The deal marks the first time the motor retailer's search offering has been integrated into a third-party site.
AltaVista UK (www.uk.altavista.com) will host the co-branded section within its existing motoring channel, which already offers used-car search from Fish4cars and Autotrader.co.uk.
AltaVista UK will receive a fixed tenancy fee, while the motor retailer will receive 'powered by Virgin Cars' branding within the section.
A spokesman for AltaVista UK said the site intends to expand the number of new-car providers within the section and is in talks with parties including jamjar.
com, the car-buying joint venture between insurance firm Direct Line and motor retail giant Dixon Motors.
Ian Carrington, strategic account manager at AltaVista UK, said: "Our consumers wanted new-car fulfilment, not just second-hand availability.
We are looking to add other players, but it will take time for the section to grow in popularity."
Media agency Manning Gottlieb OMD brokered the deal, which will run for an initial three-month trial period.
AltaVista UK is also planning to launch paid-for advertising products relating to car sales, such as keywords and banners, on a cost-per-thousand basis.
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