Car selling platform Auto Trader has said the UK’s automotive market is in “good health” with growing new and used car sales, defying another year of high interest rates and weak consumer confidence.
Auto Trader said the UK’s new car market grew 3% over the last 12 months, mainly driven by more sales for company “fleet” vehicles, but standard retail sales fell 4% year-on-year.
Meanwhile, the company said it saw “strong levels of demand for used cars”, with 4% more sales this year than last, though supply remains below pre-pandemic levels.
It said used car pricing has been “stable” over the last 12 months after declines in the previous financial year.
The group said it saw a 5% increase in the number of cars advertised through its platform, an average of 449,000 per month through the year.
And it said consumers made a record 81.6 million visits to Auto Trader’s platforms this year.
Auto Trader’s revenues came in at £601.1 million in the year to March 31, up 5% compared with the previous 12 months, while profit rose 8% to £376.8 million.
The growth in both markets comes despite another year of high interest rates and inflation in the UK, which the company said put “financial pressure” on customers.
The company said that through much of the year, consumer demand exceeded the supply of used cars, meaning sales tended to happen fast.
Nathan Coe, chief executive of Auto Trader, said: ”Despite broader macroeconomic uncertainties, the UK car market is in good health and we continue to deliver against our strategy to improve car buying and retailing.”
He added that the company launched a new artificial intelligence product range called Co-Driver, which is helping to speed up searches on Auto Trader’s platform.
Mr Coe said: “The first wave of Co-Driver products has already successfully enhanced the quality of adverts, while reducing the amount of time it takes for retailers to advertise their vehicles.
“We see significant potential for the use of AI to improve the buying and selling of cars in the years ahead.”
“We remain confident in the outlook for the business given our strong market position, the value we deliver for customers, and our unique data and technology capabilities.”
