Service Contracts: The Solution to the New Car Shortage
Over the past two years, we’ve all struggled at times to find toilet paper, hand sanitizer, and lumber, and more. More recently, car manufacturers have been struggling to obtain the semiconductor chips that are so essential to modern car production. Everything from high-tech safety features to high-end entertainment consoles rely on semiconductor chips, which are manufactured overseas and in very short supply.
A miscalculation of supply and demand for semiconductor chips may leave car manufacturers dry until the middle, or even the end, of the year. It takes between 12 and 20 weeks to build a single semiconductor chip, so this shortage will not be solved overnight – especially with the urgency and demand for new cars piling up. We all know that the combination of high demand and low supply can only mean one thing: Car prices are reaching record highs.
Fortunately, there is something you can do to help keep your current set of wheels in good shape and on the road longer.
While they won’t magically fix the semiconductor chip shortage, service contracts are an affordable solution to keep you on the road until new cars become more available and affordable. Purchasing a service contract will provide you with extra protection, roadside assistance, and qualified technicians. A service contract may even provide access to a replacement vehicle while your car is being repaired, a priceless perk when rental cars are also hard to find because of the semiconductor chip shortage.
Service contracts can be the solution for all stages of your car’s life cycle. Maybe you’ve been driving your trusty old car for quite some time now; replacing it isn’t urgent, but an extra layer of protection will provide some much-needed peace of mind when you can’t swing a new car. If your vehicle is past the manufacturer’s warranty, a service contract is a cost-efficient way to protect the car and its pricey electrical system.
Even if you do manage to purchase a new vehicle, new cars can benefit from service contracts, too. President’s Day weekend traditionally features discounts on new cars. While the prices may not be as low this year, this weekend may still be the best time to find a new car without breaking the bank. If you do, be sure to get a service contract to protect it from all the things that aren’t covered by the manufacturer’s warranty.
To keep yourself – and your car – moving through the semiconductor chip shortage, purchase a service contract – whether your current car is old or new.