Press release

Auto Trader launches new service to solve retailers' part-exchange challenges

Auto Trader has launched its Guaranteed Part-Exchange service following a successful beta trial to circa 1,000 retailers. This launch is part of its strategy to enable retailers to sell more cars, more profitability, with more of the buying journey completed online.

Now available to all its partners, the service provides retailers with better qualified buyers with high purchase intent and a more profitable route to sourcing stock. It provides consumers the confidence of a guaranteed part-exchange price for their vehicle and the convenience of completing the process from home. The condition-based valuation will be underwritten by Manheim Auction Services, part of Cox Automotive UK, acting as an insurance policy for unwanted part-exchanges. The valuation is determined using a combination of Auto Trader’s award-winning[i] valuations and current auction data. 

 Utilising trust and convenience to convert buyers faster

Auto Trader research highlights just how common missed opportunities from part-exchanges are, often as a result of a mistrust in the process. Circa 70% of buyers have a car to part-exchange as part of their next car purchase, however, 16%[ii] said having to haggle over the price with a dealer is the most annoying point. And with 48%[iii] believing retailers will offer them less for their car than the valuation they’ve received online, it’s no surprise 29%[iv] of car buyers were prepared to walk away from a deal if they were offered less than what they were expecting.

This service utilises the strength and trust in the Auto Trader brand, which in a study of over 1,000[v] car buyers was identified as the most trusted website for valuations. The service can help retailers reduce lost sales, save time, and speed up cash flow by attracting highly qualified buyers who are ready to purchase. In fact, nearly two out of three (61%) [vi] consumers are more likely to purchase from retailers who can guarantee the part-exchange price.

 The service also helps retailers source stock more cost-effectively, by resupplying their forecourts with a continuous flow of part-exchanges, which in doing so, not only reduces a reliance on potentially costly auctions, but also keeps stock among retailers. In the recent beta test, retailers went on to advertise stock acquired through the tool with an average profit margin of over £2,000 per unit.

If the vehicle doesn’t fit their stock profile or if the deal represents a risk the retailer isn’t willing to take, they can simply dispose of it through the Manheim underwritten disposal service. The car will be paid for and collected from a retailer’s forecourt within five days of the disposal being accepted by Manheim.

Auto Trader’s commercial product director, Karolina Edwards-Smajda, said: “The part-exchange process represents a common pain-point for both retailers and consumers, which often results in wasted time and energy, as well as missed sales opportunities. Our objective was to create a more efficient solution which significantly improves the consumer user experience, and in doing so, helps retailers sell more vehicles, more profitability. In effect, we wanted to convert what is for many retailers a challenging process into a sales-channel within its own right.”

Auto Trader’s research also revealed that for those retailers operating buy online services, such as Click and Collect, and Home Delivery, 54% said agreeing a part-exchange was the most difficult task.

Karolina added: “The service marks an important step in our commitment to support retailers with their digital retailing ambitions and complements the blended retailing experience many consumers have come to expect. Throughout testing, we saw that retailers got the most value when they fully embedded the tool into their entire part-exchange process, using it with all enquiry types, whether the customer was online, on the forecourt, local or buying from a distance.”

Whilst the service will be included in participating retailers’ adverts for consumers to engage with, the valuation appraisal software is also built into Portal accounts, enabling retailers to use it with any enquiry type, whenever a deal includes a part-exchange.

All of Auto Trader’s car retailer partners can now sign up to get their first 60 days of Guaranteed Part-Exchange free here.

[i] Used Car Valuations Provider of the Year, Car Dealer Power Awards 2020 and 2019

[ii] Auto Trader Car Buyers Tracker August 2020

[iii] Auto Trader On-site survey, 1st – 14th September 2020

[iv] Auto Trader on-site survey of 1,334 consumers, September 2020

[v] Auto Trader Car Buyers Tracker, August 2020

[vi] Auto Trader on-site survey of 983 consumers, September 2020

This week saw the highest level of new electric car advert views on Auto Trader since the 2030 ban on the sale of new petrol & diesel vehicles was announced, with almost 14% of all new car advert views being for an electric car last Thursday. Will we see this trend continue? https://t.co/sczaVjTeoV
It’s all hands on deck for this week’s tip of the week where @AndrewKorpela shares some best practises to help you keep your forecourt full and ensure the stock on your forecourt is presented in the best possible way. https://t.co/6Lsf00QIRM
In our next webinar, our CEO Nathan Coe joins us to answer the question “Are Auto Trader Buying Cars?” Register now and join us live to find out what he has to say along with all our latest market updates and insights 👉https://t.co/METGnTcqB8 https://t.co/UT1hMfHtqo
The number of people viewing electric vehicles on our platform continues to grow and right now it is the @Tesla Model S that is attracting more advert views than any other electric vehicle on our platform. https://t.co/Q0c8imqzCP
The number of people viewing electric vehicles on our platform continues to grow and right now it is the @Tesla Model S that is attracting more advert views than any other electric vehicle on our platform. https://t.co/Q0c8imqzCP
When it comes to city driving, the @renault_uk Captur came out top at the Auto Trader New Car Awards 2021, winning the Best Car for City Drivers award. https://t.co/FrHpVBTLvb
Buyers looking at petrol and diesel vehicles are increasingly considering an electric vehicle. But considerations are comparatively low when we look at those considering a plug-in hybrid, with 40.6% of such buyers considering an electric vehicle. https://t.co/cyfmYVw5xk
Wondering what's next for car dealers now that restrictions have been eased? Check out last week's webinar to find out what you can expect over the coming months and how to prepare👉 https://t.co/bGqkGxArP3 https://t.co/79L9B623fs
How are our vehicle valuations calculated? @nchking has the answer, and shares exactly how our award winning valuations are calculated entirely by data. https://t.co/u0HIGWAXot
Fantastic to see our winners getting the recognition they deserve! https://t.co/1vrF4Tjo2e

Auto Trader Group plc
Registered in England (Company number: 09439967)

Auto Trader Limited
Registered in England and Wales (Company number: 03909628)

Registered address:

1 Tony Wilson Place
Manchester
M15 4FN
VAT number: GB 614 8918 20

Keep in touch

We use social media to speak to the UK’s largest car buying audience