Data from Dealer Auction’s monthly Retail Margin Monitor has revealed that preowned Land Rover SUVs offered the best opportunities for profit in March 2022.
The Land Rover Discovery 4 topped the charts with an average retail margin of £4,200 – the highest registered for a model so far in 2022. It was closely followed by the Range Rover Sport (£4,000), while the Range Rover Evoque – the biggest earner in January and February 2022 – came in third, with an average retail margin of £3,600.
This strong performance from Land Rover shows customers are willing to pay more to get a nearly new car quicker, amid the long lead times on new vehicles.
Dealer Auction’s Sales & Marketing Director, Sarah Marley, commented:
“The data emphatically shows that preowned ‘Landies’ are the ones to watch for dealers seeking out opportunities for extra profit. Despite the current pressures on consumers’ pockets, the profit performance of these premium vehicles indicate that buyers are far from put off. ”
Used premium marques in general attracted the biggest retail margins for March – making up seven of the total top 10 models and seven of the top 10 brands. Land Rover was the top performing brand with an average retail margin of £3,500, with Jeep also performing well – showing preowned SUVs continue to be big earner for dealers, as drivers seek practical lifestyle-inspired vehicles.
Dealer Auction also observes that the dominance of Land Rover indicates that buyers aren’t necessarily turning to fuel-thrifty vehicles as a result of the current rising fuel pump prices. Marley noted:
“Due to their high kerb weight, Land Rover models don’t tend to rank amongst the most economical SUVs1, and the most profitable vehicle for this month – the Discovery 4 – only has an MPG of approximately 32 (for the diesel2).
Richard Walker, Auto Trader’s Data and Insights Director, commented: “Again, the RMM offers a fascinating look at the many opportunities available in the market. Although there are signs the exceptional levels of demand we saw in 2021 are softening slightly, consumer appetite for new and used cars remains comfortably above pre-pandemic levels. And despite the potential economic headwinds, our research shows consumer confidence among car buyers is robust. Combined with the ongoing supply constraints, these market dynamics will ensure used car prices remain strong for the foreseeable future, and in turn, continue to offer positive trade margins.”
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 March 2022 edition analyses data from 1 to 31 March 2022.
Sources:
1https://www.autoexpress.co.uk/best-cars-vans/98328/most-economical-suvs-4x4s-and-crossovers-2022
