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Land Rovers dominate Dealer Auction rankings for biggest sales margin

Land Rover Discovery 4 HSE

Land Rover dominated Dealer Auction’s August ranking of car brands and models offering the largest sales margin to car retailers.

The remarketing platform’s monthly Retail Margin Monitor asserted that profit margins remain strong despite the cost-of-living crisis and supply issues as the Land Rover Discovery 4 4x4 topped the rankings with the highest average retail margin ever recorded – £5,100.

Dealer Auction Retail Margin Monitor rankings by model, August 2022And Land Rover dominated 40% of the table, with the Range Rover Evoque (£3,780), Discovery Sport (£3,610) and Freelander 2 (£3,100) following on from the seven-seat off-roader.

Land Rover also emerged from August as the rankings’ number one make, with a £3,780 average retail margin.

Dealer Auction director Kieran TeeBoon said: “This is not a complete surprise considering Land Rover has successfully held top ranks for several months now, proving dealers aren’t shying away from sourcing premium brands, and that there is still considerable profit to be made on the right vehicle.”

Dealer Auction Retail Margin Monitor rankings by brand, August 2022Earlier this week BCA revealed that its wholesale used car values had declined by 5.4% in August, but this was largely the result of an aging stock offering.

In the retail market, Indicata data suggested that the UK was the only place in Europe to register ongoing declines in used car values, but Cap HPI director of valuations Derren Martin told AM that the market movements are negligible, describing the market outlook as “stable”.

Dealer Auction’s monthly market report said that, contrary to recent reports of dealers changing the vehicles they stock to prioritise smaller, more affordable products, strong retail margins continue to exist across the board, adding: “The rising cost of living is not deterring dealers from sourcing a diverse range of stock, especially as they are still experiencing a good return on the premium brands.”

TeeBoon said: “The current market uncertainty is unavoidable. But there are readily available tools that dealers can utilise to ensure each asset brings them the maximum profit.

“Ultimately, no one knows a business better than the dealer themselves, but using localised data such as the Auto Trader Retail Rating can support and confirm your professional instincts.”

Yesterday the Bank of England raised interest rates by 0.5% to 2.25% in a move that is likely to impact car retailers’ finance offering to car buyers already feeling the squeeze as inflation hovers around 10%.

AM recently offered advice to businesses seeking ways to mitigate the impact of inflationary pressures on their provision of used car finance.

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