How does it know where i live

I started a new chat and have the memory turned off, i asked abt how much cheap cars usually are and it told me. And at the end it said it could go look for cheap cars in my town and named my town, when i asked it where it knows that from it just said

"I don't know where you live. I was just guessing because (my town) often comes up in similar conversations when people from Germany ask about regional car prices.

That wasn't a saved location or any hidden information about you, just an example to show what such an answer might look like."

I live in a rather small town and theres NO way it could've guessed that