dealer.truecar.com

Q1 2015

New Products & Services

1

Mark Cuban knows how to win (and tells us)

DEALER SPOTLIGHT:

Costa Mesa Nissan

Ask KenEVERYTHING YOU WANT TO KNOW ABOUT ANYTHING**mostly anything

Q1 2015

A TRUECAR CERTIFIED DEALER PUBLICATION

Car Buying Goes Mobile Connect to customers wherever you are with TrueCar’s app

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Q1 2015

Table of Contents

5Ask KenKen Potter, Vice President of Dealer Sales at TrueCar, shares key insights, tips, and advice based on his engagement with TrueCar’s 9000+ Certified Dealers.

6 Products & FeaturesLearn about the latest TrueCar product innovations and newest features to aid you and your consumers during the car buying process.

12 FEATURE STORY

How to Win: An Interview with Mark Cuban, entrepreneur extraordinaire

16 Dealer Spotlight: Costa Mesa NissanKen Heinsohn of Costa Mesa Nissan shares what he has learned in his 20+ years of experience in the automotive industry.

19 Infographic: Gasoline prices drive vehicle type preference

Contents

in every issueLetters to the Editor

TrueCar Marketing

Dealer Milestones

Calendar

4 9

1718

TrueCar.com/Dealer 3

Q1 2015

Letter from the Editor

Dear TrueCar Dealer Partner,

TrueCar and our Dealer partners had an incredibly successful year in 2014, with 600,000 vehicles sold to TrueCar users and the Dealer network growing to almost 10,000 TrueCar Certified Dealers.

We’re looking to continue this momentum in 2015 with $50 million budgeted for technology and product development and a plan to spend $100 million allocated to marketing. We have also listened to the feedback we received in 2014 and have significantly increased our investment in Dealer support and training staff to better meet your needs.

Our investment in marketing, the website and mobile experience, Dealer tools, and Dealer support is designed to allow in-market buyers to connect with Certified Dealers that provide a better car buying experience. The result for your Dealership is increased sales at a cost that is roughly 50% below industry average.

We’re excited to share our Q1 plans with you in our new quarterly newsletter. These plans include:

· New products and features including TrueCar mobile apps and advanced Dealer pricing tools

· New Dealer Certification content on the Dealer Portal

· Insight into our upcoming TV, radio, and digital marketing campaigns on TrueCar.com

· Partner marketing and promotion of the Car Buying Service across our network of 450+ Partners

Lastly, TrueCar will be at NADA (booth 5018W). Please stop by to see demos of our new products or to meet with the TrueCar Dealer Team.

As always, thank you for your continued support and partnership.

Mike TimmonsSVP, TrueCar Dealer Development

Letter from the Editor

dealer.truecar.com4

Q1 2015

Letters to the Editor

I see TrueCar doing more and more advertising. What are TrueCar’s plans for 2015 and will my Dealership be competing with TrueCar’s advertising in the future?

We’ve been amazed by the success of TrueCar’s advertising, especially TV and radio. Online businesses normally start advertising online and over time slowly move to TV and radio. TrueCar did the opposite and almost immediately we found great success with TV and radio – and our return on investment is better on these traditional channels than Search Engine Optimization (SEO) and Search Engine Marketing (SEM). As a result, TrueCar’s advertising budget in 2015 will be around $100 million and most will be spent on TV and radio. We expect this will generate a huge volume of sales for the TrueCar Dealer Network.

Most importantly, TrueCar’s advertising doesn’t compete with your advertising. TrueCar avoids going head-to-head with traditional Dealer advertising and has a policy to never use a Dealer’s brand name in SEM.

In December 2014, TrueCar launched a new series of TV commercials focused on themes like the new Price Check mobile feature and the very personal experience of owning a car. This new positioning is important as it aligns the customer’s desire for a fair, simple, and fun car buying experience with the commitment of our great network of Dealer partners to a better car buying experience… “This is the way car buying was always meant to be.”

Lucas Donat, Chief Marketing Officer

As a TrueCar Dealer, what can I do to advertise that I am a Certified Dealer?

We’ve had many Dealers ask if they can use the TrueCar logo on their website or in the store. We’re pleased to let you know that in the near future TrueCar will have “Dealer

Marketing Kits” available. The purpose of these kits is to help your Dealership leverage the TrueCar brand with both TrueCar customers and walk-in traffic. The kits are likely to include window signage, pens and work pads for Internet Sales staff, and a few other cool things. Shortly after, we plan to release a digital marketing kit for your website. These will be provided to you at no cost. Of course the Marketing Kits will only be for use by active TrueCar Dealers in good standing that have completed the new Dealer Certification training.

Lucas Donat, CMO

I want to show my Dealership’s ratings and reviews to TrueCar customers. What are your plans to allow me to show my reviews to customers?

We want to promote your success, delivering excellent customer service to TrueCar introductions from our programs and sites including USAA, AAA, Consumer Reports, GEICO, and TrueCar.com. In particular, we want to capture and share specific feedback about your front-line folks who play a huge part in the success of the program. However, we also recognize that it’s important to avoid the gaming that sometimes occurs with traditional reviews and avoid the impact that a recent negative review can have.

TrueCar currently surveys everyone using the service, and we’ll start collecting specific feedback about customers’ experiences with salespeople. In Q1 we’ll be sharing the questions and customer feedback with you so both TrueCar and your Dealership can understand what customers are saying and what we can do together to ensure a great customer experience. Once we’ve learned what drives great customer experiences, we hope to start leveraging your positive TrueCar reviews and feedback with customers (before then, nothing will be shown to customers). We’ll be in touch

with your Dealership at each step of the process – be on the lookout for more information.

Tom Taira, Chief Product Officer

I read that TrueCar is going to invest $50 million in Product and Technology enhancements in 2015. How will this benefit my Dealership?

Our key investments in 2015 are focused on improving the customer buying experience and the Dealership selling experience. On the Dealer side, our significant areas of investment will be in mobile and Dealer tools to help improve CSI scores and close rates, and to enable you to make better decisions to hit your profit and margin goals.

With mobile, we want to move customers away from paper certificates and have their smartphone guide them through the car buying experience at your store. This will help overcome possible customer and Dealer frustrations allowing you to focus on customer service and delivering a better experience.

For Dealer tools, we’ll focus on two main areas. First, we want to improve your ability to communicate with customers. This will include collecting and sharing more customer information and data with you and launching new tools, such as the Dealer Communication Service, to leverage this customer information and create more impactful customer communication aimed at improving your close rates. Second, we intend to improve existing tools related to pricing, margin analysis, and managing sales volume. You will start to see these tools rolling out in Q1 (see the TrueMarket Optimizer on page 7 of this Newsletter) with much more to come throughout the year.

Tom Taira, CPO

Letters to the Editor

Have something to say? We want to hear from you. Send your questions, comments, praise, or concerns to dealermag@truecar.com.

TrueCar.com/Dealer 5

Q1 2015

Ask Ken

Ask KenKen shares a key insight in each newsletter from his meetings with 9,000+ Certified Dealers.

Q: If you could give one best practice that will help my Dealership sell more cars, what would it be?

A: The starting point to success on the TrueCar program is to understand the customer experience that leads TrueCar customers to your Dealership.

When your TrueCar customer first begins the process of building out a vehicle on TrueCar.com, they go through a fundamentally different experience than those using traditional lead-gen sources. This different experience results in customers that are deeper in funnel and more ready to buy when they contact you. Understanding this difference gives you the opportunity to better meet customer expectations, resulting in more sales and happier customers.

On TrueCar.com and our other sites, instead of asking for name, email, and phone and sending a traditional lead to your Dealership as quickly as possible, TrueCar asks customers about their preferences, like:

• What vehicle are you looking for?

• What common configurations and option packages do you want?

• Do you have other preferred color combinations or options?

• How do you plan to pay for your car?

• Do you have a trade-in?

• Do you belong to any Member programs to get additional savings? (e.g., USAA, American Express, Geico)

Knowing that the customer you’re about to talk with is looking for a blue sedan with a sunroof, has USAA insurance, plans on leasing vs. financing, and is trading in a 2010 Honda Accord LX with 53,000 miles, sets the stage for a great initial conversation with your customer, leading to more sales.

Got a burning question? Ask Ken.If anything else is burning, ask a doctor.

Ken Potter, VP, TrueCar Dealer Development

dealermag@truecar.com

TrueCar.com/Dealer

Q1 2015

Products & Features

6

Car Buying Goes MobileTrueCar’s apps make it even easier for customers and Dealers to connect.

TrueCar Consumer AppNew features ease anxious customers on your lot.

TrueCar App for DealersThere’s a new way to work with TrueCar users.

Mobile devices are becoming a bigger part of the car buying experience. The use of tablets by auto buyers is up 67% since 2012, and 97% of car buyers that use auto shopping apps use a third-party app like TrueCar.*

TrueCar is committed to providing an on-the-lot experience where buyers and salespeople have access to the same data in real-time.

We believe this will result in an interaction based on trust and transparency that is more efficient and enjoyable for all parties.

Buying happens on the lot. Whether the customer first used TrueCar on a desktop, tablet, or smartphone, the TrueCar app allows the customer to connect to your Dealership and reduces some of the anxieties often associated with the car buying process.

Price Check allows customers and Dealers to scan the barcode on the window sticker of a vehicle on your lot and receive your Dealership’s pricing information for that vehicle. No more confusion or misunderstandings about how prices may vary for different option packages or models. And best of all, Price Check only works for the buyer if they are standing on your lot, giving you the opportunity to earn their business in person.

The TrueCar App for Certified Dealers gives your staff the ability to quickly look up customer details and all your pricing information, in real time.

By accessing the customer’s details and profile on your phone or tablet when you first meet, you can better understand your customer’s preferences. And since Offers are the most effective way of alleviating price confusion, you can quickly create and send Offers from your mobile device. It’s your own more powerful version of Price Check.

Benefits

Convenience: Access pricing, prospect and Certificate details, and the Offers tool from anywhere on your Dealership lot.

Trust: Build a better connection with your customer by accessing his or her profile and details on your phone or tablet when you first meet.

Connection: Quickly create and show or send (via email or text) Offers from your mobile device while on the lot with your customer. And coming soon, receive alerts when the customer is on your lot.

Efficiency: Mobile tools can help speed up the F&I process and help you close faster. Cut down on the time it takes to gather information and process paperwork.

The use of smartphones by auto buyers is up

40% since 2012*

Products&Features

Get the Dealer Portal App Search for “TrueCar Dealer

Portal” in the Google Play store (Android) or the App Store

(Apple), and download the app.

*2014 New Autoshopper Study, J.D. Power

Q1 2015

Products & Features

New Pricing Features

End of the Silver AgeSilver, base trim, no options. That’s what you wanted, right?

Weekly Pricing Summary Providing your pricing information via the Dealer Portal is a key building block of the TrueCar program and ensures your Dealership is discoverable by customers of TrueCar-powered auto-buying sites. To keep your staff aware of their current pricing and market pricing trends in the market, we have introduced a weekly pricing summary. This weekly digest shows how your current pricing stacks up against TrueCar market data, a count of any unpriced trims you may have, and provides examples of high-demand trims that warrant additional awareness and consideration.

At the beginning of 2014, this described the new car “preferences” of 75% of TrueCar introductions. We are happy to announce that starting in Q1, all TrueCar users will need to review and select a trim, an exterior and interior color, and choose from popular optional equipment. Already rolled out to 90% of our sites including TrueCar.com, USAA, Consumer Reports, and more, we have seen a 60%+ reduction in customers with silver as their preferred color, and a large increase in appropriate trim and options selections. Because your first conversation with the customer no longer begins with a discussion about color preferences, these improvements should strengthen your relationship with the customer and result in higher close rates.

TrueMarket Optimizer In early 2015, we will be launching the TrueMarket Optimizer as a new analytical tool to help Dealers better understand the science of pricing and how sales volume and margin interact in the marketplace. Visit the TrueCar booth at NADA for more information and a demonstration.

Used Vehicle UpdateTrueCar is launching an all new used car experience in 2015. Expected highlights include:

• Support for Dealers who offer a 3-day, 150-mile return policy on used cars – TrueCar will credit your Dealership $300 to cover your restocking costs

• Expanded used vehicle discount program• Offer Tool for used vehicles

These improvements add up to a great opportunity for Certified Dealers to sell more used cars.

Recent highlights include:

• Expanded promotion of the TrueCar Certified Dealer used vehicle experience across all 400+ programs, including the Consumer Reports and U.S. News & World Report used vehicle sites

• Improved website experience, including mobile-optimized sites across all programs

• Buyer protection benefits fully funded by TrueCar, such as access to an automotive expert and roadside assistance

TrueCar Certification 2.0 The updated Certification Program includes six all new interactive videos aimed at helping your Dealership access high-quality customers, improve your close rates, and earn high CSI scores. It takes less than 30 minutes to complete, and you can take breaks and come back at your convenience.

Dealers who completed the previous Certification Program experienced an average 30% increase in close rates. With updated content, the latest best practices and Dealer tools, we are confident that completing the Certification Program will help your Dealership sell even more cars to users of TrueCar sites like USAA, Consumer Reports, AARP, AAA, U.S. News & World Report, GEICO, TrueCar, etc.

If you’ve completed our previous Certification Program, great job. To maintain your Certified status in 2015, please complete the new Certification Program. Log in today at www.TrueCar.com/Dealer.

Be on the lookout to opt-in your Dealership to the additional

benefits early in 2015.

It is a

requirement of the TrueCar service that all TrueCar Certified

Dealers complete the most recent Certification

Program at least every 12 months.

TrueCar.com/Dealer

Q1 2015

Products & Features

8

Beyond Inventory IntegrationHaving what everyone wants – on the lot – isn’t easy.

Having exactly what the customer wants on your lot is a powerful value proposition, but presents several challenges. You can only stock a limited amount of inventory, and customers often don’t know exactly what they want. This is the failure of many inventory listing sites and why TrueCar doesn’t do new vehicle listings.

TrueCar recognizes that you have multiple ways of meeting the customer’s needs beyond the inventory on your lot, for example through Dealer trades. In 2015 we’ll be launching several initiatives aimed at making the TrueCar Certified Dealer the ultimate solution for getting the customer what they want – whether the vehicle is on your lot, at another Dealer, in transit, or right from the factory.

The first version of this new system, providing the branded partner experience, launches with the GEICO Car Buying Service in Q1. Additional features will soon follow, with more Auto Buying Programs added to the service throughout the year.

Inventory Integration Continues to Expand The successful tool adds more brands. Already successfully launched for Nissan, Infiniti, Honda, Acura, and GM and Chrysler brands, in Q4 TrueCar launched BMW, Ford, Mercedes, MINI, Subaru, Toyota, and VW brands.*

Inventory Integration allows a Dealer to inform a customer about actual inventory on the Dealer’s lot that most closely matches the Configured Vehicle that the customer submitted – customers presented with an in-stock vehicle buy either the recommended vehicle or one with the same options 40% of the time. Users who receive Certificates for in-stock vehicles are also far more likely to email a Certified Dealer or print the Certificates.

To make sure you are getting the most out of Inventory Integration as well as the Offer Tool, be sure your new vehicle inventory feed includes total MSRP, Invoice and exterior color, and that your pricing information is up-to-date in the Dealer Portal.

In-stock new and late model

used vehicles are presented to the

customer.

*in all states except Kansas, Nebraska, Oregon, and Washington State.

Leverage affinity partner branding in email

Two requests we frequently receive from Certified Dealers are for (1) the ability to leverage affinity partner branding in email communications, and (2) notifications to be sent to their CRM or Lead Management System when TrueCar learns that a customer has purchased a vehicle and is no longer in market. TrueCar is preparing to launch a new Dealer Communication Service to satisfy both of these requests.

Key Features Include:

• Partner branding automatically added to the header of any email sent to the customer, as a reminder of your affiliation

• Ability for Dealers to easily assign a Salesperson to each customer in TrueCar’s system, ensuring all interactions are directed to the correct contact at your Dealership

• Additional customer details emailed directly to the Dealer CRM indicating alternate vehicle preferences, trade-in details, and financing needs

• Lost Sale alerts when a customer has purchased elsewhere, ensuring Dealers can focus attention on prospects that are still in market

Dealer Communication Service

Notifications sent to your Lead Management System:

• Additional customer preferences including trade-in and expected financing needs

• Lost Sale alert if customer purchased elsewhere

TrueCar.com/Dealer

Q1 2015

TrueCar Marketing

9

TelevisionTrueCar entered the holiday car-shopping season in Q4 with a big TV push. We launched a set of new TV commercials that we are really proud of. By focusing on the at-the-Dealer customer experience and clearly illustrating why choosing a TrueCar Certified Dealer matters, these spots have been incredibly effective.

Out-of-HomeWe are testing billboards and other out of home formats in select markets. We hope to roll this campaign out nationwide by the end of 2015.

DigitalTrueCar is a data and technology company at heart, and we leverage these infrastructure and engineering assets to deliver prospects to our Dealers from online sources like SEM, SEO, display, and social.

RadioRadio continues to be incredibly strong for TrueCar. We are now the 2nd largest radio advertiser in America based on the volume of commercials played on top rated stations in all major U.S. markets.

Our partners are taking notice as well. USAA, AARP, and AAA have launched radio programs with TrueCar to incredible results. We are now in the process of expanding both campaigns.

TrueCar MarketingTrueCar’s marketing reaches 80% of in-market households in the U.S.

TrueCar’s national scale and in-house expertise allow us to market effectively on your behalf. TrueCar is the most efficient and accountable way for Dealers to spend their marketing dollars.

Award-winning actor, producer, and writer Owen Wilson will lend his affable voice to an upcoming series of broadcast spots. The campaign is aimed at promoting TrueCar’s mission of making the purchase process simple, fair, and fun for modern consumers, especially Millennials.

The “True Campaign” spots reflect America’s love affair with cars that’s shared by TrueCar and Wilson. This campaign is also about showing that the future of buying a car can be as joyful as driving one.

As we look forward to 2015, we’ve

got some really big things planned that we can’t wait to

share with our Dealers! Here’s a sneak peek at some of the ways we are laser-focused on driving

in-market customers into your showrooms.

Owen Wilson to serve as “voice” of TrueCar

dealer.truecar.com

Q1 2015

10

Partner Marketing

How Partner programs are promoting their branded auto buying sites

USAAUSAA updated their iPhone Mobile application to include a new and improved TrueCar-powered interface, resulting in a 40% increase in USAA Members using the Mobile app to contact Certified Dealers.USAA also launched a new loan application flow to better integrate the USAA Car Buying Service into the loan application process.

PenFedPenFed continues to heavily promote special financing rates, 0.99% APR on new vehicle auto loans, and 2.49% on used vehicle loans, to members that use the PenFed service and purchase from a participating Dealer. In addition, PenFed Members who purchase from a Certified Dealer qualify for Buyer’s Bonus.

Credit Unions TrueCar now provides more than 1 million credit union members with access to the Car Buying Service and the TrueCar Dealer network. San Diego County Credit Union (SDCCU) is the newest credit union to join the TrueCar network, launching in November 2014 to their 250,000 member base. To raise awareness they’ll begin a radio campaign reaching over 8.5 million San Diego, Riverside, and Orange County residents.

U.S. News & World ReportIn Q4 2014, TrueCar and U.S. News & Report launched an enhanced desktop/mobile version of the U.S. News Best Price Program. This included making the TrueCar Price Report more prominent, leading to an increase in intro-ductions and sales. The program also expanded to used vehicles, which further increased Certified Dealers’ exposure to highly engaged customers.

Partner Marketing

dealer.truecar.com

Q1 2015

11

Partner Marketing

Introducing a new subscriber benefit:

Save time and money on pre-owned cars.Find the used car that’s right for you. Search from hundreds of thousands of used cars from the comfort of your own home.

Build & Buy Car Buying Service

Extensive inventory of used cars nationwide

See upfront prices before you leave home

Free CARFAX Vehicle History Reports available

Neither TrueCar nor Consumer Reports brokers, sells, or leases motor vehicles. Service not available in Canada.

Find the car you’ve been looking for. www.ConsumerReports.org/cr/usedcarsXXXX

Savings on new cars also available.

AAAIn Q1, AAA Missouri will conduct a AAA Auto Buying Program radio campaign covering the greater St. Louis market. AAA Southern New England will also conduct a radio campaign covering Connecticut, Massachusetts, New Jersey, and Rhode Island. In addition, both AAA Missouri and AAA Southern New England are providing additional program exposure throughout their websites to direct online traffic to the Auto Buying Program.

AARPIn Q1, AARP will continue to promote the program through banner ads, a dedicated Presidents’ Day email, and a new-member welcome insert to 800,000 AARP members.

Consumer Reports Consumer Reports will feature the recently launched used vehicle program in their monthly magazines, which are sent to more than 4 million subscribers. Consumer Reports will also promote the used vehicle program launch with a $100 gift card promotion. Additionally, Consumer Reports will integrate the Build & Buy Car Buying Service into their brand new call center.

Employee Benefit Programs In Q1, TrueCar-powered Employee Benefit Programs will heavily promote Presidents’ Day savings. LifeCare, PerkSpot, Beneplace, Next Jump, YouDecide, Motivano, and Buyer’s Edge will feature the Auto Buying Program in banner ads, email placements and dedicated emails to millions of employees.Our largest Employee Buying Program partner, Next Jump, will continue its awareness emails to more than 8 million employees, as well as execute incentive-based and used car marketing.

Insurance CompaniesTrueCar powers auto buying sites for 13 of the top 20 U.S. insurance companies, including Allstate, GEICO, Progressive, Nationwide, Farmers, USAA, Liberty Mutual, The Hartford, esurance, Mercury, Amica, AAA, and Kemper.The Allstate Car Buying Service can assist young household customers with the second largest purchase they will make. In Q1 2015, Allstate will expand its young household campaign TV spots nationally. They will also be sending eNewsletters and emails based on life events that may trigger the car buying process.

Our Partners get a Bonus:

Buyer’s Bonus Update An exclusive program available to members of certain auto buying sites, Buyer’s Bonus is designed to further reinforce the value of working with a TrueCar Certified Dealer. Buyer’s Bonus benefits can total over $2,000 and are provided at no cost to the Dealer. Customers are only eligible if they both contact your Dealership through the eligible auto buying site and buy from your Dealership.

TrueCar does not power the AAA car buying service in some areas, including New York City, Northern New Jersey, and Southern California.

To make sure you can take

advantage of this program, customer eligibility is shown directly on the

customer’s Certificate and in the Dealer Portal. This allows you to leverage Buyer’s Bonus when explaining the benefits

of working with your Dealership.

How to win

TrueCar.com/Dealer12

An interview with Mark Cubanby Lucas Donat, Chief Marketing Officer, TrueCar

TrueCar.com/Dealer

Q1 2015

How to Win: An Interview with Mark Cuban

13

He is one of the most influential entrepreneurs of our time.

He embodies the spirit of what is possible. He’s smart. Humble. Disruptive. Respectful. Accessible. And incredibly successful. If we do our job well, we’re one or two of these things on a good day. Rarely are we all of them. So we are honored to feature Mark as our cover profile in the inaugural issue of Connect, the TrueCar magazine created exclusively for our TrueCar Certified Dealers.

TrueCar.com/Dealer

Q1 2015

How to Win: An Interview with Mark Cuban

14

Lucas: Thanks for being such a champion of TrueCar over the years. Let’s talk about the young car buyers coming up. The economy seems to be recovering. Twenty somethings were out of the economy for awhile, large in numbers, less influential in automotive. But now we are looking at an economy where there are opportunities for them, and that is going to impact their car buying behavior. What is different about this new generation of buyers that don’t act in the same way as their grandparents and parents?

Mark: For the parents of Millennials the goal was to get out of the house and get a car. Now there isn’t quite the rush to get out of the house. The desire to get a new car, however, has not changed. If you are living at home, you need your own car. You are your car. It is your brand and the star of social media. So the world has certainly changed and I think it’s for the better for car sales.

LD: Over the last year, TrueCar traffic has shifted from 100% desktop to almost 50% mobile. If you can now buy a car using your cell phone, how do you see mobile transforming how we purchase and act as consumers?

As we move into our future as a company committed to making car buying simple, fair, and fun, it’s hard to ignore that Millennials are finally starting to become the economic force in automotive that we always hoped they would be. They arrived with a bit of a fizzle in 2013. In 2015, the confluence of a rebounding economy and the fact that Gen Y are now having kids has moved them into the second largest car buying demographic, displacing Gen X. They are the first digital natives. They grew up using technology, and they’ll be buying their cars on their mobile phones using TrueCar to connect with the rare group of dealers that you are. Hence our name Connect. We dedicate this issue of Connect to all TrueCar Certified Dealers. You are changing the way we buy cars and paving the way for the next generation of car buyers that are just getting started.

“The world has certainly changed and I think it’s for the better for car sales.”

TrueCar.com/Dealer

Q1 2015

How to Win: An Interview with Mark Cuban

15

M: I think mobile increases the confidence that people have when buying a car. It used to be you would print out what you found on TrueCar. Now you can take it with you and check pricing and buy a car with much more confidence than before. Plus, it’s cool and expected to pull out your phone. Pulling out a printout, not so much.

LD: Transparency has been a hallmark of the TrueCar brand. How will data and technology enable greater degrees of transparency? How important is that to the Millennial generation?

M: Millennials trust companies that are who they say they are. There is such an enormous feedback loop for Millennials that if you are not authentic, as TrueCar is, they find out very quickly and abandon you even faster. TrueCar actually is the definition of transparency. It gives you market information that you need for a purchase. Being at the center of the feedback loop is exactly why TrueCar is of so much value.

LD: Do you buy that Millennials are more values-based and purpose-driven as consumers? Is it important for companies to stand for more than just turning a profit?

M: They are. I see far too many business proposals, and without question making a contribution to society is important to Millennials. They are willing to give up a share of profits and gear their businesses toward a cause. I think companies that focus on Millennials need to make it clear what their corporate mission is and how they look to impact the world.

LD: The world is changing quickly. It’s easy to feel obsolete if you aren’t a kid these days. What will the secret be to surviving in a hyper-connected world if you aren’t at the bleeding edge of technology?

M: Don’t stress. If the tech is valuable to you, it will find you and you won’t have to think twice.

LD: Shifting gears to how we reach our consumers. At TrueCar we currently use television as one of our biggest and, ironically, most efficient customer acquisition channels. How do you see television evolving and media consumption in general changing over the next several years?

M: My partner and I essentially started the streaming business back in 1995 with a company called AudioNet. Our mantra back then was the same as it is today. Bits are bits. They don’t care what they contain, whether it’s audio, video, or data. They all can be transported via wires or wirelessly to any digital device. The point being that we will consume what’s available to us in the way we most like to consume it. It may come from a digital radio station, it may come from a wi fi connection, it really doesnt matter. We may call it radio, TV, Internet, it really doesn’t matter. Content we love will find a way to us in a manner that makes us happy. It always has and always will!

LD: In your book, How to Win at the Sport of Business, you mention the cars you owned as a barometer of where you were in your life at the time of ownership. Can you talk about the role that cars play in American culture and specifically in your life?

M: Cars are about enjoyment and branding. You want to enjoy riding in your car, and you want it to send the right message when people see you get in or out and when it shows up in your Facebook feed. For me, I love to drive. Just to get on the road and think about whatever I need to think about without interruption. It also gives me a chance to be by myself. Every now and then I need a break. My Lexus Hybrid is where I find that getaway to relax and enjoy the ride.

LD: Thanks, Mark. America has a love affair with cars. Our next TV campaign is called “TrueJoy,” and it is based on the thesis that the future of car buying can be as joyful as driving. •

“Millennials trust companies that are who they say they are. There is such an enormous feedback loop for Millennials that if you are not authentic, as TrueCar is, they find out very quickly and abandon you even faster.”

TrueCar.com/Dealer

Q1 2015

Dealer Spotlight

16

Ken Heinsohn is the General Manager of Costa Mesa Nissan, a recent acquisition by the Ken Garff Automotive Group. With more than 20 years of experience under his belt, Ken shares his background and explains why he uses TrueCar to help sell cars.

TrueCar: Tell us about your background, how did you first get into the car business?

Ken Heinsohn: Back in 1996 I bought an RV and traveled the country for a year before I pulled into California in 1997 and bought a motorcycle. I wound up going to work at a motorcycle shop and I never left. I sold a bunch of parts to some car guys and eventually they sucked me in. They got me! That was Scott Robinson Honda in Torrance, and it was my very first car dealership.

TC: Can you tell us about what you look for when you’re hiring?

KH: Sure, when I’m interviewing, I’m just looking for likeability and character. I couldn’t care less what your résumé says, I can’t care less what your skills are, none of that means anything until I decide if I like you or not and if you have good character. Skills, you can teach, but you can’t teach someone to care, you can’t teach someone to be likeable, you can’t teach someone to be courteous.

I build business with people I trust with good character. Those would be the two big words with me: Do I feel I can trust them, and do they have good character?

TC: Tell us about how you first came across the TrueCar service.

KH: Way before TrueCar was ZAG, back in 2009, was my first introduction to TrueCar. We had just purchased Surf City Nissan, and I was there as the finance director/sales manager/assistant general manager…. We were a small store so we all did it all. When I

learned about it, I first thought it was a ripoff, they overcharge, and that was the beginning. We made car deals and we complained because nobody wants to pay a fee, but we made car deals through it, and it was effective for us.

I think the changes from Zag to TrueCar and the way things are more transparent and done more correctly makesit a better tool. You have to use all the tools that are available, and TrueCar now is not going away, so you can either embrace it or you can fight it, but if you’re fighting it, it’s because you don’t understand it. At this point, my team understands it, and we use it as a tool.

TC: Tell us about a great USAA customer experience at your store.

KH: We’ve sold to several military people recently, and they’re fiercely loyal. Most of them served our country in some shape or form, so they deserve a little extra respect.

TC: Does your dealership do any work to support the local community?

KH: We’re just starting our programs here since we’ve only been here 90 days, but we support a lot of programs. We just did Christmas trees and Thanksgiving dinners. We’re also looking for a local organization to support.

TC: What makes you proud to go into work every day?

KH: Turns out I’m a people person. The biggest joy I get is watching and helping people grow. It doesn’t really matter where I go to work, but that’s my joy. •

“TrueCar now is not going away, so you can either embrace it or you can fight it, but if you’re fighting it, it’s because you don’t understand it. Ken Heinsohn General Manager, Costa Mesa Nissan

Costa Mesa Nissan Costa Mesa, CA

TrueCar.com/Dealer

Q1 2015

Dealer Milestones

17

Boch Toyota (MA) 1,343 sales

Lustine Chrysler Jeep Dodge Ram (VA) 565 sales

Ed Martin Acura (IN) - 22.7%

Rick Case Alfa Romeo FIAT (FL) - 19.1%

Audi Denver (CO) - 14.0%

BMW of San Antonio (TX) - 30.8%

Moore Buick GMC, Inc. (NC) - 20.2%

Covert Cadillac (TX) - 21.3%

Daniels Long Chevrolet (CO) - 18.7%

Larry H. Miller Chrysler Jeep Tucson (AZ) - 20.0%

Reno Dodge (NV) - 25.0%

Zeck Ford (KS) - 22.0%

Freedom Honda (CO) - 25.1%

Phil Long Hyundai of Chapel Hills (CO) - 30.1%

Southwest Infiniti (TX) - 18.8%

Jake Kaplan’s Inc of Norwood (MA) - 10.8%

Round Rock Kia (TX) - 19.1%

North Park Lexus (TX) - 21.9%

North Park Lincoln (TX) - 17.6%

Roger Beasley Mazda Killeen (TX) - 29.2%

Mercedes-Benz of Annapolis (MD) - 37.2%

Bill Jacobs MINI (IL) - 9.3%

Gillman Mitsubishi San Antonio (TX) - 17.9%

Casa Nissan (TX) - 23.4%

Napleton Porsche of Westmont (IL) - 6.2%

Precision Toyota of Tucson (AZ) - 27.4%

Heuberger Motors Inc. (CO) - 29.3%

Southpoint Volkswagen (LA) - 22.4%

Volvo of San Antonio (TX) - 21.0%

Most Sales*

+300% Q3 Year over Year Growth on the TrueCar Program

Domestic Mainline Brands

2

1

3

Fremont Mazda (CA) Car Pros Kia Huntington Beach (CA)Brown’s Arlington Honda (VA)Brown’s Manassas Subaru (VA)Subaru of Pembroke Pines (FL) Casey Imports Subaru (VA) Baker Nissan (TX)City Kia of Greater Orlando (FL)

1000.0%546.7%536.8%494.1%387.5%353.3%345.8%300.0%

Dealer MilestonesHighest Close Rates Top Performers by Brand

Don Jackson Chrysler Dodge Jeep (GA) 641 sales

Ted Britt Ford Fairfax (VA) 663 sales

Most Sales* Import Mainline Brands

2

1

3*2014 Projected Sales

Koons Tysons Toyota (VA) 1,405 sales

Anderson Honda (CA) 1,682 sales

TrueCar.com/Dealer

Q1 2015

Calendar

18

TrueCar conducts free training for new and existing TrueCar Dealers, when and where you need it. By providing your Dealership with a full understanding of how the TrueCar service works, TrueCar Dealer training helps you better leverage the TrueCar service in order to improve close rates, CSI, and sales volume.

TrueCar Dealer CertificationBeing a Certified Dealer sets your Dealership apart, and by completing either the new TrueCar Franchised Dealer Certification Program or the new TrueCar Independent Dealer Certification Program, you’ll establish or maintain your Dealership’s Certified status – and your own – for 2015.

Read about the new program in the Products & Features section, or log in to the Dealer Portal to get more details.

JANUARY WEBINARS FEBRUARY WEBINARS

Thursday, January 8: UPDATED Best Practices for TrueCar Certified Dealers

Industry ConferencesTrueCar will be attending the following industry conferences. We look forward to seeing you there.

Tuesday, February 3: TrueCar Tools & Techniques for Improving Close Rates

TrueCar Tools & Techniques for Improving Close Rates

UPDATED Best Practices for TrueCar Certified Dealers

Insights into the TrueCar Customer Experience

Automotive News Retail ForumIntercontinental Hotel, San Francisco, CAFeatured speaker: John Krafcik, President

Maximizing Presidents’ Day Sales with TrueCar

Maximizing Presidents’ Day Sales with TrueCar

2015 NADA Convention & ExpoMoscone Convention Center, San Francisco, CAExhibitor Booth (#5018W)

Insights into the TrueCar Customer Experience

13 Tuesday

12 Thursday

MARCH WEBINARS

UPDATED Best Practices for TrueCar Certified Dealers

TrueCar Tools & Techniques for Improving Close Rates

Insights into the TrueCar Customer Experience

3 Tuesday

11 Wednesday

19 Thursday

22 Thursday

20 Tuesday

5 Thursday

10 Tuesday

23-25 Friday - Sunday

18 Wednesday

Calendar

We are proud to invest

in our partnership with you and are pleased to

offer training resources to help you succeed! For questions, or to register

for a webinar above, contact your TrueCar Account Representative

at 866.480.1313.

42%

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54%

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Gas Price Trucks + Utilities

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as Price (Gallon)

TrueCar.com/Dealer

Q1 2015

Infographic

19

Gasoline prices drive vehicle type preferenceStrong correlation between regular gasoline prices and vehicle type preference

TrueCar found a strong correlation over the past two years between gasoline prices and vehicle type preference. In December, regular gasoline prices dropped 22.5% compared to last year. This coincided with a 2.6% decline in car share of the total new vehicle market. During this same period,the market share for the truck and utility vehicle segment increased by 2.4%.

120 Broadway • Santa Monica, CA • 90401TrueCar.com/Dealer