CarGurus Review 2025: How It Works
The widely used car-buying app CarGurus also makes offers to buy used cars through CarOffer.
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CarGurus is an online car-shopping platform where dealers and individuals can buy, sell and finance new and used cars. Its CarOffer feature gives instant cash offers to sellers.
We think CarGurus is best for individuals looking for a wide selection of vehicles, people who want a cash offer for their vehicle and people who don't need to use their vehicle as a trade-in on a purchase of another vehicle.
Is CarGurus legit?
The company was founded in 2006 and owns Autolist, which is another car-shopping platform. The company claims more than 5 million listings are on its platform.
Key facts
Loan calculator | Input car price, down payment, credit score and loan terms to see estimated monthly payments. |
Vehicle reviews | CarGurus experts and app users offer reviews. |
Vehicle history reports | None, although it offers some vehicle history information and 20% discounts on full AutoCheck reports. |
Price alerts | Get notified about price drops via email (be sure to check the subscription defaults on your account to make sure you only get the notifications you want). |
Cash offers available? | Yes, but only in 36 states and Washington, D.C. (excludes AK, HI, ID, KS, KY, ME, MS, MT, NH, ND, SD, VT, WV and WY). |
CarGurus pros and cons
Provides instant offers to sellers.
Allows buyers to compare prices from several dealers easily .
Recommends cars for you based on your views and searches.
Rates listing prices from “great” to “overpriced.”
Has a fairly active forum for users to ask questions.
Individual sellers can only sell to dealers rather than other individuals.
Doesn’t provide vehicle history reports.
Instant cash offers aren’t available in many states.
Company is opaque about what it charges sellers.
Does not sell cars directly, so trade-ins are not possible.
Price is not negotiable.
How CarGurus works
Buying a car
To buy a car, you enter the make, model, max price and how far away you’re willing to travel to get the car. The site shows you results, which you can filter and sort. Each car listing includes details about the car, as well as the seller’s location and phone number. You call the number or click “request info” to reach out.
We like that you can quickly filter new- and used-car listings, get prices, sign up for price-drop alerts and ask car-buying questions on a user forum.
Expert reviews and user reviews for many car models can provide helpful context.
The company assigns a “deal rating” to used cars listings (“Great Deal,” “Good Deal,” “Fair Deal,” “High Priced” or “Overpriced”) based on a proprietary algorithm.
Fees
Buyers do not pay a fee to buy through CarGurus; the sellers pay the fees to list their vehicles and obtain various services from the company.
CarGurus is a listing platform; it does not own the cars for sale, so using your existing car as a trade-in is likely not an option. Many states credit the value of a trade-in against the sales tax on a new vehicle; remember that when considering CarGurus offers.
Financing
CarGurus is not a lender, but it does help buyers arrange auto loans from these lenders:
Global Lending Services
Westlake Financial
Explore the auto-buying platforms from our partners below.
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Selling a car
You can’t list your car privately for sale on CarGurus, meaning CarGurus will not help you sell your car to another private individual. Rather, you enter your car’s details and get a cash offer from a car dealer.
To sell your car on CarGurus, this is basically how it works.
1. Request offers.
Enter your license plate number or VIN, mileage and the vehicle’s condition. The company then forwards offers via email from dealers, which you can compare.
The offers are either from local dealers (where you complete the deal by going to the dealership) or are online offers (where you upload the paperwork, schedule a pickup and get payment via bank transfer or check).
Instant cash offers are nonnegotiable and good for seven days or 250 miles, whichever comes first.
2. Choose a buyer.
If you accept an offer, a CarGurus CarOffer agent will call, email or text, depending on your preference, to arrange the details of the sale.
You will be asked to describe any damage to the car and upload a photo of your driver’s license along with photos of the car’s odometer and title.
CarGurus does not have physical locations but will arrange to pick up your vehicle at no cost from your home, workplace or other site you choose. The pickup typically happens within three to 10 days, depending on your preference and the availability of transport companies in the CarGurus contract network.
In the meantime, CarGurus CarOffer will mail you the sales contract, which you can sign when the car is picked up.
3. Turn the car over.
At pickup, the driver will do a visual inspection of your vehicle to ensure that it matches the description you provided online. The pickup process should take 15 to 30 minutes.
The driver will hand you a check, which can take several days to be activated by CarGurus (you’ll receive email confirmation) and clear your bank. Alternatively, you can opt for direct deposit to your bank account, in which case the funds should be ready in a few hours.
You should not sign the title until you are ready to hand it over with the keys.
You will need to provide a government-issued ID, proof of ownership such as registration or title and any lien information.
Car dealerships pay CarGuru various fees to list their vehicles on the site and for other services. Dealers can also buy “listing packages.” The company is opaque about these fees, but according to the company’s 10-K, the company’s average revenue from subscribing U.S. dealers was $7,337 per dealer per quarter.
Notable CarGurus features
Delivery
CarGurus offers a delivery service for select vehicle listings, indicated by a truck icon. This allows you to expand your search radius to nationwide, and associated fees are built into the listing price. If you choose this option, make sure you understand the dealer’s return policy.
» MORE: Can you return a car?
Useful search filters
You can filter on a variety of standard items such as mileage, age, trim, color, seating and engine characteristics, but there are also some other more novel ways to search, such as by:
Safety rating.
Days on market.
Recent price drops.
Accidents or other damage.
One owner.
Search radius.
Seller type.
App
CarGurus has an app.
Apple App Store rating: 4.9 stars; 470,000+ user ratings.
Google Play rating: 4.7 stars; 161,000+ user ratings.
