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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of Domestic and Foreign Components of Income Before Income Taxes | For the years ended December 31, 2023, 2022, and 2021, the domestic and foreign components of income before income taxes are as follows:
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
United States |  | $ | 50,632 |  |  | $ | 110,213 |  |  | $ | 148,037 |
Foreign |  |  | 1,055 |  |  |  | 1,149 |  |  |  | 1,323 |
Income before income taxes |  | $ | 51,687 |  |  | $ | 111,362 |  |  | $ | 149,360 |
Schedule of Provision for (Benefit from) Income Taxes | For the years ended December 31, 2023, 2022, and 2021, the components of the provision for (benefit from) income taxes are as follows:
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Current provision: |  |  |  |  |  |  |  |  |
Federal |  | $ | 52,352 |  |  | $ | 43,207 |  |  | $ | 22,133 |
State |  |  | 14,614 |  |  |  | 11,140 |  |  |  | 10,438 |
Foreign |  |  | 532 |  |  |  | 175 |  |  |  | 253 |
|  |  | 67,498 |  |  |  | 54,522 |  |  |  | 32,824 |
Deferred (benefit) provision: |  |  |  |  |  |  |  |  |
Federal |  |  | (37,583 | ) |  |  | (20,278 | ) |  |  | 5,698 |
State |  |  | (272 | ) |  |  | (1,789 | ) |  |  | 669 |
Foreign |  |  | (9 | ) |  |  | (47 | ) |  |  | (204 | )
|  |  | (37,864 | ) |  |  | (22,114 | ) |  |  | 6,163 |
Income tax provision |  | $ | 29,634 |  |  | $ | 32,408 |  |  | $ | 38,987 |
Schedule of Effective Tax Rates | For the year ended December 31, 2023, 2022, and 2021, the components of the effective tax rate are as follows:
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
U.S. federal taxes at statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State taxes, net of federal benefit |  |  | 22.1 |  |  |  | 7.7 |  |  |  | 7.5 |
Nondeductible expenses |  |  | 1.4 |  |  |  | 0.5 |  |  |  | 0.3 |
Stock compensation |  |  | 7.3 |  |  |  | 2.8 |  |  |  | 0.3 |
Foreign rate differential |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | (0.2 | )
Federal and state credits |  |  | (9.5 | ) |  |  | (4.7 | ) |  |  | (2.6 | )
Disallowed officer compensation |  |  | 0.4 |  |  |  | 0.8 |  |  |  | 1.0 |
Investment in partnership |  |  | 4.7 |  |  |  | 1.0 |  |  |  | (0.3 | )
Federal, state, and foreign provision to return differences |  |  | (1.4 | ) |  |  | (0.8 | ) |  |  | (0.7 | )
Uncertain tax provision |  |  | 0.4 |  |  |  | 0.5 |  |  |  | — |
CarOffer and AutoList M&A |  |  | 2.9 |  |  |  | — |  |  |  | — |
Other |  |  | 0.0 |  |  | (0.0) |  |  |  | (0.2 | )
Consolidated effective tax rate |  |  | 49.2 | % |  |  | 28.7 | % |  |  | 26.1 | %
Effective tax rate attributable to redeemable noncontrolling interest |  |  | (4.7 | ) |  |  | (1.0 | ) |  |  | 0.2 |
Effective tax rate attributable to CarGurus, Inc. |  |  | 44.5 | % |  |  | 27.7 | % |  |  | 26.3 | %
Schedule of Income Tax Effect of Each Type of Temporary Difference and Carryforward | As of December 31, 2023 and 2022, the approximate income tax effect of each type of temporary difference and carryforward is as follows:
|  | As of December 31, |
|  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 304 |  |  | $ | 461 |
Credit carryforwards |  |  | 928 |  |  |  | 928 |
Stock-based compensation |  |  | 5,353 |  |  |  | 5,441 |
Lease liability |  |  | 47,907 |  |  |  | 13,557 |
Investment in partnership |  |  | — |  |  |  | 8,325 |
Accruals and reserves |  |  | 4,642 |  |  |  | 3,770 |
Intangible assets |  |  | 20,294 |  |  |  | — |
Capitalized research and development |  |  | 45,468 |  |  |  | 25,342 |
|  |  | 124,896 |  |  |  | 57,824 |
Valuation Allowance |  |  | (305 | ) |  |  | (258 | )
|  |  | 124,591 |  |  |  | 57,566 |
Deferred tax liabilities: |  |  |  |  |  |
Prepaid expenses |  |  | (2,459 | ) |  |  | (2,466 | )
Deferred commissions |  |  | (5,531 | ) |  |  | (4,200 | )
Right of use assets |  |  | (42,531 | ) |  |  | (11,237 | )
Intangible assets |  |  | — |  |  |  | (733 | )
Capital lease |  |  | (72 | ) |  |  | — |
Property and equipment |  |  | (700 | ) |  |  | (3,496 | )
|  |  | (51,293 | ) |  |  | (22,132 | )
Net deferred tax assets |  | $ | 73,298 |  |  | $ | 35,434 |
Schedule of Unrecognized Tax Benefits, Excluding Interest and Penalties | As of December 31, 2023 and 2022, changes in the gross uncertain tax position (excluding interest and penalties) are as follows:
|  | As of December 31, |
|  | 2023 |  |  | 2022 |
Unrecognized tax benefits at beginning of year |  | $ | 598 |  |  | $ | — |
Increase related to current year tax provision |  |  | 178 |  |  |  | 198 |
Increase related to prior year tax provision |  |  | 36 |  |  |  | 400 |
Unrecognized tax benefits at end of year |  | $ | 812 |  |  | $ | 598 |

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