1:01 pm, May 29, 2025
Auto Trader’s Catherine Faiers has justified the group’s £375.7m annual profits in a wide ranging interview with Car Dealer.
The marketplace’s chief operating officer took questions on the group’s results which showed a rise in revenue to £601m.
The number of dealers using the platform also rose to 14,013 – up two per cent on the previous year.
Here’s what she had to say in full.
Q: Catherine, another big leap in profits this year. That follows an 8% rise in prices for dealers’ advertising packages. Some dealers might say you’re squeezing them too hard – what would you say to that?
We always try to balance the products we’re bringing to market, the investment we’re delivering in marketing and in talent to keep building these products with the value that we’re delivering for retailers, and to get that balance right. And it’s always a judgment call over time. We always try to do that in a responsible way with a very long-term view on the partnership that we want to build with our retailers. If we keep investing, keep innovating, keep driving product growth, then it’s right for us to capture the value we’re delivering.
Q: But each year Auto Trader needs to push those prices up to grow profits. At the same time, dealers face rising overheads and squeezed margins. Some tell me they feel like you’ve got them over a barrel.
We definitely don’t have anyone over a barrel. We’re a marketplace – it’s a choice that resellers have about whether to partner with us or not. And we’ve got more retailers partnering with us this year than we had last year. We never put through a price rise without delivering value, whether that value be through more buyers, more engagement, more audience on our platform, or through the data, the products, the technology.
Q: Still, dealer margins are under real pressure. Meanwhile, Auto Trader’s profits are going up. Do you think there’s a disconnect?
We’re not running a car dealership – we’re running an online marketplace. If you look at peer groups in other categories, they are consistently driving audience growth, buyer engagement, delivering innovative products. Retailer profits in the last 12 to 18 months have been under more pressure. But margin data suggests it’s been a return to profitability we saw before COVID, not a collapse, but a reversion to historical norms.
Q: What was the thinking behind the stock boost offer? Some dealers thought it was designed to soften the blow of price increases.
We could see, through data and retailer feedback, that there was stock in the market not advertised on Auto Trader. It felt right to structure an opportunity to surface that stock, see how it would perform, and ultimately deliver sales. Then retailers can convert that stock as it performs.
Q: Have many dealers stuck with the higher stock levels post-boost?
Over the coming weeks, the boost is converting into units. We’re in the process of converting that stock.
Q: You’ve added AI tools to dealer packages. Some dealers say they didn’t ask for this and would’ve preferred it as a paid add-on. What would you say to them?
We spent a lot of time in market with retailers before launching, to understand what was already out there and what pain points existed. There were challenges and time invested that didn’t need to be. If we could bring some of our data and tech to solve that, it made sense. We’ve tried to strike the right balance, letting retailers remain in control, while automating or streamlining where it helps. And there’s loads more we can do.
Q: Some dealers in WhatsApp groups are saying they’ve downgraded their Auto Trader packages due to price hikes. Are you worried about that?
We’re not seeing that at any macro level in our data. We’re seeing good stock levels and a consistent package mix. And, I wouldn’t believe everything said in WhatsApp groups is actually what’s done! Of course I worry, we’re never complacent. But today, we’re not seeing big movements in stock or packages.
Q: There’s growing chatter about competition for Auto Trader — Google Vehicle Ads, and other marketplaces are working hard on growing. Are you concerned?
All competition is good competition. It keeps everyone focused and innovating. Whether it’s Google, Amazon, AI tools or other marketplaces, we always prioritise our relationship with consumers and our brand. That, alongside our proprietary data and tech, is what differentiates Auto Trader. No one else has our observation data, our taxonomy, or our platform intelligence.
Q: One dealer asked why their logos have been removed from search listings. Why was that decision made?
They’re still on the product page. But in search, testing showed that logos weren’t adding to the consumer experience. Shoppers focus on car images, price and spec at that stage. We deliberately show what’s most useful in search – and highlight the retailer’s value proposition more fully on the product page, where it has greater impact.
Q: Another recurring complaint is about your price flags. Dealers say they don’t reflect prep standards or reputation and that higher-quality cars from top dealers are still labelled ‘fair’ or ‘high’.
Our indicators are price indicators, not always value indicators. The difference is important as value is subjective. We do surface reputation factors on the product page: Reviews, warranty status, approved schemes. But turning prep or service levels into data science inputs is hard. We’re still learning how to best showcase that and I encourage any dealer with questions to reach out. We’re always happy to talk.
Q: Some users say their local search results are showing cars from far away, possibly because other dealers are on higher packages. Is that the case?
Our search is driven by a relevance algorithm and we’re always balancing consumer needs with retailers who want to boost exposure. The experience has to be relevant or consumers won’t return. Our market extension product, which allows for wider-area promotion, has actually been flat or down in recent years. So we’re not seeing more conquest activity. Most stock remains local and relevant to the user’s search.
Q: Finally, what would you like to say to dealers reading your results today?
We’re always working, investing and innovating to deliver value. We’ve got more partners this year, more car buyers on the platform. When both sides of the marketplace grow, that underpins our performance. If we can’t keep doing a good job for buyers or retailers, that’ll show in our results — but that’s always our focus: delivering value.
