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

We've extended the deadline to complete our digital retailing survey being run in partnership with the @RMI_NFDA and ICDP. Complete the survey before Friday to receive a personalised benchmark report👉https://t.co/qjQqIedy43 https://t.co/N3CLR386Uz
Join our next webinar where we’ll be sharing how you can sell vehicles at pace, whilst extracting the most profit and ensuring you allow time to restock and optimise your forecourt. Register now👉https://t.co/5dI2g8GX3Z https://t.co/ZOfgM21yU7
What do Canadian Thanksgiving and @AndrewKorpela's appetite have to do with buying a car online? Find out in this week's tip of the week where we share some tips on how to grab the attention of a growing buyer segment. https://t.co/Eilwe3LhXm
The speed at which used cars sell continues to remain far below what we saw before the pandemic, with last months analysis showing that it took a median of just 24 days for used cars to sell, 3 days quicker than in August. https://t.co/nl83T3y2Wl
Fantastic news 🥳 A huge thank you to everyone that voted for us this year - we're very proud and delighted that our retailer partners have gotten so much value from our platform, particularity during such a challenging period for our industry https://t.co/0xXHDcYemG
COP26 has been dominating headlines over the last few weeks. But what exactly is it? What impact could it have on the automotive industry and why does it matter to you? https://t.co/nGyGxeZvzN
Find out how @HendyGroup, @LookersGroup, @westwaynissan and @PeterVardy are embracing the electric vehicle revolution and enticing consumers into making the switch👉https://t.co/o9S11O5QXS https://t.co/KU8wBqwOXH
In our latest market update, we share our latest audience data and look at whether we are continuing to see strong levels of demand from consumers. https://t.co/p2DSkN8cAv
It's Friday which can only mean 1 thing. It's tip of the week time! In this episode, @AndrewKorpela goes through the findings of the telephone phase of our mystery shopping and explains how you can make the most from a telephone enquiry. https://t.co/Mg0UtWa3aM
September was a month of records for the automotive industry. But we also saw some unexpected challenges and opportunities. Find out more in our latest Market Intelligence report which details our latest insights along with the impact of the fuel crisis👉https://t.co/blOWIg8ZY7 https://t.co/v7SZuYcRM4

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