31st August 2022: Nearly half of motorists planning to buy a car in the next year would be prepared to pay more to skip waiting lists caused by supply chain problems, according to research from Close Brothers Motor Finance (CBMF).
It follows a fifth consecutive month of decline in registrations in August, which the Society of Motor Manufacturers and Traders (SMMT) attributes to ongoing global supply chain issues, predominantly the lack of semiconductors and exacerbated by Covid lockdowns in key manufacturing and logistics centres in China, plus disruption from the war in Ukraine .
In order to swerve long delays in manufacturing and shipping, more than a quarter (26%) of car buyers say they would pay 6-10% more for a vehicle to secure immediate delivery, and one-in-20 (5%) would offer 21-30% above list price. The average premium they are prepared to offer is 11%.
Many popular models have waiting lists of more than 12 months. Separate figures released by CBMF recently show that 64% of buyers are not prepared to hold on that long, and many are withdrawing from the market until the situation improves.
Lisa Watson, Director of Sales at Close Brothers Motor Finance, said: “The whole sector is doing everything it can to improve lead times against unprecedented global challenges.
“These figures highlight just how long these problems have been going on. Many buyers are clearly getting frustrated with availability and, despite growing cost-of-living pressures, would even pay more to complete their purchases.
“Dealers are continuing to work with manufacturers to ensure the customer experience is as smooth as it can be during such a tough period for the sector, but it is no doubt difficult to be a buyer at the moment. Where possible, considering alternative makes and models on a shorter term basis might help bridge the gap.”
