COVID-19 had a significant impact on many different industries globally. Not only was it a catastrophic pandemic that continues to prove deadly, but companies are still trying to figure out how to bounce back after almost two years of issues.
In the automobile industry, a chip shortage has created a pretty large, industry-wide problem. Without these chips, vehicle production has been heavily impacted. That not only affects people looking to buy a new car but all drivers.
Is the semiconductor shortage a genuine problem with no end in sight? Let’s look at how the current car market is doing and how a vehicle protection plan from a company like Red Shield Administration can help.
Breaking Down the Chip Shortage Issue
With the semiconductor shortage impacting virtually every car company, they have a tough time keeping up with demand. These semiconductors are very tiny components, but they’re necessary for most cars and trucks. Features like infotainment systems and advanced steering wheels have computer chips running them.
Leading up to the pandemic, the reliance on these chips seems like a natural progression for the industry. Smarter cars keep customers safe, and they help extend the life of vehicles as well. Now, shoppers are finding it difficult to get a new car that they like.
How the Chip Shortage Impacts New Car Shoppers
The car shopping experience is simple when there isn’t a pandemic. A person identifies the car they want and usually has the opportunity to buy it right away. There are a lot of dealerships that are out of the popular options. This creates urgency for shoppers, hoping to find what they want.
Prices have gone up for vehicles because of the demand. Shoppers have decided to pay a premium instead of waiting for a new shipment. Not everyone can pull this off, as a new car already costs a lot of money. That’s forcing many to play the waiting game until stock returns to normal.
How the Chip Shortage Impacts the Typical Driver
It might seem like now is the wrong time to buy a car with the shortage. However, it still impacts the typical driver who has a car that has been around for a while.
First, getting a repair with a necessary semiconductor is very challenging. Many companies have told customers that they don’t have anything ready for use, and they likely won’t get new inventory until the end of the year. Having a vehicle protection plan from a company like Red Shield Administration can help make the repair process easier.
Shopping for a used car is a challenge in its own sense. Everyone is looking to make some type of upgrade, and they’re willing to pay more money than the standard rate. This is good news for shoppers who are looking to sell, but there’s still the need to replace that vehicle for something else.
Why Vehicle Protection Matters More Than Ever
Many shoppers realize that the best thing to do at this point is to wait it out and see how the auto industry looks later on in 2022. For the time being, people are attempting to get by with what they currently have so that they still have reliable transportation to get everything done. This is where a vehicle protection plan from a company like Red Shield Administration helps keep your vehicle protected.
One way to add extra assurance when driving around is to add a vehicle protection plan. Red Shield Administration has noticed that more people are doing precisely this. This way, any costly repairs can be offset by the added protection that’s paid for every month.
There’s no better way to keep a car running smoothly than to invest in a vehicle protection plan that delivers. That means fast repairs, which cut down on time needed for a rental. It also means having complete coverage when combined with insurance and any warranty offered by the manufacturer. Since most offer flexibility on repair location, drivers are never out of commission long when dealing with repairs.
Red Shield Administration strives to make the vehicle protection plan shopping experience as stress-free as possible. They offer multiple plans for all types of coverage. This way, customers can cut down on any redundant coverage that isn’t necessary for their needs.
All in all, a vehicle protection plan is never necessary. However, during unprecedented times, having additional coverage cuts down on potential headaches for drivers.
Is the Chip Shortage Ending Anytime Soon?
There is light at the end of the tunnel for car companies and customers regarding the chip shortage. Many experts believe that by the end of 2022, the supply chain has a chance to be close to being caught up. There might still be some minor delays here and there, but many issues are fading away.
Even if the chip shortage fades, a vehicle protection plan helps for new or used vehicles. People realize that it often pays for itself after the first claim. Instead of being out hundreds if not thousands of dollars with something simple, the protection plan kicks in and picks up the tab.
A small monthly payment for additional coverage virtually eliminates any big bills for a driver. With so many other COVID-19-related issues, not dealing with significant car trouble is worth it for most drivers. Even post-pandemic vehicle protection plans prove their worth.