TrueCar, based in Santa Monica, Calif., helps buyers and dealers during the car-buying process with data and analytics that allows people to see what others have paid for a given car. The company says that on average, it saves its customers more than $3,000 off MSRP.
TrueCar, which has more than 6,000 dealer partners, actually ran into trouble in 2012, when dealerships boycotted the company following a television campaign. But the company recovered after changing its marketing tactics and navigating through legal issues.
“We believe TrueCar.com’s negotiation-free car buying platform has demonstrated significant traction in changing the way consumers behave in one of the largest segments of the economy,” Abhishek Agrawal, Managing Director at Vulcan Capital, said in a statement. “Moreover, this remarkable business model has delivered huge value and significant savings to consumers.”
Agrawal, the head of Vulcan’s new growth equity initiative, will join TrueCar’s board as a result of today’s investment.