Autofile July 2017

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The TrusTed voice of The auTo indusTry for more Than 30 years

www.autofile.co.nz

July 2017

Trade Me seeks to acquire Motorcentral Trade Me has entered into a conditional agreement to purchase cloud-based dealer platform Motorcentral, pending Commerce Commission approval.

M

otorcentral, which has its head office in Christchurch, offers a Dealer Management System (DMS) that allows users to track vehicle stock and sales online, and automatically send vehicle listings to retail websites such as Trade Me Motors, Driven and Autotrader. The cloud-based software means users can access their database from any digital device as long as it is connected to the internet. Motorcentral has also developed other products for dealers, including AdConnect and a new BuyerScore ratings system. There are 505 dealers across New Zealand that use their DMS. Motorcentral director Mena Eskander told Autofile that today’s market is vastly different to when the company first started out. “Six years ago, we had a lot of

used car dealers who were less comfortable with computers, had less hardware, and didn’t have very fast internet,” he said. “Technology didn’t have a strong presence in dealerships.” Head of Trade Me Motors Alan Clark said Motorcentral is a great business. “We think they’re a really well-run team,” he told Autofile. “They understand very very closely the needs of dealers.

They’ve built great software which has a fantastic amount of functionality.” Clark said the relationship between his company and Motorcentral has been ongoing for long time, and “for around six years, they’ve been an important

part of dealers being able to list on Trade Me.” With more and more buyers purchasing vehicles online, Eskander noted it’s important that independent dealers keep up with the market. “Dealers need to move as fast as their buyers are moving, and buyers are moving very fast,” he said. “You do not have a choice, as a dealer, of deciding what the landscape looks like. All you need to do is to keep an eye on the landscape and be where your customers are.” As a successful start-up in a competitive retail industry, Eskander said that Motorcentral has been approached in the past, but it was with Trade Me that he felt satisfied an acquisition would positively impact the key sectors of the business – current stakeholders at Motorcentral,

Specialised training that’s proven to increase profits VIA function heralds industry future p 4

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