EVs make waves in dealer profit margins as AFV volumes rise

Electric vehicles made a strong showing in April, with six of the top 10 models by gross margin powered by electric or hybrid drivetrains, according to the latest EV Performance Review from Dealer Auction.

Alternatively fuelled vehicles (AFVs) attracted 5,968 bids on the platform during April, up from 5,772 in March.

The average age of vehicles held steady at 3.4 years, with average mileage rising slightly to 30,253 – still below the psychological 30,000-mile mark and well within the comfort zone for dealers seeking younger, more retail-ready stock.

Dealer Auction marketplace director Kieran TeeBoon said: “It’s great to see consistent patterns emerging across the EV market, giving dealers a clearer picture of which EVs are worth stocking. While there will always be monthly variations, it’s the longer-term trends that will help retailers drive confidence and sales in the AFV space.”

EVs dominate gross margin chart

AFVs secured 60% of the top 10 assumed gross margin positions – the highest percentage since November 2024.

The Volvo XC90 led the field with a hybrid-powered £5,707 average gross margin, followed by the Tesla Model Y (£4,503) and Hyundai IONIQ 5 (£4,164). Other notable EV entries included the GWM Ora Funky Cat, Volkswagen ID.3, ID.4 and Tesla Model 3.

The strongest performers also demonstrated acceptable time-to-retail metrics, with the Tesla Model Y and Model 3 averaging just 34 days.

Trade-to-trade trends highlight volume leaders

In terms of trade-to-trade activity, the all-new Nissan Leaf and Kia Niro made it into the top five most-traded AFV models by volume. The Volkswagen ID.4, meanwhile, broke into the top 10 based on CAP Clean performance – the only EV to do so amid hybrid domination.

“April has been a consistent and encouraging month for AFVs,” added TeeBoon. “Even with changes to vehicle excise duty at the start of the month, dealer appetite remained resilient. With more models showing stronger gross margins, the EV market is steadily building momentum.”