The U.K. subsidiary of Germany-based HeyCar is to take over the running of RAC Cars’ used car marketplace in a five-year deal.

The RAC Cars website will be relaunched in June to provide customers with a more modern, digital and intuitive car buying experience, according to the companies.

The new site has been developed in line with RAC brand guidelines but is expected to gain features from HeyCar.

Mark Adcock, head of brand licensing at the RAC, said: “RAC Cars is one of the most important products in our digital portfolio, so we are very pleased to be partnering with HeyCar to take it to the next level. They are one of the most innovative and forward-thinking companies in the used car marketplace and their newly developed platform will provide great car-buying solutions for customers, helping them buy the right car for them.”

Alex Grime, chief of staff at HeyCar, added: “We’re delighted to be partnering with the RAC, one of the most trusted and loved brands in the U.K. With our all-new platform, we will be providing a compelling level of vehicle choice and a modern car buying experience for consumers, while for our automotive retailers, the RAC Cars site will help extend the reach of their vehicles to a high-quality audience of in-market car buyers.”

The new-look site is expected to re-energize RAC Approved Dealer, its 1,400-strong retailer group operated by aftersales partner Assurant, which provides warranty and cosmetic insurance products.

Lee Coomber, RAC director at Assurant — which operates RAC Approved Dealer, its 1,400-strong retailer group — said: “Many of our dealers make extensive use of RAC Cars to advertise their cars, and it is a core part of our proposition. This deal with HeyCar will provide them with a new and attractive route to market.”

Revenue at HeyCar’s U.K. business, Mobility Trader U.K. Ltd., rose by 27.3% year on year to £7.6 million ($9.6 million U.S.) in 2022. However, its EBITDA loss increased by 28.3% to £30.3 million — pushing its EBITDA margin close to -400%.

In April 2024, it was announced that Allianz X, the venture capital arm of Allianz, Europe’s largest insurer, had sold its remaining 6.9% stake in HeyCar to Volkswagen. Mercedes-Benz has also exited the company. Founded in 2017, HeyCar is owned by Mobility Trader Holding GmbH, whose largest shareholder is Volkswagen Financial Services.

The post-pandemic era has been tough for HeyCar. The brand has gone through several rounds of layoffs, and it pulled out of the Spanish market last year.

HeyCar remains outside the top three automotive marketplaces in the UK. Its partnership with RAC Cars comes after Cazoo — another digital auto retailer — announced that it was pivoting its business model to a used car marketplace.

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