In today’s digital age, everything from grocery shopping to finding your soulmate can be done online. Buying a car is no exception. While the traditional dealer model still accounts for the majority of car sales, online car retailers like Carvana and comparison sites like CarGurus are quickly gaining ground by promising a simpler, more transparent car buying experience.
But how exactly do these two online car shopping options works, and is one better than the other? Let’s take a detailed look at the pros, cons, features and key differences between Carvana and CarGurus to help you decide.
A Brief Comparison Table
| Aspects | Carvana | CarGurus |
| Business Model | Online used car retailer | Car listings marketplace and research site |
| Inventory | Owns and sells own inventory of used cars | Aggregates used and new car listings from dealers and private sellers |
| Pricing | Fixed no-haggle pricing | Price ratings and analysis to help negotiate |
| Vehicle Condition | 360° photos of each car | No photos, view cars in person |
| Test Drives | 7-day home test drives | Test drives arranged through seller |
| Buying Process | Buy online and get delivery | Contact seller and purchase locally |
| Financing | Pre-arranged financing options | No financing, work with sellers |
| Warranties | 100-day limited warranty | No warranties offered |
| Returns | 7-day money back guarantee | No returns, sales as-is |
| Locations | Online nationwide | Local sellers based on search |
Overview Of Carvana
Founded in 2012 and based in Arizona, Carvana is an e-commerce platform that allows customers to shop for, finance, purchase and trade-in vehicles online and have them delivered straight to their door. Their slogan “Car buying, simplified” sums up their mission – to provide a seamless online car buying experience without the hassle of traditional dealers. Here are some key things to know about Carvana:
Inventory: Carvana has a nationwide inventory of over 15,000 used cars, trucks, and SUVs. which you can browse online. Their selection includes makes and models less than 10 years old with less than 100k miles.
360° Views: Every vehicle includes high-resolution 360° interior and exterior photos so you can inspect the car thoroughly before purchase.
Pricing: Carvana advertise “no haggle pricing” meaning the price you see online is the final out-the-door price you pay. All vehicles are Carfax certified.
Financing: Carvana has an online loan calculator and can arrange financing from multiple lending partners. They also buy cars directly from customers.
Test Drives: Carvana offers 7-day test drives on every vehicle where you can drive up to 400 miles and return the car for any reason.
Delivery: Purchased vehicles are delivered to your door as soon as the next day via Carvana’s fleet of signature car vending machines and delivery trucks.
Warranties: Every Carvana car comes with a limited 100-day warranty and can be returned within 7 days for a full refund. Extended protection plans are also available.
Also Read: Choose Between Carfax And CarGurus.
Overview Of CarGurus
CarGurus is an online automotive marketplace that helps connect buyers with sellers. Rather than selling cars directly, CarGurus is a search engine and comparison shopping site for both new and used car listings. Key things to know:
Listings: CarGurus does not sell cars, but aggregates over 6 million new and used car listings from a vast number of dealer and private seller sources.
Search Tools: Advanced search filters and tools like price analysis, spot trends and compare deals help buyers find the right car at the best price.
Dealer Reviews: CarGurus is known for its collection of dealership ratings and reviews, helping assess dealer reputation.
Price Ratings: A unique “Great Price”, “Good Price” and “Fair Price” deal rating on each listing helps shoppers negotiate and save.
Research: In-depth buying guides and expert articles provide car research, shopping tips and ownership advice.
Communication: CarGurus can coordinate communication between buyer and seller via phone, email or live chat once a listing is found.
List For Free: Dealers can list their inventory on CarGurus for free, only paying when leads convert to sales.
So, in summary, Carvana is an online retailer selling their own inventory of cars while CarGurus aggregates listings from dealer and private sellers nationwide. Now let’s compare their pros and cons.
Pros And Cons Of Carvana And CarGurus
Carvana Pros
- Huge online inventory to browse and buy 24/7
- 360° views of every vehicle
- Firm no-haggle pricing
- 7-day test drives standard
- Touchless delivery as soon as next day
- Accept trade-ins and buy cars directly
- Limited 100-day warranties on every car
- Easily return cars within 7 days
Carvana Cons
- No option to negotiate pricing
- Smaller used car selection Vs. some sites
- Higher prices than buying from classifieds or auctions
- Very limited locations to pickup cars in person
- Additional delivery fees for cars over 250 miles away
Also watch the video!
CarGurus Pros
- Aggregates millions of new and used car listings
- Advanced search filters and price analysis tools
- Ratings help identify best local dealerships
- Fair price ratings on every listing
- Broad vehicle inventory from many sources
- Excellent research and buying guides
- Dealer promotions and incentives listed
- Completely free service for buyers
CarGurus Cons
- Does not directly sell cars online
- Must still negotiate pricing and purchase from dealer/seller
- Can’t test drive or get in-depth view without seeing in person
- Research still required to vet sellers, cars, and deals
- Dealer ratings based on limited data points
- Communication features need refinement
- Some outdated or duplicate listings
When weighing the pros and cons, Carvana seems better suited for buyers who value a fully online shopping experience while CarGurus empowers buyers who still wish to buy locally but want help identifying the best deals and negotiating leverage.
Frequently Asked Questions (FAQ)
The main difference is that Carvana is an online retailer that sells cars directly to customers through their own inventory and delivery network. CarGurus operates as a search engine and marketplace to connect buyers and sellers while providing research and comparison tools.
Carvana’s biggest competitors are traditional car dealerships, other online retailers like Vroom and Shift, as well as peer-to-peer marketplaces such as Facebook Marketplace and Craigslist. As an aggregator, CarGurus helps buyers find listings from all these sources.
There are tradeoffs when buying from Carvana Vs. a dealer. Carvana provides fixed pricing, delivery, test drives and purchase protection. Dealers allow negotiation, local test drives, financing assistance and the ability to see the car first. It depends on your preferences.
For many, Carvana is a great option to buy online without negotiating and take delivery contact-free. Their inventory is competitively priced with 360° views, vehicle history and limited warranties. However, selection is smaller than some sites and used car prices are non-negotiable.
Also Read: Is Carvana Better Than DriveTime?
The Verdict
When it comes to choosing between Carvana and CarGurus, think about your preferences as a buyer. If you want an end-to-end online buying experience, Carvana lets you select, finance, test and buy a car for delivery in as little as next day. However, for local test drives and the ability to inspect and negotiate before purchasing, CarGurus can help you find and compare the best deals in your area.
Whichever platform fits your needs, both Carvana and CarGurus aim to provide more transparent, streamlined alternatives to the traditional car buying process.
So, which is better? The answer depends on the type of buyer you are. With the information above, you can determine which model best suits your shopping style.