CarGurus huge price increase as of Nov 1

Web Dude

CarGurus is raising our prices as of Nov 1.  Some of our stores are more than doubling in cost, close in price to and AutoTrader.  CarGurus provides more leads but with lower conversion, so they take more time and effort to see the conversions.

Considering dropping them.  Anyone else in this boat, thoughts?


Chris K Leslie

I havent seen or heard of a rate increase for me yet. 

I'll just cancel them if they do though. I mean we were selling cars before they came around. We'll sell cars after they leave. no biggie.. 


Ricky Patrick

I'm on the free version. We tried the "premium" account for a little while and didn't see any additional business so I'm not paying for terrible quality leads. I'd rather pour that money into our own website.

David Zotti

I've dealt with this before in a pre-owned store I once worked at. The unrealistic price hikes they've been known to do happpen when a dealership is recieving a lot of leads. The pricing starts off based on inventory count, but as soon as a dealership starts doing "good" the pricing structure becomes lead based like a quantity based pay-per-lead program. 

They provide a lot of leads because they have very good SEO, agressive SEM, and do a lot of display/retargeting. However, these ads including the retargeting ads show your vehicle with other vehicles from the competition, not just in these ads but also in the prospective customers email after sending the lead. When I did a test lead on my dealership, 3 days later I recieved an email of other vehicles (same model) from competitors, some of which we're over 2 hours away. An easy way to guide a customer away from my dealership, not acceptable.

We ended up dropping Cargurus because because it doesn't work well for advertising New cars, and the leads have been few with used. But what I did notice is soon after we submitted the cancelation notice there was an increase of leads. Which means that they can control how many leads they send to you. Since we've canceled there been no loss of business.

Cargurus in my opinion is one of those providers that play a lot of gimmicks on dealers. Some of which are very unethical, it's surprising there's no class action yet. If you're a new car store you won't miss much. I recommend dropping them and investing a little more into AutoTrader or some SEM/PPC of your own that keeps buyers interested in your dealership.

Kristen Tepper

I have a slightly random question, what was the convicing point to join cargurus and pay for their services? To me it seems like there are a lot of cargurus out there. Companies promising a lot of leads but they end up being fake/bad leads.

And did someone stop in your dealership from carguru and pitch you or was it just wandering around the web that you've all stumbled upon them?

Web Dude

Thanks for responses.

@Kristen - I was impressed with their SEO and their site structure worked well with our pricing philosophy.  I was called by a sales rep for a long time before getting on their paid product.

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