On Thursday, TrueCar announced the launch of its Sell Your Car offering and introduced its home delivery program in Texas.
The company highlighted Sell Your Car provides consumers with visibility into their vehicle’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 can 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 vehicle 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.
Meanwhile, the company highlighted TrueCar’s home delivery program, currently being tested in Texas, will enable any dealership to greatly expand the market reach for their used-vehicle inventory across their region or even nationally.
In addition, consumers benefit with expanded used-vehicle selection and the convenience of having a home delivery option.
TrueCar plans to expand the service to other markets in the second quarter, according to the news release.
The company stressed that both Sell Your Car and Home Delivery bring value to dealers and consumers and are part of TrueCar’s broader product roadmap. The company said these tools will play an important role in strengthening TrueCar’s auto-buying service for used vehicles 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,” the company said in the news release.
“TrueCar remains committed to providing dealers and consumers with innovative products as the company builds a modern-day marketplace,” the company continued. “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,” TrueCar went on to say.
With approximately $245 million in cash and equivalents at the end of 2021, TrueCar indicated that it 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,” the company said. “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 its products and evaluating the marketplace for potential M&A opportunities, TrueCar said its 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 Feb. 28.
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.
TrueCar noted the repurchase authorization lasts through Sept. 30, although the share repurchase program may be modified, suspended or terminated by the board of directors at any time.