Semiconductor shortage impacts consumer views on car dealers and brands
Nearly half of consumers say the long lead times on new cars are hitting their perceptions of particular brands and dealers.
Nearly half of drivers say long delivery times damage their view of particular car brands and dealers
While two-thirds (66%) of buyers considering a new car say they understand the difficulties involved with the supply challenges, nearly half (48%) stated that the delays negatively impact their views of motor dealers. A similar proportion (46%) say long delivery times damage their view of particular car brands.
The research from Close Brothers Motor Finance (CBMF) finds that dealers are particularly bearing the brunt of managing customer expectations. Six in 10 buyers (59%) believe delays take the excitement away from getting a new car, and 45% say dealers have been unable to supply them with accurate lead times.
Latest figures from the Society of Motor Manufacturers and Traders (SMMT) show that UK new car registrations fell 9.0% last month, driven primarily by an 18.2% fall in registrations to large fleets. It’s the fifth month of consecutive decline in registrations, exacerbated by semi-conductor shortages and global conflict.
Some popular models now have waiting lists of more than 12 months. Figures released last month by CBMF showed the vast majority (64%) of new car buyers are not prepared to wait more than a year for any vehicle, and more than half (54%) intend to wait for production issues to ease before placing an order.
Lisa Watson, director of sales at Close Brothers Motor Finance, said it was disappointing to see unavoidable supply chain delays taking some of the magic out of the car buying process and added that the whole sector was working hard to improve lead times.
This includes work between dealers and buyers and manufacturers to ensure everyone is informed about the process.
“Some compromises might be possible to get cars on to customers’ driveways as soon as possible,” she continued.