Autotrademail.com has enetred into a pricing war with its competitor Autotradebids.co.uk.
Both companies target motor dealers with their online, trade-only environments for buying and selling cars.
Following a rise in membership fees by Autotrademail.com, its rival has got rid of its own membership of £35. It claims it is now the UK’s first free online trade portal.
It is also offering a variety of incentives to encourage dealers to move to its service.
Managing director of Autotradebids Paul Fisher said: "What we are seeing here is the motor trader being squeezed...It is not just a case that motor traders belong to large organisations where the recent price hike is perhaps an irritant, there are many more are who are sole traders or small family businesses where every penny counts."