Auto Trader update and support

By Nathan Coe, CEO, Auto Trader.

I hope that this note finds you, your family and colleagues safe and well.

The latest government announcement on Saturday was disappointing for us all. The implications for our industry in England have now been confirmed through the legislation passed yesterday. We are now navigating different scenarios across the UK, as retailers in different nations are faced with different levels of restrictions. These are impacting businesses in different ways and also presenting opportunities for some that are not available to all. We hope that the current restrictions end quickly, although no-one can be completely sure when this will be.

Auto Trader’s Continued Support for Retailers

Auto Trader was there for you when it mattered most. In the most challenging times of this pandemic, we offered a level of support unprecedented in Auto Trader’s 43 year history. This resulted in a record-breaking number of buyers which helped the industry rebound out of lockdown in the strongest position possible. We remain committed to doing the right thing to support you and the wider automotive industry and today are announcing that:

Your advertising package will be free throughout December and payment terms for your November advertising will be extended by 1 month. You don’t need to do anything to access this support, we will automatically remove all charges. *

We are confident this support will enable you to make the most from a difficult November and December, so that we can all come out fast in January, starting the new year in the strongest possible position.

I take some comfort from the fact that we are all more prepared than we were in the Spring. Consumer demand remains high as buyers search for cars to avoid public transport. Demand continues to rise with visits up 15.2% year on year(1), and leads are up 18.6%(2), even following the news on Saturday. Pricing has held despite fears at points during the year with seven months of consecutive growth for used car prices, increasing 8.6% year on year in October(3). We are able to engage with car buyers through alternative channels far more effectively than we could in March and consumers are now more familiar with this way of researching and shopping. Our latest research shows over 50% of buyers are willing to utilise click and collect or Home Delivery options.(4)

With Auto Trader, you’re always open

It has never been more important to ensure your stock is visible on Auto Trader. We know that consumers look to trusted brands during any crisis and 5x more consumers trust us than our nearest competitor(5). We also know that over 75% of time spent researching by car buyers is on Auto Trader(6). Given the car buying cycle typically takes 2-3 months(7), it is critical that you ensure your cars are online on Auto Trader throughout this time, even if showrooms are closed. 

We will continue to do all we can to drive consumer demand and to raise awareness that retailers are there to support consumers remotely in their buying journey. Earlier this year, we released a number of new features to ensure buyers could research and take delivery of vehicles without needing to visit a showroom. This week we have further enhanced the visibility of retailers Click & Collect options. Please re-visit these measures to ensure they reflect the latest guidance for your area and keep this up to date as things evolve. We are launching a new marketing campaign today to promote home delivery and click and collect options available on Auto Trader.

To find out how you can keep selling and make the most of our new features, click here.

Auto Trader update

Today we have also announced our half year results. The unprecedented level of support we provided retailers has had a material impact on our financial performance. However, as an organisation we feel both proud of the decisions we have made and the performance we have achieved. What has made me most proud has been the determination and passion I have seen from our people to support you and to continue to improve the products on which you depend. I can assure you that we have and will continue to work tirelessly to support you and deliver the things you and the wider industry need to continue to grow.

Our teams are, as always, available to help and want to work with you to ensure you are getting the most from our partnership through these challenging times. We will help you to navigate this situation as best we can.

Best wishes to you, your families and employees,

Nathan

Important information

*December free advertising package refers to all elements of your advertising package, including contracted stock upgrades, excluding AT PPC & PPC Boost, Top Spot, Dealer Auction and pay per usage products. Additional Stock booked after 4th November will be charged at your usual rate. Market Extension will be charged at 50%

 Any downgrade or cancellation received after 4th November 2020 will result in the free offer being removed.

The extension of payment terms refers to the invoice that you will receive on 1st December for your November activity.

Data sources:

1: Auto Trader internal analysis of Google Analytics data, average number of unique users daily, 28th October – 3rd November 2020 vs vs 28th October – 3rd November (inclusive).

2: Auto Trader internal tracking, increase in share of email, text and chat leads sent to retailers, 28th October – 3rd November 2020 vs vs 28th October – 3rd November (inclusive).  

3: Auto Trader Retail Price Index October 2020 vs 2019 (like for like pricing)

4: Auto Trader On-site survey, 2nd Nov – 4th Nov, n=734

5: vs. CarGurus, based on the July Brand Tracker, n=1000

6: Share of minutes is a custom metric based on Comscore minutes (MM) and is calculated by dividing Auto Trader’s total minutes volume by the entire custom-defined competitive set’s total minutes volume. Comscore MMX® Multi-Platform,  Total Audience, September 2020, UK. Custom-defined list includes: Auto Trader, Gumtree.com  - Motors, eBay Motors UK, Pistonheads sites, Motors.co.uk, CarGurus, Auto Express.co.uk, Topgear.com, Parkers.co.uk, Whatcar.com, Carwow.com, Exchange&Mart, Vcars, RAC cars, Trusteddealers.co.uk, Carsnip.co.uk, heycar.co.uk

7: 2-3 months from initial consideration (most common answer from our Car Buyers Tracker August 2020, n=1007)