Buying a Used Car? Wait for the Price to Drop
Majority of Used Cars Have Price Reductions After Only 30 Days on Market
CAMBRIDGE, Mass., February 22, 2011 – A study released today by leading online automotive community CarGurus.com shows that the majority (53%) of used cars listed for more than 30 days have at least one price drop. Newer used cars (model years 2007 – 2009) show even more aggressive price reductions, with 63% of cars listed for more than 30 days having at least one price drop. Since these newer models stay listed on average 45 days, the data suggests that consumers looking for deals should wait for the initial price drop before buying a used car.
In conjunction with the study, the company also introduced its new price tracking feature. Users of CarGurus’ DealFinder car shopping service now get access to the price history and days on market data for more than 2 million car listings. The first of its kind in the online car shopping market, price tracking enables users to keep tabs on the price drops for specific listings either online within DealFinder or through opt-in email alerts.
“Dealers use price reductions to move aging inventory, and those cars represent great deals for consumers,” said Langley Steinert, founder and CEO of CarGurus. “Adding price tracking to DealFinder builds on our company’s focus of making online car shopping more transparent for consumers. With DealFinder price analysis, days on market and now price tracking, consumers have a more complete picture of a car’s real market value and can negotiate with sellers with greater confidence.”
The CarGurus study considered more than 2 million active car listings and analyzed the percentage of listings with a price change during the listing period. On average cars listed for 30 days or more showed 1.5 price drops, with 53% of those cars showing at least one price drop. Listings more than 45 days old had at least one price drop 60% of the time. Newer cars (2007-2009) showed the greatest likelihood of price drops within the first month of availability, with 63% of those listings showing price drops.
CarGurus’ DealFinder is a free online car shopping service that helps consumers find the best deals on new and used cars. Indexing over 2 million listings a day, CarGurus’ DealFinder analyzes each car listing and compares the listed price against historic pricing models to gauge whether the listing is a good deal or bad deal. The addition of price history and days on market data adds to the growing arsenal of information DealFinder provides to help consumers find the best car deals.
About CarGurus LLC
Located in Harvard Square, Cambridge, MA, CarGurus LLC is a leading online automotive community founded by Langley Steinert, formerly Chairman/co-founder of TripAdvisor LLC, the largest online travel site in the world. For more information about CarGurus, visit us at www.cargurus.com.
Contact: Kerry Metzdorf