Plan Insurance Blog

Top 10 Most Profitable Vehicles for Car Traders

Online marketplace Dealer Auction has published its latest margin guide for used car sales. The company’s monthly analysis aims to help used car dealers to invest in the stock that will deliver them with maximum returns.

Dealer Auction describes itself as, “the UK’s busiest digital wholesale marketplace for used vehicles.” It’s an independent company formed in 2019 as a joint venture between Cox Automotive and Auto Trader. Their aim is to create, “An online marketplace that’s smarter, easier and more profitable for everyone.” By providing “buyers and sellers more choice” they can offer “better insight” and in turn “greater margin.”

There’s no doubt our motor trade insurance clients will want to outperform their competitors and achieve the highest profit margins possible. Hopefully, the following top 10 lists will help make your capital work harder for you.

If your business buys, sells, repairs or modifies vehicles then Plan Insurance Brokers can source a tailored Motor Trade insurance policy for you. If you have any more questions or would like a quote call our expert team, request a call back or fill in a quote form.

Top 10 Brands for Used Car Dealer Profit Margin

Land Rover came out on top of Dealer Auction’s data as the best performing make for the second month in succession. The brand continues to deliver the highest profit levels for any motor trader able to get their hands on one. The Land Rover marque achieved average margins of £3,600 in May. Commenting on the data, Dealer Auction’s marketplace director, Kieran TeeBoon, said: ‘Dealers are still seeking to stock premium models and maximise on the profit opportunity they bring.’

Though despite being dominated by premium brands it may be worth motor traders noting that value manufacturer MG still managed to come in at number 2 in the dealer profitability stakes.

MakeAverage retail margin
Land Rover£3,600

Top 10 Makes & Models for Used Car Dealer Profit Margin

Unsurprisingly SUVs continue to generate the best margins for dealers. Five of the top 10 vehicles in the list were sport utility vehicles. This could be thanks to more consumers with families planning UK-based holidays during the current cost of living crisis.

It’s no shock that SUVs top of the list due to the popularity of the body type with buyers. Richard Walker, Auto Trader’s director of data and insights, pointed out that: ‘In April SUVs took an average of just 31 days to sell.”

Sportier models are also emerging as stronger performers for traders. Buying demand is likely to be moving towards them due to the improved weather in recent weeks. For example, profit margins on the Audi A5 and Jaguar XF have jumped as their popularity increases.

Walker believes that the data demonstrates the warmer weather is clearly already impacting consumer preferences, “‘Last week, we saw convertibles leave forecourts in just 33 days, which is below its April average (36), and 12% faster than SUVs which increased to an average of 37 days.’

Make & ModelAverage retail margin
Range Rover Evoque£3,970
Volvo XC90£3,210
Audi Q3£2,890
Hyundai Santa Fe via PA£2,800
Volvo XC60£2,760
Audi A5£2,710
Mercedes-Benz E-Class£2,650
Mercedes-Benz A-Class£2,630
Jaguar XF£2,570
Skoda Superb£2,520

Knowledge is Power in the Motor Trade

Motor traders let us know what you think. Do Dealer Auction’s findings match your real-world experiences?

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