I PAID CARGURUS $3,600 A YEAR. NOW NEW YORK CITY IS SUING OVER ITS "GREAT DEAL" RATINGS AND HIDDEN FEES? 😂
I WAS A PAYING CARGURUS DEALER. AS THE COOL CAR GUY I’VE GOT A FEW THINGS TO SAY ABOUT COMPUTERS TELLING PEOPLE WHAT THEIR CARS ARE WORTH!
October 2026 | Cars Freak | Let’s Talk Used Cars, Dealerships, Advertising & AI
🚗 HEY! WE’VE ALREADY GOT YOUR CARS ON OUR WEBSITE!
You know what’s funny about the latest news involving CarGurus?
I was there when the company was getting started!
Not as an investor. Not as an employee.
AS A CAR DEALER THEY WANTED TO SELL ADVERTISING TO!
And I remember the sales pitch.
Years ago, I received a call from a CarGurus salesperson who essentially said:
“Hey, can you pull up CarGurus.com? Let me send you a link to your dealership profile.”
Okay.
So I pulled up the website. And there were vehicles from my dealership’s website!
WAIT A MINUTE!
HOW DID MY CARS GET ON YOUR WEBSITE WHEN I WASN’T EVEN A CUSTOMER?
CarGurus had collected my dealership’s inventory information from our website and populated listings on its own platform.
That’s what we’d call scraping today. And then came the sales pitch.
If I wanted to receive the customer leads generated through CarGurus, I needed to become a paying subscriber.
LOL!
Now THAT’S an interesting advertising business model!
Get the inventory on your website first. Then sell the dealer a subscription to receive leads from people shopping for those vehicles.
I’m not saying that scraping a publicly accessible website was necessarily illegal. I don’t really care.
I’m telling you what happened to my dealership and how CarGurus introduced its advertising service to me.
And eventually, I became a paying customer.
💰 $300 A MONTH. $3,600 A YEAR. FOR FIFTEEN CARS!
Here’s how my dealership operated. I didn’t build a business around buying hundreds of vehicles and having them sit on a giant car lot.
I’ve spent more than twenty years brokering vehicles, working with auctions, dealerships, wholesalers, and customers. I also owned a dealership in Lone Tree, Colorado.
Most of the vehicles I sold were purchased for specific clients rather than sitting in inventory waiting for somebody to buy them.
But sometimes we’d take a vehicle in trade that we wanted to keep and sell.
And I also offered a consignment service for clients who wanted to sell their vehicles.
Somebody could bring us a vehicle, tell us approximately what they wanted to NET from its sale, and we’d market it, work with potential buyers, and handle the transaction through the dealership. We commonly structured our compensation around $1,500 above what the owner wanted to NET and we explained this to them upfront with a consignment agreement, so that everyone knew going in what was happening.
We advertised those vehicles on Craigslist, Facebook Marketplace, CarGurus, and other places where potential buyers were looking.
And CarGurus eventually cost me:
$300 A MONTH!
That’s $3,600 a year.
For a package covering around fifteen vehicles.
Now, I’m a salesperson.
I understand advertising costs money. I understand companies need to make a profit.
But here’s the interesting part.
Sometimes I might have fifteen vehicles advertised on CarGurus and receive only TWO customer leads in a month.
TWO!
At $300 a month, that’s $150 in advertising subscription expense per lead for that particular month.
And a LEAD is not a SALE!
LOL!
Now, somebody from CarGurus could certainly argue that my vehicles weren’t priced correctly, or that my inventory wasn’t what consumers wanted.
That’s a fair argument to make.
But from my experience as a paying customer, I wasn’t exactly swimming in business from CarGurus. And the larger dealers had far more inventory, marketing resources, and opportunities to attract buyers.
Still, I kept using the website because it was a recognizable automotive advertising platform. When a customer entrusted me with selling their vehicle, I wanted to demonstrate that we were marketing it in the places people shopped.
But there was another part of CarGurus that drove me absolutely crazy.
🤯 YOUR COMPUTER THINKS MY CUSTOMER’S CAR IS OVERPRICED?
CarGurus built its reputation around helping people identify good deals on used vehicles.
- GREAT DEAL!
- GOOD DEAL!
- FAIR DEAL!
- HIGH PRICED!
- OVERPRICED!
Sounds helpful, doesn’t it? And sure, comparing advertised prices is useful information.
But I used to laugh when a salesperson would talk to me about how CarGurus rated one of my vehicles.
Because I’ve got a question.
HAS YOUR COMPUTER ACTUALLY LOOKED AT MY CUSTOMER’S CAR?
Let’s say I have a beautiful used vehicle in excellent condition.
- It’s been maintained.
- It’s clean.
- It drives beautifully.
And the owner has taken care of it.
Now let’s compare it with another vehicle.
- Same year.
- Same make.
- Same model.
- Similar mileage.
But the other one has been in TWO accidents, has a rough interior, needs repairs, and has a completely different ownership history.
Are they worth the same money?
OF COURSE NOT!
Now, to be fair, CarGurus says its pricing algorithms consider numerous factors, including available vehicle-history and condition information.
That’s fine.
But an algorithm using reported data isn’t the same thing as a qualified person physically examining the vehicle.
And CarGurus itself describes its Instant Market Value as pricing guidance—not a guarantee of value.
That’s an important distinction.
But how many shoppers actually stop to read that fine print?
THEY JUST SEE THE BIG LABEL NEXT TO MY CUSTOMER’S CAR!
HIGH PRICED! OVERPRICED!
And now I’m supposed to explain to my customer why the advertising company I’m PAYING is telling potential buyers that their beautifully maintained vehicle is overpriced!
LOL!
Because I’ve bought vehicles through Manheim and other automotive auctions for years.
And anybody who knows that business understands what I’m talking about.
🔴 HEY, LET’S BUY THAT CAR AT MANHEIM! IT’S ONLY GOT A RED LIGHT!
Imagine somebody calls me and says:
“Hey, I found this car online! It’s a GREAT DEAL!”
Really?
Did you look at the condition report?
What does the vehicle history show?
Are there any reported accidents?
What do the auction lights mean for the transaction?
Is the car being sold under a red light with limited recourse?
Did you arrange a post-sale inspection for the vehicle?
Does it need $1,500 in repairs that weren’t obvious from the photographs?
How about $12,000 for a new diesel engine?
Is there damage underneath the vehicle?
How about other mechanical problems?
Is the catalytic converter short?
And what exactly are the auction’s arbitration and inspection terms?
Because those things matter!
YOU CAN HAVE A MILLION DATA POINTS AND STILL BUY A CAR THAT NEEDS A TRANSMISSION!
LOL!
I’m not arguing that technology is useless. Technology has made the car business dramatically better in many ways. But what concerns me is when consumers confuse an algorithmic price comparison with a professional evaluation of an actual used vehicle.
Those are two very different things.
And now artificial intelligence is getting added to the shopping experience.
Which brings me to the latest news.
⚖️ NEW YORK CITY IS SUING CARGURUS!
On October 15, 2026, New York City’s Department of Consumer and Worker Protection announced a lawsuit against CarGurus.
The city alleges that the platform displayed misleading vehicle prices, failed to adequately account for mandatory fees and purchasing conditions, and used its Deal Ratings and an AI chatbot in ways that could mislead consumers.
Those are the CITY’S ALLEGATIONS. Not mine.
CarGurus disputes them and says it has spent twenty years promoting automotive price transparency.
The case hasn’t established that all those allegations are true.
But here’s an example the city presented.
According to the city’s announcement, a 2018 Honda was displayed on CarGurus as a Great Deal, supposedly $2,212 BELOW MARKET VALUE.
Sounds fantastic!
But New York City says additional mandatory fees meant the vehicle was actually $1,473 ABOVE MARKET VALUE.
WAIT A MINUTE!
That’s a $3,685 swing between the supposed bargain and the city’s calculation of the actual deal!
LOL!
And when I read that, it reminded me of something I experienced countless times in the car business.
💸 WAIT! WHAT ABOUT THE $999 DEALER HANDLING FEE?
I can’t tell you how many times somebody contacted me about a vehicle they found online in another state.
“Hey, I found one in Florida for this amount!”
Okay.
Let’s take a look.
But wait a minute.
What’s this $799 dealer handling fee?
Or $999?
Is that included in the advertised price? What other mandatory fees are required to purchase the car?
Is the advertised price available to someone paying cash?
Or does the customer have to finance through a particular lender?
Or qualify for an incentive they may not actually receive?
THOSE ARE REAL QUESTIONS!
And there’s a difference between government charges, such as sales tax and registration, and additional dealer-imposed charges that affect the actual price being advertised.
A dealership can have legitimate costs and disclose its fees.
That’s not my objection.
MY OBJECTION IS WHEN THE ADVERTISED BARGAIN ISN’T THE BARGAIN THE CUSTOMER CAN ACTUALLY BUY!
Because if a computer tells somebody they’re getting a Great Deal based on an advertised price that doesn’t reflect mandatory dealer charges, how useful is that rating?
That’s precisely the sort of issue New York City is raising.
And the timing gets even more interesting.
🧐 CARGURUS UPDATED ITS PRICING RULES TWO DAYS BEFORE THE LAWSUIT!
CarGurus published updated dealer-pricing guidelines dated October 13, 2026.
Those guidelines say advertised prices must include mandatory dealer-imposed fees, apart from specified government charges.
The company had also been introducing fee-transparency changes earlier in the summer.
Then, on October 15, New York City announced its lawsuit.
CarGurus responded by defending its record and rejecting the city’s claims.
Now, I’m not going to pretend I know how the court will decide this case.
That’s what the legal process is for. And I certainly don’t assume that every dealer on CarGurus is doing something wrong.
But I find it fascinating that a company whose entire business revolves around helping customers identify good automotive deals is now defending itself against allegations involving the accuracy of those deal representations.
And I’ve got another question.
WHAT HAPPENS WHEN A COMPANY SELLING ADVERTISING ALSO BECOMES THE COMPANY THAT TELLS CUSTOMERS WHETHER THE ADVERTISER’S PRODUCT IS A GOOD DEAL?
Think about that from a sales and marketing standpoint.
The platform sells advertising services to dealers.
It compares the vehicles dealers advertise.
It influences how those vehicles are presented to shoppers.
And its technology gives consumers ratings that can affect which cars they consider.
That’s a very interesting position to occupy in the automotive marketplace.
Especially when the consumer assumes that a Great Deal label tells them everything they need to know.
IT DOESN’T!
🏎️ AND YES, I STILL HELP PEOPLE SELL CARS!
Here’s another interesting part of this story. I still help people buy and sell vehicles through my dealership relationship in Colorado, where I’m licensed.
Depending on the vehicle and the arrangement, we can advertise through established automotive platforms, including CarGurus and Facebook Marketplace.
Because I’m not suggesting that people should stop using popular vehicle-advertising websites. I’m suggesting they should understand what they’re paying for, what the advertising actually does, and what information consumers are seeing.
And now I’ve got another place to advertise vehicles. Right here.
CARSFREAK.COM!
Which leads me to something that might make you laugh.
🅿️ $3,600 A YEAR OR SEVEN BUCKS? LOL!
I created Cars Freak as part of my Freak Sites advertising business.
The product you’re reading right now is called a PARKING SPOT.
For SEVEN DOLLARS, you can create a full-page, editable advertising or publishing space on CarsFreak.com.
That seven bucks is a one-time price for a standard Parking Spot, not a monthly subscription.
You can advertise a vehicle, explain its condition, include photographs, add links and supported embedded videos, and tell potential customers about what you’re offering. You get a shareable URL and a public view counter.
And you can update the Parking Spot.
Now, am I suggesting a $7 Cars Freak Parking Spot currently has the same audience or lead-generation capability as CarGurus?
OF COURSE NOT!
I’m not promising you’ll sell a car, get a certain number of views, or appear at the top of Google.
I’m selling an actual advertising product.
And if you’re going to advertise a vehicle on Cars Freak, the information needs to be truthful, relevant to something around the world of cars and comply with the site’s rules.
That includes accurately describing the vehicle and not misleading buyers about what it costs. Parking Spots that violate those requirements can be removed.
Because there’s nothing stopping a seller from TRYING to misrepresent a vehicle on any advertising platform. The important question is what the advertiser represents, what the buyer verifies, and what the platform does when there’s a problem.
And I don’t need a computer to tell you that two used vehicles with similar specifications can be worth very different amounts of money.
A USED CAR ISN’T JUST A YEAR, MAKE, MODEL, AND MILEAGE READING!
There’s a real vehicle behind that advertisement.
And that vehicle has a real condition.
AND YOU KNOW WHAT STARTED THIS ENTIRE STORY?
I received an email from someone asking me if I wanted to possibly share my perspective about the CarGurus lawsuit as The Cool Car Guy.
I decided I would go ahead and do it here on CarsFreak.com since it fit this website perfectly as a niche’ website around everything the world of cars.
I put it into the category here of Creators and Storytellers because this is a pretty wild story. It’s almost as though my complaints about CarGurus when I was paying for the service have come full circle. It will be interesting to watch how it all plays out and if other dealers have had a similar experience or another perspective.
And here’s something you might have missed, some of my Parking Spots have had hundreds or even thousands of views by writing content like this. A business card today costs around 2.5 cents on the low end and then you have to go and find someone to give it to.
People are still buying email marketing lists and they are costing more than a penny per email for a targeted audience. Take $7 and most of my Parking Spots like this one you’re reading cost a few pennies per view. It’s like handing a business card out to hundres or thousands of people for next to nothing.
And I just created a Parking Spot to promote myself and my perspective about a subject that I’m familiar with as The Cool Car Guy about an advertising company with a Wall Street Market valuation of $2.5 to $2.7 billion that is now leveraging my own brand for seven bucks. That’s the part that most people miss.
And if you are searching for a vehicle or you know someone looking for a vehicle you can message me right here above, drop me an email or click on my website link to Cool Car Guy above my profile right here in this Parking Spot.
I take on new clients on a case by case basis, but if it makes sense I’m happy to help you find the right vehicle at the right price.
🚘 WANT TO ADVERTISE A CAR OR TELL YOUR OWN AUTOMOTIVE STORY?
Grab a Spot right here on CarsFreak.com.
Join for free. Create a $7 Parking Spot.
Advertise a vehicle, share an automotive experience, publish a review, promote a vehicle-related business, or create content that fits Cars Freak.
And if you want to help market the advertising business itself, explore the free affiliate program.
Affiliates can earn commissions on Parking Spots and other advertising products offered here. No purchase is required to apply, and of course income isn’t guaranteed.
I’ve been selling cars for decades. I’ve paid for automotive advertising for decades.
And now I have my own advertising space for myself. And if you want to participate too I made it ridiculously affordable for everyone. I can help somebody find a $50,000 or $100,000 vehicle, and here I am giving you a sales pitch for a SEVEN-DOLLAR advertising product!
THAT’S PRETTY DARN FUNNY! 😂
SEVEN DOLLARS.
- No giant monthly advertising subscription required for a standard Parking Spot.
- No annual contracts.
- No parking meter.
- No algorithmic appraisal pretending to replace a real vehicle inspection.
Just an editable place to advertise and tell your story, subject to the site’s rules.
And to think, this entire article started because somebody contacted me about sharing my automotive industry experience!
Now I’ve published it myself, right here on CarsFreak.com.
I JUST USED A SEVEN-DOLLAR PARKING SPOT TO PROMOTE MY AUTOMOTIVE BUSINESS WHILE WRITING ABOUT A MULTIBILLION-DOLLAR AUTOMOTIVE ADVERTISING COMPANY!
LOL! 😂
As I like to say…
A SOCIAL POST GETS A TIMESTAMP.
A PARKING SPOT GETS AN ADDRESS.
WELCOME TO CARS FREAK!
SEVEN BUCKS.
YOUR STORY.
YOUR PARKING SPOT.
SOURCES AND ADDITIONAL READING
New York City Department of Consumer and Worker Protection — October 15, 2026 lawsuit announcement:
CarGurus — October 15, 2026 response to the city’s allegations:
https://www.cargurus.com/about/press/price-transparency-statement
CarGurus — October 13, 2026 dealer-pricing guidelines: