January 2023 – Data from Dealer Auction’s Retail Margin Monitor has revealed the used vehicles that attracted the biggest retail margins on its platform in 2022 – with Land Rover products dominating for a second year running, while several Audi models continue to deliver strong returns.
Dealer Auction, the UK’s busiest digital wholesale marketplace, created its Retail Margin Monitor to identify the highest retail margins seen on used vehicles each month. In this special annual round-up, Land Rover derivatives account for 40% of the top 10 models with the highest average retail margin of the year. In fact, the top four spots are held by Land Rover models, with the Discovery 4 (£4,340) at number one, followed by the Discovery Sport (£3,770), the Range Rover Sport (£3,710) and the Range Rover Evoque (£3,560).
A Land Rover product occupied the top position in each monthly Dealer Auction Retail Margin Monitor during 2022. The Discovery 4 achieved its highest retail margin in August, commanding an impressive £5,100 profit.
Land Rover models also ranked first in 2021, with the Discovery 4 once again at number one with an average retail margin of £3,060.
Dealer Auction’s Marketplace Director, Kieran TeeBoon, commented: “We saw steadfast consistency in the top-selling models month-to-month in 2022, even outside of Land Rover. The Volvo XC60, for example, appeared in all but one top 10 listing last year.”
“In other areas of the table, we’re seeing premium brands continually trending high, but their most profitable models are changing. The BMW X5 (£2,630) that appeared in third place in 2021 did not rank at all in 2022. However, we saw the appearance of the BMW X3 (£2,660) in the ninth spot, indicating the importance of using available data to stay on top of trends.”
At brand level, the same marques made up the overall top ten in both 2022 and 2021. Land Rover ranked first with £3,430 in 2022 and £2,540 in 2021; the remaining nine spots are taken up by premium marques, often with SUV offerings – a trend reflected in the month-to-month 2022 data.
Despite this pattern, other brands did feature in the top 10 makes in select months of 2022. For instance, Alfa Romeo ranked tenth in January and August, with an average retail margin of £1,950 and £2,380 respectively.
TeeBoon concluded: “Though we can see similarities in the top 10 makes when comparing 2021 and 2022 data, the two-time appearance of Alfa Romeo in 2022, as an example, serves as a reminder to always look that little bit deeper into the monthly data and use it to find the stock that will sell best for your business – and ultimately gain you the highest profit.”
Richard Walker, Data & Insight Director at Auto Trader, added: “Despite the economic and political turbulence over the last year, we have entered 2023 on a firm footing with both used car prices and demand remaining stable. The increase in average retail margin between 2021 and 2022 shows the importance of placing data at the heart of decision-making processes and as we look to the year ahead, those who place emphasis on data driven decisions can feel confident about the robust margins available in 2023.”
About Dealer Auction
Dealer Auction is the UK’s smartest and busiest automotive digital wholesale marketplace. We give buyers and sellers more choice, better insight and greater margins. Dealer Auction is an independent company, created through a joint venture between Cox Automotive and Auto Trader. For more information, visit www.dealerauction.co.uk.
Launched in January 2022, Dealer Auction’s Retail Margin Monitor tracks the highest margins seen on used vehicles with a significant number of units sold under the £25,000 retail mark sold on the platform’s open network the previous month. The December 2022 edition analyses data from 1st January to 31st December 2022 and 1st January to 31st December 2021.
