I came across a CarGurus comparison that seems difficult to explain and wanted to get feedback from other dealers.
Two vehicles are being advertised in the same market:
Both vehicles are the same year and trim, and the mileage difference is only about 100 miles.
The independent dealer’s vehicle is:
Yet the independent dealer’s listing receives a Fair Deal rating, while the franchise dealership receives a Good Deal rating.
From a consumer’s perspective, the badge makes the franchise vehicle appear to be the better value, even though the visible facts appear to favor the independent dealer’s vehicle.
I understand that CarGurus uses an algorithm and there may be additional valuation factors behind the scenes. However, this comparison creates the appearance of an uneven playing field and raises a fair question about whether franchise and independent dealership listings are being treated consistently.
Has anyone else noticed similar comparisons?
Are there factors such as dealer type, listing package, inventory source, market radius, or franchise status that influence the Deal Rating?
I am interested in hearing whether other independent dealers have experienced this and whether CarGurus provided a meaningful explanation or corrected the rating after a review.
This is not an accusation of intentional discrimination, but based on the information visible to consumers, the result certainly does not look fair.
Two vehicles are being advertised in the same market:
Independent dealership vehicle
- 2010 Honda Civic LX
- Price: $9,796
- Mileage: 77,322
- Previous owners: 3
- No reported accidents
- CarGurus rating: Fair Deal
Franchise dealership vehicle
- 2010 Honda Civic LX
- Price: $10,376
- Mileage: 77,428
- Previous owners: 6
- Two reported accidents
- CarGurus rating: Good Deal
Both vehicles are the same year and trim, and the mileage difference is only about 100 miles.
The independent dealer’s vehicle is:
- $580 less expensive
- Slightly lower mileage
- Three owners instead of six
- No accident history instead of two reported accidents
Yet the independent dealer’s listing receives a Fair Deal rating, while the franchise dealership receives a Good Deal rating.
From a consumer’s perspective, the badge makes the franchise vehicle appear to be the better value, even though the visible facts appear to favor the independent dealer’s vehicle.
I understand that CarGurus uses an algorithm and there may be additional valuation factors behind the scenes. However, this comparison creates the appearance of an uneven playing field and raises a fair question about whether franchise and independent dealership listings are being treated consistently.
Has anyone else noticed similar comparisons?
Are there factors such as dealer type, listing package, inventory source, market radius, or franchise status that influence the Deal Rating?
I am interested in hearing whether other independent dealers have experienced this and whether CarGurus provided a meaningful explanation or corrected the rating after a review.
This is not an accusation of intentional discrimination, but based on the information visible to consumers, the result certainly does not look fair.
interesting...
