Buyers Will Pay More Rather Than Wait

Sat 3rd Sep 2022

More than half of those planning to purchase a vehicle in the next year would be willing to pay more in order to avoid waiting lists says new analysis.

A survey from Close Brothers Motor Finance has revealed that motorists are prepared to pay more to avoid long queues as a result of the shortage of semiconductors, the war in Ukraine, and the closure of Chinese plants.

Almost one-quarter (26%) of car buyers say they would pay 6-10% more for a vehicle to secure immediate delivery, and one-in-five (5%) would offer 21-30% above list price. 11% is the average premium they are prepared to offer.

According to CBMF data, 64% of buyers are not willing to wait more than a year for a popular model, and many are withdrawing from the market until things improve.

“The whole sector is doing everything it can to improve lead times against unprecedented global challenges,” said Lisa Watson, director of sales at Close Brothers Motor Finance.

“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.”