CarGurus introduces AI-powered car shopping experience

Published 09/06/2025, 14:06
CarGurus introduces AI-powered car shopping experience

BOSTON - CarGurus (NASDAQ:CARG), a leading digital automotive marketplace with an impressive 85.6% gross profit margin, has launched an AI-powered search feature aimed at enhancing the car shopping process for its users. According to InvestingPro data, the company maintains a strong financial health score and is expected to see net income growth this year. This new tool, embedded directly into the CarGurus website, leverages conversational search to offer a personalized and intuitive experience for buyers seeking new and used vehicles.

The company, which has been facilitating car purchases for nearly two decades, announced today that the latest update is designed to help shoppers at any stage of their journey, from initial research to making a final decision. According to Ben Kasdon, Vice President of Product at CarGurus, the AI search feature allows users to engage in an open dialogue on the site, leading to a more efficient and confident car buying process.

Early results from pilot users indicate increased engagement, with those utilizing the AI search spending more time on the site than average visitors. Consumers can now use natural language to find vehicles that match their preferences, compare models, and refine listings based on location and personal criteria. The AI tool also retains the conversation, enabling users to return to their unique URL to pick up where they left off.

The innovation is part of CarGurus’ ongoing commitment to utilizing AI and machine learning to enhance trust, transparency, and efficiency in the automotive market. These technologies also support the platform’s vehicle recommendation engine, Instant Market Value tool, and on-site merchandising. Additionally, CarGurus provides dealers with actionable insights and predictive analytics to inform decision-making across various workflows. With a market capitalization of $3.16 billion and strong liquidity metrics, the company appears well-positioned to continue its technological investments. For detailed financial analysis and additional insights, check out the comprehensive Pro Research Report available on InvestingPro.

CarGurus has established itself as the most visited automotive shopping site in the U.S. and continues to expand its digital retail solutions and online wholesale platform, CarOffer. With 10 analysts recently revising their earnings estimates upward and a consensus recommendation trending positive, the company’s growth trajectory appears promising. The company’s proprietary technology, search algorithms, and data analytics aim to improve the automotive shopping experience, providing consumers and dealerships with competitive pricing and nationwide reach. InvestingPro subscribers have access to over a dozen additional key insights about CarGurus’ financial health and market position.

This press release statement reveals CarGurus’ latest efforts to innovate within the digital automotive space, enhancing the car buying experience for customers across the United States.

In other recent news, CarGurus reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.46, compared to the forecast of $0.44. The company’s revenue reached $225 million, slightly below the anticipated $226.73 million. Marketplace revenue, a significant contributor to the company’s performance, grew by 13%, reaching $212 million. The company’s non-GAAP gross margin improved by 720 basis points to 89%, and international revenue saw a substantial 20% year-over-year growth. Analysts from firms such as D.A. Davidson and B. Riley Securities have shown interest in CarGurus’ strategic direction, including its plans for the CarOffer platform. CarGurus is also projecting total revenue between $222 million and $242 million for the second quarter, anticipating low double-digit growth by year-end. The company continues to focus on marketing, international expansion, and product innovation, with a strategic reassessment of the CarOffer wholesale business model underway.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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