IF you order a new car now it is wise to check the delivery date or you could be in for a nasty shock.
The industry is experiencing a shortage of new cars which means that buyers must move fast if they are to beat next year’s VAT rise according to CAP, the used car pricing experts.
There is now a sometimes unusually long wait between order and delivery for many new cars after last year’s recession, coupled with a weak euro, a situation which led manufacturers to slow down car production and focus on supplying other countries.
In some cases even cars ordered today will not be delivered until after VAT rises to 20% on January 4, 2011, adding £375 to the VAT-inclusive price of an £18,000 vehicle.
The problem is not confined to the usual luxury and exotic car sectors, with many mainstream brands now reporting lead times of several months.
For example a Skoda Superb ordered today will not be delivered until mid-November. Some Volvo and Audi models will not be available until well into 2011.
Volkswagen is seeing lead times of 12–14 weeks when normally a new car can be delivered in five or six weeks. Even the ubiquitous Ford Fiesta cannot now be supplied until mid-September.
But the headache is not confined to car buyers.Dealers now face the challenge of negotiating a part-exchange value today with the new car customer – not knowing what that car will be worth when the deal is finally concluded.
Buyers need to make inquiries early if optional extras are required because they will be subject to special factory build, with little or no chance of a suitable car already being in stock.
This has arisen in part because manufacturers will always focus on the territories where exchange rates create a more profitable environment.
What happened last year was that many switched focus to other countries, such as the United States, because of the weak euro.