In a new Consumer Insights report, TRADER finds that consumers are aware of the issues with microchip production and sourcing, and dealers who know the issues shoppers face can plot their marketing and sales strategy to help them effectively navigate through it.
The study, conducted in May of this year, uncovered that 96 per cent of vehicle intenders are aware of the shortage, up from 88 per cent a year ago. Only 39 per cent of car shoppers have been personally affected by it, and those who haven’t so far are worried about what it will mean to them. You can’t effectively meet their concerns until you determine the specifics surrounding those concerns.
Among Canadians new car shoppers, 78 per cent expect a longer wait time to get into a new vehicle and 75 per cent believe there to be an inventory shortage. Prices are also a concern, with 66 per cent expecting that vehicles will cost more. Automotive consumers also don’t believe they’ll get any price-tag relief, as 59 per cent expect fewer deals or incentive offers, and 58% expect less flexibility to negotiate price.
For those considering used vehicles, 78 per cent expect higher than normal price tags, while 44 per cent expect fewer deals or incentives, and 52 per cent believe they won’t have much, if any, opportunity to negotiate. This may be driven by perceived scarcity impacting the used car market, as 61 per cent expect pre-owned vehicles to sell out quickly, resulting in an inventory crunch.
More information about the study can be found here.