An update from our CEO

As always, I hope you  are well, and that trading into Q2 has been positive.

Market momentum into Q2

The used car market has been robust since the start of the year and I’m pleased that this momentum has continued into Q2. The SMMT reported used car transactions in Q1 up 6% versus 2023 and our data for April showed transactions 7.3% up year on year. Based on the current trajectory this year looks set to be the strongest for used car transactions since 2019. Speed of sale on Auto Trader was faster than any other April on record (at 27 days), which is being driven by the 1-3- and 3-5-year age cohorts where supply is squeezed.

Reassuringly, April saw a month on month retail price increase of 1.1% versus March. This is positive news as there has been a disconnect over the last six months between the strong health of the market and used car retail prices, which remain behind 2023 levels. We are hopeful that continued strong market health means pricing is stabilising and will be more reflective of the wider market conditions. As ever, we continue to see variability in supply, demand and pricing dynamics across the market, so tools like Market Insight, providing access to accurate and real-time data, remain essential in identifying profit opportunities.

The new car market is increasingly operating with a "push" model, with private sales down -18% in April. Demand on our platform remains resilient and new car visits increased by 21% over last year, as consumers respond to ongoing incentives and finance contributions offered, with 3 in 4 new cars on Auto Trader now featuring a discount. Manufacturers are still well short of the 22% ZEV mandate for this year and so will expect more aggressive discounts in the EV market in the coming months.

If you stock new cars, discounts are just one of the ways to help stimulate consumer demand. Remember price isn't the only lever available on your new car stock, and I would encourage you to talk to your Performance Manager about how to make the most of your advertising to reach your new car targets. You can also find advice and guidance on merchandising your brand-new stock through our Insight Academy.

Are you maximising the value you get from your Auto Trader package?

I speak with many retailers who see huge value in not just advertising on Auto Trader but fully embracing all the tools, insights and advice we can offer which are unique to Auto Trader. This ranges from regular in person insight events, to our fortnightly webinars and in-person clinics, to online learning courses. We offer advice via our 300-person strong account team, including bespoke performance reviews through our Forecourt Review tool. We can help you understand your sales performance and provide insight on your local market and buyers via Sales Insight. All this sits alongside the data tools and products at your finger tips either in Portal or your own system via Auto Trader Connect.

This is all part of being an Auto Trader partner and you can read more about how you could be benefit here.

Our investment in technology and why it can drive your success

On the surface we are an automotive website, but it’s our investment in technology and data which underpins our business. This commitment to investment and innovation is why we’re still the number one destination for buyers after all these years.

In her recent blog post, our Chief Product Officer, Karolina Edwards-Smajda talks to our heritage of technology and innovation and how this is helping to shape the automotive industry's future. Karolina talks to our evolution into a pioneering internet, mobile, and technology firm, with investments in automotive data science dating back over a decade.

Karolina explains how we use AI and data modelling to build game-changing solutions. I’d encourage you to read her blog to understand how our strategy and investment in technology will shape the automotive industry of tomorrow to the benefit of all our industry partners.

Finally, I wanted to touch on our annual results which were reported recently. This year marks another good performance, where we delivered more buyers, more products and more growth than in recent times. I would like to thank all of our partners and the UK’s car buyers who have trusted us over the past 12 months. We have more buyers and more Retailers choosing to partner with us than at any point in our history.

Thank you for your continued partnership and as always, if I can support you in any way if you have any feedback at any time, you can always contact me directly at Nathan.coe@autotrader.co.uk

Regards

Nathan