Luxury models lead mid-year uplift in profits and speed-to-sale

Luxury derivatives dominated the top 10 list for highest retail margins on Dealer Auction’s  wholesale platform so far this year, with Land Rover vehicles continuing to lead.

In its mid-year Retail Margin Monitor, Dealer Auction noted that while familiar trends from monthly updates persist, there’s noticeable progress with such models generating higher profits and selling faster.

The Discovery Sport topped the chart with an average retail margin of £3,925, followed by the Range Rover Evoque at £3,500. For comparison, the top model average margin for all of 2023 was £3,325.

The Discovery Sport not only secured the highest average profit but was also the second-fastest seller and achieved an Average Auto Trader Retail Rating of 81, surpassing the highest rating of 74 in the 2023 top 10.

The fastest-selling vehicle so far in 2024 is the Mazda CX5, selling in an average of 32 days, four days faster than 2023’s quickest seller.

Kieran TeeBoon, Dealer Auction’s marketplace director, said: “The Discovery Sport continues to be a perennial favourite in the luxury segment, reaching average profits up to £5,000 in April 2024. These top 10 models are also selling rapidly. The key themes for 2024 are profit and speed, signalling dealers to capitalise on these opportunities.”

For June 2024, the top three models included the Range Rover Evoque (£3,925), Discovery Sport (£3,675), and Volvo XC60 (£3,000). The Mazda6 made its debut with an average retail margin of £2,575 and was the fastest seller of the top 10, selling in 27 days.

At the brand level, the mid-year top 10 for 2024 closely mirrors the 2023 chart, with a swap between Kia and Mazda.

Brand profits have also increased, with Land Rover leading at an average margin of £3,750 (up from £3,425 in 2023), BMW at £2,775 (up from £2,700), and Mercedes-Benz at £2,625 (up from £2,575). Consistent performers in the mainstream arena included Kia, Volkswagen, and Nissan.

TeeBoon noted that while luxury brands have shown strong performance, mainstream brands should not be overlooked, as evidenced by models like the Hyundai Tucson achieving healthy profits.

Looking ahead, TeeBoon is optimistic about the rest of 2024, encouraging dealers to stay updated with the latest data to diversify their stock and maximise opportunities.

Richard Walker, Auto Trader’s data & insights director, added: “The Retail Margin Monitor aligns with our data, indicating robust consumer demand and rapid car sales. With the recent softening in supply, retail prices are returning to seasonal norms, offering significant margin potential for retailers utilizing the available data.”