The ongoing microchip shortage and COVID-19 pandemic have had a profound effect on the automotive market, driving up prices and curtailing supply. Now, in response to the current market conditions, nearly half of new car shoppers say they are likely to delay purchase.
Per a recent study from Kelley Blue Book, 48 percent of new car shoppers said that they would consider delaying purchase due to the current market conditions. The figure is based on surveys conducted in late August. That’s a substantial uptick compared to May, at which time the 37 percent of car shoppers that said they would considering delaying a purchase.
Per the recent Kelley Blue Book study, 80 percent of those car shoppers surveyed in August indicated that they would consider sitting out of the market for three months to a year. What’s more, survey responders in August indicated they would consider switching brands due to low supply, while 19 percent of car shoppers said they would consider a different type of vehicle.
Additionally, 75 percent of car shoppers said they would be willing to travel outside their local area to find the car they wanted, while 38 percent said they would consider buying a used car rather than a new car. This latter statistic coincides with rocketing used car prices.
“With a large portion of the in-market population now saying they plan to delay their purchase given the current market conditions, it will be interesting to see how that could impact the ongoing delicate balance of supply, demand, and pricing across the industry,” said Kelley Blue Book Senior Industry Intelligence Manager, Vanessa Ton.
As GM Authority covered previously, the average transaction price (ATP) for new-car purchases in August was up to $43,355, rising 1.6 percent from an ATP of $42,670 in July, and rising 9.6 percent from an ATP of $39,571 in August of 2020. Combined, all four General Motors brands in the U.S. (Cadillac, Chevy, Buick, and GMC) saw a 0.3-percent ATP increase between July of 2021 and August of 2021, up to $49,468 from $49,343, rising 13.1 percent year over year from $43,749.