8:47 am, May 17, 2023
Land Rover has reclaimed its title as the brand which made used car dealers the most profit last month, according to freshly released data.
The outfit, which held the title earlier this year, was briefly usurped by Lexus in March but has now moved back to the top of the list for April.
According to Dealer Auction, Land Rover models returned dealers an average retail margin of £3,290 on their forecourts. Meanwhile, last month’s shock table topper dropped out of the top 10 all together.
The data is collected by Dealer Auction, which analyses the prices dealers charge in their showrooms compared with what they bought them for in trade sales to generate its ‘Retail Margin Monitor’.
JLR recently announced plans to ditch the Land Rover name in favour of a new ‘house of brands’ approach but it would appear the brand still carries weight with used car buyers.
In the most profitable used car brand table, BMW takes second place with an average margin of £2,760.
The German brand was closely followed by premium rivals Mercedes-Benz and Audi which made dealers an average of £2,670 and £2,430 respectively.
There was also room in the top 10 for Volvo, Mazda, Mini, Seat, Kia and Volkswagen,
Reacting to the results, Dealer Auction’s marketplace director, Kieran TeeBoon, said: ‘The healthy mix of products selling with the best margins in April shows that data can be a gamechanger in helping dealers stay ahead of the curve amid the current competition for stock.
‘These actionable insights can support them in identifying vehicles that not only sell well but also ultimately provide unique income opportunities. In short, data helps dealers play to their strengths.’
Used car profit margins: Top 10 brands
Source: Dealer Auction, April 2023
Land Rover, £3,290
BMW, £2,760
Mercedes-Benz, £2,670
Audi, £2,430
Volvo, £2,270
Mazda, £2,250
Mini, £2,210
Seat, £2,030
Kia, £2,020
Volkswagen, £1,990
Car dealers usually make an average of £1,500 profit per used car sale. In its recent results, listed dealer group Vertu said it made £1,530 per used car sold in 2022.
By contrast, troubled online retailer Cazoo recently announced it made just £980 on every used car it sold in the first three months of the year, although that was an improvement on the £403 per car that it sold in 2022.
Dealer Auction’s data also breaks down sales to reveal the most profitable individual used car models.
Again, the list is topped by Land Rover, with the Discovery Sport and Range Rover Evoque taking the top two places with average retail margins of £3,690 and £3,190 respectively.
JLR stablemate, the Jaguar XF also makes the top 10, as do BMW’s 1 and 3 Series.
Away from the big luxury models, there was also space for the likes of the Mazda CX-5, Peugeot 3008 and Citroen Grand C4 Picasso.
Used car profit margins: Top 10 models
Source: Dealer Auction, April 2023
Land Rover Discovery Sport, £3,690
Range Rover Evoque, £3,190
Mazda CX-5, £2,920
Jaguar XF, £2,840
Peugeot 3008, £2,740
Mercedes-Benz E-Class, £2,730
Citroen Grand C4 Picasso, £2,660
BMW 1 Series, £2,600
BMW 3 Series £2,560
Dealer Auctions said the wide-ranging nature of the list emphasised the importance of holding a varied stocklist
‘April 2023 saw some movers and shakers at both make and model level,’ said TeeBoon.
‘Just as we as a platform are staying agile in order to support dealers to make quick and smart decisions, it’s important for them to take advantage of these new opportunities when reviewing their stocklists.’
Richard Walker, Auto Trader’s data and insights director, added: ‘Over the last few months we’ve seen an acceleration in retail price growth, from both a year-on-year and month-on-month perspective.
‘In April prices grew at their fastest pace for 17 months, and at this mid-month point, retail prices are up around 0.6 per cent month-on-month, which is very unusual for May, when prices traditionally soften.
‘This acceleration not only shows the current strength of the used car market, but also just how important it is to keep a close eye on the live retail market to ensure you’re getting the very best possible margins for your stock.’
You can read about Auto Trader’s latest Market Insight Report into used car prices here.
