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.

AutoEngage Inbox

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

Comments

Post a Comment

Popular posts from this blog

Seasonal Adjustments: April Sees Used Car Prices Align as EV Struggles Persist

Image
The latest report from Cap HPI highlights a significant trend in the used car market for April 2024, demonstrating a return to pre-pandemic pricing patterns and shedding light on the continuing challenges faced by electric vehicles (EVs). According to Cap HPI, prices for three-year-old vehicles with approximately 60,000 miles on the clock saw a decrease of about 1.5%, or £300. This change represents a natural alignment with seasonal trends, often influenced by factors such as the Easter break and market saturation after the first quarter's sales activities. The decline in used car prices, although consistent over two months, is not a cause for concern among dealers. The fluctuations align with historical trends and are considered part of the regular market cycle. This period saw petrol vehicles maintaining popularity, selling more quickly than other types of vehicles. Conversely, EVs and diesel-engine cars lagged, posing inventory risks for dealers. Particularly notable is the...
Read more

Volkswagen Group Sales Surge: Almost Back to Pre-Pandemic Levels

Image
In exciting motor trade news from cardealermagazine.co.uk , Volkswagen Group is making a remarkable comeback, edging closer to pre-pandemic sales levels. Figures released on January 9th reveal that their sales soared by an impressive 12% in 2023, reaching a total of 9.24 million units. This significant growth surpasses the 8.3 million units sold in 2022 and nearly matches the 9.3 million sales achieved in 2020. The remarkable rebound signals a return to normality for the automotive industry after grappling with supply chain challenges brought about by various factors, including the war in Ukraine and semiconductor shortages. One highlight is the group's commitment to electric vehicles (EVs), with sales of EVs increasing by a remarkable 35%, reaching 770,000 vehicles. This surge comes despite earlier concerns about a lack of demand for EVs in recent months. China played a pivotal role in Volkswagen Group's success story, with the company selling 191,800 electric cars in the...
Read more