8:28 am, December 11, 2024
Land Rover was once again the most profitable brand for used car dealers in November with the company and its models continuing to offer huge retail margins.
That is according to the Dealer Auction’s latest Retail Margin Monitor, which has shown that, on average, dealers made a profit of £3,825 on every Land Rover sold.
It marks the 21st consecutive month that the British marque has topped the list, having first taken the crown in March 2023.
Of the brand’s models, the Discovery Sport was the most profitable, with an average retail margin of £3,525. That was followed by the Range Rover Evoque, which had an average of £3,475 in November.
The cars, which were the top two most profitable models among all brands, took an average of 87 and 79 days to sell throughout the 11th month of the year.
While no brands have yet to challenge Land Rover’s dominance, the list of its closest competitors was dominated by premium brands in November.
In second place was BMW (£2,650), followed by Mercedes-Benz in third (£2,625). Audi’s performance stayed strong at fourth place with an average retail margin of £2,550 – signalling increasing competitiveness in the premium segment and hinting at potential shifts in the top 10.
Meanwhile, Hyundai (£2,175) snuck into the top 10 for the first time, ending the month behind Renault, which returned to the list for the first time since this time last year, with an average retail margin of £2,300.
Elsewhere, a healthy average retail margin of £2,400 moved Peugeot up from its October tenth spot to sixth in the ranking.
Dealer Auction calculates all average profit margins based on extensive pricing data from Auto Trader.
Reacting to the results, Kieran TeeBoon, marketplace director at Dealer Auction, said: ‘It is clear that both premium and mainstream brands are yielding strong profits.
‘While Hyundai gets the headline, Peugeot and Renault’s impressive showing certainly warrants attention, with a comparatively strong demand in the mainstream sphere.
‘This signals strengthening confidence and market resilience supporting Auto Trader’s predictions for 2025.’
Most profitable brands for used car dealers
- Land Rover – £3,825
- BMW – £2,650
- Mercedes-Benz – £2,625
- Audi – £2,550
- Mini – £2,475
- Peugeot – £2,40
- Volkswagen – £2,325
- Volvo – £2,325
- Renault – £2,300
- Hyundai – £2,175
At model level, Discovery Sport and Evoque left the competition trailing in their wake, with the pair’s nearest rival – the Mercedes C-Class – ending the month with an average retail margin of £2,750.
The rest of the list consisted largely of mainstream, volume models including the Peugeot 3008 (£2,675); Mazda CX-5 (£2,625) and Hyundai Tuscon (£2,600).
The Ford Kuga performed particularly well, appearing for the first time since December 2023 and taking seventh spot, with an average retail margin of £2,625.
Most profitable models for used car dealers
- Land Rover Discovery Sport – £3,525
- Range Rover Evoque – £3,475
- Mercedes-Benz C-Class – £2,750
- BMW 3 Series – £2,750
- Peugeot 3008 – £2,675
- Mazda CX-5 – £2,625
- Ford Kuga – £2,625
- Hyundai Tucson – £2,600
- Nissan Juke – £2,425
- Mercedes-Benz A-Class – £2,400
TeeBoon added: ‘November provided a compelling narrative, with plenty of movers and shakers in the premium and mainstream spheres. The numbers reinforce our long-held belief that data backs up dealers’ instincts, giving deeper context for your stock decisions.
‘There’s plenty to digest ahead of our 2024 round-up next month. Will the Discovery Sport or Evoque end 2024 on top? Will there be a 50-50 split between premium and mainstream in the top 10? Which model will be the fastest seller of the year? Watch this space!’
Despite the big money apparently on offer on some used cars, Auto Trader says ‘considerable profit’ is still being missed out on.
The firm has warned dealers to make sure cars are being priced correctly in order to secure as much profit as possible.
Richard Walker, director of data and insights at Auto Trader, said: ‘This month’s Margin Monitor has shown just how important staying close to the data is, with some surprising brands and models appearing in the top ten lists.
‘With clear profit opportunities available, it’s been great to see buying confidence as well as retail pricing remain steady this autumn.
‘However, there’s still considerable profit being overlooked and with January buyers already beginning their search, it’s a crucial time.
‘When things are tough it can be difficult to know what to base decisions on but if you rely on the data, both to merchandise effectively and to select the best vehicles for their market, you’re setting yourself up for success.’
