An update from our CEO
As we move into the second half of the year, I want to share my reflections on some significant milestones over the last few months, our outlook for the remainder of the year and our vision for the future of automotive retailing.
A Positive H1
Despite some economic uncertainty over the last six months, consumer demand for cars has remained strong. Autotrader experienced a record number of visits in the first half of the year, with buyers showing confidence and readiness to make purchases. The market is anticipated to have its best performance since 2019, although there remains significant variations in performance across different market segments.
Whilst sales volumes for franchise businesses have been broadly flat over the period, as a result of ongoing sourcing and supply issues, on average, independent retailers have recorded a 5% YoY increase. The stability in trade and retail prices should be good news for margins, and this robust demand could translate to higher prices if retailers take a retail-back approach. New car sales started well but faced challenges in the second quarter and are expected to remain flat for the rest of the year due to ongoing uncertainties. For the latest market update watch our recent webinar.
The Government’s announcement of a grant for brand new electric cars shows continued commitment to the transition to electric vehicles. Designed to stimulate demand in the more affordable end of the new EV market, early indications are positive. Despite some initial delays, new EV registrations are expected to surpass previous forecasts once grant-eligible vehicles become available, with potential OEM offers as competition increases. The used EV market remains stable, with no signs of price impact from the new grant on used.
And of course, I must mention the UK Supreme Court’s verdict on the automotive finance commissions appeal. This was a positive outcome for the industry as the supreme court didn't uphold the findings of two of the three cases previously heard by the Court of Appeal. The FCA has since announced that they will look into a consumer redress scheme based on the third case that was upheld, along with discretionary commissions from 2007 up until they were banned in 2021. Exactly what this looks like won’t be known until October, however most industry observers expect lenders rather than retailers to carry the obligation, but nothing can be guaranteed at this point.
Striking the right balance will be key. A pragmatic, but consumer centric approach that minimises the impact on an industry that contributes billions to our economy but also ensures transparency and confidence for millions of buyers. It’s something that the industry has made impressive strides towards, and it’s why we’ve already made it easier to see finance details on our platform and, in the process, given our 10 million monthly visitors more control and choice when exploring their options. Millions of people are still browsing the 300,000 vehicles with finance options on Autotrader every month and they can now do so with even more confidence.
To ensure all our partners can understand these developments, we recently held a dedicated commission webinar. Our panel of experts held a live Q&A and dug into the implications for retailers, brokers, lenders and the broader industry. It’s well worth a listen.
Outlook for the remainder of 2025
So, it is with the backdrop of these big announcements, and a robust market, we enter the second half of the year with real momentum. Despite some consumers cutting back on non-essential spending, cars remain vital to people’s lives, with 89% saying car ownership is important. The market is projected to be the strongest since 2019, with forecasts of 1.96m new car sales and 7.77m used car transactions for 2025.
The COVID shortfall in new car production is set to reach the core of the used car market, with the volume of 3–5-year-old cars in the parc continuing to shrink. In 2019 there were 4.8m cars in this age cohort, which this year will be only 2.9m – the lowest level on record. However, with an increase in consumer demand for older, more affordable stock, cars aged between 5 and 10 years or older are proving a sweet spot for retailers. This has been a consistently fast-selling stock profile, supply will continue to grow and consumer demand is high.
For more detail of what we predict for the remainder of 2025, watch our video with Catherine Faiers
Steering towards tomorrow
We announced back in June that we would be making Deal Builder available for all as part of our next step in meeting buyer expectations and delivering highly engaged, high-intent deals to retailers.
This is part of our ongoing commitment to create a consistent journey which seamlessly connects online and offline, driving quality deals to retailers and providing our partners with insights that can help them make better decisions and improve your business performance and efficiency.
This isn’t about us trying to promote finance or products not connected to the retailer, it’s not about us planning for the buyer to conduct the whole journey online and it’s not about us taking control.
By enabling Deal Builder on all adverts, we create a connected journey, where consumers can do more with you online and we build a rich picture of the qualified buyer. Not just data, but deep, actionable insight - just like we’ve done with vehicle insights such as retail rating and valuations. To help you best understand your buyers and prioritise the deals most likely to convert. Giving retailers more knowledge, more control, greater efficiency, and more opportunity.
If you’re not already on Deal Builder, we’ll be contacting you soon to add the functionality to your adverts. And we’ll also be introducing a host of new developments to take Deal Builder even further – not just product updates but enhancements that are part of a bigger strategy to make every interaction on Autotrader an opportunity with an informed, committed buyer.
Change is never easy, but without it all our businesses become steadily less competitive over time. I’d urge you to make the most of the move to Deal Builder.
If you’d like to hear more or are not achieving the success you would like, then please do reach out to one of our 300-strong account team who are dedicated to helping you be more successful. Through real partnership.
