A LOOK UNDER THE BONNET
AUTOMOTIVE FINANCE

AUTO TRADER

Auto Trader has been authorised by the FCA, with permissions to be a credit broker, since 2016. In 2017, we launched our dealer finance product and now 74% of our retailer partners offer finance products through our platform. We have also offered valuation pricing insights since 2013 and categorise these into retail, trade, private and part-exchange valuation types.

With 13,000 retailers advertising over 500,000 vehicles to 10 million consumers each day, as well as almost 2 million finance calculator interactions each month (that’s 45 a minute) our data offers a wealth of insight into consumer behaviour and attitudes towards credit.

VALUATIONS

As the UK’s number one automotive marketplace, we provide the most robust view of vehicle pricing across the industry. We serve more than 144 million valuations per year, with around 13 million of these to consumers and the rest to the broader automotive industry including retailers, insurance and finance companies, as well as government organisations. Our valuations data has many use cases, from historic valuations used to settle insurance claims, current valuations for those looking to buy and sell, and future valuations which can assist in residual value calculations.

THREE KEY TRENDS IN MOTOR FINANCE

1. Used car APRs are up but not as much as new car APRs
In January 2022, the average new car APR was 5.1%. This year it jumped to 8.1% whereas used cars have only increased 1.9 percentage points year on year, moving from 9.2% to 11.1% in 2023.

2. Despite this increase, used car finance is on the up
In January 2023, there were 42% more interactions with finance calculators on our platform than the same period in 2020. We also saw a 25%increase compared to 2021.

3. A slight shift to PCP in older age brackets, which were historically the preserve of HP
At the end of last year, 22% of five year old cars were financed through a PCP deal.

PROTECT YOUR ASSETS

To deliver an objective and real time service to our customers, we are beginning to source motor finance data directly from lenders. Benefits of sharing finance data with Auto Trader:

• inform consumers and industry traders of vehicles that you own
• protect against asset conversion fraud
• prevent dual financing
• ensure consumers are being treated fairly and can make informed purchasing decisions.

Providing data to Auto Trader is straight forward and free. You can provide data in the same way you currently supply to HPI & Experian. To protect your assets, contact: karan.ridgard@autotrader.co.uk