Semiconductor Shortages, New Car Delays and Used Car Values

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SRGTD
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Semiconductor Shortages, New Car Delays and Used Car Values

Post by SRGTD »

Just seen this posted on another forum;
ACDEBDD1-84F4-4074-BBF0-1D3DE88B55ED.jpeg
ACDEBDD1-84F4-4074-BBF0-1D3DE88B55ED.jpeg (94.35 KiB) Viewed 1665 times
So it would seem it’s particularly bad news for anyone who’s ordered a new right hand drive mk8 Golf GTI with DSG transmission and Harmon Kardon upgraded sound system - they could be in for a long wait for their new car. It won’t just be the three VW models listed above that are affected though as semiconductors will be used in all cars, so anyone on this forum who’s ordered - or are considering ordering - a new Polo should be aware of the current situation.

The worldwide shortage of semiconductors (computer chips) is having a significant impact on many industries just now and from what I’ve read in the media, this is likely to continue for some months. Many car makers are moving to reduced working hours and / or temporarily closing production lines, resulting in a shortage of new cars and longer lead times (historically, VW already have long lead times for factory building orders!).

That’s good news if you’re thinking of selling your car - currently, because of market conditions, demand for many popular used models has increased because some prospective buyers aren’t prepared to accept the longer than usual lead times for a new car build, so they may consider buying nearly new instead. This increased demand for good used cars and shortage of supply of new cars means that unusually, used car values of many popular models are increasing (at least in the UK). I’ve seen people on forums saying that they’ve been offered more for their cars by dealers and car buying services (e.g. Motorway, Wizzle, WBAC) than they paid for them. For anyone who does sell, they’re then faced with the dilemma of what to do for a replacement car;
  • buy another similar used car which is likely to have an inflated sale price due to current market conditions.
  • wait for a new car to be built and accept they may be car-less for a few months, unless they have a second vehicle they can use in the meantime.
  • if lucky they might find a new in-stock car at a dealers. If they can, then IMO the chances of the dealer willing to discount the price is much less likely in the current market.
How long it’ll be before the used car values bubble bursts is anyone’s guess, but interesting times for anyone buying or selling a car………🤔
S_94
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Re: Semiconductor Shortages, New Car Delays and Used Car Values

Post by S_94 »

Had a shock looking at the prices of second hand Polo GTI's earlier. My current mileage is around 10.5k, similar spec/mileage on second hand car sites is pricing the car at £21k.

Would like to move onto a GTI TCR but as you said SRGTD, the prices of other second hand cars seem to be inflated as well. Not sure what to do... :roll:
Andy Beats
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Re: Semiconductor Shortages, New Car Delays and Used Car Values

Post by Andy Beats »

Still really tempted to get rid of mine as WBAC have offered me enough to clear my feet with VW finance.
Which means I could start again and go electric, as I should have bloody done 9 months ago...(idiot).
Just the thought of fixing some minor blemishes on the paint and transferring the private plate (again) is putting me off.
Stuart_Rendall
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Re: Semiconductor Shortages, New Car Delays and Used Car Values

Post by Stuart_Rendall »

Andy Beats wrote: Tue Jul 13, 2021 4:50 pm Still really tempted to get rid of mine as WBAC have offered me enough to clear my feet with VW finance.
Which means I could start again and go electric, as I should have bloody done 9 months ago...(idiot).
Just the thought of fixing some minor blemishes on the paint and transferring the private plate (again) is putting me off.
Give it another month or two and the car will pay off the mortgage at this rate of increase.
monkeyhanger
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Re: Semiconductor Shortages, New Car Delays and Used Car Values

Post by monkeyhanger »

The car companies are capitalising on the higher used prices and citing increased raw material costs by putting their prices up again. VW increased prices 1st April and are set to do it again 1st August according to DTD.

The worlds gone mad with lockdown easing - seems all the companies are price gouging to make up for lost time and people are currently willing to pay. Went to the pub last night and of the 3 places I visit, the average pint price for a decent continental lager seems to have gone up from £3.50 to £4.50. At some point people are going to have to vote with their feet, because wages haven't gone up!

Feeling pretty good about the timing.of changing to 2 ID3s - great discount, short weights and a pretty good price for the outgoing GTI and A4.
Stuart_Rendall
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Re: Semiconductor Shortages, New Car Delays and Used Car Values

Post by Stuart_Rendall »

monkeyhanger wrote: Wed Jul 14, 2021 6:29 am Went to the pub last night and of the 3 places I visit, the average pint price for a decent continental lager seems to have gone up from £3.50 to £4.50.
Think that's bad, I spent £3.50 for 300ml of water at the Goodwood FOS. I felt violated.
SRGTD
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Re: Semiconductor Shortages, New Car Delays and Used Car Values

Post by SRGTD »

monkeyhanger wrote: Wed Jul 14, 2021 6:29 am The car companies are capitalising on the higher used prices and citing increased raw material costs by putting their prices up again. VW increased prices 1st April and are set to do it again 1st August according to DTD.

The worlds gone mad with lockdown easing - seems all the companies are price gouging to make up for lost time and people are currently willing to pay. Went to the pub last night and of the 3 places I visit, the average pint price for a decent continental lager seems to have gone up from £3.50 to £4.50. At some point people are going to have to vote with their feet, because wages haven't gone up!

Feeling pretty good about the timing.of changing to 2 ID3s - great discount, short weights and a pretty good price for the outgoing GTI and A4.
My local pub has also increased its prices on both food and drink - no doubt to try and claw back some of their lost income from when they were forced to be closed during lockdown. I dare say they’d say the reason for the price increases is that their staff costs have increased as they’ve had to employ extra staff to provide table service, and their suppliers may have increased their prices too. However……..pubs have had the benefit of a reduced VAT rate (5%) since last July and my local didn’t pass that benefit on to the customers by reducing their prices; I doubt very few - if any - did.

The 5% VAT rate increases to 12.5% in October, before reverting back to the standard rate at the end of March next year, so there might be a further price increases on the way ☹️.
SRGTD
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Re: Semiconductor Shortages, New Car Delays and Used Car Values

Post by SRGTD »

This was posted over on golfgtiforum.co.uk yesterday by a forum member who’s the general sales manager at a large VW dealership;


New car delivery times
« on: 21 July 2021, 20:37 »
Hi Everyone,

Just a word of warning for anyone with a vehicle on order, we have been instructed to pass on a letter from VW about current and future delays for any new cars.

Also today I noticed we have some cars that have now got scheduled build weeks for next March/April 2022 🤢

Delays could certainly break any previous records


So if vehicle orders that are already in the system aren’t being built for another 8-9 months, anyone ordering now may be in for a very long wait………..😯
S_94
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Re: Semiconductor Shortages, New Car Delays and Used Car Values

Post by S_94 »

Wow. :o

Second hand prices will hold for a good while then!
Andy Beats
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Re: Semiconductor Shortages, New Car Delays and Used Car Values

Post by Andy Beats »

Over at the dealer last night, sorting out a Polo for the daughter.
They're desperate for used stock, they're so short of stock they've started parking the cars diagonally to make it look like they've got more cars than they have.
Once I've sorted out her car I will definitely be seeing if they'll take the Gti off me.
lancslad1985
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Re: Semiconductor Shortages, New Car Delays and Used Car Values

Post by lancslad1985 »

If you are looking to change its a sellers market but be advised you want to be looking at stuff already in stock as wait times are ludicrous - they reckon 12 months for a non stock golf now, 6 months for a troc or Tiguan.

I got offered £21k for my gti plus when I owed £20k after one year AND they knocked more money off the Tiguan I wanted. Dealer reckons chip supply will return to normal 4/5 months from what VW told him. People just aren’t changing out of cars due to Covid and they won’t wait for their new car to be built or make a compromise, so there are deals to be had if you are flexible on model and spec.
SRGTD
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Re: Semiconductor Shortages, New Car Delays and Used Car Values

Post by SRGTD »

lancslad1985 wrote: Thu Jul 22, 2021 9:28 pm If you are looking to change its a sellers market but be advised you want to be looking at stuff already in stock as wait times are ludicrous - they reckon 12 months for a non stock golf now, 6 months for a troc or Tiguan.
And it’s not just VW in that position. Semiconductor supplies and the impact of Covid (workforce catching it or having to self isolate) seem to be the main factors affecting car manufacturers ability - or more correctly, inability - to build cars just now, and pretty much all car manufacturers are impacted.

So anyone wanting to take advantage of the market conditions and the current high selling prices, don’t overlook the potential problems in finding a replacement vehicle;
  • if dealer stocks are low, finding an in-stock vehicle with an acceptable colour and spec may be difficult, and dealers may be less willing to negotiate on the price if their supply of new vehicles from the factory has all but dried up.
  • to order a new factory build will involve a long wait - possibly a very long wait.
lancslad1985
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Re: Semiconductor Shortages, New Car Delays and Used Car Values

Post by lancslad1985 »

Oh it’s definitely not just VW. I just got lucky with needing to change car now and they had the perfect car in stock.
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