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Redefining Online Car Sales: Exploring CarGurus’ Fierce Competitors in the Market

CarGurus Overview

When it comes to buying or selling cars, CarGurus is one of the most popular names in the game. Since their launch in 2006, CarGurus has taken the online platform by storm, becoming one of the best places to research, sell, or purchase a vehicle.

In this article, we will provide an overview of what makes CarGurus so successful, including their business model, history, and unique features.and History

CarGurus is an online platform for people looking to buy or sell cars. Founded in 2006 by Langley Steinert, CarGurus has quickly become one of the most popular websites for those interested in researching and comparing prices for cars.

Steinert has an impressive background, having previously co-founded TripAdvisor, a popular travel website. In 2007, CarGurus launched their website, which allowed people to search for cars in their area and compare prices between different models.

While the website started as a way for people to research cars, in 2015, CarGurus launched a new feature allowing users to buy and sell cars directly through their website. Since then, CarGurus has become a one-stop-shop for anyone interested in purchasing or selling a car.

CarGurus Business Model and Success

The CarGurus platform is unique in the sense that it has created a community where people can share their experiences with dealerships and leave reviews for specific cars they have driven. This community-based approach has allowed CarGurus to stand out from its competitors.

Along with this, the website offers competitive pricing and pre-qualifications for loans, making it easier for people to purchase a car. CarGurus makes money by charging dealerships a fee to list their cars on the platform.

This model has been highly successful, allowing the company to generate substantial revenue. CarGurus has gained popularity over the years, and in 2017, they went public.

They have since continued to make acquisitions and expand their business. As of 2020, CarGurus has more than 38 million unique users a month, showcasing its immense popularity.

The website has also received over $195 million in venture capital funding, which has allowed them to continually improve the platform and remain at the forefront of the online car market.

Competitors of CarGurus

Despite CarGurus’ massive popularity, there are still other players in the market that hold their ground. and

Autotrader are two of CarGurus’ most significant competitors. is one of the largest competitors of CarGurus, and it is easy to see why. With over 22 million visitors to their website every month, is the go-to source for car buyers.

The website offers a range of services such as car research, dealerships, and private-party sales. was founded in 1998 as the Chicago Tribune’s automotive classifieds platform.

Since then, the website has undergone various acquisitions, including being sold to TEGNA Inc., a media company that owns multiple television stations. The company went through another significant transformation in 2018 after acquiring Dealer Inspire and Launch Digital Marketing, two companies that specialize in automotive marketing.

These acquisitions have made a direct competitor to CarGurus, enabling it to offer an all-encompassing solution to buyers.


Autotrader is another online platform that offers comprehensive research data for cars. The website has a range of features, including vehicle identification data points, extensive vehicle reviews, and listings from private sellers and dealers.

Autotrader was founded in 1997, initially as a print publication. They launched their website in 1999, creating a massive presence in the online car market.

Since then,

Autotrader has gone through many acquisitions, including being sold to Cox Automotive in 2013. This acquisition has allowed

Autotrader to expand globally and to become one of the most competitive online car marketplaces.


In conclusion, the online car marketplace has evolved significantly in recent years. CarGurus,, and

Autotrader are the three most comprehensive and successful online platforms in the car market.

CarGurus stands out with its unique community approach, while and

Autotrader offer all-encompassing solutions to buyers. With such fierce competition, these online platforms continue to improve, providing better services for car buyers.

Competitors of CarGurus (continued)

CarGurus has established itself as one of the most popular and reputable online platforms to buy or sell a car, but it’s not alone in the market. Competitors such as



CarMax, and

AutoNation are formidable opponents in the automotive sales industry.

In this article, we will explore what makes these companies different and what sets them apart from CarGurus.


TrueCar is an online platform that offers users no-haggle pricing for cars. They have partnered with over 16,500 dealerships across the United States to offer competitive rates to their customers.

Users can input the car they are interested in purchasing, and

TrueCar provides a price estimate based on data from their dealership partners. What sets

TrueCar apart from CarGurus is their direct connection to dealerships.

TrueCar generates revenue by charging dealerships a fixed fee for every vehicle sold, making it a more profitable venture than CarGurus.

TrueCar has been successful in the industry, with over 2.2 million vehicles sold through their platform since 2006.


Carvana is an innovative online dealership that provides convenience to their customers. They offer a unique purchasing experience, complete with car vending machines and delivery services.

Customers can browse and purchase cars online, and have the vehicle delivered to their doorstep or pick it up from a vending machine.

Carvana generates revenue through the sale of new and used vehicles on its platform. The company has experienced significant growth since its inception, with over $5.6 billion in total revenue as of 2020.

In 2017, the company went public, making it a formidable competitor in the market.

Carvana also made several acquisitions, including acquiring Car360, a technology company that offers 360-degree views of cars.


CarMax is an automotive retailer with a unique business model. They have over 200 physical stores across the United States, where customers can view and test-drive cars.

CarMax’s pricing strategy is transparent, with fixed prices on most of their inventory. This makes the car buying process more streamlined, offering a hassle-free buying experience.

What sets

CarMax apart from CarGurus is their large inventory of cars.

CarMax generates revenue by selling cars in their physical stores and through their website.

As of 2019,

CarMax reported over $20.3 billion in total revenue, making it one of the largest automotive retailers in the United States.


AutoNation is a company that operates car dealerships across the United States. They sell new and used cars from various brands and offer repair and maintenance services on-site.

Their website offers a range of services for customers, including the ability to book appointments, apply for financing, and get an estimate for their trade-in.

AutoNation generates revenue from their various dealerships across the country. They also have an e-commerce option, allowing customers to purchase vehicles online and have them delivered to their location.

As of 2019,

AutoNation had total overall revenue of over $21.4 billion, making it one of the largest automotive retailers in the United States.


The automotive sales industry is competitive, and CarGurus has a lot of competition in the online market.

TrueCar offers no-haggle pricing and direct connections to dealership partners, while

Carvana offers unique convenience with their car vending machines.

CarMax has a massive inventory of cars and a unique pricing strategy, while

AutoNation operates physical dealerships across the United States. These companies have found success by offering innovative solutions to customers in the automotive industry.

Competitors of CarGurus (continued)

CarGurus has established itself as a leader in the online car market, but it has several competitors that hold their ground in the industry. In this article, we will further explore the differences between CarGurus and its competitors, including


Kelley Blue Book,

eBay Motors, and



CarsDirect is one of the first direct sellers of cars online. They offer new and used cars, as well as financing options and insurance.

CarsDirect also provides information on car buying and selling, and offers options for car reviews and research.

CarsDirect is unique in that they offer a user-friendly platform where customers can purchase vehicles directly from the comfort of their home. They have been successful in the online car sales industry, allowing them to make a significant acquisition in 2020 with the purchase of

TrueCar, another online car sales company.

Kelley Blue Book

Kelley Blue Book is a trusted source for car valuation information, starting as a print publisher in 1926. They have now expanded to provide vehicle valuations on their website, making it a popular destination for car buyers and sellers.

Kelley Blue Book offers consumers a range of services, including car reviews, vehicle history reports, and research. What sets

Kelley Blue Book apart from CarGurus is their emphasis on car valuations and their experience in the industry.

In 2020,

Kelley Blue Book was acquired by AutoTrader, another automotive sales industry player. This acquisition allowed AutoTrader to expand its services and offer more comprehensive valuations and car history reports.

eBay Motors

eBay Motors is an online platform that allows users to buy and sell cars and car parts through secure transactions. They provide a user-friendly platform for customers to purchase vehicles directly from individual sellers or dealerships.

eBay Motors also offers exclusive deals and promotions. What sets

eBay Motors apart from CarGurus is their range of car listings, including rare and vintage cars that are not typically found on CarGurus.

As of 2021,

eBay Motors has over 180 million monthly visitors, proving its immense popularity.


Edmunds is an automotive content publisher that provides reviews, ratings, and research for cars. They also offer a range of services for buyers, including car buying advice, trade-in appraisals, and financing options.

Edmunds caters to a specific subset of car buyers that value comprehensive information and research before purchasing a car. What sets

Edmunds apart from CarGurus is their focus on educational content.

Edmunds is a trusted source of information for car buyers, offering authentic reviews, car buying advice, and financing options. In 2021,

Edmunds was acquired by CarAdvise, a company that offers discounts on car repairs and services, expanding the range of services available through



In conclusion, CarGurus has fierce competition in the online car market.

CarsDirect offers direct online sales of vehicles, while

Kelley Blue Book provides comprehensive valuations and car history reports.

eBay Motors offers a large range of car listings, including rare and vintage cars, and

Edmunds provides comprehensive educational content for car buyers. Each of these companies has carved out a unique niche in the market, proving that there is room for innovation and competition in the online car industry.

Competitors of CarGurus (continued)

CarGurus, as a leading platform for online car sales, faces competition from various players in the market. In this article, we will delve into two more competitors,

Facebook Marketplace and

Cazoo, and examine what makes them unique and formidable in the online car market.

Facebook Marketplace

Facebook Marketplace is an online platform that allows users to buy and sell a wide range of items, including vehicles. With over 2.8 billion active monthly users,

Facebook Marketplace offers a vast potential audience for car sellers.

What sets

Facebook Marketplace apart from CarGurus is its integration with the social media giant’s platform. Users can easily list their vehicles for sale, including details and photos, and potential buyers can send messages directly to the seller.

Facebook Marketplace also offers the advantage of being able to view the seller’s profile, which can help establish credibility and trust.

Facebook Marketplace has established partnerships with other automotive platforms and services, such as CARFAX, which provides vehicle history reports. This integration adds value to the platform and provides further confidence for buyers.


Facebook Marketplace may not specialize solely in car sales, the vast number of users and the ease of listing and connecting with potential buyers make it a significant competitor in the market.


Cazoo is often referred to as the UK equivalent of

Carvana. It is an online dealership that focuses on making the car buying process convenient and hassle-free.

Cazoo offers a wide selection of high-quality used cars and provides a seamless online purchasing experience. What sets

Cazoo apart from CarGurus is its emphasis on vehicle delivery.

Customers can browse through their inventory online, complete the purchase, and have the vehicle delivered straight to their doorstep. This eliminates the need for customers to travel to physical dealerships, making the car buying process more convenient.

Cazoo has experienced significant growth since its launch in 2018. They have expanded their services to provide financing options and have even ventured into the European market, acquiring Drover, a similar car subscription service.

As of 2021,

Cazoo reported over 1 billion ($1.4 billion) in revenue, cementing its position as a strong competitor in the online car market. While CarGurus provides a comprehensive platform with a range of features, from researching cars to facilitating purchases,

Facebook Marketplace and

Cazoo bring unique strengths to the market.

Facebook Marketplace leverages its vast user base and integration with social media, while

Cazoo focuses on seamless online purchasing and convenient vehicle delivery. The online car market continues to evolve, with new players entering the industry and existing competitors striving to innovate.

As technology advances and customer preferences shift, it will be interesting to see how CarGurus,

Facebook Marketplace,

Cazoo, and other key competitors adapt and compete in the dynamic landscape of online car sales. In conclusion, CarGurus faces competition from various players in the online car market.

Facebook Marketplace capitalizes on its vast user base and integration with social media, offering a convenient platform for buying and selling vehicles.

Cazoo, the UK equivalent of

Carvana, focuses on providing a hassle-free online dealership experience with the added advantage of vehicle delivery.

Each competitor brings unique strengths and innovations to the market, further driving the evolution of the online car sales industry. In conclusion, CarGurus faces formidable competition from various platforms in the online car sales market.

Competitors such as

Facebook Marketplace and

Cazoo bring unique strengths, such as a vast user base and seamless online purchasing with vehicle delivery, respectively. With technology advancing and customer preferences evolving, the online car market continues to be a dynamic and innovative industry.

Understanding the landscape of competitors is crucial for both consumers and industry players to make informed decisions. Whether it’s the convenience of

Facebook Marketplace or the hassle-free experience of

Cazoo, the options available highlight the importance of choice and the ever-growing demand for streamlined and trustworthy online car sales platforms.

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