why does cargurus value private vs dealerships differently. same car at dealer is priced higher and carguru price 'great deal' vs private party much lower and says 'fair'

20

Asked by GuruXN52J Nov 14, 2018 at 11:16 AM

Question type: Shopping & Pricing

why does cargurus value private vs dealerships differently. same car at dealer is priced higher and carguru price 'great deal' vs private party much lower and says 'fair'

11 Answers

Dealers are a business. Private sellers are not. All car value guides take this into account.

3 people found this helpful.
560

I'm sorry but this is a major flaw in the "IMV"and unfairly punishes a private seller. My vehicle was over $2000 difference to the downside from the same vehicle sold by a dealer. It is also misleading to a buyer who will miss out on the best deal if the IMV is highly weighted in their decision making. All in all it serves no one to post different values for the exact same commodity. This is a BIG FAIL IMHO. Cargurus i hope you are reading this. FIX IT

20 people found this helpful.
130

Because carguru's is a price fixing tool for dealers...it doesnt' exist for the benefit of private buyers/sellers.

13 people found this helpful.
340

This price differential is extremely unfair. I saw a dealer's vehicle that was the same year and model as mine with more miles than mine and it showed near the top of the list as a "Great Deal" a $2100 dollars more than my price. When I priced my car, CarGurus called it a "Fair Deal" with a note implying my vehicle will not get many views because it's priced too high. I posted my car there, but the site is clearly not set up to promote private sales, regardless of the condition of the vehicle. It's biased against private sellers.

21 people found this helpful.
340

I also just noticed that when I use the CarGurus IMV tool, it shows my price as above "Good", but then labels it "Fair" in the posting. Though they allow private sellers, it's unlikely for a private seller to make a decent deal on this platform.

11 people found this helpful.

As far as dealer vs. Private I think a lot has to do with the fact that a dealer will give you certified and take care of any problems with a specified amount of time for a private person does not do that I'm not trying to make excuses for car dealers I don't like them at all

People that want dealer prices should invest millions of dollars in building a car show room along with hiring staff, insurance, etc, etc, etc. There is no "punishment" because selling your car yourself gets you a lot more money than trading the car in. You can price your car at dealer prices but buyers are not stupid and they will stay away from your car like the plague.

560

Your argument is not valid. This has nothing to do with what a dealer spends on their infrastructure and staff and everything to do with information that the supposed customer of CarGurus is given. They are not serving their customers by misleading them. Placing a value on something based on where it is sold or who sells it is simply discriminatory. It’s obvious that CarGurus gets paid by dealers and gives them preferential treatment when it comes to how they value the vehicles that are listed. Your right, buyers are not stupid and should be given information that is accurate and not misleading them to believe that because the car is in a showroom it’s somehow more valuable. This is just part of an ongoing effort by many, including state governments( ie tax treatment) to reduce any and all benefits to privately selling your own vehicle. Lastly, if I were trying to stay away from the current plague, I would much rather buy from a private seller.

9 people found this helpful.
60

So...a dealer who will put swirls in the paint upon washing, and covers up any body issues with a quick touch up done behind their lot, which they will not disclose...gets the better price rating? I just posted my car...tool said fair deal...picked 20.00 extra promotion for 14 days. Then the listing went live and say 847.00 above, car even has extras. Dealer vehicles with 20k more miles and less features price above say fair, that is not right.

6 people found this helpful.
45

this is ridiculous i am pulling my add from cargurus.com. heading to cars.com. this is a bias and unfair business practice. If the discrepancy was to truly value a car and the seller plays a part in that valuation then include the dealership reviews as part of the value algorithm. yeah not going to happen because it is not about the value a dealership adds vs private seller. Its just predatory business practice 101, nothing more nothing less. good riddance to cargurus. wont be selling or buying off their site again.

4 people found this helpful.
10

I cant stand dealers. Auto Dealers have ripped off the consumer far more than any other entity. Just because they are a dealer, they do not and should not get any different quota vs a private owner. I of course am looking at it from the buyer perspective. Dealers still have no problem ripping us off, yet we are to give them more money for same car just because they are a dealer? I dont think so! If i can find the vehicle I want from an individual i will buy preferably from the previous owner who can give me history, repairs soooo much more than any dealer!

1 people found this helpful.

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