There is excess demand for new vehicles

As the pandemic affected the manufacturing processes around the world, it is easy to understand that the supply of new cars is going to be very limited. Yes, it is hard to believe we are seeing a time in which if we have to buy a new car, we need to act fast. We have to act fast, not only so we could get a vehicle, but also to avoid higher prices.

Governments around the world are lifting the lockdown restrictions gradually, but it will take time for things to get normal. In the UK however, there is an imposed lockdown in the whole country, but the car market breathed a little when dealerships were allowed to open. They are allowed to sell new and used cars if they can follow social distancing protocols.

But, if you look at the other side, companies were still allowed to continue their businesses online and some retailers had reduced their staff to do so. The majority of the companies and almost all of the authorized dealers confessed that the need to halt the spread of COVID-19 is more important than the business.

The government’s statement related to the rules of engagement is very important and shouldn’t be ignored. The auto-related websites saw a great increase in traffic and the dealers decided to take back the employees.

Now, the dealers are working hard to deliver the cars that were bought before the crisis but were not collected and take news orders, so they can remain in the business.
The European car industry is about to resume the production processes. We saw announcements from Aston Martin and Jaguar Land Rover to open some of the factories in the UK within the next few weeks.

Once the production begins, the industry needs to start working on marketing and selling to make the vehicles find new homes. There are enough buyers in the UK at the moment, in fact as we mentioned the demand is higher than the supply.

The manufacturing process was a halt for a few months, and even when it’s beginning again, companies have to follow social distancing rules and other health and safety rules. This would slow the production process and the gap between supply and demand would increase further. It also means we would also see an increase in the prices and almost no discounts. This is natural, so if you want to buy a new car, take action today, to get the car on time and at a good price.