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

Great talk from @joindrover 's founder Felix Leuschner on the evolving concept of car ownership at #autosplus18 If you'd like to hear more on this topic download your free copy of the AT Market Report, where we explore the impact of new usership models: https://t.co/1vnsgdTFSM https://t.co/bZQRkMI9Jt
Calling all Bike dealers…do you want to convert more browsers into buyers? Tune in to our webinar on Thursday 25th October, 2-3 pm to hear how you can take advantage of displaying your own monthly finance rates across all eligible stock. Sign up here: https://t.co/XcLdkH09RG https://t.co/euH2GY6sK2
Data from the AT Retail Price Index revealed that used car prices in Sept reached a record average of £12,853; a 5% increase on last year. Despite new market challenges, used diesels continue to increase in value up 4% YoY. Find the full story here https://t.co/l0uEnfPvKG https://t.co/Cx58XZNa48
Next week Catherine Faiers will be speaking at the annual Autos+ conference, sharing the latest market research & insight around the evolving concept of car ownership. If you'd like to hear more on this topic, you can download the latest AT Market Report: https://t.co/1vnsgdTFSM https://t.co/deO14niduZ
We're delighted to welcome 100+ of our manufacturer partners to our London office today to share the findings of our latest Market Report. Nick, Marc & Ian discuss the future of ownership & the implications for the industry. Download your free copy: https://t.co/1vnsgdTFSM https://t.co/dnc4LAn9AX
We put our friends at @RomansCars to the test, challenging them to show us the key features of this stunning Ronnie Wood Edition @rollsroycecars Wraith in just 60 seconds #nailedit https://t.co/Smn6RZqoit
Figures from the @SMMT this morning show that new car registrations were down -20.5% last month as a result of the new WLTP regulations. Diesel regs. fell a whopping -42.5%, but the growth of AFVs continue, increasing 3.9%. Read the full results here: https://t.co/ckqbBeI6uE https://t.co/3lHE3OcTTn
Thanks to everyone that joined us at yesterday's Masterclass. If you want to hear the latest insight & best practice advice based on the performance of 13k retailers for FREE, check out our schedule to see when we're in your area. Next up: Belfast 30 Oct. https://t.co/cDQ9xRu2Uo https://t.co/GQ2sXTybZJ
Amazing efforts guys...can't wait to see all of the action shots from the trip! https://t.co/8F2lLqnfjS
How will the growing spectrum of 'usership' models affect our industry? Why not download a free copy of the Auto Trader Market Report today to find out: https://t.co/1vnsgdTFSM https://t.co/FMuJKd6uM5

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

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