CarGurus unacceptable business practices ie Anonymosly raising cost of services >5X!

[project1]

Hello all,

I'm newer to this community, but have read on for a few years, and recently had something upset me enough to write about it in the hopes that it will initiate positive change for other dealers. My independent dealership Project One Auto recently had the unfortunate experience of being ransomed by @CarGurus, @LangleSteinert, with whom many of you already have a love/hate relationship.

I wanted to make sure you were aware of how dealers are being treated during the recent price increase. On the positive note, Cargurus is my favorite third party marketplace for searching inventory and I am impressed with what they have built. As an online dealership with more competitive pricing, they help steer consumers to our inventory to help us sell more cars and consumers save money.

We signed up directly with Cargurus through @Ryan Poulin three years ago and we were one of the first 1,000 dealers to start working directly with them. A month ago we received a certified letter stating our monthly fee was going to increase from $1,400 to over $7,000 and we would be automatically cancelled in 30 days. I immediately called and left VMs with both Ryan Poulin and @Patrick in dealer relations and was not called back for 3 weeks after consistent attempts over a three week period. Three weeks later I get a call back from Patrick apologizing and states he can reduce the monthly charge to $2,500 for the enhanced plan and I would have to speak with Jason for further movement. After trying to get in touch with him for over a week and emailed numerous people, I was able to get in touch with Jason after our inventory was removed from Cargurus. After speaking with Jason yesterday, he was now able to drop the monthly rate to $2,100 for the enhanced plan. I think its reasonable to ask for a rate increase but to increase the rate over 5x and then not respond to any questions and shut down our account is not appropriate.

Cargurus keeps dealers accountable through reviews; likewise I think they need to keep their sales force accountable with their customers at dealerships, which is why I am sharing this. I plan to follow up with the Better Business Bureau and online forums so that Cargurus is held accountable for the actions taken just as we are held accountable for reviews.

 

[Chris Leslie]

These guys called so many times and to every possible phone in the dealership that I had to finally take their call.

Here's the deal as far as I see it.

1. They have your inventory and are marketing it for you already. Whether you pay for it or not. So it's not like you have to pay them to post cars.

2. Their back end is basic and you are better of changing pricing inside of your DMS or IMS to make sure that it is across the board.

3. Their claim to fame is how much they spend to get people to their site in adwords. They are bidding against every auto and lead vendor out there from cars, autorader, autobytel. So at the end of the day you are footing their marketing bill. Nothing more.

I wouldn't pay them for the service they provide. There is no added benefit from where I sit between working with them directly or indirectly.
They aren't doing anything special that isn't being done already. They are just trying brute force their way through the clutter with high doolar ad spends.

I say "meh'

Keep your money and do something fun with it. Their business model needs your cars. You don't need them.

 

[joe.pistell]

Here's the deal as far as I see it.

Their claim to fame is how much they spend to get people to their site in adwords. They are bidding against every auto and lead vendor out there from cars, autorader, autobytel. So at the end of the day you are footing their marketing bill. Nothing more.

I wouldn't pay them for the service they provide.
There is no added benefit from where I sit between working with them directly or indirectly.
They aren't doing anything special that isn't being done already.
They are just trying brute force their way through the clutter with high doolar ad spends.
Keep your money and do something fun with it. Their business model needs your cars. You don't need them.

Chris,
In your scenario, all airlines should pull out of Kayak.com, Expedia, Orbitz, etc

CarGurus, AutoTrader & Cars.com is an aggregator marketplace* where shoppers go to find product 1st and who sells it 2nd.


*aggregator marketplaces are in industries everywhere and we all use them. Amazon, Overstock.com, http://searchenginewatch.com/sew/study/2097413/shopping-engines#

 

[Chris Leslie]

Joe, that's not what I am saying at all.

What I am saying is...

If they are already aggregating your inventory why would you pay for it?
I am not against aggregator marketplaces.
I am against paying for something that is already free.

 

[Tallcool1]

This is my experience with CarGurus:

I was on their "free program" for a couple years. We received an occasional prospect inquiry. When we received these inquiries, they came to us without a phone number or email address. All correspondence with this prospect had to take place through the CarGurus email system.

About a year ago, we decided to give their service a try. We enrolled as a "Premier" dealer, which basically meant that there are no other dealer's vehicles listed on the VDP of my vehicle. In addition, a customer inquiry would include a phone number and email address.

This vendor has been my best 3rd party lead provider in the history of the store. I get actual leads, rather than a vendor that tells me how the automobile business has changed and people don't submit lead forms anymore. I get quantifiable results. Do I sell 10 vehicles a month through this service...no. But it is absolutely worth what they charge or I wouldn't do it.

Their free service is worth its cost...nothing. Their paid service works well for me.