Buying a car can be an intimidating process. With countless makes, models, and dealers to choose from, it’s hard to know where to start and how to get a good deal. That’s where online car shopping sites like CarGurus and TrueCar come in.
These sites aim to simplify the process by providing tools to research, compare prices, and connect with dealers. But how exactly do CarGurus and TrueCar work, and which one is better for finding your next car? This comprehensive guide examines the key features, pros, cons, and differences between these two leading car shopping websites.
A Brief Comparison Table
| Feature | CarGurus | TrueCar |
| Car Listings | Millions of nationwide listings from dealers and private sellers | No listings marketplace |
| Pricing Info | Real-time asking prices on listings | Historical average paid prices based on sales data |
| Dealer Network | Aggregates listings from dealer sites | Partners with certified dealers for guaranteed upfront discounted pricing |
| Buying Process | Research and engage dealers online before visiting in-person | Research pricing and purchase completely online through certified dealers |
| Scope | Broad set of tools for searching, comparing, and finding cars | Focused narrowly on pricing data to inform negotiations |
| Availability | Operates in US, UK, Canada | US only |
| Cost | Free for buyers | Free for buyers |
How CarGurus Works
Founded in 2006, CarGurus operates an online automotive marketplace that connects buyers with listings from both dealers and private sellers. CarGurus’ key features include:
CarGurus Car Listings
The CarGurus database includes over 7 million new and used car listings aggregated from thousands of dealer websites. Each listing displays dealer info, price, mileage, specs, and photos. Unique features include:
- Instant Market Value (IMV) – CarGurus’ proprietary valuation metric that shows a deal rating on each listing, indicating whether the asking price is above, below, or at market value based on similar listings. This helps buyers gauge if a listing is fairly priced.
- Dealer Reviews – User-generated dealership reviews, with ratings for customer service, pricing, quality of work, friendliness, overall experience, and if users would recommend the dealer. This insight helps buyers choose reputable dealers.
- Price History – Visual price trend graphs show how a vehicle’s asking price has changed over time. Useful for negotiating if the price has recently dropped.
CarFinder Tool
This tool lets you filter car listings by make, model, location, price, mileage, year, and other parameters. The CarFinder then displays cars matching your criteria, ranked by dealer rating and deal rating. It simplifies searching through millions of listings.
Dealer Contact Forms
CarGurus listings include an online contact form to message the dealer and indicate your interest in a vehicle. This kicks off the sales process before visiting the dealership.
Price Predictions
Based on market data, the CarGurus Price Predictor forecasts if a particular model’s price is likely to go up, go down, or stay steady in your area. This helps determine the best time to seal the deal on a given car.
Also Read: Comparison Between CarMax And Enterprise Car Sales
How TrueCar Works
Launched in 2005, TrueCar is an automotive pricing website that aims to show users what others paid for the same car they want. TrueCar’s offerings include:
TrueCar Pricing Reports
After entering your zip code and desired car specs, TrueCar generates a custom pricing report showing the average paid price, factory invoice price, MSRP, and market days supply for that particular model in your area. This “TruePrice” data based on what others recently paid is meant to empower you to negotiate a fair price by arming you with pricing information.
TrueCar Certified Dealers
TrueCar partners with over 16,000 Certified Dealers who provide upfront discounted prices on new and used vehicles. Certified Dealers agree to price vehicles competitively and provide a hassle-free buying experience. TrueCar will match you with local certified dealers who have your desired car.
TrueCar Trade-In Tool
Input your car’s basic info and condition, and TrueCar will estimate your vehicle’s trade-in value compared to the market price. This helps give you a sense of what to expect when trading in your current car while buying another one.
Upfront Pricing from Local Dealers
Through TrueCar’s network of certified dealers, users can request upfront discounted prices quotes on specific models they’re interested in buying. Dealers then respond with their discounted prices, allowing you to compare pricing from multiple dealers in your area without negotiation.
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Pros and Cons of CarGurus Vs. TrueCar
Now that we’ve explored how CarGurus and TrueCar work, what are the key advantages and disadvantages of each platform?
CarGurus Pros
- Massive selection of car listings aggregated from dealer sites
- Instant market value and deal rating quickly identify good and bad deals
- User-generated dealer reviews help filter out shady dealers
- Price history graphs empower negotiations if price has dropped
- CarFinder tool simplifies searching through millions of listings
- Contact forms kickstart sales process before visiting dealer
CarGurus Cons
- Listings are limited to what dealers input, so some inventory missing
- Lacks upfront discounted pricing like TrueCar certified dealers offer
- Research process still requires visiting dealer lots to see vehicles in-person
TrueCar Pros
- Actual price paid data empowers you to negotiate effectively
- Certified dealers provide guaranteed discounted pricing upfront
- Streamlined process allows researching pricing and buying completely online
- Trade-in tool provides estimated value of your current car
TrueCar Cons
- Limited to pricing data on models that others in your area recently purchased
- Must submit personal info before gaining access to pricing reports
- TruePrice can be inaccurate if few people bought the exact car you want
- Pricing not as robust as CarGurus’ full nationwide marketplace
Key Differences Between CarGurus and TrueCar
While both aim to simplify car buying, some other notable differences between CarGurus and TrueCar include:
- Car Listings – CarGurus has millions of nationwide listings from dealers and private sellers Vs.. TrueCar lacks a listing marketplace.
- Price Data – CarGurus shows real-time asking prices while TrueCar displays historical average paid prices.
- Dealer Network – CarGurus aggregates dealer listings online while TrueCar partners with certified dealers for guaranteed upfront pricing.
- Buying Process – CarGurus helps research and engage dealers online before visiting in-person while TrueCar lets you research pricing and purchase completely online through certified dealers.
- Scope – CarGurus offers broader tools for car research while TrueCar focuses narrowly on pricing data to empower negotiations.
So in summary, CarGurus excels at the initial research and discovery process while TrueCar aims to make the final pricing and buying stage easier. Using both sites together can provide comprehensive information through your entire car shopping journey.
Also Read: Comparison Between Carvana And DriveTime
Frequently Asked Questions (FAQs)
CarGurus UK provides the same set of tools as the US site described above, aggregated from thousands of dealer listings across the UK. Unique features like the Instant Market Value, dealer reviews, price history, and CarFinder work similarly to help British buyers research and compare cars to find a good deal.
TrueCar is an automotive pricing website that aims to show users the average price paid for a particular new or used car model in their local market, based on recent sales data. They partner with certified dealers who provide upfront discounted guaranteed pricing to streamline the buying process.
CarGurus is pronounced as car-goo-roos, with the emphasis on the first syllable: CAR-goo-roos.
TrueCar’s Factory Invoice price reflects the actual invoice amount the dealer paid the manufacturer for that specific car. Other sites may show a lower invoice that doesn’t include factory add-ons or adjustments like advertising fees and extra destination charges, so TrueCar’s invoice may be a truer reflection of the dealer’s cost. But every dealer and region can differ.
Also Read: Comparison Between DriveTime and CarMax
The Bottom Line
While both CarGurus and TrueCar aim to add transparency to car shopping, they each offer distinct features and strengths. CarGurus excels at the research process while TrueCar focuses on final pricing data and buying.
Using both sites together can empower you to make an informed decision and negotiate your best deal. Take advantage of the breadth of marketplace listings on CarGurus along with guaranteed upfront pricing from TrueCar certified dealers in your area.
Armed with comprehensive information, you can shop smart, avoid buyer’s remorse, and drive away confident you got a great car at a fair price.