Creating a category system (for classified type posts)

Hi everyone,

Would love some help on understanding this.

So I’m using Gravity Forms and I want to create custom post types that are essentially going to be classified Ads. I have no real problem with this part…

The problem I’m having is I want to be able to create a good way to filter the results of these Ads using categories or tags. The thing is I’m not really sure how to go about it.

Basically, let’s say there is Vehicles and Parts for the two main categories Ads may be posted in. So, the ad poster selects one of the two. The next category/tag to select would be the same set for either (Van, Truck, Lorry, etc.)

How do I go about making this kind of thing work? In terms of permalinks, it’d be like if I went to https://www.mysite.com/category/vehicles/van and then I could filter any ads that were posted with the characteristics vehicle and van. Where would I create these sections so that a user can navigate there and see the collection of all ads (custom posts) with that criteria met?

This might be a bit convoluted since I’ve written it very quickly without any revision but I hope somebody can help!