Used Cars Making Dealers the Most Profit

We explore the factors behind the success of popular models that have made their mark in the used car market.

Used Cars Making Dealers the Most Profit

  • 13 Jun 2023

When it comes to selling used cars, profitability is a key factor for dealerships. While various factors contribute to a car's resale value and potential profit margin, certain models have consistently proven to be lucrative in the pre-owned market. In a recent analysis, it was revealed by Dealer Auction that Land Rover has reclaimed the top spot among used cars that generate the most profit for dealerships. Using references from Dealer Auction and Car Dealer Magazine, Autoguard have explored the factors behind this success and highlights some other popular models that have made their mark in the used car market.

Land Rover exploring the countryside

Land Rover: A Profitable Champion

Land Rover has always been associated with luxury, reliability, and off-road prowess. It's no surprise that the brand has once again emerged as the top choice for generating profits in the used car sector. With a strong reputation and loyal customer base, Land Rover vehicles command high resale values, translating into attractive profit margins for dealerships. Additionally, the brand's commitment to constant innovation and technological advancements ensures that even older Land Rover models maintain their desirability.


Land Rover's Range: Broadening the Profit Horizon

Within the Land Rover brand, several models have contributed significantly to its profitability. The Range Rover Sport, Range Rover Evoque, and Discovery Sport are among the top contenders. The Range Rover Sport, with its blend of performance, luxury, and versatility, appeals to a wide range of buyers. The Range Rover Evoque, known for its stylish design and urban sophistication, has also proven to be highly popular. The Discovery Sport, with its practicality and ruggedness, further solidifies Land Rover's dominance in the used car market.


Other Highly Profitable Players

While Land Rover takes the lead, other brands have also managed to carve out a profitable niche in the used car market. Mercedes-Benz, BMW, and Audi consistently feature among the top contenders. These luxury brands are renowned for their quality, engineering prowess, and timeless appeal. Models such as the Mercedes-Benz C-Class, BMW 3 Series, and Audi A4 have garnered significant demand, ensuring healthy profit margins for dealerships.


Factors Driving Profitability

Several factors contribute to the profitability of used cars. Brand reputation and perceived quality are crucial, as buyers are willing to pay a premium for reliable and prestigious vehicles. Additionally, factors such as depreciation rates, availability of spare parts, and strong demand in the market significantly impact a car's resale value. Features and options, including advanced safety technologies, infotainment systems, and comfort amenities, also play a role in attracting buyers and maintaining high resale values.


The Importance of Vehicle History and Condition

When it comes to used cars, a comprehensive vehicle history report and a well-maintained condition are vital. Dealerships must ensure transparency and accuracy in disclosing a car's history to potential buyers. Thorough inspections, maintenance records, and certified pre-owned programs instill confidence in buyers, enabling dealerships to command higher prices and achieve greater profit margins.


In the ever-competitive used car market, Land Rover has reaffirmed its position as the leading brand in terms of generating profit for dealerships. The Land Rover lineup, with its reputation for luxury, reliability, and versatility, has consistently proven to be a profitable choice. Additionally, other luxury brands such as Mercedes-Benz, BMW, and Audi continue to command significant demand and generate healthy profits. Understanding the factors driving profitability, including brand reputation, vehicle history, and condition, is crucial for dealerships looking to thrive in the used car market. By focusing on these key elements, dealerships can maximize their profits and deliver value to buyers seeking quality pre-owned vehicles.



Dealer Auction

Car Dealer Magazine