9:15 am, February 9, 2024
Honda made the top 10 brands list of Dealer Auction’s Retail Margin Monitor last month for the first time since the monitor was launched in January 2022.
Its average retail margin of £2,245 saw the Japanese marque secure tenth place in the table.
Land Rover boasted the highest margin at £4,300 – more than £1,000 above second-placed BMW (£3,100).
Meanwhile, Volvo was third (£3,025), followed closely by Mercedes-Benz (£3,020).
Top 10 makes by average retail margin
- Land Rover – £4,300
- BMW – £3,100
- Volvo – £3,025
- Mercedes-Benz – £3,020
- Audi – £2,675
- Mini – £2,475
- Mazda – £2,375
- Kia – £2,275
- Nissan – £2,250
- Honda – £2,245
Source: Dealer Auction
Kieran TeeBoon, marketplace director at the automotive digital wholesale marketplace, told Car Dealer: ‘The arrival of Honda in the top 10 for the first time says all we need to know about the used market right now – expect the unexpected!
‘We’ve seen a number of marques enter the list for the first time over the past few months, and more mainstream brands overtake their premium rivals.
‘Following the data is the best way to stay on top on these many movements.’
At model level, the Land Rover Discovery Sport topped the charts again, with an average retail margin of £4,825, followed by the Volvo XC90 (£4,600) and Range Rover Evoque (£4,275).
January 2024 also saw more diversity, with the Nissan X-Trail and Skoda Superb claiming ninth and tenth spots, respectively.
The X-Trail hasn’t been seen in the monitor since May 2023, while the Superb last appeared in 2022.
Top 10 models by average retail margin
1) Land Rover Discovery Sport
Average retail margin: £4,825
Average Auto Trader days to sell: 39
Average Auto Trader Retail Rating: 76
2) Volvo XC90
Average retail margin: £4,600
Average Auto Trader days to sell: 47
Average Auto Trader Retail Rating: 53
3) Land Rover Range Rover Evoque
Average retail margin: £4,275
Average Auto Trader days to sell: 47
Average Auto Trader Retail Rating: 59
4) BMW 5 Series
Average retail margin: £3,400
Average Auto Trader days to sell: 53
Average Auto Trader Retail Rating: 44
5) Mercedes-Benz C-Class
Average retail margin: £3,150
Average Auto Trader days to sell: 49
Average Auto Trader Retail Rating: 51
6) Mitsubishi Outlander
Average retail margin: £3,050
Average Auto Trader days to sell: 37
Average Auto Trader Retail Rating: 72
7) Volvo XC60
Average retail margin: £3,040
Average Auto Trader days to sell: 48
Average Auto Trader Retail Rating: 55
8) Mazda CX-5
Average retail margin: £3,025
Average Auto Trader days to sell: 38
Average Auto Trader Retail Rating: 77
9) Nissan X-Trail
Average retail margin: £3,020
Average Auto Trader days to sell: 45
Average Auto Trader Retail Rating: 67
10) Skoda Superb
Average retail margin: £2,900
Average Auto Trader days to sell: 49
Average Auto Trader Retail Rating: 59
Source: Dealer Auction
Another model that delivered strong returns was the sixth-placed Mitsubishi Outlander, with an average retail margin of £3,050. It was also the fastest seller in the top 10 and ranked with the highest average Auto Trader Retail Rating.
Noticeably absent, though, were electric models, with speculation that ambitious government-mandated sales targets have triggered aggressive price reductions on new EVs – in turn pushing down used residual values on used electric models.
TeeBoon added: ‘It’s interesting to see these trends within the top 10 itself. The performance of the Outlander certainly makes it one to watch!
‘While the market remains in a transitional period, it’s important that dealers don’t look back and instead embrace evolving market dynamics, using all the available data at their disposal.
‘A more affordable used EV supply isn’t necessarily a bad thing for the industry as for some consumers they will present a more viable alternative to brand-new models.
‘It simply means dealers need to be more savvy about where they seek those higher profit margins – and diversify their stock accordingly.’
Richard Walker, director of data and insights at Auto Trader, said: ‘The diverse range of vehicles in the Retail Margin Monitor showcase the many opportunities available to retailers right now.
‘The number of visits to our marketplace reached an all-time high of over 85 million in January, which highlights how robust current consumer demand is.
‘Given such positive market fundamentals, it’s disappointing to still see stock being priced under true market value, particularly of what we would call the best of the best.
‘By not applying a retail-back approach to pricing, retailers are at risk of selling themselves short and missing out on significant profit opportunities.’
