If you’re reaching the end of your current lease and are looking for a new car you might be surprised to see that the wait time is longer than it was last time. We know this is frustrating especially if you can’t see why your new car is taking twice the length of time to arrive and there’s no clear reason why, which is why we’ve put together this piece explaining all the different factors affecting your new car delivery.
Long-Term Impact of Covid-19
It might feel like Covid is well in the rear-view mirror, but the long-term effects of it are still being felt in the automotive sector.
During the pandemic, there were factory closures, additional distancing and cleaning measures which meant that the productivity in factories was much lower than pre-pandemic levels. And this wasn’t just in the car plants but all the factories supplying parts as well. This led to the waiting time for vehicles jumping significantly, with some models having a wait time of over 18 months. Though this is now coming down it’s important to be aware that there is still a backlog of orders, especially for in-demand models or those that have limited production runs.
Another impact that the pandemic had on the industry was that there was a decrease in demand for new cars, which saw manufacturers cancel or delay their orders for one of the most expensive parts – microchips. At the same time, with more people staying at home, the demand for microchips from other manufacturers including laptops, tablets, gaming devices and similar electronics rose. Only one type of microchip can be produced in the environment at any time which meant that when the time came for car manufacturers to order chips again, they had a longer wait as existing electronics orders took precedence.
Conflicts Around the World
There have been additional delays due to some of the most critical parts factories being located in, or having transportation route through, conflict zones. The most notable of which are those located in Ukraine. Though there are now established alternatives with factories being relocated or having their operations modified, this did cause some delays to parts and in turn new car deliveries.
Natural Disasters
In 2021 there were several natural disasters and accidental fires at factories where a critical part for modern cars was produced. As cars become more technologically advanced, they require more microchips which require a dedicated and ultra-clean environment. They need to be made in an area free of dust and static electricity, as both can damage the chips. This kind of environment is expensive and takes a long time to be built which is why there are only a few specialist factories in the world that produce them. With a factory fire in one of Japan’s largest chip-producing companies and storms causing damage in Texas factories, there was a drop in the volume of microchips being produced globally. The factories have now recovered but this lower production period did create a backlog in orders that means we are still feeling the impact of this.
Delays at the Port
Another reason that it is taking longer for UK drivers to get their new cars is that the way cars and other goods enter the UK has now changed post-Brexit. It is taking longer for cars to move through the ports and clear customers at both the country of origin and in the UK, which means unless you’re ordering one of the few models still produced here then you should expect the transport time to be longer than you’ve previously experienced.
Shortage of Drivers
The UK is currently experiencing a shortage of HGV drivers, and this is affecting the transport of new cars from the ports to the dealers and from the dealers to you. It has improved in the past year, but figures show that we are still around 50,000 to 60,000 short of what the country needs. This shortage of drivers is compounded by our exit from the EU as it restricted the ability for European citizens to work in the UK.
How to Get a New Car Quickly
If you need a car quickly then we have three top tips for you!
1. Be prepared to take a different car – if you’re flexible on what brand and model your new car is then you’ll have more choice and be able to find one that meets your requirements in a faster timeframe.
2. Check your emails regularly – our team will regularly update you on the order’s progress, usually via email, including the next steps for you.
3. Make sure you complete the finance documents quickly – if you’re taking out a finance agreement, like a lease, then you want to make sure that you sign the documents promptly after you receive them. A lot of agreements have a cooling off period that doesn’t start until the finance documents are signed and approved by the funder so if you delay signing them then it can have a knock-on impact on your delivery.
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