Slow Delivery on New Cars Could Mean Rising Secondhand Values

Long waiting times for a new car could mean that used cars, especially low miles 1-3 years old, will increase in value that bit more. That affects all claims on relatively new cars, as the decision to repair or write off often depends on those values in the salvage and secondhand dealership markets. Here’s the word;

Drivers are facing waits of up to two years for new cars like the Range Rover Sport, Land Rover Discovery and Audi Q4 e-tron amid rising demand. Research conducted across 21 different manufacturers by car subscription service, Wagonex found that the average wait time for a new vehicle is eight months, with Land Rover and Audi facing the longest wait times. Even manufacturers like Citroen whose wait times are relatively short could see drivers hanging on for three months.

With new 2023 licence plates registered last month, latest SMMT data shows a rise of 287% in the new car market, with nearly 290,000 new vehicles on the road. But demand is being dampened by extended wait times, which are continuing due to shortages of car parts and ongoing supply chain issues that have been happening since the pandemic.

According to SMMT figures, the most popular car models for March were Tesla Model Y, Nissan Juke and Nissan Qashqai. Wagonex found that customers are currently waiting up to five months for a Nissan Qashqai and six months for a Juke.

Some manufacturers are offering shorter turnaround times of up to 3.5 months, these include MG, Citroen and Suzuki.

Wagonex’s subscription enquiries data found that the most in demand vehicles of 2023 are the Audi e-tron, BMW 3 Series and Mercedes-Benz C Class. According to UK manufacturers, the current wait time for the e-tron is 12 months, the 3 Series is 12 weeks, and customers wanting a new C Class could be waiting up to nine months before they can drive their new vehicle.

While there is still clear demand for car ownership, new data from Wagonex found that nine million drivers would consider a subscription for their next car, with half a million saying it would be their first choice when they next need a car.

Toby Kernon, Founder and CEO of Wagonex said: “A two-year wait for your next car is practically unheard of, so it’s no doubt that thousands of drivers are feeling frustrated.

“Those deciding that they want to wait eight months – the average wait time according to our research – will need to consider alternative, low-commitment options, like car subscription, in the meantime.

“You can check the wait on your desired make and model in our guide.”