Company: TRUE
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001327318-25-000016
Chunk: 4

Company: TrueCar, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 4
Chunk 4
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 other macroeconomic issues. Any of the foregoing could have a material adverse effect on our business, results of operations and financial condition.

Economic and other conditions that impact consumer demand for automobiles, including interest rates, inflation, tariffs and fuel prices, may have a material adverse effect on our business, financial condition and results of operations.

Decreases in consumer demand could adversely affect the market for automobile purchases and, as a result, reduce the number of consumers using our platform. Consumer purchases of new and used automobiles generally decline during recessionary periods and other periods in which disposable income is adversely affected. For example, the number of new 

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vehicle sales in the United States decreased significantly between 2007 and 2009 in connection with the Great Recession, and, in connection with the coronavirus pandemic and the subsequent shortage of automobile semiconductor chips, dropped consistently for three years from 17.0 million in 2019 to 13.8 million in 2022.

Various economic uncertainties, including stock market and commodity pricing volatility or increased costs resulting from tariffs or other circumstances, 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, and 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 decrease demand for automobiles and negatively impact our business. 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 form the United States by other countries and the rate at which such policy has changed and may change in the future, may further weaken the demand for automobiles, which could negatively impact our business and results. Further, the tariffs imposed on steel and aluminum, 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. 

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