May 2022 – Data from Dealer Auction’s monthly Retail Margin Monitor has revealed that, despite the continued popularity of SUVs and premium brands, dealers are starting to seek out profit opportunities among the sportier brands, such as the Audi A5 and Jaguar XF, as the summer months draw near.
The Land Rover Range Rover Evoque topped the charts with an average retail margin of £3,970. Unlike recent months, the Range Rover Evoque is the only Land Rover model in the top 10, after being the biggest earner in January and February 2022. It was followed by the Volvo XC90 (£3,210) and Audi Q3 (£2,890).
With the top two models being compact SUVs, and the Audi Q3 crossover SUV taking the third spot, the sale of premium models should remain a priority for dealers. Looking to summer staycation holidays, an extensive stock of reliable, adventure-ready vehicles will meet family and traveller consumer demands.
Dealer Auction’s Marketplace Director Kieran TeeBoon commented:
“As we witness a Land Rover model at the top of the table for the fourth month in a row, it’s clear where dealers can seek out opportunities for extra profit. Dealers are still seeking to stock premium models and maximise on the profit opportunity they bring.”
Looking at the data from a brand level, premium marques still occupy significant space with offerings from Land Rover, Mercedes-Benz and BMW. In a somewhat unexpected turn, MG have made a lasting impression after appearing in the table with the second-highest average retail margin at £3,110 – despite only making one other appearance so far this year in February.
“The appearance of MG as the brand with the second-highest average retail margin is not surprising. In 2021, MG saw an outstanding increase of 383.1% in year-on-year sales1, and our data insights indicate that this success will continue, meaning the marque is set to bring another big profit opportunity to dealers’ forecourts,” says TeeBoon.
He concludes:
“Our platform enables you to stock the models that are profitable for you – and sell the ones that aren’t. It’s crucial to diversify your forecourt to maximise on every profit opportunity, not to mention acting on the available data to achieve this quickly and confidently, which in turn will help dealers to outpace the market.
“Quite simply, stock the models that are desirable and profitable for you – and sell the ones that aren’t at a trading profit to dealers where they are. Everyone wins.”
Warmer weather – convertibles last week 33 days, which is among the fastest of all the body types (SUVs 37 days – in April, average was 36 days – SUVs was 31.
Commenting, Richard Walker, Auto Trader’s director of data and insights, said: “It’s not a surprise to see SUVs retain their position at the top of the list, as they remain among the most popular body types for consumers – in April SUVs took an average of just 31 days to sell. However, the weather is always a contributing factor to consumer preferences, and as temperatures begin to climb, many car buyers are looking for suitably sportier models. Last week, we saw convertibles leave forecourts in just 33 days, which is below its April average (36), and 12% faster than SUVs which increased to an average of 37 days.”
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 margin. 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 April 2022 edition analyses data from 1 to 01 April 2022.
Sources:
1 https://www.mg.co.uk/media-centre/mg-motor-uk-breaks-all-records-sales-pass-30000-2021
