There is a lot of discussion surrounding TrueCar and how dealers should not use their services and why they are bad for our industry and dealers in specific. I wrote a blog recently titled “In Defense of TrueCar” that many interpreted as my support for their services.

In reality, the main point of my blog post was that everyone is pointing fingers at TrueCar right now saying how evil they are and how they are using a dealer’s data against them, however, nobody is mentioning the fact that, at some point in time, through some avenue, a dealer allowed their customer and financial data to be extracted and used. Dealers need to accept responsibility for this data being available in the first place. No matter how indirect that permission for data use was gained, ultimately, you allowed it.

My opinion of TrueCar is that they are a marketing and lead source for your inventory. I personally liked the pay-per-sale leads vs. the pay-per-lead pricing model. I don’t blame TrueCar for using your data to drive leads to you. There are many companies that use your data, crawl your website or obtain your financial and customer data and use or resell that data and then use it for their own monetary gain. They spend tons of money on SEO to drive consumers to their website where they convert the lead and resell it to you. There was a conversation about this for awhile too. The fact remains is that they spend the money to do it, are better at it than you and dedicate resources to accomplish this. Even OEMs do this and sell the leads to their dealers. If you want to dedicate the budget, time and resources to do this, you can do it also but don’t blame them for doing something you ultimately both aren’t going to and don’t want to do.

One of the suggestions that has been made is to lock everyone out of your DMS. This is really not a practical option. Many website companies do not have the ability to extract inventory data from your DMS so, ultimately, they outsource the data polling to another company whether you know it or not. In most cases, it’s transparent. There were many times when I was with HomeNet Automotive that a dealer had no idea that we were already polling their DMS on behalf of some vendor or another that they were using. In fact, most vendors do not have the ability to directly poll your DMS so unless you use no 3rd party vendors whatsoever, you really can’t lock your DMS. This includes desking software, pricing software, inventory management, etc.

If you lock everyone out of your DMS, you will have no inventory marketing whatsoever, and that includes having your inventory on your website.

Am I saying you shouldn’t be aware of who is getting your data? Not at all. You should know who is getting it, what they’re getting, and, most importantly, what your agreement with them allows them to do with your data.

It is your responsibility to protect your data through aggressive policing and review of your vendor partner contracts. You need your DMS polled to market your inventory and market to your customers (if you use any service to do this), get deals financed, and have any sort of integration with other software you use and your DMS.

When Reynolds and Reynolds took steps to police and protect dealer DMS data, dealers complained that they should have full control over their data and who gets it. Even in the cases of Reynolds implementing stricter and more difficult ways for a non-Reynolds Certified company to poll the DMS, dealers would allow third parties to create and install workarounds to this or they would manually create and upload the reports to their vendors. Now dealers are complaining that the data is being misused and/or used against them. You can’t have it both ways.

Accept responsibility and choose who gets your data, what they get, and what they are allowed to do with it.

Stop pointing fingers at TrueCar.