[Update 3/6/2020]

I recently had a conversation with CarGurus.  They wanted to set the record straight on some of the information listed in the email below.  Here is their response:

"There is a lot of misinformation floating around right now. This letter is a prime example, and we wanted to set the record straight with the actual truth: 

-          CarGurus and Carvana are not owned by the same firm. We're both publicly traded companies and ownership information is easy to find.

-          Shoppers' information went only to the dealer whose lead form they filled out. CarGurus never sold or gave shoppers' information to Carvana or any other dealers.

The start of the issue was a test we ran as part of our goal of building a cash offers product that we could offer to all dealers. As part of that testing, we worked with Carvana because they had the scale and technology to let us test quickly. The one thing the letter gets right is that we did hear our dealers' feedback. What we learned is that we misjudged how polarizing Carvana is to dealerships. Once we heard dealers' concerns, we immediately took the cash offers test off of dealer VDPs and confirmation emails.

Another thing we learned is that we are on the right track: dealers are interested in new inventory acquisition channels. We're going to continue testing a cash offers program, but with more carefully chosen partners.

CarGurus values all of our dealer partners, and we will continue to innovate and build new products and programs to help you succeed. Integrity is central to our company. We commit to you that we are going to do a better job listening and getting your feedback on new product initiatives. As part of that listening and getting feedback, those with questions can either reach out to their CarGurus rep or email FAQ@cargurus.com."

I've hesitated in posting something about this until now, but as we uncover more about the relationship between CarGurus and Carvana, it is hard to avoid.  Almost every vendor uses the mantra, "we don't want to be a vendor, we want to be a partner."  When does this partnership become a problem?

I recently received an email from a dealer that was forwarded to him by his CPA.  Here is that email:

Group

During NADA a dealer client and I met with Car Gurus.  The dealer was quite upset because he had just learned that Car Gurus was soliciting his customers’ trades offering to pay more while the customers were in his dealership.  Car Gurus and Carvana are owned by the same firm.  

The Cargurus senior person at NADA did not deny this happened and said it had been a trial program which was a mistake and apologized.  However now the entire Cargurus/Carvana loyalty to dealers is in question.  Carvana has always been perceived as a threat but this takes it to another level.  

My client received the alert below from another dealer.  You may want to discuss with your dealers whether they are using Cargurus and alert them to this unethical behavior and whether they want to continue paying them money every month.  My client cancelled his subscription with them.

DrivingSales strives to remain vendor-neutral.  We don't advocate any specific products or solutioins.  In fact, rarely does one size fit all. 

I feel this needs situation to be addressed. It would be one thing if Caravana were a franchise dealer group and not a disrupter in the space.  

What are your thoughts?  Has CarGurus gone too far?