7:12 am, July 10, 2024
Land Rover models dominate a list of the most profitable used cars to sell so far this year.
The Land Rover Discovery Sport is the stand out leader when it comes to margin and speed of sale, according to data released for January to the end of June.
The half year take from Dealer Auction details the profit opportunity on used cars by working out the difference between the price models sell for on its trade platform and the retail price charged by dealers.
The Discovery Sport was in number one making dealers an average of £3,925 and selling in an average of 34 days.
In second place was the Evoque with an average profit margin of £3,500 and an average of 41 days to sell.
Meanwhile, Land Rover was the brand with the highest average profit margin at £3,750.
Dealers argue that the unreliability of cars from the brand dents the true profitability of the models as they are often saddled with problems they have to fix under warranty.
Dealer Auction’s Kieran TeeBoon said: ‘The Discovery Sport continues to be a perennial favourite in the luxury segment and has registered an emphatic performance so far in 2024, reaching average profits of up to £5,000 in April 2024.
‘Our mid-year analysis demonstrates a robust market, with luxury and mainstream brands alike capitalising on increased retail margins and swift sales.
‘The data underscores the importance of strategic stock selection and market responsiveness. By leveraging detailed insights and staying ahead of consumer demand, dealers can navigate the evolving landscape and maximise their profitability.’
Most profitable used cars
Source: Average profit figure (average days to sell), Dealer Auction, January-June 2024
- Land Rover Discovery Sport – £3,925 (34 days)
- Land Rover Range Rover Evoque – £3,500 (41 days)
- Volvo XC60 – £2,725 (40 days)
- Mazda CX5 – £2,700 (32 days)
- BMW 3 Series – £2,675 (44 days)
- Mercedes-Benz E Class – £2,665 (49 days)
- Mercedes-Benz C Class – £2,650 (48 days)
- Mitsubishi Outlander – £2,575 (37 days)
- Jaguar XF – £2,500 (41 days)
- Hyundai Tucson – £2,400 (36 days)
The fastest selling car in the list of the biggest profit making models was the Mazda CX-5 which made an average of £2,700 profit and sold in an average of 32 days.
Dealer Auction said luxury models dominated its mid-year top 10s with 90% of the cars in the lists in that segment.
And when it came to most profitable used car brands, following Land Rover was BMW, Mercedes and Volvo.
Most profitable used car brands
Source: Dealer Auction, January-June 2024
- Land Rover, £3,750
- BMW, £2,775
- Mercedes-Benz, £2,625
- Volvo, £2,600
- Audi, £2,550
- MINI, £2,275
- Mazda, £2,200
- Kia, £2,075
- Volkswagen, £2,065
- Nissan, £2,050
Richard Walker, Auto Trader’s Data & Insights Director, added: ‘As ever, this data complements what we’re seeing which points to very robust used car market fundamentals.
‘Consumer demand is robust, and cars are selling at pace, which combined with a recent softening in supply, means retail prices continue to return to seasonal norms.
‘For those retailers utilising the data available to help source and set price, there’s real margin potential to be had.’
