VW questions Auto Trader
October 15th, 2011 by James Baggott
VOLKSWAGEN is quizzing all its dealers on what it thinks about Auto Trader’s price rises.
In a document sent to its entire retail network – and leaked to Car Dealer Magazine – the manufacturer asks its dealers their thoughts on the classified site’s proposed price increases.
An insider at a VW franchise said: ‘VW has asked dealers for feedback on the situation. I wonder if they’re looking for sufficient backing from their franchisees to pull all Auto Trader advertising?
‘Our cars get automatically loaded onto Auto Trader’s website and they filter the enquiries back to us.’
The Volkswagen bulletin explains the proposed increase is around 25 per cent and that if they cannot back the rise dealers would be forced to negotiate their own rates for advertising with the site – which could be considerably more.
The email to VW dealers says: ‘In August, Auto Trader presented to the used car departments of Volkswagen, Audi, Seat and Skoda, claiming that significant increases in unique visitors to their site in recent years outstripped the proposed price increase.
‘We have been negotiating with Auto Trader about the proposed increase and, before we agree to endorse the new rates, we’ll be seeking your opinion on this matter to ensure our response reflects the opinion of the whole network.
‘Auto Trader said that even after the proposed increase, their cost per view would still be cheaper than it has ever been.’
The email claims that VW pays the lowest group rate for its advertising of ‘any car manufacturer’ in the UK. The document contains the current rates the VW Group pays, but Car Dealer has chosen not to publish them.
The bulletin added: ‘We will seek your opinion on Auto Trader’s proposed price increase in the next few weeks. We want to ensure that our response reflects the opinions of the whole network.’
Auto Trader sparked anger among the dealer community recently when it increased its advertising costs at a time dealers were struggling.
Our columnist James Litton has been extremely vocal about the rises in his pieces for Car Dealer magazine and there is a growing feeling of unrest among dealers currently using the advertising portal.
What do you think? Let us know your thoughts about the price rises by commenting below or tweeting the editor.
Tags: auto trader, James Litton, Volkswagen
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October 15th, 2011 at 2:56 am
That’s very interesting, as times are tough we’re all looking at return on investment and what brings us actual results. Autotrader is as we all must admit the number one place that customers search first, but unless if you’re the cheapest or have something unusual most cars don’t really get spotted or seen. I have a feeling that if Autotrader lose Volkswagen / dealers then many other manufacturers might start to look at their advertising /spend on Autotrader. We’ll all keep watching ‘this space’
Umesh Samani
Specialist Cars -Stoke
October 15th, 2011 at 8:24 am
I’m going to forward this to all of the Sunday newspaper Motoring Editors. This price fixing in every sense and tantamount to illegal.
October 15th, 2011 at 9:24 pm
It Seems a calender month doesnt go by with out a price hike from the good folk at Autotrader and its leaving a bad taste in our mouths. Autotraders Bullish attitude to pricing has led to dealers big & small looking for viable alternatives, and although it doesnt have the same 10million a month users, e-bay motors seems to be a growing choice. I took up a free trial and was surprised with the results, more photos, better presentations and in my opinion far better value for money. Autotrader seem to take us for granted and to add salt to the wound have just increased their recently purchased Autotrade-mail monthly subscription for good measure.