Shoppers in the market for the new vehicle are simply leaving the market, according to a new report.
About half of those looking to buy new are opting to hold off on their purchase and may return in a few months, Kelley Blue Book found in recent consumer research.
“The latest Kelley Blue Book research indicates that most consumers anticipate negative impacts on the automotive market due to the chip shortage, from increased prices to inventory shortages and longer delivery times,” observed Vanessa Ton, senior industry intelligence manager for Kelley Blue Book.
She added that it will be “interesting to see” what the fallout of the current shortage of new vehicles will have on the market, currently stifled by a shortage of necessary chips for production.
“With a large portion of the in-market population now saying they plan to delay their purchase given the current market conditions, it will be interesting to see how that could impact the ongoing delicate balance of supply, demand and pricing across the industry,” Ton said. “Long term, OEMs are likely experimenting with made-to-order deliveries for consumers.”
Just how long will they wait until they buy a new car? An equal share of four-in-10 respondents said three to six months and at least seven months. Another 12 per cent said they’d come back in three months.
For the aftermarket, that means vehicles that consumers were considering replacing tomorrow won’t be for some time in the future. That could mean getting repairs completed to have the vehicle last until the customer is ready to replace it.