Auto Trader's Impressive Profit Surge Amidst Economic Challenges

In a recent release of motor trade news that's sure to inspire those looking to sell more cars, Auto Trader has reported a significant increase in profits. This achievement, outlined in detail on cardealermagazine.co.uk, stands out amidst the broader economic concerns affecting many industries.

For the six months leading up to September, Auto Trader experienced a notable 10% rise in profit before tax, reaching £162.8m, a jump from the previous year's £148m. This increase in profit isn't isolated; both revenue and margins have followed suit. The core Auto Trader business boasted an operating profit of £184.9m, a 10% increase with an impressive 71% margin. Group level revenue climbed by 12% to £280.5m, with Autorama contributing £21.1m despite its increased operating loss.

nathan coe

Nathan Coe, CEO of Auto Trader, commented on these robust results, highlighting the platform's effectiveness in helping retailers and manufacturers source, price, and sell vehicles efficiently. Auto Trader's confidence in its long-term prospects stems from the strength of its business and its commitment to delivering value across the car buying and selling spectrum.

Significantly, Auto Trader has tightened its grip on the motor trade. Over 75% of all time spent on automotive classified sites is dedicated to Auto Trader. This dominance is evident as the platform is ten times larger than its closest competitor, with monthly cross-platform visits swelling by 14% to 77 million. The time users spend on the site has also increased by 11% to 555 million minutes monthly.

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Despite the pandemic's lingering effects, used car transactions on Auto Trader rose by 5%, though they remain 10% below pre-pandemic levels. The firm notes that consumer demand has been robust, leading to resilient used car prices. The Retail Price Index recorded a 2% average price growth during the period, with the average used car price reaching £17,800.

Coe attributes the past six months' success to the strong partnerships formed with customers and the continuous investment in their platform. Auto Trader has focused on marketing to drive more car buyers to partners' stock and developed new products powered by unique data and artificial intelligence capability.

ben charity

The first half of the year also saw Auto Trader benefiting from an easing in supply chain and stock issues. Live car stock on the site remained steady, with used car stock volumes showing slight improvements. New car registrations were 21% above the same period last year, primarily driven by the fleet segment. The private market saw a modest 3% increase compared to last year.

In summary, Auto Trader’s recent financial achievements underscore the company’s resilience and adaptability in a challenging economic landscape. These results offer valuable insights and optimism for those involved in the motor trade, especially for entities aiming to sell more cars. You can view the original article at cardealermagazine.co.uk.



source http://autoengage.co.uk/home-page-9252-9795-4532/b/auto-traders-impressive-profit-surge-amidst-economic-challenges

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