NEW YORK (TheStreet) -- TrueCar (TRUE) has disrupted the way cars are sold by sparing consumers the indignities of negotiating the price of their car -- one of their largest purchases ever. Instead, consumers can go online, select the color, model and features of the car they desire and up comes the manufacturer's suggested retail price.
Buyers give their contact information to the TrueCar Web site and a dealer can contact them. Or, they can print out a guaranteed savings certificate to get the price they expect. No more messy negotiations with hard-selling car salesmen.
Must Read: Warren Buffett's Top 10 Dividend Stocks
While TrueCar nearly went bust in early 2012, it has now regained its footing and the company -- and the stock -- are poised for greater growth. You still can't buy a Tesla (TSLA) car through the service, but virtually all the major branded vehicles are available through TrueCar's network: General Motors (GM) , Ford (F) , Chrysler, Honda (HMC) , Toyota (TM) , Mercedes-Benz, BMW, Infiniti, Lexus, Jaguar, Land Rover, Acura, Porsche, Maserati, Volkswagen, Nissan (NSANY) , Mitsubishi, Mazda, Hyundai, Subaru and more.
We were so impressed by the company's business model that we ended up adding the stock to our Breakout Stocks portfolio. The company is truly a disruptive force in the way automobiles are sold in the United States.
After its founding, TrueCar did have its problems. Towards the end of 2011 and early in 2012 TrueCar almost went out of business as it struggled to find the right balance of working with its dealer customers (and not antagonizing and alienating them) while trying to protect and offer value to consumers. In the first quarter of 2012, TrueCar saw its certified dealers shrink by 35%. TrueCar has shown strength in dealer additions since the second quarter of 2012.