TrueCar Values Vs. J.D. Power
J.D. Power has cemented a reputation for professionally accumulating and analyzing data in the best interest of consumers. For the automotive field, verifiable & unbiased information of real-world experiences endured by real vehicle owners is gathered through surveying the market from the third month to the third year of vehicle ownership.
The feedback generated from verified vehicle customers is used to segment the car market by price & size to create car ratings. Eventually, from these ratings, we derive the J.D. Power 100-Point Score (an overall rating per model per year) based on the following categories, weighted as indicated:
- Driving Experience (30%)
- Quality and Reliability (30%)
- Dealership Experience (30%)
- Resale Value (10%)
The 100-Point Score can be converted into four classifications for a high-level summary:
- Among the Best (90-100)
- Above Average (81-90)
- Average (70-80)
- Below Average (0-69)
On top of all that, serving consumers with a fuller understanding of car pricing and value, our J.D. Power Verified Fair Price is a dependable indicator that one is not overpaying for the desired vehicle. Using the purchasing information from over 12 million retail transactions each year, we keep close tabs on the average price and the price range paid by the majority of the people. Dealers who qualify will have the J.D. Power Verified Fair Price badge applied! Seeing that badge grants the assurance that the price is close to the average in that region.
Who TrueCar Is
With the idea of making car purchases a smooth experience, TrueCar was born to serve this idea by primarily aiming to provide fair car prices. Several factors play a hand in determining these prices, but all things being equal, that price can be locked for purchase at participating dealers.
TrueCar uses a large amount of data that is analyzed to provide reliable pricing information based on the prices of other vehicles sold.
The analysis part of this process takes into consideration several unique factors, including trim packages, miles, make and model, standard versus optional features, and other aftermarket upgrades. The pricing information provided to buyers and sellers of used cars is utilized by participating dealerships nationwide.
The transaction data gathered is a reliable way of determining the market for different cars within a specific geographical region, and there are also third-party data collected, so consumers may quickly view a complete picture of each local marketplace. The partnership between TrueCar and thousands of dealerships also means that plenty of data gets covered for helpful and reliable pricing.
Another source of reliable data comes from financing used and new vehicles, and associated loan data, insurance-related data, and vehicle registration. These sources of data offer a more concrete idea of the value of a car through less subjective data points.
Further, the subjectivity that is removed from this valuation process helps it become more accurate, and the information is for consumers who are purchasing a vehicle. Pricing information for True Car gets updated each week, and there are other checks in place that search for things like rebate programs, and other incentives.
These checks for rebates and incentives take place each day, so consumers have the most up to date information when searching for a vehicle. Transaction data that is more than four to eight weeks old gets removed to ensure pricing information is as current as possible. Hence, valuations are accurate and reflect the market well.
By removing old data when making pricing estimations, True Car can reliably reflect the most current market conditions and deliver enough information to consumers that they can form realistic expectations about what to pay for a specific vehicle. This process is one of the reasons that True Car data is more up to date than most other competitors, and the specific information used for each car offers truly original pricing.
The most up to date information gets published within 72 hours of when it is received, and True Car validates this data before release. Once validated data is released, it is available to all consumers on the site. TrueCar’s primary focus is on providing more honest information about used vehicles than the competitors, and their specialized process sets them apart.
With TrueCar data, more honest and upfront pricing can improve the buying or selling experience for customers. Actual transaction data is public and available to dealerships and consumers alike, so customers know what to expect when they go to look at a particular vehicle. This level of transparency offers the best deal for both the seller of the car and the buyer, which helps to improve the used car market for everyone involved.
The extensive range of data that TrueCar uses to create its pricing is part of what makes it a more reliable source than other sites who use generalized data that doesn't account for individual details. Many pricing sources don't even consider maintenance or regional pricing in their estimations the way TrueCar does.