4:29 pm, February 22, 2022
The Renault Zoe was among the used cars giving retailers the biggest margin in January, according to new data.
Dealer Auction said the pure-electric compact highlighted the growing opportunity that EVs represent.
But its latest Retail Margin Monitor showed that the used vehicles that enjoyed the largest margins last month were SUVs, which comprised seven of the top 10.
The Zoe came fifth with an average retail margin of £2,540, while the Evoque was top with an average margin of £3,500, followed by the Audi Q3 at £2,630, Nissan X-Trail with £2,570 and Hyundai Tucson 4×4 at £2,570.
Dealer Auction sales and marketing director Sarah Marley said: ‘The Zoe’s performance this month is certainly very interesting.
‘There’s been a lot of noise in the industry about electric cars, and specifically whether they should be top of the list for used car dealers when sourcing stock.
‘The increasing popularity of new EVs will inevitably filter down to the used market.
‘Although we’re still a few years from mainstream adoption, dealers who use the data available to stay ahead of the curve will be in the best position to take advantage of the profit opportunities.’
Meanwhile, at brand level it’s the premium marques that have been offering the highest margin potential, accounting for 60 per cent of January’s top 10.
Richard Walker, Auto Trader’s data and insight director, said: ‘The Zoe’s arrival on the list highlights just how much of an opportunity used electric vehicles are becoming for retailers.
‘Although they represent just a small fraction of the market, there’s no doubt there is massive consumer demand out there.
‘On our marketplace, used EVs are now selling faster than any other fuel type, and with average prices for a volume-brand EV increasing over 32 per cent year on year in January, with an average sticker price of over £26,000, they offer strong margin potential.’
Top 10 models and their average retail margin
- Range Rover Evoque – £3,500
- Audi Q3 – £2,630
- = Nissan X-Trail – £2,570
- = Hyundai Tucson – £2,570
- Renault Zoe – £2,540
- BMW 5 Series – £2,460
- Volvo XC60 – £2,450
- Hyundai Santa Fe – £2,410
- Mini Countryman – £2,400
- Audi A4 – £2,380
Models attracting the highest margin (sub-£25,000 retail), with a significant number of units sold, between January 1 and 31, 2022. Source: Dealer Auction
Top 10 brands and their average retail margin
- Land Rover – £3,000
- Lexus – £2,800
- Jaguar – £2,700
- Jeep – £2,500
- Audi – £2,300
- Mercedes-Benz – £2,250
- BMW – £2,200
- Volvo – £2,050
- Mitsubishi – £2,000
- Alfa Romeo – £1,950
