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Hatchbacks shone in January and generated top margins for used car dealers

  • Renault Clio was provided best profit margin for sub-£10k cars, says Dealer Auction
  • Compact cars vied with SUVs for top profit generators
  • BMW led brands in sub-£10k, and Land Rover in over-£10k

Time 8:45 am, February 12, 2026

Traditional hatchbacks vied with fashionable SUVs as the cars that provided top profits for used car dealers in January, latest data reveals.

New figures from Dealer Auction show the petrol-powered Renault Clio was the top performer in the sub-£10,000 retail bracket last month, with an average retail margin of over £2,300.

Other hatchbacks also scored well for dealers’ profit margins too, with the diesel BMW 1 Series, petrol Peugeot 208 and petrol Citroen C3 all being ranked in the top 10. The 1 Series and 208 were also new entries to the list, showing the rise of the compact car type.

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SUVs still performed well for dealers, however, with the rest of the top-10 chart being led by the body-style. Last year’s top-profit performer, the Peugeot 2008, secured fourth place in January’s chart. The full list is below.

The Land Rover Discovery Sport, Hyundai Tucson and Volkswagen Tiguan ruled the over-£10,000 bracket, with the Discovery Sport being the top performer with an average margin of £3,990.

Dealer Auction’s new ‘Best Buy’ metric identified the MG ZS as the top hidden gem in the sub-£10,000 retail bracket for January 2026, while the Nissan Leaf was ‘one to watch’, said the firm.

Meanwhile, for brands, BMW took the crown in the top 10 makes for models with a retail value of under £10,000, followed by Mercedes-Benz and Volvo.

Land Rover dropped out of the chart, having topped it for the past six months – although it still commanded the premium retail segment, retaining the top spot of the over-£10,000 chart for the 13th consecutive month, said Dealer Auction.

Dealer Auction’s marketplace director, Kieran TeeBoon, said: ‘After spending months in the shadow of SUVs, hatchbacks are back! Their profit performance will be food for thought for dealers, as competition for quality stock intensifies. It certainly shows how fast today’s market is moving – dealers can’t just rely on last year’s top performers!’

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Dealer Auction revealed it has had a good start the year, with the firm recording its highest monthly total retail value of vehicles sold, at £46m, last month.

Autotrader recently told Car Dealer that the used car marker has also enjoyed a strong start to the year. But challenges are ahead as five- and six-year-old cars are about to see a drop of between 25% and 30% this year. You can find out more by watching the video at the top of this story.

The resulting gaps will force dealers to move out of their comfort zones and rethink stock age, fuel type and models, says TeeBoon.

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He concluded: ‘With so many different forces at play, it’s no time to be complacent. Dealers – particularly independents who build their business on second and third-owner vehicles – are having to use all their experience and knowledge, as well as the data that’s available to them, to embrace these evolving market dynamics.’

Top 10 models by retail margin (retailing at under £10,000)

1. Renault Clio (Petrol)

  • Average retail margin: £2,375
  • Average Autotrader days to sell: 34
  • Average Autotrader Retail Rating: 80

2. Volvo XC60 (Diesel)


  • Average retail margin: £2,325
  • Days to sell: 36
  • Retail Rating: 77

3. BMW 1 Series (Diesel)

  • Average retail margin: £2,250
  • Days to sell: 31
  • Retail Rating: 81

4. Peugeot 3008 (Diesel)

  • Average retail margin: £2,150
  • Days to sell: 36
  • Retail Rating: 77

5. Citroen C3 (Petrol)

  • Average retail margin: £2,125
  • Days to sell: 41
  • Retail Rating: 71

6. Nissan Qashqai (Petrol)

  • Average retail margin: £2,000
  • Days to sell: 26
  • Retail Rating: 92

7. Kia Sportage (Diesel)

  • Average retail margin: £1,975
  • Days to sell: 36
  • Retail Rating: 80

8. BMW 3 Series (Diesel)

  • Average retail margin: £1,960
  • Days to sell: 36
  • Retail Rating: 70

9. Peugeot 208 (Petrol)

  • Average retail margin: £1,950
  • Days to sell: 29
  • Retail Rating: 88

10. Ford Kuga (Diesel)

  • Average retail margin: £1,925
  • Days to sell: 34
  • Retail Rating: 82

Top 10 makes by retail margin (retailing at under £10,000)

1. BMW – £2,300

2. Mercedes-Benz – £2,295

3. Volvo – £2,050

4. Citroen – £2,025

5. Audi – £2,000

6. Renault – £1,975

7. Peugeot – £1,950

8. Mini – £1,945

9. Mazda – £1,875

10. Skoda – £1,850

James Batchelor's avatar

James – or Batch as he’s known – started at Car Dealer in 2010, first as the work experience boy, eventually becoming editor in 2013. He worked for Auto Express as editor-at-large from 2014 and was the face of Carbuyer’s YouTube reviews. In 2020, he went freelance and now writes for a number of national titles and contributes regularly to Car Dealer. In October 2021 he became Car Dealer's associate editor.



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