Industry Insights - Drivonic

TrueCar Buys Digital Motors

Written by Drivonic Insights Team | Jun 28, 2022 6:00:00 PM

TrueCar has purchased online dealer sales platform Digital Motors in order to support the launch of TrueCar+, the company's new digital retailing service. Digital Motors, a software firm based in Irvine, Calif., that assists dealers with online commerce, debuted its flagship product in March 2020, two months ahead of schedule. It quickly gained traction among dealers hoping to capitalize on consumer interest in online car retailing fuelled by the pandemic. The deal's terms were not disclosed.

Digital Motors CEO Andreas Hinrichs said in a news release on Monday that TrueCar+ will complement his company's "transactional focus."

"We're thrilled to join TrueCar and support the expansion of TrueCar+, which will make online auto shopping a pleasurable, empowering, and efficient experience for all parties involved," said Hinrichs. TrueCar announced in May that it was looking at acquisition opportunities, citing the company's $234.8 million in assets and lack of debt on its first-quarter balance sheet as sources of funding. It was expressly hunting for TrueCar+ agreements that might be used as "tuck-in chances."

TrueCar CEO Mike Darrow said in the release, "Our acquisition of Digital Motors is a crucial step in the advancement of that marketplace, offering instant access to new tools to enable the development of a secure online purchasing and financing experience."

TrueCar senior vice president of business development Alain Nana-Sinkam told Automotive News that the company has already started integrating Digital Motors into the TrueCar+ system.

"We're working hard to establish some integrations with some of the important functions on the Digital Motors platform that will help us achieve our goals with TrueCar+," Nana-Sinkam added.

TrueCar values Digital Motors' experience in the automotive e-commerce market, as it strives to simplify the vehicle buying process on TrueCar+. "An simpler bargain appeals to everyone. Everyone prefers a quicker deal "Nana-Sinkam elaborated. "So, whether you're a dealer, a customer, a lender, or a service protection product provider, being able to offer solutions that add speed to the car purchase process is something that everyone can get behind."

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