Vehicle buyers are exiting the market as the global chip shortage continues to plague the auto industry

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Vehicle buyers are exiting the market as the global chip shortage continues to plague the auto industry
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Nearly half of car shoppers are likely to postpone their purchase several months due to international chip shortage, according to Kelley Blue Book report.

The global chip shortage is now causing nearly half of car shoppers to exit the market or postpone a new vehicle purchase for the next several months according to new consumer research from Kelley Blue Book. The August 2021 survey looked into car shoppers' current perspectives and intentions given the state of an automotive marketplace plagued by inventory shortages and record-high vehicle prices.

"The latest Kelley Blue Book research indicates that most consumers anticipate negative impacts on the automotive market due to the chip shortage, from increased prices to inventory shortages and longer delivery times," said Vanessa Ton, senior industry intelligence manager for Kelley Blue Book. Of car shoppers currently in the market 48 percent say they are likely to postpone their purchase due to the chip shortage. Within those willing to postpone, 40 percent said they would be willing to wait seven months or longer, about 40 percent said they would wait three-to-six months and 12 percent said less than two months.

"With a large portion of the in-market population now saying they plan to delay their purchase given the current market conditions, it will be interesting to see how that could impact the ongoing delicate balance of supply, demand and pricing across the industry. Long term, OEMs are likely experimenting with made-to-order deliveries for consumers," Ton said.

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