Innovation threatens the status quo where many people have made a fortune and want to live comfortably. Scott Painter has spent his entire career on the cutting edge of the auto sales industry. He has learned that established dealerships want to sell cars through traditional methods, and without much competition. The Internet offers many different approaches to sales that happen in the local market in any state in the country. The challenge becomes complying with 50 different sets of automobile sales laws. Understanding these differences has made Scott Painter and his company, TrueCar, take a close look at the business operation.
The original business model was supposed to match a dealer with a used car for sale with a potential buyer, who might be located anywhere in the states. Each dealer was supposed to determine how low the price of each vehicle could drop before the sale became unprofitable. Great car sales could be made without engaging in a race to the bottom of the price scale. Scott Painter believed everyone would win. TrueCar would become a great asset for the dealers with hundreds of cars to sell each month. The Internet would provide a broader sales market for each car.
After some rough lessons, Scott Painter has realized that the auto dealers across the country are not fond of unleashed competition. Auto dealer trade groups have agreed to work with Scott to develop ways for everyone to win under the TrueCar business model. Car dealers face more challenges than ever before because car buyers are having difficulty in qualifying for car loans. Matching car buyers with the best deal has taken on more importance in the face of the changes in lending practices. Working together will allow the dealerships to reach out to buyers wherever they are located. The result will be more auto sales for dealers and better deals for the buyers.