Auto Trader announces Autorama acquisition
Auto Trader has agreed to acquire the share capital of Autorama, one of the UK’s largest transactional marketplaces for leasing new vehicles.
Autorama has become one of the leading platforms for aggregating leasing deals from multiple funders and OEMs under its Vanarama brand, which has successfully sold over 120,000 vehicles to date.
Combined with Auto Trader, this presents clear opportunities to expand these partnerships, and to create new ones.
The acquisition will transform Auto Trader’s existing leasing proposition and help to meet the demands of the growing number of consumers who might consider leasing their next new vehicle. In turn, it will enable Vanarama to accelerate its recent expansion beyond light commercial vehicles into cars by accessing Auto Trader’s brand.
There is a large structural opportunity for a new car leasing marketplace driven by the growth in electric vehicles, new manufacturers entering the UK market, lower take up of company car schemes and a shift towards new digital distribution models. Leasing provides consumers a cost-effective way to access a new car with a model that is consistent with any future move toward usership.
Nathan Coe, chief executive officer of Auto Trader, said: “To ensure we have the greatest choice of cars to buy online, we could not ignore the growing demand for leasing deals. In Vanarama, we have found an industry leading leasing platform that delivers a great consumer experience and significant sales for its partners. This acquisition will strengthen our existing leasing business and will enable us to offer both the biggest choice of vehicles and a seamless digital experience from search to sale. I am delighted to be welcoming Andy and his team to the Group.”
