For those who have been living on Mars in recent months, know that there is a global shortage of computer chips. This affects just about every industry that needs chips in their products, but the auto industry is really taking it on the chin. We have already seen production cuts and delays from many manufacturers, driving up prices at dealerships. Apparently a good chunk of buyers are willing to accept this.
In fact, a report from Cox Automotive indicates that nearly 50% of new car buyers are willing to pay a modest premium over the MSRP to get their new vehicle this year. The report cites research by Kelley Blue Book (which is part of Cox Automotive) conducted during the last week of April, revealing that 4 in 10 buyers would pay a 12% premium over the sticker price to get their new car now instead of waiting. better days. Based on the average price of a new car in the United States of about $ 41,000, this equates to a mark-up of $ 5,000.
The study also shows that buyers are well aware of the current situation. 87% of those surveyed were aware of the chip shortage, while 73% expected vehicle prices to rise as a result. Obviously, not all of these people are willing to pay that extra price, but at the same time, the study says 23% will not pivot to the second-hand market. However, 37% of buyers are willing to delay their purchase until the market improves.
Either way, the coming months will not be good for new car buyers or automakers. Widespread production disruptions could lead to billions in revenue losses for big brands. On the retail side, buyers will be faced with limited selection and a high probability of higher prices, especially on popular models.