Data from Dealer Auction’s Retail Margin Monitor has revealed that January has introduced new vehicle models to the top 10 tables, while trends of high-ranking models and makes remain consistent – creating more high-profit opportunities for dealers.
In January, Land Rover derivatives commanded 20% of the top 10 models, with the Land Rover Discovery Sport and Land Rover Range Rover Evoque taking the number one and number two positions respectively – allowing for more diversity further down the table.
While the Volvo XC60 occupied a top position in nearly each monthly Dealer Auction Retail Margin Monitor during 2022, the model did not feature in the table this month, allowing for another popular Volvo SUV to make an appearance: the Volvo XC90 with an average retail margin of £2,700.
One particular instance of diversity in January’s top-ranking models – albeit just outside the top 10 – is the Renault Kadjar, which took the number 11 position with an average retail margin of £2,360.
Dealer Auction’s Marketplace Director, Kieran TeeBoon, commented: “The Renault Kadjar is a great example of the importance of looking for opportunities for profit from both the consistently high-ranking products and the underdog models. Striking a balance between the two is key to generating high profits.”
At a brand level, 2022 data saw huge profits from Land Rover month on month, landing the marque in the number one spot for the overall highest average margin of the year. This trend continues as the new year begins, with Land Rover ranking number one for the highest average retail margin in January 2023 at £3,200. This is an increase of £200 on average from January 2022, showing a strong consistency of the most profitable brands indicated in Dealer Auction data.
TeeBoon concluded: “It’s interesting to note that the top three makes in January 2023 are the same top three listings we saw in data from January 2022, with the number one position filled by Land Rover, followed by Lexus in second and Jaguar in third. This shows a level of confidence in profit-making vehicles, even amid some recent turbulence in the industry.”
Richard Walker, Insights Director at Auto Trader commented on the Retail Margin Monitor: “Consumer interest in January 2023 was very robust, which, along with the ongoing constraints in supply, drove average retail prices up 2.7% year-on-year. Despite the negative economic and political backdrop, this marks the 34th month of consecutive price growth and the used car market remains in good health. There is still significant potential for profit, as the Retail Margin Monitor highlights, for those retailers who stay close to the data.”
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 potential retail margin that can be achieved on vehicles sold on Dealer Auction’s open network. We track models meeting two key criteria: more than ten units sold and selling below £25,000. We then compare the sold price for each model with the Auto Trader market average to reveal the potential margin. We crunch the numbers at the start of every new month. This February 2023 edition analyses data from 1st January to 31st January 2023.
