TrueCar Launches Sell Your Car Offering and Introduces Home Delivery Program in Texas For Added Car Buying and Selling Convenience

Rhea-AI Summary

TrueCar, Inc. (NASDAQ: TRUE) has launched its Sell Your Car offering and a Home Delivery program in Texas to enhance online automotive retail services. Consumers can receive an instant, online True Cash Offer for their vehicles, while dealerships gain access to a broader inventory channel. TrueCar has repurchased nearly $82 million in shares under its buyback program, authorized up to $150 million. With approximately $245 million in cash, the company is well-positioned for growth, investing in technology, marketing, and future services expansion.

Positive

• Launch of 'Sell Your Car' offering, enhancing consumer visibility into vehicle value.
• Introduction of Home Delivery program in Texas, expanding market reach for dealerships.
• Repurchased nearly $82 million in shares, demonstrating financial strength.
• Authorized buyback program of up to $150 million, indicating confidence in stock.
• Approximately $245 million in cash for future investments and growth opportunities.

Negative

• None.

New offerings are part of the company's strategic focus on delivering TrueCar+ while strengthening its core service as automotive retail continues its shift online

Company also announced that it had repurchased nearly $82 million in shares thus far through its stock buyback program

SANTA MONICA, Calif., March 17, 2022 /PRNewswire/ -- TrueCar, Inc. (NASDAQ: TRUE), the easiest, most efficient and transparent online destination for buying and selling new and used vehicles, today announced the launch of its Sell Your Car offering and introduced its Home Delivery program in Texas.

Sell Your Car provides consumers with visibility into their car's value as well as an instant, online True Cash Offer, while providing dealers a channel through which they can easily acquire additional inventory. To utilize Sell Your Car, consumers simply input their vehicle's details such as Vehicle Identification Number (VIN), license plate or make and model. The seller then confirms the vehicle's features and condition. They then receive a breakdown of the car's value, along with the instant online True Cash Offer, which once locked, is good for three days. To complete the transaction, consumers can then connect with local dealers to drop off the vehicle and receive payment.

TrueCar's Home Delivery program, currently being tested in Texas, will enable any dealership to greatly expand the market reach for their used car inventory across their  region or even nationally. In addition, consumers benefit with expanded used car selection and the convenience of having a home delivery option. TrueCar plans to expand the service to other markets in the second quarter.

Both Sell Your Car and Home Delivery bring value to dealers and consumers and are part of TrueCar's broader product roadmap. They will play an important role in strengthening TrueCar's auto-buying service for used cars as well as its TrueCar+ marketplace, which remains on track for commercial launch. Investments in TrueCar's product roadmap are a capital allocation priority and will ensure that TrueCar has a robust and expanded portfolio for new and used cars to take to its dealer partners throughout 2022 and subsequently.

TrueCar remains committed to providing dealers and consumers with innovative products as the company builds a modern day marketplace. To position for the future, the company will continue to invest in technology and product updates as well as hiring in these critical areas during 2022. The company will also align marketing activities to support both the initial launches and subsequent ramp in market coverage for these offerings across states, regions, and nationwide. 

With approximately $245 million in cash and equivalents at the end of 2021, TrueCar has financial flexibility to invest in its business as automotive retail continues to shift towards a more digital future. The company will continue to manage its business prudently and balance investments with other capital allocation priorities. These include potential tuck-in acquisitions to accelerate the company's strategic plans and time to market for new features and products across the TrueCar+ marketplace and core offering. 

In addition to investing in our products and evaluating the marketplace for potential M&A opportunities, TrueCar's cash position also provides an opportunity for further activity under our existing share repurchase program. TrueCar has already repurchased nearly $82 million in shares of its common stock pursuant to its share repurchase program, including nearly $7 million since February 28, 2022. The company previously announced that its board of directors authorized up to $150 million in repurchases of the company's common stock from time to time in the open market, privately negotiated purchases or pursuant to 10b5-1 trading plans, subject to applicable legal requirements. The repurchase authorization lasts through September 30, 2022, although the share repurchase program may be modified, suspended or terminated by the board of directors at any time.

About TrueCar
TrueCar is a leading automotive digital marketplace that enables auto buyers to connect to our nationwide network of Certified Dealers. We are building the industry's most personalized and efficient auto buying experience as we seek to bring more of the purchasing process online. Consumers who visit our marketplace will find a suite of vehicle discovery tools, price ratings and market context on new and used cars – all with a clear view of what's a great deal. When they are ready, TrueCar will enable them to connect with a local Certified Dealer who shares in our belief that truth, transparency and fairness are the foundation of a great auto buying experience. As part of our marketplace, TrueCar powers auto-buying programs for over 250 leading brands, including AARP, Sam's Club, Navy Federal Credit Union and American Express. TrueCar is headquartered in Santa Monica, California, with an office in Austin, Texas.

For more information, please visit www.truecar.com, and follow us on LinkedIn, Facebook or Twitter. TrueCar media email: pr@truecar.com

Forward-Looking Statements
Please note that this press release contains forward-looking statements that involve risks and uncertainties, including statements related to the company's Sell Your Car and Home Delivery offerings, the company's continued investments in technology and product updates, related hiring and marketing activities, strengthening its core service, and positioning TrueCar for growth. In some cases, you can identify forward-looking statements because they contain words such as "will" or "continue" or similar words or expressions and the negatives of those terms.  These forward-looking statements are subject to a number of risks, uncertainties and assumptions that may prove incorrect, any of which could cause our results to differ materially from those expressed or implied by such forward-looking statements, and include, among others, those risks and uncertainties described under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. All forward-looking statements in this press release are based on information available to our management as of the date of this press release and except as required by law; management assumes no obligation to update those forward-looking statements, which speak only as of their respective dates.

 

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SOURCE TrueCar.com

FAQ

What is the significance of TrueCar's 'Sell Your Car' offering?

The 'Sell Your Car' offering allows consumers to receive an instant True Cash Offer, increasing transparency and convenience in vehicle selling.

How is TrueCar expanding its services in Texas?

TrueCar is expanding its services by launching the 'Home Delivery' program and the 'Sell Your Car' offering to enhance the online vehicle selling experience.

What financial moves has TrueCar made recently?

TrueCar has repurchased nearly $82 million in shares as part of its buyback program, reflecting strong financial management.

How much cash does TrueCar have for future investments?

TrueCar reported approximately $245 million in cash and equivalents at the end of 2021, providing ample resources for growth.

What is the total authorization amount for TrueCar's share repurchase program?

TrueCar's board has authorized up to $150 million for the share repurchase program, demonstrating confidence in the company's stock.