Scott Painter takes TrueCar private with $227M buyout, targets profitable growth

TrueCar founder Scott Painter is back at the helm after leading a $227 million transaction to take the automotive marketplace private, marking a major reset for a brand that once reshaped how consumers and dealers approached vehicle pricing. Painter, who founded TrueCar in 2005 and served as CEO until 2016, says his return is about restoring balance between transparency for consumers and profitability for dealers.

Joining us on the latest episode of Inside Automotive, Painter acknowledges the lingering skepticism among dealers stemming from TrueCar’s early years, when its aggressive pricing transparency model drew backlash from parts of the retail community. He said the industry has fundamentally changed since then, with smartphone adoption, digital retail tools, and online research now embedded in the buying process.

“Today, 100% of consumers go online,” Painter said, adding that dealers are also relying more heavily on technology to engage shoppers and close sales. TrueCar, he said, must now refocus on helping both sides navigate that digital-first environment more effectively.

“The TrueCar value proposition was always about transparency and understanding what is a good price in educating the consumer, leveling the playing field, so I’m not coming back to disrupt anything, I’m really coming back because I feel there’s a tremendous opportunity [to drive more sales].”

Painter emphasized that TrueCar remains a platform, not a retailer, and has no plans to sell vehicles directly or compete with companies like Carvana. Instead, he positioned the company as a connector between buyers and sellers, similar to how Uber connects drivers and riders, using technology to improve outcomes without disintermediating dealers.

TrueCar currently works with roughly 11,500 dealers nationwide, primarily franchised rooftops, and reaches nearly 8 million in-market shoppers. Painter notes that while many third-party marketplaces skew heavily toward used vehicles, TrueCar’s audience is more concentrated on new-car buyers, with pricing transparency as its core value proposition. That focus, he said, leads to higher close rates and more qualified shoppers for dealers.

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Under Painter’s leadership, TrueCar will pivot away from competing head-to-head with large classified listing platforms and return to its original identity as an auto-buying program. The goal is to reduce friction in the purchase process, lower dealer acquisition costs, and increase sales velocity. Painter said the company once targeted a cost per sale of about $300 and intends to return to that benchmark after industry-wide costs rose above $500.

A key part of that strategy involves expanding partnerships with affinity groups and credit unions rather than relying on broad-based consumer advertising. TrueCar currently works with about 250 affinity organizations, including PennFed Credit Union, a major investor in the take-private transaction. Painter said these relationships reduce marketing costs while delivering highly motivated buyers to dealers.

Additionally, Painter addresses concerns about Amazon’s growing presence in automotive retail, characterizing its current efforts as largely informational on the new-car side. He said dealers still control pricing and customer experience, limiting Amazon’s ability to disrupt franchised retail in the near term.

Looking ahead, Painter outlined an ambitious vision for TrueCar’s growth, saying the business could scale to $1 billion in revenue within three to four years while remaining profitable. He attributed that potential to the brand’s existing relevance, its dealer network, and the opportunity to apply modern tools, like AI, to improve digital interactions throughout the customer journey.

Painter said taking TrueCar private removes pressure to chase short-term growth and allows the company to prioritize quality over quantity. He acknowledged that the dealer network or audience size could shrink slightly if it leads to stronger results.

“We’re not looking to disrupt for disruption’s sake,” Painter said. “What we’re focused on is delivering value.”

Painter confirmed he will attend the upcoming NADA Show, where he expects to continue conversations with dealers about TrueCar’s direction under its new ownership.