FEATURE
Investment – Van Ninja ’ s goal is to ensure stock levels continue to grow . further stress on the supply chain . Semiconductors were one of the products heavily impacted , and the demand that was predicted to be a few years away was here now .
Semiconductors became the choke point in the supply chain , and this remains an issue today . Until new factories come online , it ’ s an issue that will remain unsolved .
Russia ’ s invasion of Ukraine has caused further disruption . Wiring harnesses for a wide range of vehicle manufacturers are made in Ukraine , along with many other parts .
How did manufacturers respond ? Manufacturers have dealt with these obstacles in several ways . Some , like Volkswagen , have had difficulty restarting their factories due to their suppliers also having issues .
Ford has closed its order books for the Transit Custom and is currently running with a one-year lead time .
Others are producing lower-spec versions of their vehicles , as they require fewer parts . For some manufacturers , features have been cut from the higher-spec models to complete them .
What does this mean for customers ? With little stock available , businesses have been unable to replace ageing vehicles . Companies held on to their existing vans , which reduced the number of vans in the used sales pool . This led to record price rises for used vans , creating another roadblock .
Once lockdown lifted and factories resumed production , there was a large backlog of businesses , with a year ’ s worth
of vehicles to replace . This added more pressure on manufacturers , and prices remained high .
How do things stand now ? Vans are available , but not in the quantity or variety that can satisfy all customers . Many manufacturers are sticking to the standard feature sets for the most part .
Customers may need to be pragmatic and compromise . Sourcing the ideal van , whether to match features or to align with the vehicles in a fleet , may require a year ’ s lead time .
Perhaps the wise choice is to take an “ acceptable ” van now . It might not have all the desired features , but it is in stock and will do the job required of it .
Prices are also fluctuating , with current events causing instability , and some interest rates changing daily , so waiting only makes vans more expensive .
Until stock levels return to pre-Covid levels and vans filter into the used sales sector , used vehicle prices will remain high . In many cases , it works out cheaper to lease a new van rather than buy in the expensive used market .
Finance options The Bank of England has increased the base interest rate several times recently . This creates a knock-on effect as finance lenders set their APR rates . Personal contract purchase ( PCP ) and hire purchase ( HP ) are both seeing APRs of 10-15 per cent from many funders .
Visit vanninja . co . uk or call 0330 122 0102 .
The same is true when taking out a personal loan to fund a purchase , as the loan interest rate is subject to the same increases as the PCP or HP agreements .
Leasing provides a better deal , as there is no APR directly applied . Yes , the base interest rate will affect prices , but leasing companies have a little more leeway to set their rates . Once your lease has been signed , the price is locked in , so you ’ re covered against any future interest rises .
This makes van leasing a more attractive option than purchasing in the current financial climate .
How Van Ninja can help Stock levels are slowly improving . Van Ninja continues to invest and is aggressively seeking new stock to purchase . While other companies are quoting long lead times and factory orders , Van Ninja ’ s goal is to ensure stock levels continue to grow .
Factory orders still have lengthy lead times and delivery ETAs are prone to further delays . With stock vehicles , delivery can be as little as two weeks from finance being approved .
If you need a replacement van , our advice is to select a vehicle from current stock , as we can ensure a precise delivery date .
Our sales team are in contact with the major van manufacturers and have up-todate information on lead times and vehicle availability , so please don ’ t hesitate to give us a call .
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