Why Not to Buy a Car from CarGurus

Why Not to Buy a Car from CarGurus


rev up your engines today I’m going to answer
the question, should you buy a car from CarGurus, now CarGurus is a Cambridge
Massachusetts based company that does research to find where you can buy a car,
they have algorithms that compare the prices the dealers when you’re looking
for a car gives you what’s called an instant market value of what you’re
looking for, then compares them all over the place,
now the company itself CarGurus gets paid fifteen dollars by a car lot
dealership whether they buy it or not is immaterial, they get their 15 bucks if
they can swerve you to go to them, they get their 15 bucks
just because you looked it up on their site and then you contacted a particular
dealer, so they’re making a 15 dollar profit even if anything’s not bought, and
let’s say you’re not a car dealer well for non car dealers car gurus will let
you list the car for free, but if it’s sold, the seller of the car pays car guru
$99 for the service, now CarGurus themselves says nobody pays them to put
it in a particular order like one company’s paying them more money to be
the top of the list, they say it’s based on the price and what you’re looking for
in your area, last time I checked they had more than three million used cars
for sale and over four hundred and fifty thousand new cars listed on CarGurus, now
CarGurus was founded in 2006 by mr. Steiner he was one of the cofounders of
TripAdvisor, you got something like TripAdvisor you’re only gonna stay in a
place for a few days maybe a week or something if things aren’t perfect well
it’s not gonna end the world, but if you using a system like that to buy a car
that you’re gonna be driving for years sight on scene, I’d be kind of
leery about that myself, now locally here in Houston a big city they’re
advertising the heck on them, I see their ads all over the place, so obviously
they’re putting a lot of money in this thing so they are making money to pay for
all these advertisements, now in the year 2017 CarGurus went from being
a public company, to being traded on the stock market, and as of today at least
it’s got a 3.95 billion dollar market camp so it’s a
large corporation, and as with any large corporation a lot of times they get away
from the original idea. and they start thinking how can we make a profit. and
then often there’s very little correlation between what they’re trying
to get you to buy and whether it’s any good or not. now theoretically the
listings are fair nobody’s paying to be at the top of the list. say it’s a car
dealership they say that well if the dealerships get good ratings then they go
higher up on the list, and if you know anything about ratings on the internet
those things can be faked so easily you got Amazon there’s a new product you
see all these great ratings, and then you look and almost all written the same and
often in bad English, then you know hey there’s a Chinese company out there
that’s trying to sell this stuff, I checked those things out over the years
and found that quite a few of them, which I actually tested out myself are
garbage products, and then later they weren’t even be sold on Amazon because
they checked and found out real people ended up saying, hey these are horrible
products and so they went off the list I don’t trust ratings on the Internet
one iota, they’re probably listed mainly by the price, they have no
idea what kind of shape these cars are in so, if a guy’s got a later model car
it’ll probably make it higher on their list maybe the car was wrecked flooded
stolen who knows, you don’t have any idea about that, and CarGurus can even allow
financing themselves because of course as I said they’re a huge corporation,
they see hey they want to get in the financing game, cuz there’s so much
profit out of that stuff, you got a hundred thousand dollars CD and you’re
making like half a percent interest these guys are out there with these used
cars their interest rates are sky high they’re making a fortune if they’re
loaning you money, now the way it’s set up is
kind of squirrely too, because let’s say you pick a car you want, your allowed to
give your email or phone number to CarGurus who contacts the dealer, a lot
of people have said hey the dealer never contacted me back, now of course car guru
doesn’t want to show you exactly where it is because then you could
say well the heck with them I’ll just go to the dealer myself and buy it, then
they don’t get their dollars for sending you over there, so it’s all done on the
Internet well we all know things can screw up on that all the time, lots of
people including some of my customers who were gonna try it, when they went to the
dealer they were told that, oh that one’s already been sold here’s something else
we got for sale, the used car business is kind of dirty everybody who’s ever been
involved in it knows that, they’ve always got lost leaders they’re trying to get
you in, they’ll say well we only had one at that price, but here’s some more here and
they’re just doing it to get you to come in thinking that they’ll be able to sell
you something now that they got you in person, cuz I’ve always said you can
often get the best deal from private individuals, there are some private
individuals on car guru, but mainly it’s car dealers it’s rare that you’re ever
gonna get a good deal from a car dealer they’re pros, if they buy a car for 3
grand they want to sell it for 6 or 9 grand, and to top it off there’s certain
fees and stuff that aren’t included in the price, both car guru and the
dealers do not have to stand by that original price they’ve got disclaimers
all over the place their a corporation, but they say any price does not have to be
honored my car gurus or the dealership, they’re covering their own backs on that,
so if you go there and the price is
different, or they don’t have that car, you can’t sue them or anything,
their a corporation you know, you need a lawyer to read through half of those
contracts, and these extra fees can go as high as $1,300, their not telling you that
stuff until it’s too late and when it comes to the title the car,
hey you buy a car you want the title in hand I’ve done some research and a lot
of people and complain that they bought a car from them took them forever to get
the title, some of them haven’t even gotten it yet, you deal with a giant
bureaucratic corporation like CarGurus or 3.9 billion dollar
valuation things are gonna mess up that’s just how it goes in today’s world,
like I always said if you’re buying a used car you want to see the title in
hand, because you want to flip it over and if it says reconditioned or salvage
title, you really don’t want to buy the thing if you don’t have that information in
hand me I wouldn’t touch a car, all a seller has to do to put it on CarGurus
is have the car year the vehicle identification number,
transmission, type the color, and a photo and photos often lie
you can Photoshop, or even more obvious let’s say the back of the car smashed in
take a picture in front of the car or in the case of something that happened to
me, once I got a truck from an auction site, it’s a Toyota truck I figured it would
be a great truck no problems, and they show the top of it and it looked clean
and the paint was good, when I got under that truck the
frame was all rotting away, they of course didn’t show a picture of
that on the side, they showed where the paint was shinning and everything, buying
a car without seeing it and road testing
it is just plain dumb, so as far as I’m concerned it’s a gigantic corporation that
spends a fortune advertising what a great job they do, what do they know
about the cars are listing on their site hundreds of thousands of them three
million used cars and four hundred and fifty thousand new cars the last time I
checked, basically you got this giant corporation that’s bird-dogging for
people who are selling used cars they are a go between, they really don’t know
that much about your car that’s being sold, me I’d stay far away from things
like that, they got them listed from best ones to worst, but how are they saying
which one is best they really don’t know anything about these cars, they’re going
by hearsay of what, oh who rated this company or who rated this better or not,
who’s to say that people that work at those companies aren’t just typing in
things saying, oh yeah this deal is great Oh fantastic,
I know a guy that ran a shop and that’s what he did was the mechanics who weren’t working,
they’d go on social media and he’d have his mechanics when they weren’t busy typing
around saying how great his garage was so me I wouldn’t waste my time with
CarGurus if I was looking for a car there’s just too many ifs, they just make
it look convenient, come on now buying used cars it’s a lot more complex than
that, if you want to do it right, so if you never want to miss another one of my
new car repair videos, remember to ring that Bell

About the Author: Michael Flood

100 Comments

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  2. Hey Scotty; when you use that ultraviolet light with your dark specks I was wondering if you could see through people s clothes? 🙂

  3. My dad found me a 2010 Dodge Challenger V6 with 55000 miles on it for $10850 on Cargurus. We bought it privately from first owner, is the Dealerships that are a**holes. We went to 6 huge dealerships to look for a Camry, the ones we saw on Cargurus from them told us they were not there or sold. Just to make us go to their dealership. We don't buy online, we go to the car to see it in real life.

  4. If you know what car you want, and know what dealers are reputable, it's great for finding cars. Best format.

  5. Actually, Cargurus has listings that also give a link to the actual dealership website. Just sayin'

  6. Yes I completely agree. Even though I still use this app to find cars. But, when I find one I’m looking at I always look at in person. It is easy to get ripped off nowadays in this world.

  7. I would tell people not to use trip adviser or other ones like it. You end up paying more and if you need to cancel your reservation you can’t. You can’t set anything up throw the hotel if you use trip Advisor. It’s always cheaper and better to book through the hotel it’s self. I have worked in the hotel field for a long time

  8. Its not much different then Craigslist. If you find a car local to you on carguru then just call up the dealership that is listed or go check out the car yourself. Not that hard. That being said dont give a website your email or phone number unless you want tons of spam and robo calls.

  9. I just used the site to find the cars. Had no problems. One dealer didn’t want to match the price saying that it was the online price so I said ok and showed them another one that I was going to go and look at and then matched the price. Why the hell would a person buy a car online with out looking at it in person first? Just stupidity

  10. Why give testimonials any credence? The poster may not know anything at all or is the brother in law.

  11. Thanks, Scotty! After realizing that buying a new car is a waste of money, I now look for 2-3 year old used cars with low mileage, keep the maintenance up, and then pass them on to the kids when I'm ready for a "new" one…

  12. The blind leading the blind. The key is to give as little information as possible, present with confidence, and redirect impossible questions

  13. I hear corporation and a name like $teiner ? It's smells like another of them dead rat face, making profits on people miseries. Promoting a service that no one knows anything about the product. Try that in a supermarket and, see how fast their malpractice will appear on the front page.

  14. I bought my two cars from car gurus , low miles and good price. But i believe that these are bought off auction slightly front damage but my suspension on both cars is bad. They profit for crashed cars to make them look lile new yet the "clean" title stands.

  15. As soon as you said TripAdvisor, I believe you, they are a scam company that get paid by companies to advertise

  16. Private sellers > dealers

    Real story…

    Dealer: Wanted $8,500 for a BMW Z4 2003 with 145,000 miles and in "ok" condition. We agreed at a price of $6,000 plus "fees"… but I found a better offer

    Private Seller: (Where I actually bought my car) Wanted $12,000 for a BMW Z4 2005 with 50,000 miles in brand new condition AND 4 new extra tires (The tires on the car were not even close to needing me to replace the tires with the extra tires given). We agreed at a price of $8,000 and that's it. Clean title, s drive, convertible….BEST DEAL in my 20 year old life.

    Moral of the story, look for better deals on the internet. Never take original price. Contact many people. And don't grant dealers trust or think their cars will be more reliable. Dealers will sell you junk at expensive pricing while feeling guiltless. Always inspect your car for minor stuff, test drive it and always test drive it in the highway with fast acceleration to reveal any check engine or "WTF do those lights mean" / "What is that sound and movement"

  17. Wait, what? "Car Gurus goes from being public company to being traded on the stock market…" WTF! Being traded on the stock market (exchange) IS by definition a PUBLIC COMPANY! So much for your credibility about corporate finance. How do you not know that?

  18. When I looked at cars from car gurus not a single one listed as having a clean title had a clean title

  19. Goo roo …boo boo. Doobey doobey doobey do. And don't forget car sales ratings are like virgins. One looks their whole life. And then it's some slow death dreaming of what was never meant to be. Worse yet yer back in another body continuing your desire to do these perverted things that keep getting you elected and thrown In jail.. it's fast then it's over ..

  20. Some things you just don't buy online and a car is one of them I rather buy in person then online.

  21. I purchased my '13 Accord EXL 4 years ago that I found on CarGurus. I went to the dealer, negotiated a price and am very happy with my car. I didn't buy it from CarGurus, but CarGurus pointed me in the direction.

  22. Got my car from CarGurus it's great to use JUST to find cars( it's like car Google) then go to the dealership or person to see the car, most of the time the dealers have there website linked or name/number on the photo so I just contact them directly after I find a car I'm interested in.

  23. I used Car Gurus to find the Toyota dealer where I found the 4Runner I currently own, I went to dealer, negotiated the price down then used a credit union to finance car at a very low rate. My Cargurus experience was very good and I would go through Cargurus again.

    It’s better then any private seller nowadays. Private sellers are worst scammers than any car dealership.

  24. I used CarGuru to compare prices of used vehicles when i purchased my 2016 Chevy 1500. Sites like this do serve a purpose if you use common sense with it. I didn't go through it to purchase the vehicle though.

  25. I'm looking at a car I found through Car Gurus–one you don't recommend, btw–and if the money materializes, I'll probably go look at it, at least. This is what I see:
    1. They give me a list of locally-available models.
    2. The list is ranked by "excellent deal" to "too expensive!" Of the 11 or so I get at any time, there have been both, including a couple of extremely overpriced, now, one from all the way across the country. I take it that they get this valuation from that little book, which may be adjusted by information they are given by the dealer or the car report.
    3. They link to the dealer's website, if they have one, and although Car Gurus sell CarFax reports for each car, many of the dealers offer a free report on their site: some CarFax; some another brand of report. I have found this report very helpful for the three or so I've found them for. The first one explained what that car's salvage title was: that it meant that it was totalled by the insurance company after a wreck, then rebuilt to sell again. That was very helpful information. I was trying to find out what a salvage title meant, and was getting nowhere (I was mainly worried about hurricane/flood cars). So, to me, I use it for what it can do for me, and do not expect the cars to be rated for which is better. In my experience, they are only rated for which are the better deals v/v the values as stated in the little book.

  26. Thanks again Scotty for solid info ✌i am looking for a small run about for my wee mum. She has a Nissan Almera tino just now, but its on its last legs. She wants something similar, for the grandkids etc. Any help on what's best second hand car. Thanks ✌

  27. I graduated from lincoln tech automotive technology with honors. I recommend Scotty as the best mechanic online. Thx Scotty congratulations on your success

  28. Maybe you should be the CEO of a company like Car Gurus or stuff like that. You’ll profit in the long run and people will figure it out

  29. I should be a politician and act like you. I’ll just reveal the truth about the government and their evil schemes.

  30. Love your vids Scotty! Correction at 2:05. CarGurus went from being a private company to a public company traded on the stock market, not from public company to a company traded on the stock market.

  31. I bought my 2006 Nissan 350z from there and it was a pretty good experience
    Just do some research about the car and it’s condition to make sure u don’t overpay

  32. If you have stock in car gurus, you might want to get it out before this video makes the rounds 😂😎

  33. I don’t know what Scotty’s demographics are, but I wager this message really needs to get out to the millennials — young adults who grew up with the Internet solving all their problems. It solves a lot of problems, but not all of them.

  34. Car Gurus can be nice for research if you know what you're getting into, but I found an Outback on there, bought it, and it died on the highway on the way home…

  35. Sorry Scotty, I really don’t agree with you on this one. CarGurus helped me find a new car for a really good price

  36. Found a car for my daughter on car gurus. At the end of the day, I still had to go to the independent dealer look at the car and test drive it. I negotiated with the independent dealer when I bought the car. At no point did I deal with car gurus to buy the car.

  37. So what brand/modle car should we Buy? You have said not buy everything. Not picking just curious. Love your channel.

  38. It's still the buyers responsibility to check the condition of the car. And the dealers address is also listed so you can call first. I use it to find cars and check for accidents

  39. I've used CarGurus to locate 2 of my previous cars without any issues. I find it to be one of the best place to compare cars and prices. Majority of the time the dealers information is listed, so you don't have to contact them through CarGurus.

  40. If buying a car from a dealer get his name and address and check HIS credit before u buy. When u ask them this they know this will not be a routine sale to a sucker.

  41. i’m going to go check out this 2016 Hyundai Sonata Sport 43,500 miles 12,000 from a dealership that i found on car gurus. sorry scotty. you don’t like anything

  42. So what you're saying, Scotty, is that since you make money and you operate on the internet, we shouldn't trust you. By that logic, I shouldn't ever go to the grocery store, because they make money and they advertise! I bought my first car off of Cargurus a year ago. I went to the dealership, asked them the price, they said exactly what they said on Cargurus, I bought it (I had no trade-in because I don't normally trade in cars). The car (2015 BMW 335i) has been perfectly fine. It's exactly what I expected, and at a very, very fair price.

  43. I only use cargo routes for location as well for my 04 trailblazer and it Flip even seems to run better and has more features than my last trailblazer lol

  44. Love your videos, what you everyday. I have found 3 of my best deals on CarGurus…I live in small town east Texas but have had my best luck with CarGurus…

  45. Found my used truck on cargurus. Very happy with it. Got a great deal it runs great. Went and bought it in person.

  46. I bought a Toyota Sienna from Carguru and it was a great deal. Fantastic deal and my wife loves her van. Most car dealerships pay for advertisement

  47. Car guru is 98% false advertisement, just to get you inside the dealership. "Oh sorry, we just sold that one, could I show you another one with 50k miles more and $5k above the one you saw?" It's ridiculous what car buying became in this country.

  48. I once bought a car with a salvage title which didn't hurt the driving of the car but took a beating when I sold it…

  49. Cargurus is a great tool to use when buying a car. Notice I said tool, because as with any other project, you need different tools them. Because you're not going to overhaul a car with one wrench.

  50. It’s been my experience that the larger a company gets over time, the worse the customer focus (service and experience) becomes….

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