Auto Trader has vowed to slash its prices in June as the Government allows car dealerships to open again.
The business, which sets up buyers and sellers of cars on an online marketplace, will offer customers a 25% discount.
Customers will be allowed to claim the money off for a month as they resume trading vehicles in June.
Prime Minister Boris Johnson revealed this week that car sellers were among the businesses that would be allowed to open in England again from the beginning of June.
Auto Trader chief executive Nathan Coe said: “This recent Government announcement is an important step forward for the automotive industry, and we will continue to support our customers as they resume trading.
“It is encouraging that both our marketplace data and our consumer research suggest healthy levels of demand.”
Last week the Society of Motor Manufacturers and Traders said keeping car showrooms closed was