March 2024 – Dealer Auction’s Retail Margin Monitor for February saw the MINI Hatch appear in the top 10 models for the first time. Despite models like the MINI Countryman and Convertible previously featuring in the chart, this iconic hatchback has made its inaugural appearance, with an average retail margin of £2,475 securing it 10th place.
Dealer Auction’s Marketplace Director, Kieran TeeBoon, commented: “It’s interesting to see the performance of the MINI Hatch in February. Historically, the Retail Margin Monitor has been dictated by SUVs, so these numbers could indicate a fresh opportunity for profit this spring.”
Elsewhere in the table, a consistent top performer, the Land Rover Range Rover Evoque, topped the charts once more with an average retail margin of £3,925, followed by the Jaguar XF (£2,800).
Another model to watch was the third-place Mazda CX-5 (£2,775), which proved to be the fastest-selling profit-turner, selling in just 37 days on average. It was also the top-rated model, with an Average Auto Trader Retail Rating of 81.1
TeeBoon continued: “Industry observers might recall the CX-5 was our fastest-seller for three months in a row last year. While it hasn’t reached the lofty heights of its £3,000+ margin and 23-day selling time, its performance in February is certainly something to keep an eye on.
“It’s also a timely reminder that it can pay off to look past the number one profit-turner, as other stock might prove more suitable stock for dealers, depending on their needs. It’s a prime example of the importance of looking at all the information available.”
At brand level, Land Rover continued to reign supreme with an average retail margin of £4,200, followed by BMW in second place (£3,000).
It was also a strong month for Mercedes-Benz, which moved into third place with an average retail margin of £2,775, overtaking Volvo from last month. The brand also saw three cars feature in the model chart, with the mix of vehicle types – the C-Class coupé, A-Class hatchback and E-Class saloon – demonstrating the broad appeal of this premium marque.
Elsewhere, MINI continued to be a stalwart in the chart, with an average retail margin of £2,450 – mirroring the MINI Hatch’s performance for the month. Toyota also appeared in the top 10 for only the second time.
TeeBoon concluded: “February’s results were a resounding triumph for premium models, but dealers shouldn’t shy away from stock diversity. There’s been recent industry discussion about us being in a push market, one that punishes inactivity and rewards consistent proactivity.2 With these unique opportunities for profit, it’s clear that data is the tool dealers need to thrive in a push market.”
Richard Walker, Data & Insight Director, commented: “February was another positive month for the used car market – demand was strong, stock sold quickly, and more cars were sold than last year and the margin monitor findings support this. For those retailers not lucky enough to be selling cars that appear in the monitor, we’d strongly urge retailers to utilise Auto Trader valuations data to maximise the full potential currently available in the market.”
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About Dealer Auction
Dealer Auction is the UK’s leading digital remarketing platform. 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 bought via Dealer Auction’s open network. We track models meeting two key criteria: more than 20 units sold with a retail price of less than £25,000. We then compare the sold price for each model with the Auto Trader market average to reveal the potential margin. For the brand table, we compare models with more than 50 units sold. We crunch the numbers at the start of every new month.
Notes:
1The average ‘Auto Trader Retail Rating’ uses three key metrics to determine the consumer demand for the vehicle:
- Average days to sell – Calculated for the whole of the UK and then adjusted for the variations Auto Trader have observed locally in your area.
- Live market supply – Comparing the national supply level for the vehicle over the last seven days with the usual level of supply Auto Trader have seen in the market over the last six months.
- Live buyer demand – Analysing how many people are currently searching for the vehicle on Auto Trader, comparing consumer search behaviour over the last seven days against the level of interest over the last six months.
2Cox Automotive, Monthly Temperature Check, 27 February 2024.
