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Friday, 22 October 2021 08:46

Enterprise: Collision-Related Length of Rentals Up 3 Days Compared to a Year Ago

Index

...there are parts available, but they may have to come from a different warehouse or location.”

 

Horn explained further: “We have seen an increase of 1.3 days for both new OEM and aftermarket parts compared to Q3 2020. While that is the highest increase we’ve seen, it doesn’t tell the whole story.

 

"By looking at the median delivery days and using two standard deviations [which captures 95% of the data population] as a measure, we can better capture the impact of individual part delays," Horn said. "We see that OEM parts, in particular for Japanese and Korean makes, have higher delays than for the domestic car makers. OEMs are seeing increasing backordered parts, in addition to longer deliveries, as they fulfill from other parts distribution centers.

 

"The aftermarket parts inventory is also lower than it has been, and that is further complicated by the historically high number of shipping containers [containing both aftermarket and OEM shipments] at the Port of Los Angeles waiting to be unloaded from the cargo ship, and not able to be loaded on trucks to be delivered to parts warehouses.”

 

Horn concluded: “These parts delays and backorders are contributing to an increase in vehicles being declared an economic total loss, and the lack of availability of replacement vehicles coupled with record high prices are likely contributors to length of rental increases.”

 

Drivable Claims

 

LOR for rentals associated with drivable repairs trended the same as overall results, albeit slightly better. LOR was up 2.4 days in Q3 2021 over the previous year’s third quarter.

 

South Dakota had the lowest LOR change, coming in even with 2020, while Iowa was only up 0.2 days.

 

Seventeen states had increases between one and two days, 22 states plus DC increased between two and three days, and nine states saw results increase...