February 2022 – According to data from Dealer Auction’s monthly Retail Margin Monitor, the iconic Renault ZOE was among the used cars offering retailers the biggest margin in January, highlighting the growing opportunity electric vehicles represent the market.
The Retail Margin Monitor, which tracks the highest margins seen on vehicles sold on the platform’s open network each month, revealed the French pure-electric compact provided an average retail margin of £2,540, making it the fifth on the January top 10. However, the used vehicles attracting the biggest margins last month were SUVs – making up seven of the total top 10. The Evoque topped the list with an average retail margin of £3,500, followed by the Audi Q3 (£2,630) and Nissan X-Trail (£2,570) – indicating that the popularity of 4x4s and crossovers is set to continue into 2022.
Sarah Marley, Sales & Marketing Director, commented: “The ZOE’s performance this month is certainly very interesting. There’s been a lot of noise in the industry about electric cars, and specifically whether they should be the top of the list for used car dealers when sourcing stock.
“The increasing popularity of new EVs will inevitably filter down to the used market and although we’re still a few years from mainstream adoption, dealers who use the data available to stay ahead of the curve will be in the best position to take advantage of the profit opportunities.”
Looking at the data at a brand level, it’s the premium marques which are offering the highest margin potential, accounting for 60% of January’s top 10. Land Rover overtook December’s biggest earner, the Porsche, to take the number one spot last month, offering retailers and average profit of £3,000.
Richard Walker, Auto Trader’s data and insight director, said: “The ZOE’s arrival onto the list highlights just how much of an opportunity used electric vehicles are becoming for retailers. Although they represent just a small fraction of the market, there’s no doubt there is massive consumer demand out there. On our marketplace used EVs are now selling faster than any other fuel type, and with average prices for a volume brand EV increasing over 32% year-on-year in January, with an average sticker price of over £26,000, they offer strong margin potential.”
Marley concluded: “Just because a model isn’t profitable for you, it doesn’t mean that it won’t be for someone else. We’re the only platform that provides supply and demand data for a dealer’s local market, giving buyers the confidence to diversify their stock profiles – whether it’s bidding on a used electric vehicle like the ZOE or bolstering their SUV offering. It really is a ‘win, win situation’ for both buyers and sellers.”
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 Monthly 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 January 2022 edition analyses data from 1 to 31 January 2022.
