Land Rover Models Lead Used Car Profit Margins for April, According to Dealer Auction Report
In April, Land Rover used car models delivered the highest profit margins for used car dealers, as revealed in the latest 'Retail Margin Monitor' report from Dealer Auction. According to the report, these models yielded an average profit margin of £4,000, significantly surpassing the 2023 average of £3,325. This notable performance places Land Rover at the forefront of the most profitable used car brands for the month.
The data, collected by Dealer Auction, a trade-to-trade website, also highlighted a strong performance from Land Rover’s stablemate, Jaguar. Jaguar secured the second position with an average profit margin of £3,300, marking its return to the top ten after a seven-month absence. This resurgence is attributed to changing consumer demand, as noted by Kieran TeeBoon, the marketplace director at Dealer Auction. He remarked that Jaguar’s return to profitability underscores the necessity for dealers to stay attuned to market dynamics and evolving buyer interests.
Dealer Auction’s methodology involves tracking vehicle sales on its dealer-to-dealer platform and comparing these with retail prices on Auto Trader. This approach provides a robust guide to available profit margins, excluding showroom discounts or deals. The report emphasizes the profitability of premium marques, with brands like BMW, Audi, and Mercedes-Benz also contributing significant margins.
The specific models contributing to Land Rover’s top position include the Discovery Sport, which was the most profitable used car model in April. Dealers earned an average margin of £5,000 on this SUV, with the Range Rover Evoque following at £3,825. The Discovery Sport also stood out as one of the fastest-selling models, averaging just 42 days to sell on Auto Trader.
Other notable models in the profit margin rankings include the BMW 5-Series and 3-Series, the Volvo XC60, and the Mazda CX-5. The Mazda CX-5 was the fastest-selling model overall, with an average days-to-sell of just 31 days. Surprisingly, the Ford S-Max also made it into the top ten, earning dealers an average margin of £2,750, suggesting a potential shift in consumer preferences towards family-oriented models.
Richard Walker, data and insight director at Auto Trader, commented on the findings, highlighting that the strong margins reflect the underlying health of the used car market. He noted that robust consumer demand has continued into the second quarter of the year, with retailers selling stock more quickly. Walker emphasized the importance of data-driven operations for retailers to maximize profit potential, given the fast-moving and nuanced nature of the retail market.
The April 2024 profit margin standings for brands were as follows:
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
For individual models, the top earners were:
Land Rover Discovery Sport - £5,000 (42 days to sell)
Range Rover Evoque - £3,825 (43 days to sell)
BMW 5-Series - £3,400 (74 days to sell)
BMW 3-Series - £3,050 (51 days to sell)
Volvo XC60 - £2,950 (41 days to sell)
Mazda CX-5 - £2,940 (31 days to sell)
Mercedes C-Class - £2,925 (45 days to sell)
Ford S-Max - £2,750 (46 days to sell)
Mercedes A-Class - £2,600 (44 days to sell)
Land Rover Freelander 2 - £2,590 (47 days to sell)
These findings underscore the profitability potential in the used car market, particularly for premium brands and certain high-demand models.
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