Car buyers are tired of the dog and pony show that goes along with trying to negotiate for a new car and are quickly turning to car buying services like TrueCar as a way to get transparency into the pricing process.
While places like TrueCar will save you a little money compared to just walking in to a dealer off the street, they won’t get you the absolute best price and will do it at the cost of your privacy. TrueCar makes money by charging dealers $299 to $399 per lead once a customer that was referred from them makes a purchase. They gather data from various automotive data aggregators along with vehicle registration and tax sources and perform analysis on it in order to establish an average price paid.
One of the requirements for affiliated dealers is to give them access to their Dealership Management System (DMS) or to manually transmit vehicle sales data to a supported third-party vendor. A DMS is a management system that dealers use to manage customers and vehicles that contains information such as pricing for vehicles bought and sold along with customer details like names, addresses, and social security numbers.