Press release

Retailers warned that part-ex wobbles could sour record September

Auto Trader says new car market is ‘firmly on track’ for a record 450,000 units.

  • 1.2 million consumer valuations will take place on autotrader.co.uk in September
  • Nearly one in five deals threatened by part exchange negotiation break-down

Half way through the month, and the new car market looks to be on track for a record September tally of 450,000 units. Experts at Auto Trader are also forecasting a record volume of consumer valuations via its site, with more than 1.2 million taking place in the month.

But while signs look positive, the company has warned of research which suggests a significant proportion of showroom deals could break down during part exchange negotiations. While nine in ten walk-in buyers have an expectation of what their part-ex is worth, 18% of deals fall through at the part-ex negotiation stage.

“September is gearing up to be another bumper plate change month for retailers,” commented Karolina Edwards-Smajda. “But it is surprising that so many deals break down in the showroom, often as a consequence of difficulties with price negotiations. Unrealistic expectations about the value of a part exchange are cited by retailers as one of the most common reasons for this failure.

“We are currently working on a product that could help buyers and sellers start a conversation on the same page. If we can help facilitate a dialogue on part exchange values earlier in the process, when buyers are seeking information online, then we could help both parties align before the visit to the showroom. That could significantly reduce the haggle-hassle factor on the forecourt and seal more deals.”

Consumers have myriad sources with which to value their cars today, but more than a million a month are now being undertaken via Auto Trader, the country’s largest online marketplace for buying and selling new and used cars. Valuations are based on a retail-back approach which means the starting point is what cars are actually selling for on forecourts throughout the UK. These are then adjusted for trade to ensure buyers get a fair price – and that retailers make a fair profit.

Notes to Editors:

Auto Trader Group plc is a 100% digital business having successfully completed the transition from a print title in 2013. Auto Trader sits at the heart of the UK’s vehicle buying process and operates the UK’s largest digital automotive marketplace.

Auto Trader’s primary activity is to help vehicle retailers compete effectively on the Marketplace in order to sell more vehicles, faster. The Marketplace brings together the largest and most engaged consumer audience. Autotrader.co.uk attracts around 44.5 million monthly cross-platform visits on its sites, with around 68% of visits coming through mobile devices, with the largest pool of vehicle sellers (listing more than 400,000 cars each day). In fact over 80% of all time spent on classified sites is spent on Auto Trader. The Group does not buy or sell any vehicles itself.

Auto Trader has around 92% prompted brand awareness in the UK, with 80% of UK retailer forecourts advertising via the website and around 65% of UK used car transactions involving cars listed on autotrader.co.uk.

Auto Trader’s market-leading position enables it to generate and collect large amounts of data on the UK’s automotive marketplace and leverage it to create a suite of services that allow retailers to:

  • BUY – buy the right vehicles, at the right price
  • MARKET – market their brands and businesses effectively in the digital world
  • SELL- sell more vehicles through advertising on the UK’s largest digital automotive marketplace
  • MANAGE – optimise their stock turn and vehicle margin.

For all trade media enquiries, please contact:

Nigel Wonnacott, PR Director at JJ Marketing, on 07802 483 971 or nigel.wonnacott@jjmarketing.co.uk

How did @UKVolkswagen's no.1 franchised retailer influence 66% of its new car sales on Auto Trader? Here's our new car product lead, David, to explain. For more information on how we can take your brand new cars out of hiding, just visit https://t.co/Zsb9UUlb4i https://t.co/IdIsrkydjx
Don't miss the next #ARNLive on 6th Feb. @perrysmotors' MD Darren Ardron, @HowardsGroup's Peter Haynes & AT's COO Catherine Faiers will join Al Clarke to share their views on the market & offer their tips on success in 2020. Register your place here: https://t.co/owxmLkC043 https://t.co/e7wFgJL1ef
We know first hand just how infectious @sharonashcroft's passion for #DiversityandInclusion is. What she & her team have achieved at @trustford is beyond impressive. If you're looking for inspiration on how to embed a more diverse culture into your business, look no further! https://t.co/BxW35GK1kl
In 2019 we saw circa 2.5 billion advert views of use and new cars on our marketplace. We've seen the most viewed used cars, but what was the most popular new car? The no.1 spot goes to the iconic Volkswagen Golf 🏆 You can find out more here: https://t.co/9YsOqbDeht https://t.co/mHOmWE5MbN
We're seeing some great pieces of coverage announcing the official launch of Dealer Auction yesterday. Find out how this independent company with the combined expertise of @CoxAutomotiveUK & Auto Trader is set to transform the wholesale market https://t.co/rHSBROgeFf
Based on advert views, German marques were the most popular used cars last year. The @BMW_UK 3 Series topped the list as the most viewed second hand car on our market place in 2019. Find out more here: https://t.co/9YsOqbDeht https://t.co/txZZXeyI7B
As part of its commitment to drive diversity in auto the NFDA recently held its 1st Drive my Career networking event for female apprentice technicians.Over 40 joined HR execs from across the industry to share thoughts on attracting female talent. Read more https://t.co/o4xuN1qJiG https://t.co/RXFr3s9ilX
Following details of last year's new car performance from the @SMMT why not take a look at 2019's most popular new cars on Auto Trader? Our report reveals what makes, models & body types received the most views, as well as the nation’s favourite features https://t.co/KX9m29AEM9 https://t.co/WOxFlpA5oF
"A slight uptick in sales may have closed the year off on a positive note, but 2019’s overall disappointing new car performance will come as little surprise to anyone on the front line." Read our response to the @SMMT's December new car registrations here https://t.co/r1B5OcDZLl https://t.co/lrj4nPMFJp
Consumers weren't only eating mince pies and watching the Queen's speech over the festive period...they were looking for their next car too. Don't miss out on the New Year rush; make sure your cars can be found on the UK's largest digital automotive marketplace. https://t.co/OkO8BkBF2g

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