Dealers have started to stock-up on Ford Fiesta models, following the announcement that the model will cease production next year.
Data from Dealer Auction’s monthly Retail Margin Monitor shows a jump in the volume of Ford Fiestas sold, with a 17% increase on the previous month and an average profit margin in October of £1,610.
The blue oval delivered 94.7% more cars than in October 2021, last month, to lead the market with 13,295 registrations. The Fiesta led the best-selling car rankings with 4,230 units sold.
Richard Walker, data & insights director at Auto Trader, said: “With Ford confirming the end in production after four decades, we saw demand for the Fiesta rocket on our marketplace, with the volume of advert views shooting up nearly nine percent in just a week. Although it’s too early to record a notable impact on average prices, demand is only set to increase, which coupled with the squeeze on supply means that retail prices for the iconic hatchback are destined to go in one direction, offering real margin potential for retailers.
“More broadly, the robust margin opportunities are in line with the ongoing growth in retail prices that we’re tracking across the market, increasing 8.1% year-on-year in October. Crucially, average prices were up £178 last month versus September and a significant £548 on August, marking four consecutive months of positive or neutral month-on-month price movements.”
Land Rover leads margin league table
Dealer Auction data revealed the highest margins were achieved from Land Rover products in October. The Discovery Sport and Range Rover Evoque continued to hold on to the top two spots in October, with an average retail margin of £3,720 and £3,270 respectively. This marks the second consecutive month for Discovery Sport at number one and the fourth consecutive month for Range Rover Evoque at number two.
New entry to the table, the Mini Convertible, entered at number six with an average retail margin of £2,700. Given this impressive margin, it could indicate that savvy dealers are getting ahead of the game and locating stock ahead of next summer.
Luxury brands like BMW, Jeep and Mercedes-Benz remained popular and dominated 70% of the table. This includes a new entry for October, which sees Alfa Romeo in the number 10 spot with an average margin of £2,190.
Dealer Auction’s marketplace director Kieran TeeBoon said: “We’re seeing a strong majority of luxury brands in the top 10 that offer dealers the greatest opportunity to earn high profit margins. Though we may often see a recurrence in the brands holding top spots, what’s going on further down the table can be more interesting.
“The appearance of Alfa Romeo reinforces the importance of having a diversified stocklist and identifying the makes and models that not only sell well, but ultimately suit the specific needs of your business.”