Company: TRUE
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001327318-25-000036
Chunk: 4

Company: TrueCar, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 4
Chunk 4
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, could lead to an economic downturn that may impact our business. Purchases of new and used automobiles are typically discretionary for consumers and have been, and may continue to be, affected by negative trends in the economy, including new tariffs or border adjustment taxes, the rising costs of energy and gasoline, the availability and cost of credit, reductions in business and consumer confidence, inflation, stock market volatility, increased unemployment and changes in environmental regulations and fuel economy standards. For example, the recently-imposed tariffs on imported automobiles and automobile parts, if maintained for a sufficient period of time, could result in increased costs to American consumers for automobiles and automobile components produced or assembled outside of the United States, which could 

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decrease demand for automobiles and negatively impact our business. The tariffs imposed on aluminum, steel and copper, all of which are raw materials used significantly in automobile manufacturing, if maintained, could have similar negative impacts on the prices of cars, including those manufactured domestically, consumer demand and our business. Further, any impacts  to consumer confidence and purchasing power resulting from the direct and indirect effects of tariffs, generally, or other changes in trade policy, including retaliatory tariffs placed on exports from the United States by other countries and the rate at which such policy has changed and may change in the future, has resulted in economic uncertainty and may further weaken the demand for automobiles, which could negatively impact our business and results. The broader economic impact of trade policies may result in increased inflation, reduced economic growth, or cause a recession that could, among other things, reduce consumer demand for vehicles and cause financial markets to experience increased volatility, reducing liquidity and credit availability, all of which could negatively impact our business. 

Similarly, a change in gasoline prices, governmental policy or other macroeconomic factors could increase the relative demand for electric vehicles, many of which are currently sold directly to consumers by manufacturers such as Tesla or Rivian without the involvement of franchised dealers such as the TrueCar Certified Dealers on our network, and which is a transaction structure we are not currently able to monetize. Changes in governmental policy may also negatively impact consumer demand for cars in ways that adversely impact our business. For example, the One Big Beautiful Bill Act, which was signed into law on July 4, 2025, contains provisions that eliminate federal tax credits that benefit consumers who purchase electric vehicles, effective as of September 30, 2025. To the extent that the elimination of such credits causes fewer consumers to purchase electric vehicles sold by TrueCar Certified Dealers and such consumers do not