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BRITAIN’S leading car marketplace has been slammed by 165 car dealers who have ditched the platform in protest over one of its products.
The UK’s biggest car marketplace, Auto Trader, has been hit by a wave of cancellations from frustrated dealers, with 165 allegedly giving up on the platform over its controversial new Deal Builder tool.
A survey of used car dealers was carried out by The Independent Motor Dealer Association (IMDA), quizzing 700 members.
It found that 70 per cent had downgraded or reduced their Auto Trader packages since the rollout of the Deal Builder product, as reported by Car Dealer Magazine.
According to the survey, 165 dealers have either cancelled their contracts or given notice to quit, far more than Auto Trader’s own figures suggested.
The backlash has been fuelled by dealer groups on Facebook urging members to quit en masse.
Auto Trader, a marketplace that allows its 14,000 customers to buy and sell new and used cars, maintains they “have not seen an unusual movement in actual cancellations.”
Just ten days ago, the platform claimed only 59 dealers had gone through with cancellations, while 70 downgraded their packages.
Dealers have slammed the platform for repeated price hikes which they claim add little value.
IMDA chairman Umesh Samani warned: “The erosion of trust is real, and whether or not it results in mass cancellations, it poses a long-term risk to Auto Trader’s relationship with the independent sector.”
Deal Builder, which lets buyers reserve cars online for £99, is set to become mandatory for all dealers soon.
This move has sparked fury across the sector due to its impact on “traditional sales processes.”
In its own words, Auto Trader says that the Deal Builder product is a “flexible, start-stop consumer journey that allows buyers to complete as much of their purchase online as they choose.
“They can add a part exchange, complete a finance application, and select their handover preference, before reserving the vehicle.”
Auto Trader CEO Nathan Coe has defended the rollout, insisting the timeline for introducing Deal Builder will not change, despite mounting criticism.
Car dealers oppose the idea because they believe that they will be forced to let customers down if they pre-allocate the vehicle to someone else.
This is likely to lead to unwarranted scathing reviews which would affect their credibility and deter potential customers.
Rebecca Clark, Autotrader sales director said: “We have a history of working with the IMDA and its leadership and remain committed to improving this in light of recent events, with a more open dialogue, which is essential for ensuring we are supporting independent retailers, and the association.
“As a publicly listed company, we report Retailer numbers externally to the market and the integrity of our figures is paramount.
“Of course we respect the findings of any member-led survey, but we have not seen an unusual movement in actual cancellations.
“Our goal is to work directly, openly, and constructively with every retailer and we will continue this through our Customer Advisory Groups in the coming weeks.
“Our partnership approach is unwavering, and we are dedicated to helping the independent sector thrive.”
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