THE 10-SECOND VERSION (AI SUMMARY)
Reviewed by our team
What happened: New York City is suing CarGurus, alleging its “Great Deal” ratings hid dealer fees. CarGurus says it will fight.
Why it matters: The rules are pushing every listing toward one honest number, and that number has to carry your whole story.
What to do: Show the full price clearly, then give shoppers measurable reasons your store is worth it.
When we talked with More Than Cars’ creative team about the FTC’s pricing push, one challenge kept coming up: how do you show a customer the real price and the real value in the same small space? It’s hard. But the dealer who figures out how to explain both in a single listing is going to win.
That challenge just got more urgent. As we discussed on today’s episode of the Automotive State of the Union, New York City is taking CarGurus to court over the way its deal ratings present dealer prices.
A “Great Deal” badge only works if the customer agrees once they see the final number.
What New York City’s Lawsuit Against CarGurus Alleges
The city’s Department of Consumer and Worker Protection filed the case in New York State Supreme Court, alleging more than 2,000 violations of local consumer protection law, according to Auto Remarketing.
Numbers to know:
The example: A 2018 Honda was rated a “Great Deal” at $2,212 below market value. After mandatory fees, the city says, it actually cost $1,473 above market.
The fees: In an analysis of more than 40,000 online listings, the city found mandatory fees added about $1,100 to advertised prices, on average.
The track record: The agency has investigated more than 106 used-car dealers over five years, securing $1.79 million in restitution.
CarGurus says it’s already moved. Starting July 14, listings without disclosed dealer fees lost their deal ratings and dropped in search results, and by July 29, more than 90% of subscribing dealers’ used inventory included fees.
“We reject the DCWP’s claims and will defend the company vigorously.” Jason Trevisan, CarGurus CEO
How Dealers Can Compete on Value When Price Is Transparent
We think CarGurus is right to defend itself, and deal ratings have long helped shoppers compare prices across a market. But there’s another side to this. Any dealer still stacking thousands of dollars in add-ons onto a public listing is making it harder for customers to choose them, and we’d argue deal ratings should factor those fees in.
As prices become easier to compare, price alone stops being the story. What sets a store apart is everything the number can’t show on its own: the warranty, the service experience, the team, the reputation.
When every price looks the same, the dealer who explains its value clearly wins.
Hear the full conversation on today’s episode of the Automotive State of the Union.
