Increased Competition: The online auto marketplace is highly competitive, with established players and new entrants constantly vying for market share among both consumers and dealers, potentially leading to pricing pressure and reduced subscriber growth for CarGurus.

Dealer Subscription Dependency: CarGurus' primary revenue stream is heavily reliant on subscription fees from car dealerships; any significant reduction in dealer engagement, churn, or their willingness to pay for listing services directly impacts the company's financial performance.

Data Security and Privacy Risks: Handling vast amounts of sensitive user and dealer data exposes CarGurus to potential cybersecurity breaches, data privacy violations, and regulatory non-compliance, which could result in significant financial penalties and reputational damage.