Profitable Used Cars: Top 10 Models & Brands Last Month
The Land Rover Discovery Sport turned out to be the most profitable vehicle for used car dealers in the previous month, generating an average retail margin of £4,150.
At the same time, Mazda's CX-5 (pictured above) demonstrated remarkable sales speed as a pre-owned vehicle.
According to new information provided by Dealer Auction, the Retail Margin Monitor has been enhanced with two additional measures to assist dealers in identifying the most lucrative inventory for their forecourts. The digital platform now presents the 'Average Auto Trader days to sell' and 'Average Auto Trader Retail Rating' metrics alongside the top 10 models that generated the highest profits in May 2023, offering additional insights into the findings.
The Discovery Sport, a consistently impressive vehicle, maintained its dominant position. It achieved an impressive Average Auto Trader days to sell figure of 30, accompanied by an excellent Average Auto Trader Retail Rating of 89, in addition to a notable average retail margin of £4,150.
Kieran TeeBoon, the director of Dealer Auction marketplace, expressed his admiration, referring to the Land Rover Discovery as the ultimate "triple treat" for one's inventory. Nonetheless, he emphasised that "value" encompassed more than just financial gain.
Recent data indicates that stocks ranked at the bottom of the list of highest profits may have potential for dealers. Let's take the Mazda CX-5 as an example, positioned at number 9. Despite having a comparatively lower average retail margin (£2,605) than the stocks ranked higher, it boasts impressive attributes.
The Mazda CX-5 is the quickest to sell, with an average turnaround time of 23 days, and it holds the highest Average Auto Trader Retail Rating of 94.
TeeBoon remarked, "The latest data analysis confirms our longstanding belief that dealers should maintain a balanced inventory comprising both 'quick wins' and prospects for higher profitability.
"The strong performance of the Mazda CX-5 and Nissan X-Trail demonstrates that dealers should not overlook popular brands when aiming for additional earnings.
"In practice, it is possible to sell two Mazda CX-5 models, generating a total profit of £5,210, within a comparable timeframe of selling one BMW 5 Series with a return of £2,750."
In an interview with Car Dealer, Sarah Marley, the sales and marketing director at Dealer Auction, emphasised the importance of utilising data for informed decision-making. Marley highlighted the significance of the latest top 10 list, showcasing the need to avoid complacency and the assumption that profit solely originates from a limited range of brands and models.
In terms of brand performance, Land Rover emerged as the leader with an average retail margin of £3,510, followed by BMW (£2,720) and Mercedes-Benz (£2,670).
According to Richard Walker, the director of data and insights at Auto Trader, the physical space available for showcasing cars is highly valuable. A vehicle that remains unsold not only diminishes its own profit potential but also hinders the sale of other vehicles that could occupy that space.
"These innovative metrics provide an advanced level of insight, enabling retailers to optimise their overall profit potential. They assist in identifying not only the most profitable stock items but also those that are highly likely to sell quickly."
10 Best Models by Retail Margin in May 2023
1 – Land Rover Discovery Sport
Average retail margin: £4,150
Average Auto Trader days to sell: 30
Average Auto Trader Retail Rating: 89
2 – Land Rover Range Rover Evoque
Average retail margin: £3,620
Average Auto Trader days to sell: 32
Average Auto Trader Retail Rating: 76
3 – Volvo XC90
Average retail margin: £3,475
Average Auto Trader days to sell: 37
Average Auto Trader Retail Rating: 68
4 – Mercedes-Benz E-Class
Average retail margin: £2,820
Average Auto Trader days to sell: 43
Average Auto Trader Retail Rating: 54
5 –Volvo XC60
Average retail margin: £2,810
Average Auto Trader days to sell: 34
Average Auto Trader Retail Rating: 72
6 – BMW 5 Series
Average retail margin: £2,750
Average Auto Trader days to sell: 44
Average Auto Trader Retail Rating: 51
7 – Jaguar XF
Average retail margin: £2,700
Average Auto Trader days to sell: 39
Average Auto Trader Retail Rating: 64
8 – Mercedes-Benz A-Class
Average retail margin: £2,650
Average Auto Trader days to sell: 41
Average Auto Trader Retail Rating: 62
9 – Mazda CX-5
Average retail margin: £2,605
Average Auto Trader days to sell: 23
Average Auto Trader Retail Rating: 94
10 – Nissan X-Trail
Average retail margin: £2,600
Average Auto Trader days to sell: 29
Average Auto Trader Retail Rating: 90
Source: Dealer Auction
10 Best Brands by Retail Margin in May 2023
1 – Land Rover
Average retail margin: £3,510
2 – BMW
Average retail margin: £2,720
3 – Mercedes-Benz
Average retail margin: £2,670
4 – Volvo
Average retail margin: £2,510
5 – Audi
Average retail margin: £2,450
6 – Mini
Average retail margin: £2,330
7 – Mazda
Average retail margin: £2,230
8 – Kia
Average retail margin: £2,220
9 – Volkswagen
Average retail margin: £2,070
10 – Nissan
Average retail margin: £2,050
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