A study reveals that consumers in this region are more patient.
It's no secret that there is a shortage of vehicles at dealerships across the world, predominately due to the semiconductor crisis that manufacturers are working tirelessly to resolve. This has been a notable issue in the USA with sought-after products such as the Ford Bronco struggling to meet the immense customer demand. As you can imagine, these customers are being subjected to monumental waiting times if they want to get into the driver's seat of their favorite new car.
A study by analytics experts Growth from Knowledge (GfK) reveals that the Midwestern population is the most accepting of long waiting times for new cars within the country. GfK's survey included 17,000 customers who understand the crisis, of which only 33 percent would adjust their purchase plan for a car if the waiting time for delivery was extended.
Within this group, Midwesterners are the most likely to wait with 43 percent of the demographic accepting a delivery time of 12 months or longer. On the opposite end of the spectrum sits those from the Northeast area, of which only 30 percent would be willing to wait similar periods.
GfK's senior vice president of mobility consulting, Julie Kenar, reveals this is a result of the large scale of auto workers who live in the Midwest.
"That is where the bulk of employee sales are happening," she says "and clearly people who are using an employee discount are much more aware of the chip shortage and better understand the impact."
The survey does not detail why so few from the Northwest would wait longer, but there is an understanding that consumers from this region are subjected to a different lifestyle. The study also reveals that among the group, those over the age of 45 years old were willing to wait for the longest period.
Kenar explains that those from the Northeast did not necessarily need cars before, but now that so many are moving to the suburbs and metro areas, cars are becoming more of a necessity. Because of this, their understanding of the supply chain in the automotive world, which is expected to continue well into 2023, is not as up to standard as those from the Midwest.
Division Manager for Midwest dealership group Fox Motors, Jason Olesnavage, reveals that this shortage has subjected his company to innovate the way that cars are sold because there is a struggle to fulfill all of its lots. He says that there are customers that are flexible when it comes to purchasing plans but there is a demographic that does not waver. According to him, the cars that customers have no issue waiting for are the Ford Bronco range and select electric vehicles.