Dealer Auction’s October Retail Margin Monitor saw Toyota appear in the top 10 brands list for the first time since launch in January 2022, with an average retail margin of £2,300. This secured it tenth place, joining fellow mainstream makes Kia and Volkswagen.
Dealer Auction’s marketplace director Kieran TeeBoon commented: “Toyota’s performance really stood out in October, with used RAV4, Auris, Aygo and Yaris models all selling in volume with healthy margins. This comes hot on the heels of Škoda’s first-ever appearance in the table last month, indicating that mainstream brands are resonating well with consumers at the moment. But it’s important to look at the overall picture, and the top 10 continues to be dominated by premium brands.”
Land Rover topped the chart with an average retail margin of £4,250, followed by BMW (£3,200) and Volvo (£3,000).
The latest Retail Margin Monitor follows news that used car trade prices have experienced their biggest monthly fall since 2011, citing higher volume and less demand – with dealers stocking up selectively.
On this, TeeBoon said: “We’ve always shouted from the rooftops that dealers need to be savvy when choosing the right vehicles for their forecourt, but ‘selective’ doesn’t mean holding less stock – it’s about harnessing the power of smart data insights to focus on models that are selling quickly with good margins. By doing this, dealers can get cash back in the bank faster and beat any losses caused by depreciation.”
At model level, the Land Rover Discovery Sport claimed the top spot, with an average retail margin of £5,000, the second-highest average margin since August 2022. It was also the second-quickest seller (31 days) and achieved the second-highest average Auto Trader Retail Rating2 of the month (84/100).
Elsewhere in the table, the Mazda CX-5 proved the fastest-selling profit-turner for the fifth month in a row, selling in just 28 days on average. It was also the top-rated model, with an average Auto Trader Retail Rating of 86/100.
A further indication of the opportunity presented by mainstream brands was the performance of the Hyundai Tucson. The SUV has only appeared in the table three times before, but it jumped to fifth place in October, with an average retail margin of £3,300.
TeeBoon concluded: “Q4 has gotten off to a tricky start with this realignment of used car prices, but our data shows there are several models that meet dealers’ objectives of profit and speed-to-sell. Amid the current climate where dealers are facing pressure from different directions, it’s up to them to really zero in on those profit-making models they know customers are looking to buy right now.”
Richard Walker, director of data & insight at Auto Trader commented on the Monitor: “Our data shows that although used retail prices are beginning to decline, the headline figure is masking a highly nuanced market. Whilst newer car retail prices are contracting due to the combination of improving supply and renewed pressure from new car offers, older vehicles continue to record very strong price growth. In such a nuanced market, those who place emphasis on data driven decisions can feel confident about the robust margins available.”
