AutoTrader sets its sights on new-car listings.

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Author: Sawyers, Arlena

AutoTrader.com is going to offer new cars on its Web site.

Open to franchise dealers who list their used-car inventory on the site, the change will occur in February or March.

AutoTrader.com CEO Chip Perry said the addition of new vehicles to what has been exclusively a used-vehicle Web site makes sense because many consumers searching for used vehicles also may be interested in new ones.

Perry said the site's new-car feature will enable consumers to search multiple dealers' inventory for the exact new vehicle they want, including specific trim levels. At the same time, the site will match dealers with consumers who are ready to purchase a new car or truck.

"We are the biggest used-car matchmakers in the industry -- the most buyers and the most sellers," Perry said. "We think we have a chance to become the biggest new-car matchmaker.

"We're not changing the definition of our company. We're always going to be about used cars."

AutoTrader.com has a database of 1.5 million used-car listings from almost 40,000 dealers and 250,000 private owners. Perry said the company will not take the new-car feature live until there are 200,000 to 300,000 new vehicles listed in the database.

The company makes its money by selling links and advertising on its Web site.

Under AutoTrader.com's new- and used-car models, dealers pay nothing for basic vehicle listings such as make, model, price, mileage and color. Dealers who advertise "featured listings" pay extra for things such as links, color stripes and logos.

About 6,000 dealers pay for used-vehicle advertising. Dealers who pay for advertising pay an average of $550 a month.

Perry said he believes "several thousand" dealers will sign up for paid new-car advertising by year-end. He said the company will offer feature listings to dealers free for the first several weeks. New-car advertising prices have not been determined.

The company plans to demonstrate the new feature and sign up dealers at its booth at the National Automobile Dealers Association convention in Las Vegas Feb. 3-6.

Manheim Auctions Inc. and parent company Cox Enterprises of Atlanta own AutoTrader.com. Other investors are: Dealer Services Group of Automatic Data Processing Inc. of Hoffman Estates, Ill.; Landmark Communications Inc. of Norfolk, Va.; Trader Publishing Inc. of Norfolk, Va.; Kleiner, Perkins, Caufield & Byers of Menlo Park, Calif.; and eBay Inc. of San Jose, Calif.

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By Arlena Sawyers, Staff Reporter