TRADER Corporation finds in its latest survey of users on AutoTrader.ca that about nine in 10 Canadian car shoppers polled are aware of the global microchip shortage and, as a result, are willing to adapt their purchase journey to the market conditions
The data collected shows 42 per cent of respondents would be willing to travel further to purchase a vehicle. Of that group, 31 per cent are willing to drive more than 400 kilometres for their desired vehicle.
In response to the temporary decline in supply of new vehicles, 27 per cent of car shoppers are prepared to make the shift from buying new to buying used vehicles. Moreover, 20 per cent of consumers are willing to cross-shop between makes and models.
As most Canadians are aware of the microchip shortage, they are also conscious of the impact it could have during the car buying process. During the survey, 71 per cent of new car buyers expect higher prices on automobiles, and 65 per cent expect there will be less room to negotiate prices.
Interestingly, similar impacts are anticipated with respect to used vehicles. When asked what consumers would expect during the used car shopping process, 74 per cent anticipate higher prices, 63 per cent expect less vehicle inventory available, and 55 per cent expect less room for price negotiation. Despite this anticipated shortage of used vehicles, AutoTrader.ca can confirm there are just as many used cars advertised on the marketplace compared to this time last year.
What should also be of reassurance to is the presence of a persistent demand and interest. Moreover, these determined shoppers are aware of the microchip shortage, willing to shift their behaviours to accommodate.
“We’re steadfast in our commitment to analyzing and providing top tier market data and insights with our Canadian dealer partners in mind,” said Ian MacDonald, chief marketing officer, TRADER Corporation. “With the current global microchip shortage and the challenges imposed on the automotive industry, dealers can benefit by modifying their customer service and marketing efforts in order to better match how consumer preferences and expectations have changed, to drive sales during this time.”
When asked what tools would assist with the car buying process, 49 per cent of shoppers would find it beneficial to have access to a price comparison tool like the one found on AutoTrader.ca. Thirty-five per cent indicated that they would spend more time browsing an online marketplace to research and comparison shop.
With this in data in mind, dealerships would benefit from maintaining a strong, optimized presence on third-party automotive marketplaces. Be sure to update pricing to ensure it is priced based on the current market value. Moreover, since consumers are expecting there to be fewer promotions, dealers that have incentives available should take measures to reflect that prominently in their marketing materials.