The Land Rover Discovery Sport emerged as the most profitable used car for dealers in 2024, according to the latest Retail Margin Monitor from Dealer Auction, which released its findings on January 14. This new data from Dealer Auction, part of Cox Automotive, highlights key trends and shifts in the market, shedding light on the models that have brought the most profit to dealers over the past year.
Breaking Down the Numbers: A New Approach
This year, Dealer Auction introduced a fresh way of categorizing vehicles, separating them into two groups based on their retail value: cars priced below £10,000 and those valued at over £10,000. This change provides more specific insights, focusing on the vehicles that dominate the retail market and allowing dealers to fine-tune their inventory strategies.
The changes were prompted by a growing demand for detailed analysis, which Dealer Auction hopes will help dealers make more informed decisions and maximize their profits. The new classification aims to shine a "sharper focus" on the most commonly sold models and provide actionable insights for better stock selection.
Top Performers Above £10,000
In the higher-end category (vehicles retailing over £10,000), the Land Rover Discovery Sport led the charge with an average retail margin of £3,700 per vehicle. It was closely followed by the Range Rover Evoque, which brought in an average margin of £3,550, and the Volvo XC60, which saw a margin of £3,075. These models were consistent performers, remaining profitable throughout the year.
Rising Stars Below £10,000
In the more budget-friendly category, the Ford Kuga topped the rankings with a retail margin of £2,250. The Kuga performed well across various metrics, selling on average in 33 days, with an Auto Trader Retail Rating of 74. The Kia Sportage followed closely behind with an average margin of £2,100, further highlighting the popularity of family-friendly SUVs.
Other standout models in the under-£10,000 category included the Peugeot 2008 (£2,080 margin), BMW 1 Series (£2,070), and Renault Captur (£2,010). Notably, 60% of the top 10 models in this category were SUVs or crossovers, reinforcing the demand for these versatile vehicles in the used car market.
The Nissan Qashqai was the fastest seller, averaging just 29 days on the market. This quick turnover shows the importance of balancing speed of sale with margin, as dealers seek the ideal combination to maximize profit.