November 2022 – Data from Dealer Auction’s monthly Retail Margin Monitor has revealed continued high margins from Land Rover and a surprise entry from MINI – plus, the digital platform uncovers how demand for the Fiesta has increased since Ford’s end-of-production announcement.
The Land Rover Discovery Sport and Land Rover Range Rover Evoque continued to hold on to the top two spots in October, with an average retail margin of £3,720 and £3,270 respectively. This marks the second consecutive month for Discovery Sport at number one and the fourth consecutive month for Range Rover Evoque at number two.
New entry to the table, the MINI Convertible, entered at number six with an average retail margin of £2,700. Given this impressive margin, it could indicate that savvy dealers are getting ahead of the game and locating stock ahead of next summer.
At brand level, Dealer Auction data reveals that Land Rover holds strong at number one with an average retail margin of £3,320, followed by Lexus (£2,930) and Jaguar (£2,780). In October, luxury brands like BMW, Jeep and Mercedes-Benz remained popular and dominated 70% of the table. This includes a new entry for October, which sees Alfa Romeo in the number 10 spot with an average margin of £2,190.
Dealer Auction’s Marketplace Director Kieran TeeBoon commented:
“We’re seeing a strong majority of luxury brands in the top 10 that offer dealers the greatest opportunity to earn high profit margins. Though we may often see a recurrence in the brands holding top spots, what’s going on further down the table can be more interesting.
“The appearance of Alfa Romeo reinforces the importance of having a diversified stocklist and identifying the makes and models that not only sell well, but ultimately suit the specific needs of your business.”
Auto Trader recently reported a surge in demand for the Ford Fiesta1, following the news that Ford is set to end production of the iconic hatchback in June 2023. Reviewing the data on their platform, Dealer Auction confirm they have also seen a jump in the volume of Ford Fiestas sold, with a 17% increase on the previous month and an average profit margin in October of £1,610.
TeeBoon concludes:
“Though we aren’t seeing the Fiesta in our retail margin top 10, it’s clear that it remains popular with dealers, who are stocking up on the model before production ends. We’ll see what the consumer demand holds for the Fiesta over the next few months – it’s definitely one for dealers to watch!”
Richard Walker, Data & Insights Director at Auto Trader, commented: “With Ford confirming the end in production after four decades, we saw demand for the Fiesta rocket on our marketplace, with the volume of advert views shooting up nearly nine percent in just a week. Although it’s too early to record a notable impact on average prices, demand is only set to increase, which coupled with the squeeze on supply means that retail prices for the iconic hatchback are destined to go in one direction, offering real margin potential for retailers.
“More broadly, the robust margin opportunities are in line with the ongoing growth in retail prices that we’re tracking across the market, increasing 8.1% year-on-year in October. Crucially, average prices were up £178 last month versus September and a significant £548 on August, marking four consecutive months of positive or neutral month-on-month price movements.”
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 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 November 2022 edition analyses data from 1 to 31 October 2022.
Sources:
1 https://plc.autotrader.co.uk/press-centre/news-hub/used-car-prices-rise-again-in-october-as-buyers-hunt-for-fiestas/
