Will you be able to bag a deal on a new car once lockdown lifts?

If you’re waiting for the lockdown to lift to get a great deal on a new motor, you might struggle to bag a bargain in showrooms, according to market analysis.

Buyers are being told to act quickly as a backlog of pent-up demand is expected to quickly outstrip limited supplies in the wake of factory closures resulting from the Covid-19 crisis.  

Manufacturers are expected to react by reducing discounts on new cars as demand returns.

It was only last week that the Government announced dealers are allowed to sell and deliver vehicles remotely in the UK.

This has resulted in a spike in online leads to dealers, says What Car?. 

While UK car plants remain closed but hint they will resume production next month, manufacturers across mainland Europe have already restarted assembly lines, be it in restricted numbers to meet social distancing requirements. 

The output of new cars is expected to be much lower than normal and the supply of new vehicles in the UK will depend on existing stocks and this limited production.

That means the deals currently in place could soon dry up as dealerships struggle to get their hands on motors to sell. 

What Car?’s Target Price analysis of discounts for the first three months of 2020 up to the start of the lockdown, found Citroen offering the best deals with an average of 16 per cent off on a new car. 

Seat, Nissan, Skoda and Mercedes averaged savings of between 14 and 11 per cent to make up the top 5 discounted brands before the pandemic restrictions were put in place.

Pat Hoy, who heads What Car?’s team of mystery shoppers that establish and analyse Target Price, said: ‘While the market is frozen, dealers that remained open have been nurturing leads, making it harder to get a clear indication of what their plans are for when business opens up again. 

‘But the clear expectation is that, as soon as demand outstrips supply, they will look to reduce incentives and discounts and focus on profitability.

‘Of course, there will be variables within that. Some manufacturers will sacrifice profit for market share but the likelihood is that most buyers will face the double whammy of discounts narrowing and waiting lists extending as soon as the market opens up.’

Dealerships had been forced to close their doors to customers and shifting their operations online when the lockdown was first enforced, with no clear message from the Government about whether they could sell and deliver vehicles to drivers during the pandemic.

Last week, the Department for Business, Energy & Industrial Strategy provided some relief to the motor industry by confirming dealerships can still remotely sell cars and – adhering to social distancing rules – deliver them to customers.

A government spokesperson said: ‘We have asked non-essential shops like car dealerships and showrooms in England to close, unless they provide urgent car repairs and other necessary services.

‘They are all able to continue to sell cars remotely and deliver cars, as long as they follow our clear guidance from Public Health England to protect both employees who cannot work from home and their customers.’

The statement gives car dealers the green light to restart operations without fear of fines or police intervention, and means drivers can get their hands on new motors while the lockdown is in place.