CarGurus Study Identifies Most Affordable and Most Expensive Cities for Used Car Shopping

Wed Feb 13, 2013 2:45pm EST

* Reuters is not responsible for the content in this press release.

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130213:nBw136235a

Data Shows Up to 16% Price Difference Between Markets
CAMBRIDGE, Mass.--(Business Wire)--
CarGurus (www.CarGurus.com), the nation`s fastest growing car shopping website,
today released a study identifying the most affordable and most expensive U.S.
cities in which to buy a used car. Topping the list of deal-friendly
destinations is Miami, FL, followed by Cleveland, OH, Rochester, NY and Detroit,
MI. Jackson, MS, was found to be the most expensive used car city, followed by
Seattle, WA, Montgomery, AL and Little Rock, AR. 

CarGurus analysts say price differences between cities can be substantial.
Relative to nationwide prices, used cars in the most affordable city, Miami, are
on average 6.6% less expensive, while used cars in Jackson, MS, are 9% more
expensive, a difference of 15.6 percentage points. The study highlights the
extent to which local market conditions inform prices on used cars. The data
also suggests that motivated shoppers may want to search for savings beyond
their home turf -- or try to sell their car in a higher priced market than their
own. 

CarGurus` free listings search tool applies mathematical models to analyze and
compare millions of car listings and help users find great deals in their local
market. The company`s Instant Market Value (IMV) algorithm was recently updated
to factor used car values in 139 different metro and rural areas across the
country, giving users the most accurate view on prices in a specific market. For
this study, CarGurus aggregated local IMV data on millions of used cars listed
for sale, and ranked the largest metro areas in the contiguous United States
according to how prices in that market compare to the nationwide average. 

"Prices can vary substantially from city to city, and depending on where you
live, it may pay to look beyond your ZIP code to find greater savings," said
Langley Steinert, founder and CEO of CarGurus. "At a minimum, understanding how
an individual car listing compares to similar listings in the same market will
help any car shopper make more informed, confident purchase decisions." 

CarGurus` Top 10 Most Affordable Cities to Buy a Used Car

1. Miami, FL
2. Cleveland, OH
3. Rochester, NY
4. Detroit, MI
5. Stamford, CT
6. Akron, OH
7. Buffalo, NY
8. Toledo, OH
9. New York, NY
10. Minneapolis, MN 

CarGurus' Top 10 Most Expensive Cities to Buy a Used Car

1. Jackson, MS
2. Seattle, WA
3. Montgomery, AL
4. Little Rock, AR
5. Knoxville, TN
6. Mobile, AL
7. Fresno, CA
8. Memphis, TN
9. Wichita, KS
10. Lincoln, NE 

Methodology

For this analysis, CarGurus compared Instant Market Value (IMV) data on more
than 3 million used cars listed for sale in the largest metro areas in the
contiguous U.S. to determine how prices stack up in different parts of the
country. CarGurus` Instant Market Value (IMV) calculation is determined by a
proprietary algorithm that analyzes millions of car listings daily, factoring
make, model, year, mileage, trim, options, accident history and the specific
location of millions of listings. To rank cities, analysts compared how average
prices in each metro area compare to the nationwide average. Metro areas are
defined as the area 50 miles around the city center. Used cars from model years
prior to 2000 were excluded from this study. For the complete ranked list of
cities, visit www.cargurus.com/press/assets/20130213-data.pdf. 

CarGurus` free listings search tool helps users compare available car listings
from their desktop or mobile device and quickly identify the best deals in their
local area. Millions of car listings are analyzed daily to calculate the Instant
Market Value (IMV) and rank whether a deal is great, good, fair or overpriced
compared to similar local listings. Specific details factor into the analysis,
including make, model, trim, year, mileage, options, location and vehicle
history. 

About CarGurus
CarGurus (www.cargurus.com) is a leading online automotive destination focused
on bringing transparency to the car research and shopping experience. Located in
Cambridge, MA, CarGurus was founded in 2006 by Langley Steinert, co-founder and
former Chairman of TripAdvisor. More than 5 million users visit CarGurus each
month to research and shop for new and used cars, making CarGurus one of the top
10 most trafficked and the #1 fastest growing automotive shopping website in the
U.S.

Ebben Zall Group
Michelle Juralewicz, 781-449-3244
michelle@ebbenzallgroup.com

Copyright Business Wire 2013

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.