Auto Trader Faces Revenue Challenges Despite Record Used Car Sales

The surge in used car sales has not translated into increased revenue for Auto Trader due to its advertising model.

Auto Trader reported an 8% increase in revenue to £302.5 million for the half-year, but shares fell over 7%.
The company's advertising model, which charges a flat rate, has not benefited from the faster sale of used cars.
A recent court ruling requiring motor finance companies to disclose commissions could impact Auto Trader's Autorama brokerage.
The new car market remains difficult, with sales down 10% year-on-year, despite increased discounts.
Battery electric vehicle sales on the platform rose to 18%, still below the government's 2024 target of 22%.