Small car market

High demand for small cars hits lead times

Showroom lead times for some popular small cars have extended to over two months

Certain versions of the Renault Clio, Mazda2, Renault Twingo and Peugeot 107 have had lead times extended to over two months, which is likely to be good news for used examples of these models.

At a time when many people are downsizing in a bid to reduce their motoring costs, it is no surprise that there is high demand for these types of vehicles. As a result some car manufacturers are unable to adjust their production output to meet the market’s needs.

Some consumers, unwilling to wait anything up to 12 weeks for a new vehicle, will turn to the second-hand market for a nearly-new example of the car of their choice.

The lack of supply should help to bolster residual values of established cars such as the Renault Clio and Peugeot 107 over the coming months, while it is also a good indication of things to come for the more recently launched Mazda2 and Renault Twingo.

Manufacturers should also be aware, however, that buyers may simply be tempted to shop around and settle for a brand which has shorter lead times on its small cars.