Jaguar F-Pace ranking best for premium SUV profitability

The Jaguar F-Pace has topped the list of most profitable used cars that dealers are buying in carwow online auctions, with an average resale profit margin of £4,721.

Analysis of the selling prices of cars sold in carwow auctions over a six month period compared with their retail valuation indicates that eight of the top 10 most profitable models were premium-brand SUVs. 

Second in the ranking is the Mercedes-Benz GLE, with an average profit of £4,600, followed by the Range Rover Sport (£4,588), and the Audi Q7 (£4,466). The only non-SUVs to make the top five were Volkswagen’s Golf R and the iconic Ford Mustang, with average potential margins of £4,443 and £4,205, respectively. Three more JLR vehicles – the Velar, Discovery and Defender at £4,105, £4,092 and £3,731 respectively. Completing the top 10 is Audi’s Q5, with an average profit of £3,544.  

The analysis was conducted as part of carwow’s Q3 Insider, an industry-focused report which includes the latest research, opinion and data from the online car marketplace.

“Despite recent improvements in new car supply, sustained levels of demand are keeping the margins on many used cars at historically high levels,” said carwow’s UK managing director Sally Foote. “The potential profit margin of these vehicles reflects a segment of the market where consumer demand is really strong.   

“We understand our role in helping dealers to maximise their profit by providing ready access to quality stock, keeping buyers’ fees lower than the competition, and not requiring a subscription. Many of our dealer partners tell us that our auctions help them acquire a profile of stock not typically available through other sources. With more premium stock being listed, it’s making a real difference to our dealer partners’ bottom line. Alongside this, we have made numerous new product developments and in September we launched an advertising campaign fronted by carwow’s chief content officer Mat Watson to raise consumer awareness of our ‘Sell My Car’ service.”  

Since switching to an auction model in November 2022, carwow said it had increased customer engagement with its consumer-facing Sell My Car proposition, achieving 30% more sign-ups to sell used cars during the first half of 2023 than in the previous six months. Stringent upload criteria include damage reporting and service history information to ensure dealers can secure stock that is retail-ready.