Why CarGurus Sucks for Consumers and Dealerships 

Wow. As a consumer, I bought a car advertised on car guru. Never had a problem. Went straight to the dealer, picked it up at the advertised price, and owned it for 10 years! I went to Chevrolet Montebello, CA. I am not a sales associate, nor am i affiliated with. I got a good deal, is all. I hope you can, too, as a consumer.

I have exactly one experience with CarGurus. I wanted a specific car that was hard to find. It was a discontinued model or I would have bought a new one. I looked for over a year. Found out about CatGurus, found the exact car I wanted in great shape, within 75 miles of my home. Minty clean and low miles. The Dealer priced it fair, cheaper than I had seen for lesser cars. The whole transaction was great. I still love the car.

Cargurus or any listing services can't stop dealers from posting fake prices or hidden fees.

Omg as I listen so much makes sense!! I've corrected my zip code 10 times but keep getting cars from the other side of the country. It's stressing .e OUT

I commented on one of your vacation videos asking for this content not knowing about this video from back when you were starting. This is such great info!!! I had no idea all the shopping I was doing on cargurus was so manipulated. Please do a update to this video as the algorithm will never push this, with all your new subscribers a new updated one will explode. This info was new and important to me, and I'm a car head. Thanks Lucky!

Lucky, you should put all this amazing information in a book! It’s a lot of content. You saved me a lot of time and money.

Man you are the best youtuber am really advising you to keep doing flipping cars videos you are going up I see that

I think this is true for kbb, carfax, autotrader etc, they could stop it by forcing dealerships to post all fees but they won't because then they will lose the dealerships subscriptions. And unfortunately if you're a dealer you have to start hiding your fees otherwise you'll get no foot traffic. Truecar also is a lead generating service built for the dealers masquerading as a consumer guide, but maybe that's a topic for a future video

I like CarGuru's. Often the issues you discussed like additional Dealer Fee's are found in the review section.

After dealing with them as a dealer for a year, I can say that they are just about the worst company as far as customer service goes. This man is a 100% right.

100% facts, I got rid of them the day (before the pandemic) they decided to make it difficult to get leads from them because according to them they needed to "focus" on premium dealerships and all of that, not only that but their prices doubled. Another issue I always had is that if somebody had posted a car in cargurus and you ended up buying it at the auction, cargurus would show the days at their dealership and ad them to yours, costumers see this as weakness and will try to offer you nothing for your car or think that there is something wrong with it. Last straw for me was them removing us from our "free" advertising, we pay for a website that includes their free advertisement but they block it, they do this so I have to call them so they can try to get me to sign up. Fact is their leads were never that good to begging with, a lot of their costumers are people looking for brand new looking cars and if you are an small dealer like me that sucks because cargurus will compare your cheap dented cars to those of brand new car dealerships and costumer want your price but want those cars to look as new as the big dealerships.

Before the craze with overprized cars I saw Ford Escape on CarGurus for $14600 and it was the best deal. I went to test drive it, but after talking to salesman the price become $16700 before sales tax. So now I only put my price range, list them by price and do not look at cars more than 10 miles away not to waste my time.

Holy shit, you made a very good point that I never saw! Thank you. I always shopped on CarGurus, now I know.

Do you include in the description that the price includes fees and why it's a good deal? I pay attention to the dealers description so put as much info as possible it really helps.

Lucy thank you for sharing your 3 years of market research on this company. I took and completed the Pre-dealer training yesterday for a Tx GDN and this looks exactly like what was spelled out in violations in the Advertising section of the program. It appears on the surface to be an avenue that could create issues for a dealer that are not needed when it comes to pricing and advertising.

THANK you so so so much for this video. My brother and I were going to buy 2 trucks off of Car Gurus, but now we are not going through them anymore. Thanks for the heads up on this scam.

Easy fix. In description say “Actual car Gurus price” With fee break down! Or lower to cheapest Car guru price and on the first line say “ out the door price after fees and tax” simple 👍 Always ask customer where did u see price and let them know car Guru low down. Also let them know u are the fastest approval and out the door with keys 🔑 in hand. List all the benefits like Repair (pro rated) warranty, free a oil change, tire repair or rotation at discount tire. That gets me every time.

Yes! I look for lifted trucks and have just gone straight to the overpriced listings because computers are stupid. Human beings will always be smarter.

Now I know (in part) who to blame for an aggravating used car buying experience last year. I found it on Car Guru's (of course), but the dealer was totally uninterested at selling for the advertised price. As I look back on it, it was sort of funny. I did tell the sales manager if the finance guy tried to sell me one more fucking thing (when writing it up)I was going to walk out. And the finance guy just did the paperwork. At the end of the day, its wasn't even that much money. But now I'll blame Car Gurus.

Over the last week I banned over 700 profiles on Facebook with "down payment" prices. Now my search results are much cleaner

Great explanation with evidence. Well done!!

One of the biggest scams (after nitrogen filled tires) dealers charge is the "doc" fee. Anything more than $100 is a rip-off.

Went to look at a clean orange 2009 Honda Fit Sport 5 speed a few months ago. Listed for $7500 with 145k miles on it. Was a solid car, although it needed a few small things. All things I could do myself (I'm a Honda technician, even if it needed major work, I'm game if the price drops low enough). But they wanted an extra $2500 in fees. Not paying $10k for it. I later bought a yellow 15 Fit (3rd generation or GK5 vs the 2nd generation or GE8) 6 speed with 87k miles for $13.5k with maybe $500 in fees.

Remember the good old days when everybody read the ads in the Sunday paper and the newspaper had no say in what you advertised?

The algorithm structure is just as secret as the eleven herbs and spices in the KFC chicken seasoning recipe. It's a major trade secret.

Hi Lucky , I been dealing with car gurus as a customer, my experience with this company is frustrating as well, I'm a car guy and know my cars , it's very frustrating being pushed to sponsored and overpriced adds . After watching this video and hearing your struggles, I have deleted the app and will not be using it anymore. I hope you stop paying these ridiculous fees and are able to pass some savings to your customers. Mario

Most state's dmv dealer regulations do not allow dealers to do "bait and switch" advertising. If they are caught they can be fined and or lose their dealer's license. It can also leave them open to lawsuits by consumers who get an auto fraud attorney involved. Y

That's true In 2020 I added to sell my 2010 Rx 350 and I give it a way, because Like do you said algorithms. But after when I started to look my other car to buy gx 460 I went to the lower prices, I live in NY and go to NJ and I been surprised with the fees, I'm ready to buy 1 payment but still they said that it's the price around $2500 on top, so those dealers rip off the people, I didn't buy and spend time and money for nothing.

I didn't realize how much money CarGuru's was charging dealerships to list their cars, no wonder you can't get a deal. Even buying the car cash you are so far under water on it, I look up the wholesale price and add a $2000 profit for the seller and they're still trying to sell the car $6000+ over wholesale.

So what site would you recommend to consumers? I always ask for a quote BEFFORE I walk in the door. Some get nasty with me and tell me I have to come in, but some send a quote so I can see what exactly is going on. But these are great points not to skip over the OVERPRICED ones because of this perspective. Thanks!

Depending on the dealer with CarGurus I've noticed you'll have the same make model year in within 2,000 miles of the same odometer and yet depending on the dealer it comes from will depend rather it says overpriced or good deal, and yet they put the one overpriced as the one that was actually priced lower but it was a small dealer

If a dealer told me I had to pay a dealer fee if $1700 plus doc fees I'd walk. No freaking way.

Carmax listed price is the price, but their price is likely $4,000 to $5,000 more than kbb indicates the vehicle is actually worth.

I'm glad shady companies are exposed. Either they will change and make things right or they will lose a ton of money.

As a dealer I get tons of spam phone calls from my CarGurus car ads. I don’t even pay for CarGurus anymore but my website manager sends everything to them.

I'm going to be the antagonist here, for 2 reasons. You pay for options at the new car dealer. 5k in options never translate to a used car. And lifts and wheels are for teenage boys. I'm never pay more because a truck has a lift and wheel, I would actually pass on an truck that has been "lifted". Mostly because it isn't practical. And the aftermarket parts rarely quality and they just wear out tires.

Just saw an ad for 2019 Mazda CX-3 for like approx 26k, and it says $1.5K below market value, so I clicked for fun, and I couldn't even see pictures, or mileage info without signing up my name rank and serial number ! I wanted to send them a text telling them I may be interested if the price was 20K !

Awesome Content. Now What I’d really like to know; what is the best car buying platform to use. Or a platform that is best working for you so far.

I just had a price switch situation with a dealer. You only received the advertised price if you had a trade in and were financing. Since I had neither, my sale price was $3,200 higher. No where was this listed in the advertisement.

Great info!! You should have a lots more subs... Great Job!

My frustration as a consumer - twice, I filled out the seller contact form to share my interest in the vehicles. Neither seller ever responded, but the vehicles would still appear on CarGurus. CarGurus told me that they can't require a seller to respond to my inquiry. Waste of time.

Great video lucky you made very valuable points there. I am wondering if other companies are doing the same ?

I found my car on CarGurus and bought it at the Dealership for the price that was listed on CarGurus. The information I got on CarGurus helped me get the best price on it at that time, so I'm glad I used it. The additional fees I paid (if any) were only due to what I added on at the Dealership.

I disagree with most that was said. The only fee a dealer can add is the documentation fee and it has to be reasonable. In any case the advertised price is not "the price" it is the dealers dream price. A starting point for negotiation. And the bogus low price works to buyers advantage. I usually use it as a reference point for the negotiation.

Thanks for the video. It sucks what you have to go thru to sell a car. You are doing your best to do it the right way & be helpful to your customers & the online advertising companies pull that. Bryan

I experienced this too. I found a car and asked the dealer what fees did his dealership charge, and he never answered me. I am sick and tired of the lies. Trying to buy a used car is exhausting. I found one and on top of the listed price was thousands. When you complain, you might as well jump out the window. You are the first dealer I have heard that doesn’t do this. I’d like to buy a car for my mom, do you ship can you find me what I need, are your vehicles warranted?

I noticed great deal cars usually have something wrong with them or they are listed wrong. In example base Honda Accord LX listed as top of the line EX-L, but there are no Extra aluminium wheels and no Leather.

Wow, that was informative. I had no idea cargurus was like that.

That’s messed up. It’s sad that companies don’t feel that they can be ethical and make money at the same time, but hopefully this gives the opportunity for a new company to come up….

Thank you so much for your great video and God bless you to help us, to protect us consumers that some times we don't pay attention because we need the car. For exemplo: I'm looking to buy a cargo van, like transit 250 med. Roof for work, I need it. Because my truck doesn't work anymore to care all my tools at the same time. But at the carguru it's impossible to buy. Prices at to the roof. We I can find affordable prices? Maybe you can help me, buy a car in south FL is very difficulty, because couple dealers that is buying from copart or others, fixing and put to sale. Those clear title of course. I just realized this by my self. Thank you and God bless.

The protection for the consumer is to read what is posted? Have used cargurus to buy and shop vehicles. I like them.

Why is there such a lack of ethics in today’s world. It’s about making a buck now, not forging relationships for a continued profits.

how do they manage to make about 450 million dollars in revenue ? Most reviews of it say it works like a scam and the top investors in CarGurus stock is Vanguard and Blackrock for some shitty car dealership website that somehow makes a half a billion yearly ? This is strange man I am certain there is something dark going on there that can't be in the light, they ain't making all that dough with their website, impossible.

In CarGurus defense everytime ive traded a modified vehicle in (lift kit, rims, engine work, differential upgrade ect..) every dealer says it "doesnt add value" to the trade.

What is the name of your dealership. You seem slightly mire honest than other dealers

After working at a car dealership for a while I see that every lifted Jeep Wrangler is a bad deal because they cannot fathom aftermarket parts on a giant toy car

This guy needs to understand you get what you pay for. CARGURUS knows the dealer is ripping off the customer and they believe they deserve a piece of the hustle. Also CarGurus prices cars the way many consumers with knowledge price cars. What I do is I go to the lowest of model, the basic model with no trims , bells and whistle. Once I get that I approach the dealer below that price and make an offer, irregardless of what edition the car is, ie. S, xl, sxl etc...Yes, or No. If No, then I mosey on down the road until a dealer recognized I an nobody's fool and not about to get ripped off with their lies and thievery

A we “buy any car” ad came on during this video 😆

It's the same problem with all algorithm marketing. Also the listing are never accurate. They will list a trucks with car pictures. All the sites not just Car Gurus.

I could see how that’s a problem. Not sure how many other people just know to search by cheapest first and then filter by trim level. I don’t look at the “good deal” etc rating

Wow this is very insightful. I don’t mess with dealers because of the games they play but if a dealership is the only place to get a vehicle, I use car gurus. I don’t know that dealers pay to use it

what's the best way for a consumer to find a car then? I'm sure many people just want a good car and go to their local trusted dealer and find something they have that meets their needs, but when someone is looking for a specific generation of a specific car, how can I best find the few dealers on my state that has one if not for these sites? Myself I'm looking for a forth generation Lexus GS350. While not some rare exotic model, It was not a big seller, so there are not to many out there.

I ve used cargurus for 2 purchases. What I learned is that some "additional fees" were up to 9k. Some were only 4k. The differences were huge I literraly had to ask for an "out the door" price on each individual car. But I still like it.

Thank you for your insights. Are the other major car buying sites (Autotrader etc.) any better?

Part about reselling leads to dealers reminds me of yesteryear on internet mortgages leads. Another lose lose marketplace where product (cargurus) is too low quality in data algorithm.

Got a cargurus ad in the middle of this video. Lmao

Great content very informative Gracias señor been learning a lot from you

That spamming of your email with pictures of any and every car is just nuts. I said in my initial search that I want a four door small sedan. Why are you wasting my time with all these cars that are far from being what I want???

This is why it pays to call multiple dealers and ask for the OTD price.

Agreed. Media wants to talk about clicks, etc. Do clicks buy cars? No. Just sayin.

Mileage is the primary. Hence luxury cars are listed at the same price range as trucks. Vehicles for very different purposes. Its all about the five year pay it off and get another one plan. You're not buying a car you're buying a loan with the car as a mythical collateral.

Cargurus wants to do this work with data not a team of pricing or car experts. Both car and dealer quality vary and the data doesn't show this. If they collected out the door price, then they could say Lucky's average price is $760(tax) above listed. Scammy dealer done the road is $2600 above list on average. Then they could adjust their deal ratings based on that.

Wow, yes I agree... Although I prefer CarGurus app over others... They do spell me months after.

I personally bought two cars off of CarGurus. One car was for $19,400, dealer was solid, and I kid you not, charged $125 for doc fees. I paid my taxes on my own. Second dealership price of $31,000 was the price, but their doc fees were stupid high. It was still lower than all the other cars for what I wanted. I ended up walking out the door paying $33,500. Including taxes. Months later, the dealer sent me a refund check of $500 for charging too much for taxes. So really it was $33,000. Never thought CarGurus included dealer fees and taxes. Who do you recommend then?

Please they are a good source to use. I found vechicle this past Friday!😊

I have a question that might seem dumb. After I purchase a car from an auction do I get the title that day? And how do I sell it to the public do I signed the title over to costumer on the spot or what’s the official way of doing it ? (In process of getting my dealers license)

Thanks Lucky Great info.

CarGurus sucks for dealers. The first year they give you a sweet teaser rate to be on their website. The next year, the monthly rate skyrockets! Unbelievable!

The problem is there are only a few sites that a customer can go to, to find cars. Don’t have time to go to every dealers direct site to look. Is Autotrader operated the same way?

Well, as the consumer view like you said, i like cargurus because it's suggested price.

Cargurus has done me right multiple times! As long as you call the dealer and verify all variables. Basic business 101

I dont trust car gurus or car fax or any of the selling gimmicks. My used car complaint is that All the used sequoias I am looking at. Have all the service info removed from the car. Buying a 10 year old 200 k mile sequoia with zero trans or diff fluid changes is stupid. The truck can go 400 k miles. But not with no service on everything. Is there any way to get that info ? Or get an honest answer to frame rust. Which is a huge toyota issue. Help !!

I was just looking car gurus and I noticed that they don't show Blue book value anymore they go buy some so the market value gauge on a sliding scale it must be because of market conditions

I don't know why cargurus does this, but a car may say something like fair deal with an X amount of dollars it thinks is slightly above or below market value but when you click on it for more info, it might say something different like overpriced with an X amount of dollars it thinks is above market value. What's the deal with this huge discrepancy? Is the car a fair deal? OR IS IT OVERPRICED??? And this is with all cars.

Very true! Thanks for the video

Wouldn't adjusting the finder tools solve all this? I change the trim settings. Really if you know what you're looking for it's ok. But from a dealers pov, I understand

If any site says they guarantee you any sells is crazy. I’ve seen too many shit shows once I see them in person or do a dive into the dealer. But I see your problem. They all suck to some degree. And lifted trucks are hard. I like level kit w maybe 1.5” factory rims most of the time. And no body panels or wheel well skirts that show the screws. That’s it should look like a rouch or factory special.

Lucky forgets that those looking for a high country know how to filter the trim levels.

I really hate that dealers advertise a amazing price. But then after the "dealer fees" it ends up being the same price as at any other dealership. 😒😑 (Made this comment before I watched.) 37 pages back 🤣🤣🤣.. damn. Even at my most bored I only go 5-8 pages back

I am still learning about car industry and later on I am thinking about becoming wholesale car dealer to start, slowly move my way up to retail. What are you thoughts in starting like this? What did you do start before having your retail dealers license?

Perhaps dealers should stop trying to con people with all these stupid fees? That’s not CG’s fault!

Been to a lot of dealers and have NEVER EVER EVER EVER seen a dealer include DOC Fees on the car price or even list all their fees. Sure, you may do that and that's fine and dandy and cool that you do but 99.99% dealers don't. So none of this applies to 99% of everyone. The problem is dealers are scammy and every dealer business model promotes being scammy. Being honest is going to be harder since you going against the (scammy) grain.

Sounds like everyone should be selling the LS trim of every Chevrolet vehicle. Customer wants leather? Give them the link to Katzkin's website.

CarGuru SUCKS in my opinion too, especially if the dealer selling a car is a major new car dealer, they put on $1199.00 dealer prep fee. Toyota & Lexus of Wesley Chapel Fl is notorious for doing this, plus everything else too.

This sounds like it is the same as newspaper ads. Not exactly deceptive but not an apples-to-apples comparison. Cargurus gives me a good starting point and I like their listing aggregation more than Autotrader or Auto tempest.

CarGurus giving me 4k more than CarMax...is it safe to go ahead with them ?

I would think knowledgeable car buyers know (or they should know) that posted prices don't represent the full purchase price, but should be more appropriately viewed as a guide.

Great video my man! You mentioned you were paying $3800 a month for Cargurus. How do their fees work? Do you pay a flat rate per car or just pay a monthly fee and can post as many vehicles as you get in that month?

What I learn from this is that I need to make my own car listing website 3k a month sign me up this is better then stocks and real estate lol

Not a fan of CarGurus before this video. Sharp looking shirt by the way.