Welcome to another week of summer weather and, depending on where you live, cicadas. This week, we’ll fill you in on the computer chip shortage that is making buying cars, RVs, and boats a challenge–and how you might be able to use that to your advantage. Then, because so many people will be taking road trips this year to avoid flying for one reason or another, we talk about what makes a great road trip playlist. Finally, a quick success story about how we helped a client ensure their insurance was up to snuff.
First, if you’ve looked into buying or even renting a vehicle or boat this year, you’ll likely have noticed a very restricted supply. Many car dealerships and rental agencies sold off portions of their fleets to stay afloat during the pandemic but haven’t been able to restock because the semiconductors or microchips serve as the “brain” of electronics and vehicles are in a severe shortage.
Initially, the shortage happened because factories slowed or stopped producing during the height of the COVID pandemic. But instead of catching up now that production is back to normal, they’ve had to adjust to changing consumer habits fueled by the pandemic. For example, more people are buying gaming consoles, and television and home computer sales have boomed. Plus, 5G mobile devices and tech-heavy cars are contributing to the shortage. Experts predict this will take about two years to sort out, as that’s the expected time it takes to set up semiconductor factories.
So how can we manage this or use it to our advantage? First, of course, if you can wait two years before investing in a new vehicle or electronic device, that is probably your best bet. Second, inflation isn’t good for the economy, so lowering demand will help slow the price increases.
However, if you are looking to sell anything that uses such a chip, now is the moment to strike. Many car dealerships will buy used cars even if you don’t buy another vehicle from them. People are still buying boats or trying to. The used market on gaming systems, phones, and laptops is great for sellers as well. You’ll likely get top dollar for anything you’ve been thinking of selling.
If you have a suitable vehicle and plan to take a road trip this summer, a playlist gets that good road trip energy working for you. According to the experts, 60% of Americans curate a playlist for a road trip, and 35% will turn the car around if they don’t have the right tunes. Forty-two percent say they didn’t like their parents’ road trip music, and 52% think their generation has superior playlist-making skills. Only 10% will put on an album and listen straight through to the end. Roughly half will hit shuffle on a playlist or their music library, while 26% like to have a set order.
Here are the songs that a poll found most likely to make a 2021 road trip playlist:
Sweet Home Alabama, Lynyrd Skynyrd 39%
Hotel California, The Eagles 29%
Life is a Highway, Tom Cochrane 27%
Take Me Home Country Roads, John Denver 26%
On the Road Again, Willie Nelson 25%
Old Town Road, Lil Nas X 25%
Shut Up and Drive, Rihanna 24%
Highway to Hell, ACDC 23%
Hit the Road Jack, Ray Charles 20%
Here I Go Again, Whitesnake 18%
Don’t Stop Me Now, Queen 18%
Go Your Own Way, Fleetwood Mac 18%
Ramblin’ Man, The Allman Brothers Band 17% (tied)
Paradise City, Guns ‘N Roses 17% (tied)
Route 66, Chuck Berry 17%
Drivers License, Olivia Rodrigo 16%
I’ve Been Everywhere, Johnny Cash 16%
A Thousand Miles, Vanessa Carlton 15%
Born to Run, Bruce Springsteen 15%
This Land is Your Land, Woody Guthrie 14%
I’m Gonna Be (500 Miles), The Proclaimers 14% (tied)
Cruisin’, Smokey Robinson 14% (tied)
Everyday is a Winding Road, Sheryl Crow 13%
Like a Rolling Stone, Bob Dylan 13%
Greased Lightnin’, John Travolta 13%
Drive, The Cars 12%
Made in the U.S.A., Demi Lovato 12%
Little Deuce Coupe, The Beach Boys 12%
Ride, Lana Del Rey 11%
Roll with the Changes, REO Speedwagon 11%
And of course, once you’ve arrived at your destination, you’ll likely want something good to read! The New York Times always has you covered there–check out their summer reading list for 2021.
We work with many small business owners at Obsidian and one thing we always do as part of our process is to review their insurance coverage for them. This week, we noticed that a client didn’t have the umbrella liability insurance we thought they should have, so we worked with them to ensure their coverage was most suitable for their industry. We’re glad these clients will have peace of mind in the future.
Have a fantastic weekend! We’ll be back with you again next week.
Past performance is no guarantee of future results. Securities offered through Triad Advisors, member FINRA/SIPC. Advisory Services offered through Obsidian Personal Planning Solutions, LLC. Obsidian Personal Planning Solutions, LLC, and Obsidian Personal Planning Solutions, Inc, are not affiliated with Triad Advisors.