Cargurus is looking to double its total addressable market by adding artificial intelligence-powered products beyond existing car shopping sites.
The expanded scope of the company’s AI-powered solutions for auto dealers will expand its addressable market to include not only the $3.5 billion that U.S. dealers spend on marketplaces, but also the $4 billion they spend on software and data products, CarGurus’ CEO said. Jason Trevisan This was stated during the company’s press conference on Thursday (November 6th). 3rd quarter Financial report.
“We believe that the growth of our product suite positions CarGurus beyond just the marketplace as an intelligence-driven partner that helps dealers optimize every step of their workflow,” said Trevisan.
CarGuru’s newest product for dealers is PriceVantage, used vehicle pricing solution that teeth The company said it was fueled by real-time consumer demand from its auto shopping market. presentation It was released Thursday in conjunction with the call.
price vantage is machine learning based Evolving CarGurus’ previous pricing tools to help dealers improve their Pricing, number of turns and It’s highly profitable, Trevisan said. Utilization of AI and enterprises dataset This tool analyzes shopper behavior and market supply, turn time Forecasts, potential leads, market day supply and Comparable list visibility. We then provide the dealer with a price recommendation based on the data.
“Early beta results demonstrate the power of the software,” Trevisan said. “The most engaged dealers using PriceVantage saw a 5x improvement in turn times compared to their top five competitors on CarGurus. Accepting price reduction recommendations increased their daily VDP by a median of 68%.” [vehicle detail page] Views increased and 77% of recommendations matched or exceeded sales velocity predictions. ”
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CarGurus continued to add AI-powered features for car buyers in the third quarter.
One of these, CG Discover, is a generative AI-powered shopping assistant that uses a conversational interface to determine a shopper’s needs and recommend vehicles that best meet those needs.
“Surveys show that 80% of consumers are willing to use AI in their car purchasing process, highlighting the magnitude of this opportunity,” Trevisan said. “Traffic to CG Discover increased nearly 3x quarter-over-quarter, and leads increased 3.3x.”
Dealership Mode, another new AI-powered tool for consumers, expands on CarGurus. experience Trevisan said he went to the dealership. This tool is designed to reduce the anxiety shoppers feel at car dealerships. with them Real-time support in the form of vehicle pricing and valuations and finance calculators. and Ability to compare cars on site.
“Dealer Mode gives consumers clarity and confidence at the most stressful point in the process,” Trevisan said. “For dealers, Dealer Mode enhances attribution and ROI.”
