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Tuesday, 04 May 2021 17:24

Enterprise Releases Q1 Length of Rental Data

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Overall U.S. Length of Rental (LOR) for Q1 2021 remained stable compared to Q1 2020, with an increase of only 0.1 days, Enterprise recently reported.

Since COVID’s impact on 2020 LOR was most evident in April’s increases, we may see a larger difference when analyzing LOR in the second quarter.

 

Drivable claims were mixed across the board, averaging out to match the overall year-over-year increase of only 0.1 days compared to Q1 2020.

 

Meanwhile, non-drivable claims dropped 1.1 days (18.9 in Q1 2021 vs. 20.0 in Q1 2020). Rentals with Total Loss claims rose 0.3 days, from 14.0 to 14.3 days.

 

Significant increases across all categories were seen in Arkansas, Louisiana and Mississippi---states that were hit hard by winter storms in Q1 while still recovering from storms during the summer of 2020.

 

Louisiana saw the largest drivable increase of 2.7 days. States that saw increases of a full day or more include Alabama, Iowa, Idaho, Mississippi, Oklahoma and South Dakota.

 

Colorado had the largest decrease, dropping 1.8 days from 2020 (13.3 to 11.5). This drop was almost a full day greater than the next nearest state, Minnesota, which dropped one full day from 10.4 to 9.4.

 

Louisiana also had the largest increase in non-drivable claims, rising two full days, from 20.4 to 22.4. Three other states saw a non-drivable increase of greater than a day---Idaho, Mississippi and Oklahoma.

 

Only five other states had any increase at all---Alaska, Alabama, Arkansas, Iowa and Vermont.

 

Forty-one states, plus Washington, D.C., saw non-drivable decreases---many significant. Wyoming saw the largest decrease of -4.6 days. Colorado, Kansas, Minnesota, North Dakota and Washington all had decreases of three days or greater, while a further five states---California, Hawaii, Maryland, New Hampshire and Nevada, plus D.C.---saw decreases between 2.0 and 2.9 days.

 

Seventeen additional states saw...


...decreases greater than one day.

 

Louisiana also led the country in total loss increase---up 2.6 days, from 13.6 in Q1 2020 to 16.2 in Q1 2021. Arkansas and Oklahmoa both saw total loss increases of two days, and eight other states were up by at least a day.

 

Rhode Island saw the largest decrease at -2.6 days, followed closely by D.C. at -2.1 days.

 

Four other states saw a decrease of a day or greater---Delaware, Maryland, New Jersey and Wyoming---with various decreases seen across 11 other states.

 

Enterprise asked PartsTrader’s Chief Innovation Officer Greg Horn about recent industry buzz around potential parts shortages or delays affecting collision repair in the U.S., as well as his outlook on the future.

 

“We’ve heard those concerns as well and looked into our U.S. marketplace data," Horn said. "With over $100 million in monthly parts sales, PartsTrader looks at two key metrics to assess supply chain health: delivery time averages and the number of quotes per part.

 

"Average delivery time quoted was 2.1 days, which was an increase of only 0.1 days from Q1 2020---identical to the increase Enterprise saw in overall LOR. However, the number of quotes per part for Q1 2021, which would point to any parts backorders, was 8.2 quotes per part, slightly more than Q1 2020, indicating a robust part supply.

 

"While the widely reported microchip shortage has had a major impact on new vehicle production, the impact has been minimal on collision repair," Horn said. "That said, an upcoming shortage of raw natural rubber products---mainly the product of a rubber plant leaf disease---may start to impact OE production with a shortage or price increase on tires, hoses and belts.”

 

While Q1 2021 seems stable at a macro level, Q2 of 2021’s results will be interesting on several fronts. Enterprise anticipates the results will vary significantly from Q2 2020 and the immediate impacts that COVID and shutdowns brought, and will be monitoring the overall percentages of drivable, non-drivable and total loss claims, while analyzing any supply chain impacts on vehicles or parts.

 

Source: Enterprise

 

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