A new report has revealed that nearly half of all car shoppers are exiting the market and delaying their purchase for several months due to the global semiconductor shortage.
Consumer research from Kelley Blue Book reveals that 48 per cent of in-market car shoppers are likely to postpone their purchase due to the chip shortage. Of those likely to postpone, most plan to wait at least several months before purchasing a new vehicle, with 40 per cent willing to wait seven months or longer, 40 per cent prepared to wait three-to-six months, and 12 per cent waiting one-to-two months.
For those consumers not willing to wait, 25 per cent admitted they would be willing to switch brands to purchase a vehicle sooner rather than later, while 19 per cent said they would consider changing vehicle categories and 18 per cent would consider shifting from purchasing a new vehicle to a used one.
Read More: Used Car Prices Fall In August But Are Still Up 32% From A Year Ago
Kelley Blue Book also reports that 35 per cent of all surveyed shoppers are willing to pay above MSRP. In fact, buyers are willing to pay up to a 13 per cent premium, or roughly $5,600 more based on average prices. Three-quarters of consumers are also willing to drive between 50 and 200 miles to find a new vehicle.
“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,” Kelley Blue book senior industry intelligence manager Vanessa Ton said. “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. Long term, OEMs are likely experimenting with made-to-order deliveries for consumers.”
