CarGurus Launches AI-Powered Car Shopping Experience

Rhea-AI Summary

CarGurus (CARG) has launched an AI-powered search experience on its platform, enhancing car shopping with conversational search capabilities. The new feature combines expert auto intelligence with real-time vehicle data, allowing buyers to use natural language to find, research, and compare vehicles. Early pilot results show increased user engagement, with AI search users spending more time on the platform. The system responds to conversational prompts about specific needs like family requirements, driver comfort, and safety features. This development builds on CarGurus' existing AI implementations, which include their vehicle recommendation engine, Instant Market Value tool, and on-site merchandising. The platform also provides dealers with AI-driven insights for pricing, merchandising, and inventory decisions.

Positive

• Early pilot shows increased user engagement with longer site visits
• Integration with existing AI tools like vehicle recommendation engine and Instant Market Value tool
• Enhanced personalization and efficiency in car shopping experience
• Leverages CarGurus' position as the most visited digital auto platform

Negative

• None.

Insights

Digital Technology Analyst

CarGurus' new AI search could drive higher engagement and conversion rates, potentially boosting revenue and competitive positioning in the digital auto marketplace.

CarGurus' new AI-powered search functionality represents a significant technological advancement for the company's digital platform. This implementation moves beyond basic filtering to create a conversational interface that understands natural language queries and connects users with relevant vehicle options based on lifestyle needs rather than just technical specifications.

The technology appears to be showing early success, with pilot users demonstrating increased time-on-site compared to typical traffic. This engagement metric is particularly valuable for CarGurus' business model, as longer sessions often correlate with higher conversion rates and better monetization opportunities across their dealer network.

What makes this development particularly noteworthy is how it addresses a fundamental pain point in automotive e-commerce - the complexity of vehicle search. By allowing natural language queries like "I have three kids under 3. Help me find a car with high safety and reliability ratings," CarGurus is removing technical barriers that often frustrate non-expert car shoppers.

This release aligns with broader industry trends toward AI-enhanced e-commerce while building upon CarGurus' existing AI infrastructure, which already powers their vehicle recommendation engine, Instant Market Value tool, and on-site merchandising. The persistence feature allowing users to return to their unique URL to continue conversations could significantly improve lead nurturing and reduce abandonment rates.

For investors, this represents CarGurus' commitment to maintaining its position as the "No. 1 visited digital auto platform" through technological differentiation in an increasingly competitive digital auto marketplace.

Intelligent search integration unlocks a more personalized and intuitive experience for drivers to discover their best deal with greater confidence

BOSTON, June 09, 2025 (GLOBE NEWSWIRE) -- CarGurus (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles¹, today announced the release of its AI-powered search experience. This innovation delivers a more personalized and intuitive car shopping experience, embedded directly into the CarGurus website. Buyers can now harness conversational search, paired with expert auto intelligence and real-time vehicle data, to research, compare, and shop the largest selection of new and used cars in the U.S.²

“For nearly two decades, CarGurus has supported drivers through one of the biggest purchase decisions of their lives. This update aims to advance that mission even further, enabling them to shop in ways that weren’t possible before by having an open dialogue right on our site,” said Ben Kasdon, Vice President, Product at CarGurus. “No matter what phase of the journey they’re in, shoppers can now search on their own terms to uncover their best match more efficiently and with greater confidence. Early pilot users have shown strong engagement, with AI search users spending more time on site compared to typical site traffic.”

The AI-powered shopping experience allows consumers to use conversational language to find the best options for their needs, compare models, and refine listing results based on their location and preferences. The experience is designed to help buyers at any stage of their journey, from early research to final selection. As a shopper’s search journey evolves, they can also revisit their unique URL to continue the conversation.

Shoppers can discover their ideal car using intuitive prompts, such as the following examples:

• “I have three kids under 3. Help me find a car with high safety and reliability ratings.”
• “Show me the best cars with plenty of space for tall drivers.”
• “Show me reliable SUVs with blind spot monitoring under $30,000.”
• “Compare the best all-wheel drive vehicles for any terrain.”

This release is the latest chapter in CarGurus’ long history of leveraging AI and machine learning to bring more trust, transparency, and efficiency to car buying and selling. AI and machine learning underpin the platform’s vehicle recommendation engine, its Instant Market Value tool, and on-site merchandising. For dealers, CarGurus provides actionable insights and predictive analytics that enable more informed decision-making across workflows, from pricing and merchandising to inventory acquisition.

To see the AI shopping experience in action, visit: www.cargurus.com/discover or watch a demo here: https://cargur.us/1dB1cP.

About CarGurus, Inc.

CarGurus (Nasdaq: CARG) is a multinational, online automotive platform for buying and selling vehicles that is building upon its industry-leading listings marketplace with both digital retail solutions and the CarOffer online wholesale platform. The CarGurus platform gives consumers the confidence to purchase and/or sell a vehicle either online or in-person, and it gives dealerships the power to accurately price, effectively market, instantly acquire, and quickly sell vehicles, all with a nationwide reach. The company uses proprietary technology, search algorithms, and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience. CarGurus is the most visited automotive shopping site in the U.S. ¹

CarGurus also operates online marketplaces under the CarGurus brand in Canada and the U.K. In the U.S. and the U.K., CarGurus also operates the Autolist and PistonHeads online marketplaces, respectively, as independent brands.

To learn more about CarGurus, visit www.cargurus.com, and for more information about CarOffer, visit www.caroffer.com.

CarGurus^® is a registered trademark of CarGurus, Inc., and CarOffer® is a registered trademark of CarOffer, LLC. All other product names, trademarks and registered trademarks are the property of their respective owners.

¹ Similarweb: Traffic Report [Cars.com, Autotrader, TrueCar, CARFAX Listings (defined as CARFAX Total visits minus Vehicle History Reports traffic)], Q1 2025, U.S.
²Compared to Autotrader.com, Cars.com, TrueCar.com (YipitData as of December 31, 2024), and CarFax (Joreca as of December 31, 2024)

Media Contact:
Maggie Meluzio
Director, Public Relations & External Communications
pr@cargurus.com

Investor Contact:
Kirndeep Singh
Vice President, Head of Investor Relations
investors@cargurus.com

A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/de81b41e-d38e-4f9b-8aa7-09e4fe2655d7

FAQ

What new AI features has CarGurus (CARG) launched in 2025?

CarGurus has launched an AI-powered search experience that enables conversational search, allowing users to find vehicles using natural language prompts, compare models, and refine listings based on their specific needs and preferences.

How does CarGurus' new AI search feature work?

The AI search feature allows users to input conversational prompts about their needs (such as family size, safety requirements, or specific features) and receives personalized vehicle recommendations based on real-time data and expert auto intelligence.

What impact has CarGurus' AI search feature shown in early testing?

Early pilot results show that users of the AI search feature spend more time on the site compared to typical site traffic, indicating stronger user engagement.

What other AI technologies does CarGurus (CARG) currently use?

CarGurus uses AI and machine learning in its vehicle recommendation engine, Instant Market Value tool, on-site merchandising, and provides dealers with predictive analytics for pricing and inventory decisions.

How can dealers benefit from CarGurus' AI technology?

Dealers receive actionable insights and predictive analytics to make informed decisions about pricing, merchandising, and inventory acquisition through CarGurus' AI-powered tools.