{"id":379,"date":"2022-11-14T19:35:22","date_gmt":"2022-11-14T19:35:22","guid":{"rendered":"https:\/\/www.autobuyersmarket.com\/news\/?p=379"},"modified":"2025-05-05T10:24:47","modified_gmt":"2025-05-05T10:24:47","slug":"cargurus-struggling-as-demand-prices-for-used-cars-drops-drastically","status":"publish","type":"post","link":"https:\/\/www.autobuyersmarket.com\/news\/2022\/11\/14\/cargurus-struggling-as-demand-prices-for-used-cars-drops-drastically\/","title":{"rendered":"CarGurus Struggling as Demand and Prices for Used Cars Drop Drastically"},"content":{"rendered":"\n
\"CarGurus
With the news that CarGurus failed to meet previously-projected results, the automotive platform\u2019s stock took an over 20 percent dive. File photo: Casimiro PT, Shutter Stock, licensed.<\/figcaption><\/figure>\n\n\n\n

CAMBRIDGE, MA – CarGurus, an automotive research and shopping website that assists users in comparing local listings for used and new cars and contacting sellers, is experiencing difficulties as of late<\/a> amid current falling demand and prices in the used car marketplace, according to the company during their Tuesday, November 8 quarterly earnings call with investors.<\/p>\n\n\n\n

With the news that CarGurus failed to meet their previously-projected results, the automotive platform\u2019s stock took an over 20 percent dive as of Tuesday\u2019s closing bell.<\/p>\n\n\n\n

CarGurus CEO Jason Trevisan attempted to spin the issues as positively as he could during the earnings call, telling investors that while the company has indeed encountered problems due to fluctuations in the market, other aspects of their business \u2013 including their attempts to transform into a platform for buying and selling vehicles \u2013 have nonetheless improved significantly.<\/p>\n\n\n\n

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Our digital wholesale business was impacted by unpredicted intra-quarter volatility, which worsened as the third quarter progressed, where we saw a decline in used car retail demand and wholesale volumes as well as relatively rapid wholesale unit price declines,\u201d Trevisan said. \u201cWhile we are still early in the journey of fully integrating digital retail and digital wholesale with our core listing business, I\u2019m proud of the progress we have made this year as we put in place building blocks for long-term success.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

Part of CarGurus\u2019 rationale for evolving into an online buying and selling marketplace is based on research that an increased number of consumers \u2013 recently rising from approximately 60 percent to 70 percent \u2013 are looking to purchase their next car from the comfort of their homes, following an increased overall reliance on e-commerce born out of the COVID-19 pandemic.<\/p>\n\n\n\n

\"Screenshot
Screenshot image taken: November 14, 2022 – 1:35 PM Eastern. https:\/\/www.google.com\/finance\/quote\/CARG:NASDAQ<\/a><\/figcaption><\/figure>\n\n\n\n

CarGurus <\/a>is hoping to carter to this large demographic with their increased emphasis on online sales and purchases, Trevisan said.<\/p>\n\n\n\n

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The key to success on the customer experience front is the choice for consumers to buy their next car precisely the way they want, whether fully online or with an in-person, in-dealer interaction,\u201d he said.<\/em><\/p>\n<\/blockquote>\n\n\n\n

Trevisan also noted that CarGurus revenue from listing used and new cars were above their projections, as were the total number of dealers paying for their services, helping to offset lower overall buyer demand somewhat.<\/p>\n","protected":false},"excerpt":{"rendered":"

CAMBRIDGE, MA – CarGurus, an automotive research and shopping website that assists users in comparing local listings for used and new cars and contacting sellers, is experiencing difficulties as of late amid current falling demand and prices in the used car marketplace, according to the company during their Tuesday, November 8 quarterly earnings call with investors. With […]<\/p>\n","protected":false},"author":4,"featured_media":380,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-379","post","type-post","status-publish","format-standard","has-post-thumbnail","category-market-updates","entry"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\n\t\t\n