Auto Trader is further expanding its work in the leasing sector with a deal to acquire Vanarama’s parent firm Autorama.
Vanarama is one of the UK’s largest vehicle leasing platforms and has sold over 120,000 vehicles to date.
The new agreement, which is subject to regulatory approval, will transform Auto Trader’s existing leasing proposition while also enabling Vanarama to accelerate its recent expansion from LCVs into cars by accessing Auto Trader’s brand.
The growth in electric vehicles, arrival of new manufacturers in the UK market, expansion of private leasing and shift towards new digital distribution models also provide significant opportunities.
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.”
Andy Alderson, chief executive officer at Vanarama, added: “Over the last few years we have invested significantly in our technical capability to help our partners respond to consumer demand for a digital buying experience. We are hugely excited about the prospect of being able to accelerate our growth plans and deliver even more value to our partners as part of the Auto Trader Group.”
Completion of the transaction is subject to market clearance.
