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Monday, 19 October 2020 16:09

Enterprise Releases U.S. Length of Rental Data for Q3

Index

As patterns of “new normal” emerge---from continued remote working to limited travel, business as usual and everything in between---Enterprise has continued to track results and patterns in the Length of Rental (LOR) for the U.S. and Canada.

The second quarter of 2020 saw a wild swing from April’s increase to June’s stabilization---do Q3’s results follow suit?

 

Excluding total losses, average replacement LOR for Q3 was 12.2 days in the U.S., slightly down from Q3 2019’s result of 12.4 days.

 

“The latest data for LOR indicates a return to previous seasonality patterns, and follows suit with PartsTrader’s slight uptick in the number of replacement parts per repair order,” said Greg Horn, chief innovation officer at PartsTrader. “The parts suppliers have rapidly returned to pre-COVID-level delivery times and frequencies.”

 

Colorado posted the most significant LOR decrease. In Q3 2019, the state had an average LOR of 14.5; in Q3 2020, Colorado posted an LOR of 12.8, a good sign considering the impact many cities faced from summer 2019’s hail storms.

 

Eleven other states, plus the District of Columbia, showed a year-over-year drop of more than one-half day.

 

Conversely, South Dakota recorded an increase in LOR in 2020, going up 1.4 days from 11.4 to 12.8. Arkansas, Connecticut, Iowa, Louisiana, Mississippi, Montana and Vermont also saw increases greater than half a day.


LOR with associated drivable claims saw a slight increase of one-tenth of a day, from 10.97 in 2019 to 11.06 in 2020. Non-drivable results showed a four-tenths of a day decrease, from 18.0 days in 2019 to 17.62 in 2019. Total Loss remained stable, decreasing slightly from 14.7 in 2019 to 14.6 in 2020.

 

Conclusion

 

Overall, LOR results seem to have stabilized since the initial COVID-19 disruptions in March and April. Results in Q4 will bear watching, as many schools are returning to in-person classes in parts of the country.

 

“We’ll also watch the weather for late fall and early winter as well as the average number of parts per estimate,” added Horn.

 

Source: Enterprise

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