Land Rover merchandise dominated 2023 for the third yr operating, whereas different premium makes continued to ship sturdy returns, in line with Seller Public sale’s newest Retail Margin Monitor.
The Retail Margin Monitor identifies the best retail margins seen on used automobiles purchased through Seller Public sale’s wholesale platform every month. The Vary Rover Evoque took the highest spot in December and for the complete yr, with an annual common retail margin of £3,325.
Used Land Rover vehicles occupied the highest place in all however one month throughout 2023 with the Vary Rover Evoque attaining the joint-highest retail margin on document in November, commanding a formidable £5,100 revenue. This matched the Land Rover Discovery 4’s common margin in August.
The Volvo XC60 achieved the second-highest margin over the yr (£2,700), adopted by the Mercedes-Benz E-Class in third (£2,650).
High 10 fashions by retail margin in 2023
Luxurious derivatives accounted for 100% of the 2023 high 10 dominated by Mercedes-Benz fashions: the E-Class adopted by the C-Class in sixth place (£2,500) and A-Class in seventh (£2,450).
Seller Public sale’s market director Kieran TeeBoon stated: “Regardless of the financial and political headwinds in 2023, it’s clear that there are vital alternatives for stock-savvy sellers to bolster their revenue margins and begin 2024 on a excessive. The brand new knowledge provides helpful additional context for sellers, too – for instance, the tenth-place BMW 1 Sequence was the quickest vendor of the yr.”
From Could 2023, Seller Public sale included two new metrics to additional assist sellers in figuring out essentially the most worthwhile inventory. The typical ‘Auto Dealer days to promote’ displays the estimated variety of days it should take a supplier to promote that car of their native space, whereas the common ‘Auto Dealer Retail Ranking’ makes use of three key metrics to find out shopper demand.
At model stage, Land Rover drew the best revenue for the third yr operating, with a mean of £3,400. It was adopted by BMW (£2,700) and Mercedes-Benz (£2,575), reflecting constant month-to-month patterns. Over the yr, Land Rover ranked first 11 occasions, whereas BMW and Mercedes-Benz held high three spots ten occasions and 6 occasions respectively.
Apparently, whereas the identical premium marques made up the general high ten in each 2021 and 2022, there was extra variety in 2023, with a 60:40 break up between premium and mainstream makes.
High 10 makes by retail margin in 2023
Underscoring the Vary Rover Evoque’s high spot within the 2023 desk is its first-place rating within the December 2023 chart, with a mean retail margin of £4,675. Nonetheless, there was extra variety additional down the desk with mainstream fashions the Peugeot 2008, Ford Kuga and Peugeot 3008 claiming the sixth, seventh and ninth spots, respectively, falling simply shy of the annual high 10.
TeeBoon concluded: “This annual round-up is an excellent indicator of long-term developments, however the efficiency of the Peugeot and Ford fashions in December reinforces the significance of trying on the most modern insights to remain forward of the curve.
“It’s additionally essential to dig that little bit deeper into the month-to-month knowledge and use it to search out the inventory that may go well with your enterprise targets. For instance, in December, the ninth-place Peugeot 3008 was the joint-fastest vendor, alongside the Mercedes-Benz A-Class. By harnessing the facility of information, sellers can curate a wholesome inventory mixture of ‘fast wins’ and alternatives for increased revenue in 2024.”
Richard Walker, director of information and insights at Auto Dealer commented: “Worryingly, it seems some pricing methods are being guided by wholesale developments, putting strain on retail values, and risking earnings within the course of.
“Our knowledge exhibits that almost 52,000 vehicles are at present being priced under their market worth by circa 8,000 retailers, which is probably costing them over £35 million in misplaced earnings.
“Somewhat than only a trigger for concern, the retail and wholesale markets being out of sync additionally presents a revenue alternative for retailers who analyse the information on a car-by-car foundation and worth inventory relative to retail valuations.”