7:46 am, January 17, 2023
Land Rover models made car dealers the largest profit margins in 2022, according to experts.
The Discovery 4, Range Rover Sport, Discovery Sport and Evoque were in the top four places of trade to trade website Dealer Auction’s list of used cars with the most profit in them.
The marketplace has released its annual ‘Retail Margin Monitor’ report which shows the Land Rover Discovery 4 in first place making car dealers an average of £4,340 profit.
The marketplace works out its list by monitoring what the cars sold for on its dealer-to-dealer platform and what the cars eventually retail for on Auto Trader.
It doesn’t account for any discounts or deals applied by the dealer in the showrooms, but gives a good guide to the margins available.
Land Rover dominated Dealer Auction’s monthly list all year in 2022 with the Discovery 4 achieving its highest profit margin in August when dealers were apparently making £5,100 on each car.
Land Rover was also top in the 2021 annual list with the Discovery 4 taking first place – back then dealers were making £3,060 profit on each car.
Biggest used car profit margins 2022 (models)
Source: Dealer Auction
- Land Rover Discovery 4 – £4,340
- Land Rover Discovery Sport – £3,770
- Range Rover Sport – £3,710
- Range Rover Evoque – £3,560
- Audi Q5 – £2,980
- Kia Sorento – £2,770
- Audi Q3 – £2,760
- Volvo XC60 – £2,720
- BMW X3 – £2,660
- Audi A5 – £2,640
Dealer Auction’s Kieran TeeBoon said: ‘We saw steadfast consistency in the top-selling models month-to-month in 2022, even outside of Land Rover. The Volvo XC60, for example, appeared in all but one top 10 listing last year.
‘In other areas of the table, we’re seeing premium brands continually trending high, but their most profitable models are changing. The BMW X5 that appeared in third place in 2021 did not rank at all in 2022.
‘However, we saw the appearance of the BMW X3 in ninth spot, indicating the importance of using available data to stay on top of trends.’
When it came to the most profitable car manufacturers for used car sales, Land Rover once again topped the list.
The second most profitable used car brand was Jaguar with Jeep in third.
Interestingly, these brands were also among the most unreliable used car makers last year.
Biggest used car profit margins 2022 (brands)
Average profit margin per manufacturer according to Dealer Auction
- Land Rover – £3,430
- Jaguar – £2,890
- Jeep – £2,790
- Subaru – £2,730
- Lexus – £2,710
- BMW – £2,530
- Mercedes – £2,450
- Audi – £2,440
- Mitsubishi – £2,360
- Volvo – £2,320
Dealer Auction partner Auto Trader helps provide the prices car dealers list the cars for sale on their platform to help generate the list.
Richard Walker, Data & Insight Director at Auto Trader, said: ‘Despite the economic and political turbulence over the last year, we have entered 2023 on a firm footing with both used car prices and demand remaining stable.
‘The increase in average retail margin between 2021 and 2022 shows the importance of placing data at the heart of decision-making processes and as we look to the year ahead, those who place emphasis on data driven decisions can feel confident about the robust margins available in 2023.’
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