Manufacturer lead times
Find out the likely lead time before you order a vehicle
Lead times across a wide range of manufacturers and models have increased, and can be as long as six months. You may wish to consider the potential lead time of the vehicle before placing your order.
Why have vehicle lead times increased?
All leasing providers are experiencing extended lead times on certain manufactures. The main reasons for this are:
Cautious production forecasts
Several manufacturers were very cautious in their production forecasts and reduced their production during the recession in order to avoid flooding the market. However, demand for new vehicles at the end of 2010 was greater than predicted. This was particularly true for low CO2 vehicles, due to UK and European demand for economical and efficient vehicles. Manufacturers have been unable to rapidly increase production to meet this unexpected demand.
Substantial growth in the global demand for new cars
Demand in Chinese, Russian and Eastern European markets has risen significantly in the first four months of 2011. Growth in these markets is forecast to continue. As manufacturers have increased production capability, catering for these emerging markets has been a priority.
Shortage of components due to the recent Japanese earthquake and tsunami
The impact of the Japanese earthquake and subsequent tsunami is a major factor in extended lead times. Japan is the second largest car and car part manufacturer in the world and the majority of cars include parts manufactured in this country. The impact of the recent natural disaster means that almost all manufacturers are experiencing parts and components shortages.
