Consumer Demand remains high despite the supply challenges

Consumer Demand remains high despite the supply challenges

According to new research from Close Brothers Consumer Finance, 49% of motorists intend to buy a new car in 2022.  With 31% of owners wanting to buy a new car and 18% used, a growing sector of the population have decided to move away from Public Transport since the Pandemic and 37% of adults saying their preferred method of transport to work is by car.

We at Reep saw that despite the shortages of microchips in the automotive sector, the demand for our services was stronger than ever – many of our clients have reported that waiting times are over 12 months but that hasn’t stemmed the tide of customers being prepared to wait for the car they want.

Most dealers have seen an increase in demand for used cars with values holding strongly. We predict that the first 6 months will not see much movement in supply but as Manufacturers agree new contracts with their semiconductor providers, and new supply agreements (with penalties) then we should start to see some positive movement in H2 but it will be unlikely to be back to normal levels until 2023.