Dealer Auction reveals "biggest shake up" in used car profit performance

Dealer Auction data has recorded an equal split on profit performance for the first time on record between premium and mainstream used cars.

The data from Dealer Auction’s Retail Margin Monitor for September 2024  shows that not only did mainstream models gain more ground, but two of the models were also top 10 debutantes.

The Volkswagen Tiguan and Dacia Duster placed fifth and ninth, with average retail margins of £2,600 and £2,400, respectively.

They were joined by the Kia Sorento (in fourth; £2,800) for the first time since June 2022, the Toyota RAV4 (eighth; £2,425) for the first time since July 2023 and also the Hyundai Tucson (tenth; £2,325).

Kieran TeeBoon, Dealer Auction’s marketplace director, said: “This is the biggest shake-up we’ve seen in the Retail Margin Monitor since its launch.

“Beyond the usual suspects in the first three spots, premium models were challenged by mainstream models – specifically family-friendly SUVs.

"They’ve even knocked stalwarts like the Mercedes-Benz C-Class out of the table for the first time since July 2023.

"Could this be a new trend? We encourage dealers to keep an eye on the data to see which models are proving popular with consumers and stock up accordingly."

Top 10 models by retail margin​

Make & model	Average retail margin	Average Auto Trader days to sell	Average Auto Trader Retail Rating
Land Rover Range Rover Evoque	£3,650	32	79
Land Rover Discovery Sport	£3,300	25	92
Volvo XC60	£2,850	36	61
Kia Sorento	£2,800	28	88
Volkswagen Tiguan	£2,600	35	64
BMW 3 Series	£2,550	37	58
Mazda CX-5	£2,500	27	85
Toyota RAV4	£2,425	39	61
Dacia Duster	£2,400	40	53
Hyundai Tucson	£2,325	28	81

Despite the shake-up in the overall chart, the top three models remained consistent with the trends of the year so far – albeit with some shuffling.

The Range Rover Evoque moved to the top of the charts for the second time this year with an average retail margin of £3,650, usurping the Discovery Sport, which has proven the top profit-maker seven out of the nine months in 2024 so far.

The Volvo XC60 followed in third, with an average retail margin of £2,850. 

The Discovery Sport remained the fastest seller of the top 10 for the third consecutive month, selling in 25 days on average. Indeed, time to speed was a metric to watch this month, with four models selling in under 30 days.  

Top 10 makes by retail margin

Make	Average retail margin	Average Auto Trader days to sell	Average Auto Trader Retail Rating
Land Rover	£3,700	32	79
BMW	£2,675	25	92
Volvo	£2,625	36	61
Audi	£2,600	28	88
Mercedes-Benz	£2,575	35	64
MINI	£2,325	37	58
Volkswagen	£2,225	27	85
Nissan	£2,125	39	61
Škoda	£2,115	40	53
Toyota	£2,100	28	81

At brand level, Land Rover proved the top profit-making brand once more – a position it’s held since March 2023 – with an average margin of £2,700.

Premium brands dominated the chart, with mainstream brands still confined to the lower half of the top 10.  

Interestingly, premium brand Mazda dropped out of the top 10 for the first time this year, but with select models still performing well, it would be premature for dealers to act on this, added TeeBoon. 

He concluded: “Overall, it’s clear that mainstream brands shouldn’t be underestimated.

"This month, we’ve seen several family-friendly models stake a claim in the top 10, clearly showing that the opportunity is there for savvy dealers.

"Acting on the available insights will give dealers the confidence to leverage profit opportunities from both the consistently high-ranking products and these unique opportunities for extra profit.” 

Richard Walker, Auto Trader’s data and insights director, said: “Despite potential disruption, distractions, and uncertainties this year, the used car market in 2024 has been very consistently robust.

"Neither the General Election, the Olympics, nor the Euros have been able to stifle used car demand, and as we enter the closing months of the year, it’s very reassuring to see no indication of that trend softening anytime soon.

"Although the used car market is healthy, margins are becoming increasingly challenging to maintain, so it's so important to follow the data available, and not lose out on the profit potential available."