Auto Trader has reported a larger-than-expected fall in the number of used car dealers using its apps and websites.

It said that the number of dealerships using its web and app services had dropped by two per cent from the previous year to 13,926. However, its average forecourt revenues went up by £162 per month to £1,546.

A reason that the number of dealerships using its website has gone down could be due to the fact that people are using other platforms, such as eBay and Shpock, to sell their own used cars. Dealerships as well, such as Hyundai for example, are now selling and delivering directly to the public.

In the year to 31 March 2017 the overall sales rose nine per cent to £311.4million, which beat the consensus analyst forecast by £1.4million.

Meanwhile, pre-tax profits were up 23 per cent to £193.4million this year; in 2016 they were at £155million.

Auto Trader CEO Trevor Matthew said: "We have delivered another year of strong growth. With consumers spending more than double the time researching their next car online than they do offline, we have strived to create greater transparency and therefore trust in our marketplace, benefitting consumers, retailers, and manufacturers alike.

"This in turn continues to increase the value we deliver.

"After a number of years of near uninterrupted growth, and despite the exceptionally high performing first quarter of the calendar year, the industry now expects new car registrations to plateau or decline but continues to anticipate growth in used car transaction volumes.

"The new financial year has started well, and despite the wider political and economic uncertainty, the Board is confident of delivering its growth expectations for the coming year.

We remain focused on enhancing the value of our marketplace and continuously improving the products and services we offer for consumers, retailers and manufacturers."

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