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Retail Margin Monitor – May 2022

By June 27, 2022July 14th, 2022No Comments
Land Rover continues to dominate, while DS Automobiles’ return serves as a reminder of the importance of a diverse stocklist

Data from Dealer Auction’s monthly Retail Margin Monitor has revealed Land Rover’s return as the marque with the highest average retail margin yet again, while DS Automobiles also re-enters the table.

The popularity of SUVs has continued from previous months, with the top three models from April holding onto their leading spots. In May, the Land Rover Range Rover Evoque topped the charts once again with an average retail margin of £3,820, followed by the Volvo XC90 (£3,100) and Audi Q3 (£2,830).

Further down the table, premium models dominate the list, with Mercedes-Benz taking up three spots in the top 10 – the Mercedes-Benz E-Class has an average retail margin of £2,600, followed by Mercedes-Benz A-Class (£2,540) and Mercedes-Benz B-Class (£2,470).

The presence of luxury cars in the table, plus the steady sales figures of these models within the used car market, reflects the supply chain shortages in the new car market – with SMMT recording a market decline of -15.8% in April.1

Dealer Auction’s Marketplace Director Kieran TeeBoon commented:

“Fewer new car sales due to continued supply challenges in the new car market have therefore led to a suppressed supply of used cars, too.2 This is why it’s important that dealers stock their sites with models that consumers want to buy – and our data can tell you exactly which these are, so you get the highest profit possible.”

At a brand level, Land Rover stays up this month with an average retail margin of £3,500, followed by Jeep with £2,840, showing a prolonged interest in SUVs as premium marques continue to fill the top spots – with Mercedes-Benz, BMW and Audi making an appearance in the top 10 list.

This month also sees the return of DS Automobiles in the tenth spot, with an average retail margin of £2,220. DS Automobiles’ reappearance acts as a reminder of just how important it is for dealers to make sure they’re not forgetting the underdog and have a range of vehicles in stock for all consumer needs.

TeeBoon concludes:

“No one knows your customers better than you. Combining this knowledge with our platform, you’ll have the confidence to diversify and refine your stock profiles and sell models that your customers are searching for. Then, you can sell the vehicles they don’t want to other dealers, so everybody wins!”

Richard Walker, Auto Trader’s Director of Data and Insights, commented: “Although demand has unsurprisingly begun to soften against last year’s ‘once in a lifetime’ levels, our data shows that underlying demand remains healthy wherever stock is readily available. With the market moving so quickly, it’s never been more important for retailers to follow the data to ensure they’re reacting to change, sourcing the best stock for their market, and getting the very best margin possible.”

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 May 2022 edition analyses data from 1 to 31 May 2022.

Sources:

1 https://www.smmt.co.uk/2022/05/april-new-car-market-declines-15-8-as-supply-constraints-see-2022-outlook-downgraded/
2 https://plc.autotrader.co.uk/press-centre/news-hub/retail-price-index-may-2022/