Virginia MVDB again rules against TrueCar vehicle purchase referral model

Virginia MVDB again rules against TrueCar vehicle purchase referral model

For the third consecutive time this year, the Virginia Motor Vehicle Dealer Board (MVDB) has ruled that TrueCars pricing plan on making consumer referrals to dealers on vehicle purchases is contrary to Virginias bird dog prohibition. The decision came at MVDBs regular monthly meeting earlier this week, May 14, in Richmond, after TrueCar proposed a new pricing plan based on a matrix that varied depending on the location of the dealership and the dealers brand.

MVDB voted to reject TrueCars latest pricing matrix proposal, noting that the variable based on the type of new cars sold by a dealer was still tied to sales, which made it inconsistent with vehicle sales licensing laws.

The latest ruling will not be the end of TrueCar operations in the Commonwealth, however, as the company offered to create a pricing plan based only upon historical views of its website by consumers. MVDB did not feel it had enough information about that proposal to take it up at last Mondays meeting, however, and asked TrueCar to submit its new proposal to the Boards executive director, Bruce Gould, who will preview it with members of the Board. It is expected that TrueCars revised pricing program will be a subject at the summer meeting of the MVDB to be held July 9.

Other actions and considerations by MVDB

On other matters MVDB reiterated a warning it made to dealers earlier in the year to be mindful about the content of their Internet advertisements, noting that the Board is dedicating more time and effort to review Internet ads for required disclosures.

MVDB also noted that Virginia dealers should know that there will be new, sturdier paper stock for printing temp tags effective July 1. The new stock, however, can only be printed with a laser. Any dealer that does not have a laser printer to do the printing will be given some leeway after July 1, but all will need to get with the new program. The $1.00 increase in the temp tag fee – from $2 to $3 – will go into effect July 1.

DMV commissioner Rick Holcomb reported to MVDB that Virginia will proceed, along with several other states, with a pilot program on electronic titling. The states must interact with the National Highway Traffic Safety Administration to secure odometer disclosures that arent readily available currently, meaning that the pilot program will likely be delayed.