As we reported earlier, the global semiconductor shortage has continued to affect the automotive industry. Combined with rising living costs, supply chain disruption, and changing consumer priorities, the new car market has faced significant challenges over the past few years.
The impact cannot be underestimated, with recent figures highlighting just how much buyer behaviour has shifted.
New Car Registrations Continue to Fall
Several trends have emerged across the new car market:
- Five consecutive months of declining registrations
- Registrations down by 11%
- Many new vehicle waiting lists extending beyond 12 months
- 38% of prospective buyers delaying or abandoning plans to buy a new car
- 64% unwilling to wait 12 months or longer for delivery
- Manufacturers reducing vehicle specifications in some cases to manage semiconductor shortages
- Ongoing global supply chain pressures affecting production
These factors have had a significant impact on both vehicle availability and consumer confidence.
Rising Costs Are Affecting Buyers
Alongside supply issues, broader economic pressures are influencing purchasing decisions.
Higher inflation, increased household costs, and uncertainty around future expenses have caused many motorists to rethink their budgets.
Many buyers have chosen to:
- Delay replacing their current vehicle
- Reduce their planned spending
- Consider alternative makes and models
- Explore used vehicle options instead of buying new
As affordability becomes a bigger concern, value for money is playing a much larger role in vehicle purchasing decisions than it did previously.
The Shift Towards Used Cars
Long waiting times and rising prices have encouraged some motorists to look at the used car market instead.
For many buyers, purchasing a nearly-new or used vehicle offers:
- Immediate availability
- Lower purchase costs
- Reduced depreciation
- Greater choice within budget
This shift has helped maintain strong demand across many areas of the used vehicle market.
If you’re considering changing vehicles, understanding current market conditions can help you make a more informed decision. Our valuation guidance hub contains useful information on how market trends can affect vehicle prices and demand.
Are Electric Vehicles Pricing Some Buyers Out of the Market?
While electric and hybrid vehicle adoption continues to increase, purchase price remains a challenge for many households.
Manufacturers are investing heavily in electric vehicle development and expanding their EV ranges. However, these vehicles often carry higher upfront costs compared with equivalent petrol or diesel alternatives.
At the same time:
- Smaller, lower-cost vehicle options are becoming less common
- Environmental regulations are accelerating the transition away from traditional engines
- Supply constraints continue to impact availability
As a result, some buyers may choose to remain in their current vehicle for longer before making the switch.
Electric vehicles have been a game changer, but how about a used electric vehicle. Find out if its worth buying a used electric vehicle right here.
Is There Any Good News?
Electric vehicle sales continue to grow and account for an increasing share of the UK market.
Industry forecasts suggest that supply chain pressures should gradually improve over time, helping manufacturers increase production and reduce waiting times.
However, affordability remains a key challenge for both manufacturers and consumers. Rising energy costs, production expenses, and economic uncertainty continue to influence vehicle purchasing decisions.
What Does This Mean for Vehicle Owners?
Periods of limited new car supply can have a significant impact on used vehicle demand and values.
If you’re considering replacing your current vehicle, understanding its current market value is an important first step.
You may also find this guide useful:
Check Your Car’s Current Value
Market conditions can change quickly, making it worthwhile to understand what your vehicle may be worth today.
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