8:28 am, May 10, 2024
Land Rover models made used car dealers the largest profit margins in April as JLR stock performed well across the board.
That is according to trade to trade website, Dealer Auction, which has published its latest ‘Retail Margin Monitor’ report for the fourth month of the year.
The data showed that second-hand Land Rover models made used car dealers an average margin of £4,000 last month, well clear £3,325 average for 2023 as a whole.
In more good news for JLR dealers, Land Rover’s stablemate, Jaguar, also enjoyed a strong month, coming second with an average profit margin of £3,300.
It was the first time in seven months that the brand made it into the top ten with experts saying the resurgence shows ‘changing customer demand’.
Kieran TeeBoon, marketplace director at Dealer Auction, said: ‘Jaguar’s resurgence after a seven-month hiatus demonstrates the importance of staying on top of changing consumer demand.
‘Jaguar has always been a big profit turner, but this month it hit our units sold threshold, indicating rekindled buyer interest.
‘Whether this marks a lasting trend remains to be seen, but it certainly prompts a closer examination of shifting market dynamics.’
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.
When it came to brands, dealers also made hefty margins from the likes of BMW, Audi and Mercedes, highlighting the money that can be made from selling premium marques.
Biggest used car profit margins April 2024 (brands)
Source: Dealer Auction Retail Margin Monitor
- Land Rover – £4,000
- Jaguar – £3,300
- BMW – £2,950
- Audi – £2,285
- Mercedes-Benz – £2,800
- Volvo – £2,750
- Mini – £2,350
- Mazda – £2,275
- Toyota – £2,250
- Skoda – £2,225
When broken down to a model-by-model basis, Land Rover also came out on top with the month’s most profitable used car being the Discovery Sport.
The SUV made dealers an average margin of £5,000 in April, placing it well clear of the second placed Range Rover Evoque (£3,825).
The Discovery Sport was also among the fastest-selling models of the month, taking an average of just 42 days to shift on Auto Trader.
The fastest-selling model on the list was the Mazda CX-5, which had an average days to sell of just 31 days.
One surprising entry on the most profitable models list was the Ford S-Max, which made dealers an average of £2,750 last month.
Biggest used car profit margins 2023 (models)
Source: Dealer Auction Retail Margin Monitor, days to sell in brackets
- Land Rover Discovery Sport – £5,000 (42 days)
- Range Rover Evoque – £3,825 (43 days)
- BMW 5-Series – £3,400 (74 days)
- BMW 3-Series – £3,050 (51 days)
- Volvo XC60 £2,950 (41 days)
- Mazda CX-5 – £2,940 (31 days)
- Mercedes C-Class – £2,925 (45 days)
- Ford S-Max – £2,750 (46 days)
- Mercedes A-Class – £2,600 (44 days)
- Land Rover Freelander 2 – £2,590 (47 days)
Commenting on the findings, TeeBoon said that people should not be too surprised to see the S-Max make the top ten, despite the rest of the list being dominated by premium models.
He said: ‘The appearance of the S-Max people carrier isn’t exactly a shock twist, as the overall top 10 remains monopolised by premium brands.
‘However, it could indicate seasonal shifts in consumer preferences towards family-oriented models. With so many different forces at play in the used car market, there could well be potential for family cars to carve out a significant share in the summer market.’
Richard Walker, data and insight director at Auto Trader, added: ‘Healthy margins are indicative of the strong underlying health of the market.
‘On Auto Trader we’re seeing retailers sell more stock, and more quickly as the very robust consumer demand we’ve tracked since the new year continues into Q2.
‘As the changes within the margin monitor show, the retail market is both fast moving and nuanced, and so it’s vital retailers are running a data-driven operation to maximise profit potential.’
