11:32 am, February 10, 2023
Land Rovers dominated the list of new models making the best margins for dealers in January, new data has revealed.
Information for Dealer Auction’s Retail Margin Monitor found that 20 per cent of the top ten was made of up Land Rover derivatives.
The list was topped by the Discovery Sport, which made an average retail margin of £3,380, closely followed by the Range Rover Evoque, which made £3,080.
As an overall brand, Land Rover (including Range Rover) had an average retail margin of £3,200 in January. The figure represents an increase of £200 when compared to the same month in 2021.
Surprisingly, there was no room on the models list for the Volvo XC60 – despite it topping nearly every monthly countdown collated by Dealer Auctions’ in 2022.
It was replaced in the top ten by its stablemate – the XC90 – which had an average retail margin of £2,700.
The rest of the list was largely taken up by premium brands, although the budget Renault Kadjar did challenge the big boys by finishing 11th with an average margin of £2,360.
The full list can be seen below:
Kieran TeeBoon, Dealer Auction’s marketplace director, said: ‘The Renault Kadjar is a great example of the importance of looking for opportunities for profit from both the consistently high-ranking products and the underdog models.
‘Striking a balance between the two is key to generating high profits.’
At a brand level, Land Rover was followed by the likes of Lexus (£3,060); Jaguar (£2,610); BMW (£2,480) and Mercedes (£2,400).
TeeBoon added: ‘It’s interesting to note that the top three makes in January 2023 are the same top three listings we saw in data from January 2022, with the number one position filled by Land Rover, followed by Lexus in second and Jaguar in third.
‘This shows a level of confidence in profit-making vehicles, even amid some recent turbulence in the industry.’
Reacting to the findings, Richard Walker, insights director at Auto Trader, said: ‘Consumer interest in January 2023 was very robust, which, along with the ongoing constraints in supply, drove average retail prices up 2.7 per cent year-on-year.
‘Despite the negative economic and political backdrop, this marks the 34th month of consecutive price growth and the used car market remains in good health.
‘There is still significant potential for profit, as the Retail Margin Monitor highlights, for those retailers who stay close to the data.’
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