How about a new car?

If you’re in the market for a new car, you might already know this, but you’re in for a bit of a wait. The reason behind the wait is the global shortage of parts, specifically semiconductors (or microchips as they are sometimes called).

Microchips…mmm…nom nom

No, not that type, although you could have some whilst reading this! The average cheaper model of car will have around 100 microchips. The more expensive, luxury models will have around 150 to power all those added extras such as comfort and entertainment.

It’s not just the added extras though. Chips are used in the car’s safety features from seatbelt tensioners to the ABS.

So why the shortages?

Well, we can lay the blame at Covid’s door for this one. Remember when the world shut down? Everything ground to a halt, including production in China of the semiconductors. Workers were sent home, and very little was produced.

Slowly, production started up again but there were issues with back orders and delivery via cargo ships – one of the largest container ships ever built was stuck on a sandbank in the Suez Canal for six days. That cost almost $10 billion a DAY in trade!

Hmm..what about 2nd hand then?

You could be forgiven for thinking that going for a 2nd hand car is an option rather than waiting around a year for your new car.

Sadly, due to the lack of parts for new cars, this has inflated the price of 2nd hand cars to unprecedented levels. Buyers have been “willing” to pay over the odds for a decent, 2nd hand car out of desperation.

With petrol and diesel costs soaring, consumers are looking to buy electric vehicles but due to demand, they too have a delivery time from 40 weeks to a year.

It doesn’t seem there is much of an option between new, second hand and electric but all options need insurance. Make sure yours is up to date by clicking on our cheap car insurance, where we compare hundreds of providers. Get started now by filling out this 3-minute form.