SUVs topped the list of most profitable businesses in the pre-owned segment in December, according to Megadealer’s Used Vehicle Performance Study, powered by Auto Avaliar. The research examined sales data made through the Auto Avaliar platform, which has 2,492 dealers of 23 registered brands throughout Brazil.
The Honda HR-V topped the ranking, with an average sales price of R$130,355, gross margin of 9.8% and an average sales time of 28 days. The Hyundai Creta came in second place, with an average selling price of R$105,750, gross margin of 9.2% and a stock rotation time of 26 days. The Caoa Chery Tiggo 5x occupied third place, with an average selling price of R$98,915, a margin of 9.7% and a stock rotation time of 29 days.
“SUVs surprised by occupying the top three positions, with a fast inventory turnover and a high average ticket, factors that boosted profitability in these transactions”, comments Ari Kempenich, director of Megadealer.
The study also highlighted that December 2023 was characterized by an increase in used car sales, with a record inventory turnaround time of 35 days (purchase and sale period). This number is significantly lower than that recorded in the same period in 2022 (43 days) and in November (40 days). The average ticket was R$79,257, slightly above November (R$79,230) and December 2022 (R$78,796).
“The stability in margins at 10.4% showed a competitive scenario at the end of the year. We had a period of rapid negotiations, reaching a new record of 35 days between the purchase and sale of the used car. When calculating profitability, increasing sales speed is essential for improving results”, highlights Kempenich.
The Auto Avaliar platform reached its record number of acquisitions in December 2023, with more than 38,800 vehicles purchased by dealerships. The Return on Investment (average ROI calculated by gross margin/inventory turnover) in dealerships’ pre-owned operations (MY21-23) increased from 64% to 70% in December 2023, showing that the month was more profitable for almost all the brands.
Asian brands stood out in terms of profitability, recording a well-above-average ROI. The ranking of the top five was as follows: Honda and Hyundai (97%), Mitsubishi (85%), Nissan (81%), Renault (76%) and Caoa Chery (75%).
An interesting fact is the origin of funding from used car dealerships of other brands. The Citroen dealership network ranked first in acquiring customers from other brands, that is, 85% of used car sales occurred through the exchange of cars from other manufacturers for Citroen vehicles.
Kia came second in acquiring customers from other brands, with 81%, and Peugeot came in third, with 80%. Next come Caoa Chery (76%) and Nissan (69%).
