A survey of used car dealers claims 165 dealers have cancelled their Auto Trader contracts following the roll-out of its Deal Builder product.
Carried out by the Independent Motor Dealer Association (IMDA), the survey quizzed 700 of its members and found 70% had reduced or downgraded their Auto Trader packages.
It found that a total of 165 dealers claimed to have cancelled their contract or had given notice to cancel, far in excess of the numbers Auto Trader had previously reported.
Ten days ago, Auto Trader told Car Dealer that 59 dealers followed through with their threat to cancel, while 70 dealers downgraded their packages in the wake of dealer protests.
The IMDA survey also revealed the concerns its members have which range from ‘repeated price rises not matched by added value’, the ‘impact of Deal Builder on traditional sales processes’, and ‘mandatory customer account creation that weakens dealer-buyer relationships’.
Announcing the findings of the survey, IMDA chairman Umesh Samani, said: ‘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.’
The organisation also reiterated its concerns about Auto Trader’s price markers on cars ‘despite previous discussions’.
Auto Trader’s Rebecca Clark, Group Sales Director, told Car Dealer that it did not agree with the figures.
She 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.’
Auto Trader has been rocked by complaints from car dealers over the past few weeks since moving dealers over to the product.
The protest gathered pace when Facebook groups called for dealers en masse to cancel their contracts.
Deal Builder lets consumers reserve cars on Auto Trader for £99. It will become mandatory for all dealers in the near future.
Its CEO, Nathan Coe, defended the roll-out of Deal Builder in a recent podcast episode with Car Dealer and said it would not be changing the timeline for the introduction of the product.
Additional reporting: James Baggott




























