RAC Cars is dropping its free to list advertising model for dealers for its online classified.

[GreenGiant 287]

As reported in Motor Trader today:

RAC Cars is dropping its free to list advertising model for dealers for its online classified.

It is joining the the Motors.co.uk network in May to join Parkers, Sunday Times Driving, Motoring.co.uk and Carsite on the motors.co.uk network.

Dealers will be able to access both brands’ consumers via a single Motors.co.uk stock feed and pay a monthly tenancy fee.

RAC launched its free advertising model with claims that it would become market leader by close of 2015 with 500,000 cars listed, overtaking Auto Trader. There are currently 327,500 cars listed on the  website.

RAC Motoring Services managing director Robert Diamond said the joining Motors would give RAC Cars a broader customer base.

“We wanted to engage with the whole of the UK car buyers and not just RAC customers,” he told Motor Trader.

Dealers will sign up to the Motors, co.uk website for the first 90 days free of charge and after that pay a monthly tenancy fee to appear on Motors and other sites.

Diamond said the free RAC model had failed to raise enough money

“It [The free model] worked in that lots of dealers signed up and out stock volumes increased significantly. What was trickier was it did not raise enough revenues to support pay per click advertising,” he said.

Now, together, the two businesses’ combined advertised stock increases to over 400,000 cars from more than 8,000 dealers, with audiences of 4.2m across the Motors.co.uk Network.

A new RAC Cars website will be launched in May, with enhanced functionality and an improved user journey.

RAC Cars promoted itself as “the motorist’s champion” which had “waived the fees for both private sellers and dealers in response to demands for an alternative to existing used car websites that charge high advertising rates.”

Phill Jones, managing director of Motors.co.uk, said: “In RAC Cars, we have a partner that shares our passion for becoming a trusted matchmaker for automotive buyers and sellers.

“This is great news for both car dealers and prospective buyers. It will provide dealers with access to a larger audience of in-market car buyers through a single relationship, while consumers will benefit from a greater choice of vehicles and the reassurance of RAC’s compelling consumer products. It also underlines Cox Automotive’s ongoing investment in Motors.co.uk to be the trusted advertising partner to the automotive industry.”

 

As has been mentioned elsewhere, this was pushed out to the Trade as Free. For Life. So what happened? Other than the usual, I suspect, bit of corporate greed, the truth lies within the article:

>>Diamond said the free RAC model had failed to raise enough money; “It [The free model] worked in that lots of dealers signed up and our stock volumes increased significantly. What was trickier was it did not raise enough revenues to support pay per click advertising,”<<

No sh*t, Sherlock.

Give it away for free and then wonder why the cash isn't rolling in. Cracking business model, that.

>>"It also underlines Cox Automotive’s ongoing investment in Motors.co.uk to be the trusted advertising partner to the automotive industry.”<<

No it doesn't. RAC told us it was free, and soon it won't be. Nothing trustworthy there, is there?

 

Edited April 11, 2016 by GreenGiant

[Gavin@Rousdon 137]

If your going to take on Autotrader by offering a 'Free' site you need to be in it for the long run. 10 years and someone may make difference !!!

[Phil H 124]

I suspect that by offering it for free they thought they would make their revenue from selling lots of inspection's and warranty's etc but didn't bank on us dealers having loyalty to some of our existing suppliers. I was talking about this the other day and we wondered how long it will take for wbac to be replaced by wwac or m4ym as the preferred vehicle valuation partner on the rac website? My monies on 3 weeks max

[Wood235 36]

No real loss to us as we have done nothing from this in the months we have our stock on there!

[Rory RSC 596]

Not brought in a single lead that I am aware of.

[James Bush 95]

2 leads, 2 sale in 8 months.....

[Beautiful South Martin 24]

I had a visit from the motors.co.uk rep yesterday asking if I had heard about the RAC joining them, so I would expect a visit if you are with the RAC. I actually sold my first car off RAC last week after 12 months of zero enquires. Never been on motors before but offering a 3 month deal, then can cancel if not happy, for £97 a month for 10 cars so thought I would give it ago, like a lot of people on here I stopped using autotrader regularly 12 months+ ago.

 

[Rory RSC 596]

Motors brings in no where near the leads of Autotrader for us. 

[Daylight 28]

RAC has given me 1 lead total in 9 months, utter rubbish. I still post the adverts, as it's free so it can't hurt for a 2 minute copy & paste from AT ads.

I really think RAC thought the traffic would be organic because of who they are, people side stepping from breakdown policy searches etc. Or possibly they thought the PPC revenue would allow them to pay to advertise more widely (TV etc) to promote further growth. Either way this has clearly failed.

I feel the same as GG in that they promised us down-trodden dealers a ray of light that we might actually get some valued exposure for zero outlay but they didn't make their money so let this just get eaten up by another corporate machine. I will try Motors 90 day trial and see how we fair, if it doesn't reap rewards I'll just be left with a voodoo doll wearing an RAC crest to show for it all ...

[Wood235 36]

What's the 90 day trial deal? Is it for new customers?  We did a yr with motors and wasted some money, on the plus side only wasted just over half as much we wasted with AT per month though!

[justina3 518]

motors ? offering a tier deal for qty stock first i have heard of that when i asked the telesales rep last time we spoke he flat out said this isnt an option