Will demand outstrip supply in the coming months?
What car is predicting a China style V shape cover 19 recovery for the new car sector and is urging customers to act fast if they want to take advantage of discounts. New car discounts are expected to be reduced as demand begins to outstrip supply following recent shut down of production. The Chinese market has seen a sharp improvement from a fall of 80% year on year in February to a decline of just over 40% in March. Preliminary figures for April look promising as daily sales have doubled from on average 20,000 to 40,000 in the third week. In the UK there has been a spike in online enquires as the government recently gave dealers the green light to deliver vehicles remotely. A recent what car poll says that one in five will be looking to purchase a new car when the lock down is over.
The good news is that manufacturers are now beginning to re open plants but supply will still need to come from existing stocks with production still running at a fraction of previous output. There is an expectation that as demand outstrips supply dealers an manufacturers will look to reduce incentives and discounts and focus in profitability, we do expect variables but it is likely that most buyers will face a double whammy of discounts narrowing and waiting lists extending as soon as the market opens up.
Fortunately at ALPHALEASE we still have some great offers for vehicles we had pre ordered before the lockdown, please get in touch if you are considering a change when we the restrictions are lifted. It really could be when the deal is gone it's gone .
Share this page
30th of April 2020