9:49 am, May 22, 2024
The Lexus RX is proving the most rewarding car for used EV dealers when it comes to retail margins.
That’s according to data from Dealer Auction’s new EV Performance Review, which also revealed that trade-to-trade listings of alternatively fuelled vehicles (AFVs) have soared by 30% this year.
The digital remarketer’s just-launched monthly summary of what it’s seeing on the platform when it comes to EV and hybrid vehicles compares the period from January to April versus the previous four months.
The RX had an average assumed gross margin of £3,582, placing it ahead of the Toyota Rav4 on £3,444 and its C-HR stablemate’s £2,881.
Meanwhile, the number of AFVs sold increased by 47%.
Kieran TeeBoon, Dealer Auction’s marketplace director, said: ‘The review is a monthly temperature check of EVs and hybrids on our platform that is already yielding fascinating data about a changing used market.
‘2024 thus far has already seen a notable leap in AFVs sold and it will be interesting to see how the year plays out.
‘This alone tells us that even though they represent a small proportion compared to ICE, they are figuring in the plans of more and more dealers.
‘That will only increase as AFVs ultimately become a bigger part of the overall car parc picture.’
Combined AFV listings and sales rose during the period but the number of hybrid listings dropped by 7%, although the amount sold rose by 22%.
Ad views for EVs and hybrids were up 11%, while bids received rose by more than 15%, which Dealer Auction said showed dealer appetite for hybrids’ growing profit potential when seen against the backdrop of fewer hybrid listings.
The number of diesels sold in this period dropped by 2.4%, and TeeBoon said: ‘The slide in the number of diesel vehicles sold is notable and reflects their obliteration from the new car market.
‘But despite falling out of favour in urban areas, used diesel retains a loyal following outside of cities and with people covering huge mileages or where towing is essential.
‘Competition for this stock will likely intensify as volumes wane.’
The average sold price of EVs and hybrids on Dealer Auction between January 1 and April 30 dropped by 4.5% (£13,609). Their average age went up by 11%, or nearly five years, while the average mileage climbed by more than 3% to 40,315 miles.
TeeBoon added: ‘The profile of the EVs and hybrids we’ve seen so far this year makes me wonder if dealers are increasingly hanging on to any younger models traded in instead of pushing them out for a trade sale.
‘Used EVs, in particular, represent great value versus their new price, while hybrids are the natural replacement for buyers not ready to jump fully into electric, and this could be influencing stock decisions.’
The Lexus UX hybrid has been the best-performing AFV on Dealer Auction so far this year. On average, the luxury compact SUV has had a Cap performance of 119%, a days-to-sell figure of 45 and an Auto Trader Retail Rating of 51.
‘The review provides a fascinating insight into dealer activity around AFVs and where appetites lie,’ TeeBoon said.
‘As the number of EVs and hybrids entering the used market increase, I hope dealers can use this new insight to guide their decision-making.’
Below is Dealer Auction’s top 10 based on estimated retail margin where it has seen 20 or more vehicles sold in the four-month period from January to April. All the vehicles were hybrids apart from the Nissan Leaf, which is electric.
1) Lexus RX
Average assumed gross margin: £3,582
Average days to retail: 61
Average Auto Trader Retail Rating: 21
2) Toyota Rav4
Average assumed gross margin: £3,444
Average days to retail: 48
Average Auto Trader Retail Rating: 69
3) Toyota C-HR
Average assumed gross margin: £2,881
Average days to retail: 47
Average Auto Trader Retail Rating: 58
4) Toyota Prius
Average assumed gross margin: £2,676
Average days to retail: 39
Average Auto Trader Retail Rating: 54
5=) Toyota Corolla
Average assumed gross margin: £2,540
Average days to retail: 50
Average Auto Trader Retail Rating: 57
5=) Mitsubishi Outlander
Average assumed gross margin: £2,540
Average days to retail: 44
Average Auto Trader Retail Rating: 62
7) Toyota Yaris
Average assumed gross margin: £2,482
Average days to retail: 37
Average Auto Trader Retail Rating: 65
8) Hyundai Ioniq
Average assumed gross margin: £2,475
Average days to retail: 44
Average Auto Trader Retail Rating: 50
9) Toyota Auris
Average assumed gross margin: £2,336
Average days to retail: 41
Average Auto Trader Retail Rating: 58
10) Nissan Leaf
Average assumed gross margin: £2,242
Average days to retail: 53
Average Auto Trader Retail Rating: 37
Source: Dealer Auction
