FI showroom red and grey logo
MenuMENU
SearchSEARCH

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.

by Staff
June 24, 2014
2 min to read


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.

Ad Loading...

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

Easycare White paper cover See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability
SponsoredSeptember 8, 2026

How AI-Powered Coaching Is Transforming F&I Performance

See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability

Read More →
Assurant, Sell Value Build Trust, F&I Series, Expert Trainer Trent White
F&ISeptember 2, 2026

Sell Value, Build Trust

In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.

Read More →
2026 StoneEagle summary
F&Iby Hannah MitchellAugust 31, 2026

F&I Sales Give Dealers First-Half Lift

Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.

Read More →
Ad Loading...
man with white hair and glasses delivering a speech standing next to a podium
F&Iby Lauren LawrenceAugust 31, 2026

Targeted Training Drives Results

Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.

Read More →
Man's hand holding pen over a paper document
F&Iby Justin B. GasmanAugust 20, 2026

Double the Change, Double the Chance

When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.

Read More →
Laptop computer, tablet, calculator and notebook on a desk
F&Iby John TabarAugust 20, 2026

Just Do It

F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.

Read More →
Ad Loading...
stacks of coins, a calculator, paperwork, and a pair of glasses in the background, text Lender Experience Drives Dealer Decisions, F&I and Showroom
Auto Financeby Lauren LawrenceAugust 12, 2026

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 →
Leading with Purpose thumbnail. Trent white pictured in front of titled graphic.
F&IAugust 5, 2026

Leading with Purpose

In this video, Trent White explains how understanding your people’s 'why' is a key leadership responsibility of F&I professionals and how that mindset drives dealership engagement, trust and performance.

Read More →
Photo of a keyring with mltiple keys, including a car key fob, on a white surface
F&IJuly 15, 2026

Integrating Nontraditional F&I Products

The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.

Read More →
Ad Loading...
Photo of businessman's hands holding eyeglasses at a desk
F&Iby Rick McCormickJuly 7, 2026

Trust Is Personal

Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.

Read More →