Land Rover models generate the most profits for used car dealers – Car Dealer Magazine

Used car dealers made the most profits selling Range Rover Evoque models last month, according to the latest data.

Used versions of the popular SUV fetched car dealers an average of £4,130 – narrowly beating out another Land Rover, the Discovery Sport, in second place.

Dealer Auction’s retail margin monitoring tool uses data from its own trade sales platform, which allows traders to sell to each other at trade prices, along with data from the Auto Trader retail sales platform.

By comparing the selling price of used cars at commercial auctions and the price advertised to consumers, the platform can calculate the average profit made from each model.

In second place on the August list was the Land Rover Discovery Sport, with dealers achieving an average price of £4,120.

Land Rover was also the top manufacturer in terms of margins overall, making used car dealers an average of £3,800 – comfortably beating second-placed BMW by £800.

Dealer Auction said BMW models presented “significant opportunities” for car dealers this summer, with three models from the German brand in the top ten.

The Series 3, Series 1 and X1 made the top ten, all generating dealer profits of over £2,780.

Kieran Tipone, market director at Dealer Auction, said: “The success of BMW products in August – and the fact that BMW hatchbacks, saloons and SUVs all performed well – is a real eye-catcher, as the top 10 often features a wide spread of brands. It is dominated by SUVs.

“As dealers compete for buyers’ attention, unique profit opportunities like this will help them attract new business as we head into the fall.

“Our Retail Margin Monitor gives traders tangible evidence of the most profitable vehicles and shows them how their inventories stack up against consumer demand.”

Source: August data, average profit margin, retail margin monitor for dealer auctions

1. Range Rover Evoque – £4,130

2. Land Rover Discovery Sport – £4,120

3. Mitsubishi Outlander – £3,650

4. Volvo XC60 – £3,270

5. Mazda CX-5 – £3,020

6. Mercedes-Benz A-Class – £2,900

7. BMW 3 Series – £2,850

8. Mercedes-Benz C-Class – £2,800

9. BMW 1 Series – £2,790

=10. Hyundai Tucson (equal) – £2,780

=10. BMW X1 (restricted) – £2,780

Source: August data, average profit margin, retail margin monitor for dealer auctions

1. Land Rover – £3,800

2. BMW – £3,000

3. Mercedes-Benz – £2,900

4. Volvo – £2,800

5. Audi – £2,700

6. Mini – £2,570

7. Volkswagen – £2,300

8. Mazda – £2,295

9. Nissan – £2,260

10. Kia – £2,200

Commenting on the history, Auto Trader’s Director of Data and Insights, Richard Walker, added: “The current retail market is incredibly nuanced and volatile at the moment, with headline figures masking the fundamental health of the used car market.”

“As the data shows, there are still very strong pockets of pricing available – the demand is there, so if retailers use the data to buy and sell at the right price, there is a lot of profit potential available.”