As the chief executive of fast-growing TrueCar Inc., Scott Painter is a lightning rod for auto dealer ire over how the century-old sales model is changing.
Painter's Santa Monica-based company serves as a go-between for its dealers and car shoppers, taking a $299 cut of each transaction. It gives consumers data on the actual prices currently being paid for a particular make and model — not just the sticker price — and generates no-haggle price offers from three participating dealers who want to make the sale.
Dealer groups in New York and California are mounting challenges to TrueCar's operations, alleging the company violates various car sales regulations.