In our last article, we discussed the effects that the current global situation is having on the supply chain for everything and how that may affect your new vehicle.
It’s possible if you’ve recently ordered a new vehicle, that you may have heard from your dealership or broker informing you that your vehicle delivery will be delayed. We appreciate that this can be both frustrating and disappointing. However, given the existing state of affairs, it’s unavoidable and this situation is one that nobody could have predicted.
At the start of this year factories where components for a considerable proportion of cars across the world are manufactured, were closed. This has, as mentioned in our previous article, had a knock-on effect on manufacturing everywhere else. Plants in the UK, US and across Europe experienced a shortage of necessary components to manufacture their products, whether it was electrical wiring, batteries, door handles or anything else.
It’s taken a while, but China has now begun the slow and arduous process of reopening and restarting their factories, including the ones where components for vehicles are produced. Currently, they are predicted to be working at around 40-60% capacity.
Unfortunately, as you have likely heard on the news, while production in China is slowly returning to normal, the same cannot be said for the plants where these supplies would be used across the rest of the world. We have an article that outlines what is currently happening in the motoring industry around the world at the current time, this is regularly updated.
As we’ve mentioned previously, this is not all bad news. No doubt, like us, you have read the seemingly endless list of closures that have taken place over the last week. Yes, it does look like it should set alarm bells ringing, but the reality is that there is no reason to panic.
The fact is that there will be delays. There’s no avoiding this particular truth. Your vehicle may have been scheduled to hit the production line in a factory in Spain in the next two weeks, and we now know that this won’t happen. But when the factory reopens – some have already set an opening date – your order won’t have been lost, it will still be in their system ready to go when the relevant supplies are available.
As with the factories in China, it won’t be all plain sailing. It won’t be a case of everything back to normal the minute the plants reopen their doors. However, as China will have been replenishing their own stocks over the weeks that our factory doors are closed, supplies will not be as short as they have been.
Of course, not all components are manufactured in Asia, and it’s highly likely that the factory in Spain where your car or van is coming from is waiting for another factory in Germany, Poland or the Czech Republic to ship parts (perhaps the engine or gearbox) before they are actually able to start production of the vehicle. This will cause initial delays in the process. However, once all the factories in the supply chain start working at full capacity again – or even partial capacity if they are all working – things will start to move that much quicker and the orders that have been temporarily postponed will start to filter through from the factories to the ports and finally to you, the customer. We have written an article that goes into more detail about the manufacturing process and how where a vehicle is produced can be affected by supply chain shortages.
It won’t be instant, by any means. But it should reassure you that if you have placed an order for a vehicle and you’ve been informed that there is a delay, your order hasn’t been forgotten, and you will be driving your new car as soon as all the necessary parts are in the right place.
If you would like to find out more about what is happening in the motoring industry right now, including plant closures, we have put together an article that outlines the current situation.
What can I do?
Being completely honest? There isn’t much you can do right now to speed the process up. As with empty shelves in the supermarket, it’s just a case of being patient.
That’s probably not what you want to hear, it’s not ideal, but as previously mentioned, this isn’t a situation that anyone could have predicted, so we are all in the same place right now, playing the waiting game!
What we do know is that things will eventually return to something that resembles normal. It will take time for the currently closed factories to replenish the supplies they need to recommence production, so things won’t immediately return to the smooth running we are familiar with. However, when the factories have replenished their stocks, we will have a much clearer picture of the situation. Information about orders will slowly start to filter through from manufacturers to brokers and dealerships and we will, in turn, be able to share that information with you.
My lease is ending, what should I do?
If you have just placed an order for a new vehicle and have been informed that there will be delays due to the current situation then there are a few options open to you.
If your lease agreement has come to an end, but due to the current situation the vehicle is not being collected and you would like to continue driving it, please contact your Finance House to find out about insurance requirements and plans for collection.
Extend your lease
In order to do this, you will need to contact your Finance House and ask them what options they have with regard to extending your lease. They will be able to offer you the advice you need in order to complete the process. We have an article that will answer your questions about the pros and cons associated with extending your lease.
Short Term Rental
If you are due to return your car and have decided that you would not like to extend your lease, then another option to consider if you know that the new vehicle you have on order is going to be delayed is Short Term Rental.
Short Term Rentals are available on various terms, though a considerable number come with a minimum duration of around 3-months. Mileage varies and is often on a 28-day rolling contract.
If you would like more details about Short Term Rentals, we have put together some information that will help you to make a decision.
We have vehicles in stock available for short term rental right now. If this is something that you’re interested in, get in touch with one of our Vehicle Experts today and they will be able to help.
How can OSV help me right now?
We have put together some options that we are offering to new and existing customers that we believe will help you and/or your business.
Here is how we’ve been helping people so far…
- Putting cash in their bank by financing existing vehicles and assets
- Offering 3-month rentals instead of 3-year leases
- Providing express delivery on used and new vehicles
- Supplying vehicles on finance, lease and purchase
- OSV adapts to an ever-changing world - 29th May 2020
- Business car leasing with bad credit - 28th May 2020
- The motoring industry: What’s happening during the Covid-19 pandemic? - 15th April 2020