The Daily Observer London Desk: Reporter- Kathryn Williams
Land Rover is the car brand that second-hand dealers turn the biggest profits on, according to a new report.
Used motor dealerships make an average profit of £1,500 on each second-hand vehicle they sell, it claims.
However, certain marques and models are making dealers a lot more money than others.
Land Rovers – famous for their premium features, off-road capabilities and links to the Royal Family – made dealers almost £3,300 per sale in April.
These sizeable profits have put Land Rover back in pole position as the top money maker for second-hand dealerships, new analysis from DealerAuction shows.
The British carmaker was briefly usurped by Lexus, which is the luxury arm of Toyota.
However the Japanese manufacturer didn’t feature in the top ten of most profitable second-hand cars last month.
German auto giant, BMW, came in at second place – making second-hand dealers average profits of £2,760 per sale.
Land Rover is the car brand that second-hand dealers turn the biggest profits on
| Car brand | Average profit per sale in April |
|---|---|
| Land Rover | £3,290 |
| BMW | £2,760 |
| Mercedes-Benz | £2,670 |
| Audi | £2,430 |
| Volvo | £2,270 |
| Mazda | £2,250 |
| Mini | £2,210 |
| Seat | £2,030 |
| Kia | £2,020 |
| Volkswagen | £1,990 |
| Source: DealerAuction based on sales data for April 2023 | |
In third place is BMW’s biggest – and nearest – rival, Mercedes-Benz.
Used Mercedes cars generate an average profit of £2,670 per sale, while cars made by Audi came in fourth, turning over a profit of £2,430 each.
Swedish brand Volvo took fifth place, with its cars making £2,270 in profits per sale in April, just ahead of Japanese firm Mazda, which swept to sixth place with average profits of £2,250 per second-hand vehicle sold by dealers.
On average in April, used car dealers turned a profit of £2,760 per BMW sold from their forecourts
Another premium German marque proving profitable for second-hand dealers in Mercedes. They made an average profit of £2,670 per Mercedes sold last month
The third most profitable marque for used car dealerships is Audi. They were sold on average for £2,430 more than what the dealer paid or the value set when they took them in via part exchange
Mini, which is now owned by BMW, claimed seventh place, with average profits of £2,210 per sale.
Cars made by Spanish firm Seat are in eighth position, with the average profit for dealers being £2,030 per motor.
Vehicles made by South Korean firm Kia and German company Volkswagen took the last two places in the top ten, making car sales businesses an average of £2,020 and £1,990 per sale respectively.
A used Volvo on average made second-hand car dealers a profit of £2,270 in April, the figures show
Mazda cars are known for being ultra reliable. And dealers aren’t struggling to sell used examples for a profit. On average, they made £2,250 from each sale
For such small cars, Minis are relatively expensive to buy new. But dealers still turned a profit on used versions, making an average of £2,210 profit on each sale last month
Second-hand car prices are continuing to surge, with May marking a fifth consecutive month for retail increases.
Auto Trader’s latest Retail Price Index, which is based on around 900,000 second-hand vehicle adverts, shows the current average price of a used car is £17,946.
That is 3.6 per cent higher than the same month a year ago on a like-for-like basis, the online car sales business says.
Used motor traders pocketed £2,030 in profit per second-hand Seat sold last month, DealerAuction says
Used car dealers are making good money on each Kia they sell. The average profit per motor last month was £2,020
Despite their huge badge appeal, Volkswagens aren’t as profitable for used car dealers as you might think. They earn an average of £1,990 per VW sold, which is less than some rivals
Auto Trader’s data shows the dramatic rise in used car prices since the pandemic in early 2020. The average advertised price of a second-hand motor on its website is almost £18k
Richard Walker, Auto Trader’s data and insights director, said: ‘Over the last few months we’ve seen an acceleration in retail price growth, from both a year-on-year and month-on-month perspective.
‘This not only shows the current strength of the used car market, but also how important it is to keep a close eye on live retail prices to drive the most profit out of every sale.
‘With trade values not in line with retail, this further strengthening in retail prices is providing robust margin potential.’
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