Purchasing a used car can be a stressful experience, especially when you’re unsure of the car’s exact value. But new technology, including what’s offered through third-party marketplaces, is playing a big role in helping to make the used car buying experience easier and more transparent.
On CarGurus, car shopping is simple and user-friendly. We make it easy for consumers to find great deals from top-rated dealers. Our focus on transparency and efficiency results in informed, engaged buyers that drive results for dealers.
CarGurus’ best deal first approach delivers the best experience for buyers
Technology like CarGurus’ Instant Market Value (IMV) helps consumers find the best deal first, based on their individual search criteria. IMV is an estimated fair retail price for a vehicle based on a detailed analysis of comparable listings in a local market. CarGurus computes and updates its IMV calculations every day using a complex algorithm based on thousands of data points.
We use our proprietary IMV to inform deal ratings on our site—but we don’t stop there. The default search rankings are ordered by the best deals first. It’s a combination of how good the price is on a particular car, and how highly the dealer is rated by our users. Not only does this unique pricing transparency give buyers the validation they need to feel confident they’re getting a good deal, but it also makes it possible for dealers to have control over where their vehicles show in search results.
Use the transparency CarGurus provides to build trust with consumers
Getting independent, third-party information about the market value of a vehicle is a high priority for car buyers, according to a CarGurus survey. For dealers, this means that consumers don’t necessarily need to get the absolute lowest price on a car, they just want to feel confident that they’re getting a good deal from a transparent and trustworthy seller.
That’s why we make it obvious when listings are sponsored, and we never display more than three sponsored listings at the top of a search results page. Plus, dealers only qualify for these top spots if their cars fit the shopper’s search criteria, have a fair or better deal rating, and the dealership has a Featured Listings package. In addition to the transparency of our search results, the clean design of our SRPs also keeps CarGurus’ highly engaged shoppers focused and on track to buy your car.
This added transparency helps build trust with consumers because they can easily tell what’s a good deal and what’s not. They don’t have to dig through pages and pages of search results to compare what type of deal they’re getting. For CarGurus dealers, this means you can start a conversation with the buyer right away, without having to prove or explain the value of your car.
More trust and control leads to more sales for CarGurus dealers
Today, more than ever, trust and transparency are central to the car-buying journey. And while the entire shopping experience on CarGurus is based on these two principles, CarGurus dealers have control over how they maximise their success on our platform.
For example, the Dealer Pricing Tool helps dealers with a Premium Listings Package competitively price their vehicles. By using the Pricing Tool, dealers can see how even a small price drop can improve a listing’s page ranking and deal rating and increase clicks from buyers. It can also do the opposite—show you where a small price increase could increase your dealership’s profits, without affecting the visibility of that vehicle.
Ultimately, CarGurus helps bridge the gap between dealers and consumers by providing transparent information on the value of a car, easy-to-understand search results pages, and unbiased dealership reviews. When dealers use CarGurus’ technology to increase transparency, they’re putting consumers first, which helps build trust and ultimately helps boost sales.