Why Is There Such A Long Wait For New Cars?
It is a lovely feeling when you visit a car showroom to buy your new car. Seeing all of the shiny new cars would make you believe that you can get your new car in a flash. However, the reality is that the wait for delivery of new cars is getting longer, with some manufacturers giving waiting times of between six and 12 months.
So, why are people having to wait so long for the delivery of new cars?
1. The semiconductor shortage
Modern cars now use more semiconductors than ever. Most of this is due to the additional safety features cars are now fitted with, together with enhanced entertainment and connectivity.
However, making semiconductors can take up to six months, and this means ordering new chips is a slow process. This was made worse by the pandemic when car manufacturers slowed orders for chips because of the drop in car sales.
Now that demand has risen again, the delivery of processors hasn’t caught up with demand. Chips in cars have to have high durability and last the length of the car’s life if possible.
This is one of the reasons some customers are turning to high-quality used cars from businesses like Reynold Motor Group.
2. COVID-19
With the huge disruption to global manufacturing that came in the wake of the pandemic, there was always going to be some lasting issues. Many car parts are made in developing countries that were hit the hardest by COVID-19. Many plants are still trying to return to normal levels of manufacturing.
This delay has caused an inconsistent delivery of car parts, which makes it hard for car manufacturers to complete orders quickly. It also explains why car manufacturers are often non-specific when you ask them for the wait times on new cars.
3. The conflict in Ukraine
Existing shortages of crucial materials and constraints on supply chains have been worsened still further by Russia’s invasion of Ukraine.
It was reported in the weeks following the start of the conflict that Ukraine’s status as a key exporter of neon gas – which is essential to the production process for the chips that are widely used in new cars – was set to make automotive production even tougher, and add to waiting times.
Nor has it helped that Russia is the world’s third-largest producer of nickel, which is used in electric vehicles’ lithium batteries, as well as the source of approximately one-fifth of the palladium that the German car industry uses to make catalytic converters.
Ukraine component manufacturers’ struggles to get hold of supplies have reportedly led to production delays for quite a few European manufacturers, such as BMW, Volkswagen, and Renault.
And with the war continuing to rage at the time of typing in late June, there was no sign of issues related to the conflict being easily resolved any time shortly.
4. Shipping delays
Restrictions at some ports because of COVID checks have caused a bottleneck in shipping. This has been exacerbated by a change in the cars many people are buying.
Recently, there has been an increase in the number of trucks and SUVs bought in some countries. Not all car-carrying ships are designed to carry such vehicles in large numbers, so some are having to be modified.
There are also rumors that car manufacturers are prioritizing smaller cars as these are in high demand and bring higher profits, as more can be carried on the ships. Some countries have seen a drop in the numbers of car-carrying vessels docking at their ports each week.
5. Batteries
Along with semiconductors, batteries for hybrid and fully electric cars are also in short supply. Part of this is because the materials and metals used in batteries are hard to manufacture in large quantities.
With the rapid rise in the sales of electric and hybrid cars, manufacturers are struggling to meet levels of demand. This has led to differing wait times for petrol and diesel cars compared to electric vehicles.
6. Rising car prices
Because of all the reasons mentioned above, there has been a knock-on effect on the prices of new vehicles. The higher the demand for cars and trucks becomes, the higher the prices will rise as well. Here are some other reasons for the price rises:
- The rising costs of parts and shipping have often been absorbed by the manufacturers because there were more cars being made than sold. However, with demand now so high, they don’t need to do this to sell their cars.
- With demand so high, car manufacturers are selling their new cars quickly. In the past, there was often a surplus, meaning manufacturers had to create deals to sell cars. Manufacturers don’t have to do this at the moment, and this leaves customers the option of paying the price or going somewhere else.
What can you do to beat the queue?
Unfortunately, there are few options for beating the long wait times. Many people are looking at waiting months before they get the new car they want. However, there are options if you simply cannot wait.
- One option is to shop around the different manufacturers. As an example, the current waiting time for some cars like the Ford Mustang Mach-E is six to seven months. However, for a Dacia, the wait drops to three to four months.
- Although you may want a new car, the other option is to find a good used car and drive that until demand starts to drop. However, there are no signs of the latter happening at the moment.
Auto Express magazine recently provided a useful rundown of the situation with new-car delivery times in the UK among a range of brands, as of March 2022.
Last words
For car customers, the outlook shows a long wait for a new car. However, there are certain manufacturers that have shorter waits than others if you aren’t specific with your needs.
Sadly, not all of the issues outlined above that are contributing to delays are ones that will be quickly or straightforwardly resolved in the near future.
So, if you are in the market for a new vehicle any time soon, it is important to ensure you are confident in the model that you purchase and sure that it will continue to be the car that best caters to your needs by the time of its arrival on your driveway.