The hybrid Volvo XC90 led the charge for alternatively fuelled vehicles (AFVs) in March, posting the highest assumed gross margin among pre-owned AFVs and signalling a lucrative month for dealers specialising in this segment.
According to Dealer Auction’s latest EV Performance Review (EVPR), the XC90 delivered an average assumed gross margin of £5,482, topping all other models and improving on its previous peak performance from July 2024 (£5,106). With strong buyer interest, the XC90 averaged 38 days to retail and earned a 57/100 rating on Auto Trader’s retail score.
March marked another robust month for AFVs overall, with key indicators continuing to trend positively. Vehicles sold were notably younger and had lower mileage than in previous months. The average age of AFVs dropped by 20.8%, from 4.2 years to just 3.4 – the lowest point so far in 2025.
Similarly, average mileage fell to 26,242, down 24.4% from 33,980, and dipped below 30,000 miles for the first time since Dealer Auction began tracking in January 2024.
“It’s great to see March building on February’s results, especially in the targeted areas of getting younger vehicles with lower mileages attracting prospective AFV customers. Building on these initiatives will be a key point in driving AFV sales for the rest of the year,” said Dealer Auction’s marketplace director Kieran TeeBoon.
Despite a slight dip in overall average margins, the platform still posted a healthy figure of £2,897, supported by strong bidding activity – 5,772 bids were recorded, staying well above 2024 averages.
The hybrid Hyundai Tucson retained its top position in the sales rankings for a second consecutive month and continued its streak in the top 10 for CAP performance.
Toyota reaffirmed its strength in the hybrid market, dominating the sales charts with five models in the top ten: Yaris, Corolla, RAV4, C-HR, and Auris. The RAV4 also appeared among the top performers in both CAP performance and margin.
Electric vehicles made notable gains in CAP performance, with the Tesla Model 3 taking the top spot and the Nissan Leaf landing in third. The Model 3 also scored fourth in margin performance, continuing its trend as a solid performer in both consumer appeal and dealer profitability.
Looking ahead, TeeBoon noted the potential impact of upcoming changes to Vehicle Excise Duty (VED) on new vehicles:
“March has been another strong month for preowned AFVs. But as we’re on the cusp of the VED changes coming in for new vehicles, it will be interesting to see if this impacts used statistics over the next month.
“What it will show is a clear indication of what dealers and consumers are looking for in AFV vehicles, and if preference leans to either hybrid or electric vehicles. It continues to be a very exciting segment, and we can’t wait to see what next month brings.”