If you're shopping for a car on CarGurus, you may notice prices look higher on some listings than they used to. It's not inflation. Dealerships on CarGurus are now showing dealer fees upfront, as part of the listed price, instead of tacking them on later in the buying process.
Here's what's changing, and why it's a win for anyone trying to figure out what a car actually costs.
Car prices are going up, but here's why it's good for shoppers
- The pricing problem CarGurus is helping to address
- What's actually changing on CarGurus
- Why is a higher price actually better?
- A note on dealers
- What you should do as a shopper
- FAQ
The pricing problem CarGurus is helping to address
Ask most car shoppers what they hate most about the process, and "hidden fees" is near the top of the list. You find a car listed at $24,995. You get to the dealership, sit down to sign paperwork, and discover a $599 "dealer processing fee" or a $799 "documentation fee" tacked on. Nothing illegal happened. It just wasn't part of the number you saw online.
Regulators have taken notice. The Federal Trade Commission (FTC) has warned dealers nationwide to include all mandatory fees in advertised prices, and some states including Massachusetts now require dealers to advertise a price that includes those mandatory fees.
The industry is moving in the direction of fee transparency. CarGurus is requiring fee disclosure to continue to provide the most trustworthy shipping experience, and one that levels the playing field for dealers and shoppers.
What's actually changing on CarGurus
CarGurus is asking every dealer to disclose their mandatory fees, so the price you see reflects the total, not just the base price. In practice, that means:
- Listing cards on search results pages now carry a label that reads "Price includes fees" so you can tell at a glance whether fees are already built into the price you're looking at.
- Listings from dealers who haven't disclosed their fees yet will say "Fees not disclosed," so you're not caught off guard.
- A new Transparent Pricing filter lets you view only listings from dealers who've disclosed their fees, if you'd rather not deal with any guesswork at all.
- The green "Price includes fees" label opens a line-by-line breakdown of base price plus any dealer fees.
- Dealerships that don't disclose their required fees will receive a “No Rating” badge on their used-car listings, and those listings will move lower in search results
One thing that isn't changing: taxes, title, and registration. Those vary by county and still aren't part of the advertised price, on CarGurus or anywhere else. What's new is that the fees a dealer controls and charges every customer are no longer a surprise saved for the finance office.
Why is a "higher" price actually better?
It's a fair question: if the price looks bigger, how is that good for me? Because it's a more accurate number, not a lowball price designed to get you in the door. A $24,995 car with a hidden $599 fee and a $25,594 car with the fee already included cost you the same amount. Only one of those listings tells you that before you've driven anywhere.
Showing the fee-inclusive price also makes it easier to compare dealers accurately. A dealer advertising a slightly higher price who discloses all their fees might actually be offering the better deal than a dealer advertising a lower price who doesn't. Without transparency, you can't tell. With it, you can. Because of this, dealerships that don't disclose their required fees will receive a “No Rating” badge on their used-car listings, and those listings will move lower in search results.
A note on dealers
Not all dealers hide fees to be sneaky. Documentation and processing fees are a normal part of how dealerships operate, and plenty of dealers have been upfront about them for years. What's changing is the expectation across the industry: fees should be visible before you ever walk in, not disclosed line by line at the end. CarGurus deal ratings will be modified based on fee inclusion as of July 14, 2026, but even prior to that date, many dealers had already added their fees to CarGurus voluntarily.
What you should do as a shopper
Nothing complicated. Look for the "Price includes fees" label when you browse. If a listing says fees aren't disclosed yet, ask the dealer directly what their processing or documentation fee is before you go in. It takes one phone call, and now you'll know to ask.
If you’re interested in seeing only listings that include required fees, simply toggle on that filter in your search results.
FAQ
Why do car prices on CarGurus look higher than before?
Marked listings now include mandatory dealer fees in the advertised price, rather than adding them at the dealership. The total cost to you isn't higher. You're just seeing more of it upfront.
What are dealer fees, exactly?
They're mandatory charges a dealer applies to every purchase, commonly called documentation fees or processing fees. They're separate from taxes, title, and registration, which are set by your state or county and still aren't included in the advertised price.
Are dealers required to disclose their fees?
The Federal Trade Commission has warned dealers to disclose mandatory fees, and it began enforcing the rule more assertively in 2026. Beyond that, further requirements depend on the state. Massachusetts and a growing number of others now require dealers to include mandatory fees in advertised prices. CarGurus asks all dealers on its marketplace to disclose their fees regardless of location. Those who don't will have their listings flagged as "Fees not disclosed," and used-car listings without fees disclosed will lose their Deal Rating.
How do I know if a listing includes fees?
Look for a label on the listing, such as "Includes dealer fees." If a listing instead says "Fees not disclosed," that dealer hasn't added their fee information yet.
Can I choose to only see listings from dealers who disclose their fees?
Yes. CarGurus offers a filter to show only listings from dealers who have disclosed their fees, if you'd rather skip the extra step of asking.
Do disclosed fees include taxes and registration?
No. Taxes, title, and registration fees vary by county and are still calculated separately. The change only affects mandatory dealer fees, which are set by the dealership itself.
Does a dealer disclosing fees mean they're a better deal?
Not necessarily; it means you can compare accurately. A dealer with a slightly higher advertised price who discloses everything may cost the same or less than a dealer with a lower price and undisclosed fees. Transparency lets you do real math instead of guessing.
