Used car market shifting as SUVs lose their grip
New data has revealed a significant shift in the used car market with hatchbacks proving more profitable to dealers than SUVs.
According to the latest Retail Margin Monitor from Dealer Auction, hatchbacks are now closing in on SUVs at the top of the charts.
It reported that in sub-£10,000 retail bracket the petrol Renault Clio earned dealers an average retail margin of £2,375, while two more hatchbacks, the diesel BMW 1 and the petrol Peugeot 208, were third and ninth on the list.
This shift from SUV domination began in December with new entries from hatchbacks like the Ford Fiesta, Vauxhall Astra and Volkswagen Polo.
Meanwhile, at brand level BMW saw four models in the top 10, followed by Mercedes-Benz and Volvo, while Land Rover dropped out of the chart having topped it for the past six months.
Hatchbacks are back
Dealer Auction’s marketplace director Kieran TeeBoon said: “After spending months in the shadow of SUVs, hatchbacks are back. Their profit performance will be food for thought for dealers, as competition for quality stock intensifies. It certainly shows how fast today’s market is moving; dealers can’t just rely on last year’s top performers.”
He concluded:
“With so many different forces at play, it’s no time to be complacent. Dealers, particularly independents who build their business on second and third-owner vehicles, are having to use all their experience and knowledge, as well as the data that’s available to them, to embrace these evolving market dynamics.”
