruled TrueCar’s bill model violated the state’s dealer licensing laws, which prohibit third-party services from acting on behalf of the dealer in the sale of a motor vehicle.
“The dealer should not be paying them because they are not licensed salespeople,” said Gould, who added that the state will not seek retroactive prosecution against TrueCar dealers. “They can’t compensate anyone other than those two.”
Colorado was expected to raise the same issues during its board meeting meeting today, and other states, such as California, Indiana, Louisiana, Nebraska, Ohio and Wisconsin, also are reviewing TrueCar’s service.
Scott Painter, founder of TrueCar, maintained that his company’s service does not equate to a broker, dealer, sales agency or buying service in an e-mail exchange last week. He described the service as more of a marketing channel that competes against traditional advertising and lead-generation services.
In a press release issued after the Virginia board’s ruling, he said the company has changed its billing model there to a subscription fee that is not tied to sales. He told F&I and Showroom magazine last week that it would propose the same model, which also is employed in Texas, to Colorado’s board.
“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,” read Painter’s statement in the release. “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.”
More Auto Finance

July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →