Both premium and mainstream brands offered opportunities for profit last month, according to Dealer Auction’s latest Retail Margin Monitor with a new entry from Peugeot underlining the importance of holding a varied stocklist.
While the model chart was again dominated by premium brands, the brand chart saw three mainstream brands feature: Honda, Kia and Peugeot. Newcomer Peugeot attracted an average retail margin of £2,000.
Dealer Auction marketplace director Kieran TeeBoon commented: “March saw some movers and shakers at brand level, with Peugeot entering the fray for the first time. These monthly shifts are important for dealers who are keen to make quick and smart stock decisions.”
Top 10 makes by retail margin
Elsewhere, the brand chart remained broadly unchanged from February, with Land Rover (average retail margin of £4,025) and BMW (£2,975) securing the top two spots once more, with Volvo (£2,875) moving ahead of Mercedes-Benz to take the third spot.
At model level, it was very nearly a clean sweep for premium products, with the Land Rover Discovery Sport, Range Rover Evoque and Volvo XC90 at first (£4,100), second (£3,750) and third (£3,725) respectively. Regular top performer, the Discovery Sport, also topped the chart for being the fastest seller and highest Average Auto Trader Retail Rating.1
Re-entries for the BMW 5 Series and Volvo XC90 meant that there were two models apiece for Land Rover, BMW, Volvo and Mercedes-Benz.
Top 10 models by retail margin
The sole mainstream model, the Hyundai Tucson – which joined the chart last month – was still present, albeit in the tenth spot. However, it shouldn’t be overlooked, as TeeBoon notes:
“It’s clear that dealers are finding strength in data-driven decisions to back up their instincts. The performance of the Tucson indicates dealers are keen to get ahead of the game by locating practical, family-friendly vehicles for the summer. Although it appears further down the margin chart, it’s the third-fastest seller and has the second-best Average Auto Trader Retail Rating.
He concludes: “Data is a powerful tool for dealers to wield. Smart stock decisions aren’t just choices; they’re strategic manoeuvres that drive success.”
Richard Walker, data and insight director at Auto Trader commented: “Despite an uncertain economic and political backdrop, we’ve seen a positive start to 2024, with demand remaining robust throughout the quarter and a record 89.1 million visits to Auto Trader in March and that’s reflected in the margins on display in Dealer Auction’s Margin Monitor. Right now, retailers face a nuanced and complex market which will continue to move at pace but our outlook is confident for the rest of the year.
“As the Monitor mentions, to navigate the market and to identify both future opportunities and risks, data is key. We’ve recently made more of our data available than ever before. Our valuations data alone was used over 240 million times last year, around 100 million more times than 2022, showing just how powerful it’s been in informing key retail decisions.”
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- Source: https://www.am-online.com/news/used-cars/2024/04/08/peugeot-makes-debut-as-a-dealer-auction-top-profit-earner
