Used SUV’s are still driving the highest margins for dealer, but profits for sportier models appearing

Purley Automotive News - May 2022

SUVs are still driving strong profits for dealers, new data shows – but traders are starting to focus on sportier brands, too.

Dealer Auction’s latest Retail Margin Monitor shows SUVs continue to fly off forecourts.

Five of the top 10 cars in the firm’s monthly assessment of the used motors that delivered the highest profit margins were high-riding SUVs.

For the second month running, Land Rover topped the table of brands that delivered the highest profits.

May’s figure was £3,600 – down on April’s but still proof that buyers are lapping up SUVs wearing the Land Rover badge.

However, Dealer Auction said it’s seeing dealers hunting out more performance and sporting models as buyers’ tastes have turned due to recent warmer weather.

Models such as the Audi A5 and Jaguar XF have increased in popularity and, in turn, in profit margins.

Despite this, the firm is still encouraging dealers to continue focussing on SUVs to satisfy buyers’ wishes for ‘staycation’ holidays this year.

The full top 10 lists of models and brands is listed below.

Commenting on the data, Dealer Auction’s marketplace director, Kieran TeeBoon, said: ‘As we witness a Land Rover model at the top of the table for the fourth month in a row, it’s clear where dealers can seek out opportunities for extra profit.

‘Dealers are still seeking to stock premium models and maximise on the profit opportunity they bring.’

The top 10 brands by retail margin data is dominated by premium brands, however at number two is value-brand MG.

TeeBoon said: ‘As we witness a Land Rover model at the top of the table for the fourth month in a row, it’s clear where dealers can seek out opportunities for extra profit.

‘Dealers are still seeking to stock premium models and maximise on the profit opportunity they bring.’

Richard Walker, Auto Trader’s director of data and insights, added: ‘It’s not a surprise to see SUVs retain their position at the top of the list, as they remain among the most popular body types for consumers – in April SUVs took an average of just 31 days to sell.

‘However, the weather is always a contributing factor to consumer preferences, and as temperatures begin to climb, many car buyers are looking for suitably sportier models.

‘Last week, we saw convertibles leave forecourts in just 33 days, which is below its April average (36), and 12 per cent faster than SUVs which increased to an average of 37 days.’

Article courtesy of www.cardealermagazine.co.uk published on 23/05/2022