Since first entering the Canadian market in early 2015, CarGurus has relied on a unique value proposition to help it stand out.
Three years later and the car listing website as grown into a legitimate option for franchise and independent dealers nationwide looking to broadcast their inventory.
“We have really reached a point of relevance in the market this year. We’re seeing conversion rates on pair with the incumbents and the volume is coming as well,” explained Diego Sanson, vice-president of international business development at CarGurus.
“We’re not only driving just quality leads and consumers for dealers but also approaching the quantity that makes us a relevant player.”
Since going public last October, the company has had to provide more specific information on its business operations. That said, international dealer business as reported on an aggregate level looping in Canada, Germany and the U.K.
According to filings, CarGurus does business with over 2,500 international dealerships.
Helping propel that growth, Sanson said, are a combination of factors.
“First is our unbiased transparency in our search results. Unlike other classified sites in the market, we organize our results based on provide consumers access to the best deals based on our instant market value. The way we order those results organically doesn’t allow dealers to buy their way to the top. It will be the best deals from the best dealers, this makes for a level playing field.”
Sanson said another reason behind CarGuru’s growth in this market has been its “freemium” model that gives dealers the chance to display their listings for free on CarGurus.
“This provides dealers with risk and investment-free ways to experience the platform,” he explained, noting that over time, dealers find value in the results and upgrade to an enhanced, paid subscription.
“Unlike the Traders and Kijijis of the world where the classified model has them paying on a per car basis, we take away all the risk. We ask them to try it; when they start seeing the value, they can upgrade to a subscription.”
By communicating how its proprietary technology, search algorithms and innovative data analytics provides “unbiased insights” on car pricing, dealer reputation and vehicle history, CarGurus has been able make great strides in America in the last decade.
Sanson said it is the number 1 most-visited automotive marketplace in the U.S.