Dealer profit margins strong despite cost-of-living crisis and supply issues


Vendor revenue margins stay sturdy regardless of the cost-of-living disaster and provide points.

Vendor Public sale reported that in August, the Land Rover Discovery 4 registered within the knowledge for less than the second time this yr, returning as soon as once more on the primary spot, with the best common retail margin ever recorded at £5,100.

Land Rover dominates 40% of the desk, holding the highest 4 locations for the best common retail margin – at quantity two, Land Rover’s Vary Rover Evoque (£3,780), adopted by the Discovery Sport (£3,610) and the Freelander 2 (£3,100).

Vendor Public sale’s market director Kieran TeeBoon stated: “This isn’t an entire shock contemplating Land Rover has efficiently held high ranks for a number of months now, proving sellers aren’t shying away from sourcing premium manufacturers, and that there’s nonetheless appreciable revenue to be made on the best car.”

Opposite to current experiences of sellers altering the automobiles they inventory to prioritise smaller, extra reasonably priced merchandise, Vendor Public sale’s knowledge reveals sturdy retail margins throughout the board. It stated that the rising price of residing isn’t deterring sellers from sourcing a various vary of inventory, particularly as they’re nonetheless experiencing a superb return on the premium manufacturers.

Land Rover seems because the primary make, with a £3,780 common retail margin.

TeeBoon added: “The present market uncertainty is unavoidable. However there are available instruments that sellers can utilise to make sure every asset brings them the utmost revenue. In the end, nobody is aware of a enterprise higher than the vendor themselves, however utilizing localised knowledge such because the Auto Dealer Retail Ranking can assist and make sure your skilled instincts.

“In the case of car remarketing, time is cash. So, no matter might be achieved to hurry up the method will have an effect on the underside line – making certain a various checklist and affording sellers the biggest doable revenue.”

Richard Walker, knowledge & insights director at Auto Dealer, concluded: “Regardless of considerations or hypothesis of a market in decline, ranges of client demand stay sturdy and above pre-pandemic ranges, and so for retailers who arm themselves with the best data, there’s loads of revenue alternatives. Our knowledge reveals that the current decline in used automobile gross sales is closely linked to the supply of inventory; the place accessible, gross sales are wholesome – within the beneath five-year-old age cohort, inventory ranges dropped 19% in Q2 of this yr in opposition to 2019, and gross sales adopted go well with seeing a 24% dip. Nevertheless, within the over five-year-old age bracket, the place inventory ranges have been up 14%, gross sales noticed a 15% enhance. Highlighting the wholesome degree of client demand out there, we noticed a 27% enhance in advert views for automobiles aged over 5 years on our market in contrast with August 2019. It’s important retailers are continually reviewing their stocking and pricing selections primarily based on correct knowledge to make sure they’re getting the perfect margins accessible.

“Equally, and reassuringly, our knowledge reveals that used automobile values are following seasonal patterns on a month-on-month foundation, and there are not any indications that costs are softening past what we might anticipate.”


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