How Does CarGurus Work?

CarGurus is one of the most visited automotive marketplaces in Canada, helping buyers compare thousands of dealer-listed vehicles across the country. Whether you’re searching for the best compact car or a certified pre-owned SUV, the platform focuses on delivering a clean interface, dealer-only inventory, and market-based pricing insights that make it easy to spot a good deal.

But while CarGurus is a strong option for many Canadian car shoppers, it’s not as flexible or feature-rich as some other platforms. In this guide, we’ll walk through how CarGurus works — from how it sources listings to what features set it apart — and help you decide if it’s the right choice for your next vehicle search.

What Is CarGurus?

CarGurus is a U.S.-based automotive marketplace that expanded into Canada in 2015. Unlike some platforms that mix private and dealer listings, every vehicle on CarGurus is listed by a licensed dealership. You’ll find used, new, and certified pre-owned (CPO) options, but no private sales.

It’s important to note that CarGurus doesn’t sell cars directly. Instead, it operates as a lead generation platform. When you find a vehicle you like, you submit your contact information and are connected with the dealer who owns the listing.

If you’re hoping to sell your vehicle, either privately or directly to a dealership through CarGurus, that’s not currently an option. The site focuses exclusively on dealership inventory.

How Buying Works on CarGurus

Search and Browse:

CarGurus offers robust filters that let you narrow your search by make, model, year, price, distance, and body style. Results are location-based and include dealership contact information so you can reach out directly.

Deal Ratings:

Each listing is tagged with a pricing label such as “Great Deal,” “Good Deal,” or “Fair Deal.” These ratings are calculated using an algorithm that compares the listing’s price and mileage to similar vehicles in the market.

No Checkout on Site:

You can’t buy a car directly through CarGurus. Instead, shoppers must contact the dealer to arrange a test drive or purchase. There’s no built-in online checkout, home delivery, or return policy.

Financing Tools:

CarGurus includes a loan calculator and provides third-party financing offers, but these tools aren’t connected to a full online purchase experience. You’ll need to complete the financing process separately through the dealer.

Key Features of CarGurus

CarGurus is known for its clean and user-friendly interface, offering a more streamlined experience than some other platforms like AutoTrader. It’s easy to navigate, with fewer distractions and a sharper focus on vehicle listings.

As mentioned previously, one of its standout tools is the Deal Rating feature, which rates each listing based on how it compares to similar vehicles. This helps buyers quickly identify which cars are priced competitively.

Each listing includes dealer reviews, giving shoppers insight into the seller’s reputation before reaching out. And since CarGurus only features vehicles from licensed dealers, the overall listing quality tends to be more consistent and reliable.

Another notable feature is the Car Value Tool, which lets users enter the vehicle’s year, make, model, trim, mileage, condition, postal code, and intended transaction type (buying, selling, or trading). It instantly estimates market value, shows month-over-month pricing trends for that make and model, and provides a price analysis using the Deal Rating scale.

Pros and Cons of CarGurus

Like any online car marketplace, CarGurus comes with its strengths and tradeoffs. Below is a quick breakdown of what it does well and where it might fall short, depending on what you’re looking for in your car-buying or selling experience.

Pros of CarGurus

• User-Friendly Interface: Clean layout and intuitive filters make it easy to browse listings.
• Deal Ratings: Each listing gets a price rating (e.g., Great Deal, Good Deal) based on real market comparisons.
• Dealer Reviews: See ratings and reviews to get a sense of each dealership’s reputation.
• Higher-Quality Listings: All vehicles come from licensed dealers, so listings are typically more complete and reliable.
• Car Value Tool: Get a market value estimate based on your vehicle’s mileage, condition, and postal code, along with pricing trends and a deal score.

Cons of CarGurus

• No Private Listings: All listings are from dealers. No option for peer-to-peer sales.
• Offline Checkout Process: CarGurus doesn’t support buying online. You have to contact the dealer and complete the sale in person.
• No Delivery or Return Policy: Unlike retailers like Clutch, there’s no home delivery or test-own window.
• Limited Selling Options: You can’t sell directly through the platform. Private sale and dealer resale are unsupported.
• Basic Financing Tools: Loan calculators are available, but you’ll need to secure financing separately.

How CarGurus Compares to Other Car Buying Platforms

CarGurus offers a streamlined experience focused on dealer listings, but it’s far from the only option for Canadian car shoppers. Here’s how it stacks up against other major platforms:

• AutoTrader: When comparing AutoTrader vs CarGurus, there are some key differences. Autotrader includes both dealer and private seller listings, offering a larger volume of vehicles overall. It also supports listings for RVs, motorcycles, and boats, making it more versatile for shoppers browsing beyond just cars. The interface isn’t as modern or clean as CarGurus, but it remains one of Canada’s most comprehensive vehicle marketplaces.
• Facebook Marketplace: Great for private sales and often priced lower, but it comes with higher risk. No buyer protections, limited vehicle info, and no verification process mean it’s very much “buyer beware.”
• Clutch: Unlike CarGurus, Clutch owns every car it lists. Each vehicle is fully reconditioned, inspected, and backed by a 3-month warranty. You can complete your entire purchase online — including financing and trade-in — and even return the car within 10 days if it’s not a fit. For buyers who want convenience and peace of mind, Clutch offers a fully integrated, end-to-end alternative.

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Is CarGurus Right for You?

CarGurus is a great fit for buyers who want a streamlined interface, helpful pricing insights, and the reassurance of working with licensed dealerships. Its market-based deal ratings and dealer-only listings make it easy to spot well-priced vehicles without wading through cluttered classifieds.

However, it’s not the best option for those looking to buy or sell privately, or for shoppers who want to handle their entire car purchase online. If you’re looking for a fully digital, full-service experience complete with online financing, vehicle delivery, trade-ins, and a return window, platforms like Clutch offer more convenience and control.