One of the biggest problems in the last year for people looking to buy a brand new vehicle comes down to a supply chain issue. Companies worldwide suffer from a microchip shortage, meaning that cars can’t be produced at the same level as before. Because of the car chip shortage, there’s also a shortage of new vehicles.
All this leads to more demand for used cars. Not only are people trying to buy gently used cars to call their own, but they are onto the ones they have longer. The older a car gets, the more protection it needs. That’s why having a vehicle protection plan such as one from Veritas Global Protection makes a lot of sense.
What do microchips do?
Its microchip is the brain for modern electronics. They are small but have essential components for everything to run smoothly. There are some less complex microchips out there, but cars are pretty intricate. There’s a lot of work involved in making microchips for cars, so skimping on them would be a disaster.
The modern vehicle relies on a microchip more than ever. There are a lot of systems in place to make the car run as it should, and safety features rely on microchips as well. Whenever there’s new technology added to a vehicle, that means that more microchips are required.
How Covid has impacted microchips
The COVID-19 pandemic has had a significant impact on many things beyond microchips. However, from a car perspective, The lack of quality microchips makes new car production an issue.
It all started when there were mass shutdowns in the spring of 2020. Even when companies went back to work, some predicted that new car demand would drop for the foreseeable future. It has picked up to normal levels faster than microchips have gone back into production.
Companies are trying to speed up the microchip building process, but it’s a complex process that takes a lot of time and money to accomplish. Only a few trusted chip manufacturers in the world are counted on by car companies, which is why the only thing they can do is continue to wait. It can take about three months to manufacture an average microchip and close to half a year for something more advanced.
What does a microchip shortage mean for the consumer?
Many people have started to count on Veritas Global Protection, and other vehicle protection plans out there because they are holding onto an older car. Why aren’t they jumping onto the bandwagon and purchasing a brand new vehicle?
They simply don’t want to pay the premium for a new vehicle right now. Many companies have cars out of stock, so people are forced to settle on something they might not want. When there is new stock available, they go to the highest bidder.
Buying a used car is nothing to be ashamed of, as people have been using this strategy as a way to save money for years. More and more people are starting to realize the value of getting something used and saving some money. The only drawback to this is that more focus is necessary on taking the time and money to properly protect their vehicle.
Protecting new and used vehicles
Investing in a brand new vehicle in today’s market costs money, but there are plenty of people who are doing it. However, most are either sticking to the car they have or buying something used. Whatever the case is, a protection plan like Veritas Global Protection is the perfect way to go.
Having a protection plan on top of insurance and possibly a warranty further protects anyone from having severe issues that could hold him back. The cost of a car repair seemingly out of the blue can wreck someone’s finances for the month. A protection plan does a great job of fighting off any disastrous situations so that they don’t get out of hand.
A Veritas Global Protection plan is an option that many have turned to because of its value and flexibility. There are options for just about any type of vehicle owner, ensuring that no one is spending more money than they have to. Simply protecting what a person wants is very easy when crafting a plan.
Individuals are counting on Veritas Global Protection, but so are entire families. By getting a plan that protects multiple vehicles in a household, there’s a way to save money on monthly premiums and have additional peace of mind. By picking and choosing what is protected, there’s no overlapping with an insurance plan or a manufacturer’s warranty that comes with it.
Is the microchip shortage coming to an end?
Some are very optimism that we’ve seen the worst of the microchip shortage at this time. Others are worried that this could last years before everything is back to normal.
Whether it’s a new or used vehicle, Veritas Global Protection helps out. It becomes much more essential when new vehicles are not attainable. Getting an extra year or two out of a current car is a perfect opportunity at this time.
Microchip shortages won’t be around forever, but a quality protection plan is always available. Shop around and find one that fits to save money and reduce stress.