TrueCar, Inc. and Accu-Trade, LLC announced Feb. 14 that TrueCar has acquired a 20 percent stake in Accu-Trade, a best-in-class vehicle appraisal technology.
Accu-Trade’s user-friendly, mobile-first product offering features a transparent valuation process backed by a guarantee, designed to revolutionize appraisals and valuations for dealers and consumers.
“This partnership with Accu-Trade will allow us to continue innovating towards our vision of creating an end-to-end shopping-to-showroom car-buying experience,” said Chip Perry, president and CEO of TrueCar. “The TrueCar Trade platform, powered by Accu-Trade, is designed to serve as a modern tool for consumers and a cost-effective vehicle acquisition engine for dealers. TrueCar Trade’s user-friendly design and transparent, real-time valuations enable dealers to build greater trust with consumers who want strong third-party validation of the trade-in value of their car.”
Accu-Trade, leveraging Galves Market Data, provides instant, VIN-specific appraisals anytime, anywhere on any device with first-of-its-kind insights including:
- Real-time mileage, option, history and condition-specific valuation adjustments
- Local market data, common problems, recall notices and historical trends
- Vehicle history reports and guidebook integrations.
Using the TrueCar Trade platform, consumers will receive a guaranteed offer for their used car. Key platform features include:
- Offers that can be delivered through TrueCar.com, the dealer’s website or on the showroom floor
- Real-time valuation ranges that will adjust as the consumer makes changes to the condition and option sets of the vehicle
- Liquidity backed by a guarantee provided by an Accu-Trade affiliate once the vehicle’s condition is confirmed side-by-side with the dealer
“From the sofa to the showroom floor, both dealers and their customers using Accu-Trade experience a seamless process,” said Bob Hollenshead, president of Accu-Trade. “Our VIN-specific product enables, encourages and requires rational value validation. More than a book, it provides a skin-in-the-game checkbook, because appraisals are backed by a guarantee.”
“In addition to the user-friendly consumer interface, when a dealer provides a VIN through the TrueCar Trade product, substantial value is provided, including full retail market data, days’ supply, local and national pricing, and the VIN-specific ‘melt rate’ (or the daily depreciation that requires a new, realistic perspective of inventory),” Hollenshead continued. “Profit compression is on the tip of everyone’s tongue. The Accu-Trade process and unique data set mitigate the never-addressed but frequently encountered truth about used car operations: needlessly overtrading units further exacerbates profit compression.”
When dealers use the Accu-Trade side-by-side appraisal process at their dealership — designed to seamlessly transition consumers from online to offline — consumers are 1.5 times more likely to sell or trade in their vehicle and three times more likely to provide the dealership with a five-star rating, the company said. Consumers who go through the online process are typically highly qualified, transacting within an average of seven days.