Despite car listings dropping amid a shortage of new cars, online vehicle marketplace Auto Trader’s profit is still accelerating as it squeezes more out of its client base.
Auto Trader’s website is the one most visited by prospective car buyers because it has the most listings. Car retailers are therefore compelled to use its products, reinforcing its leading position.
AJ Bell’s Russ Mould said: “As well as increasing prices, the company is also upselling customers to subscribe for new products and services.
“Its ability to do so is impressive but you feel there will come a point at which it squeezes clients too much and subscriptions start to drop off. Auto Trader’s job is to work out where that breaking point lies.”
