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Thursday, 20 January 2022 09:15

Average Length of Rental Increased by 1.8 Days Between Third and Fourth Quarters of 2021

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Historically, fourth quarter length of rental (LOR) increases over the third quarter, as a result of traditional patterns brought about by winter weather, animal accidents and increased travel volume around the holidays.

In the fourth quarter of 2021, overall LOR stood at 17.0 days---an increase of 1.8 days from the third quarter and of 3.9 days from the fourth quarter one year earlier.

 

This includes replacement rentals for both drivable and non-drivable repairs as well as those for total loss claims.

 

Every state, plus Washington, D.C., saw an increase. On the low end, Iowa had the smallest increase at 1.1 days, followed by Wyoming and South Dakota, both with 1.6-day increases. Hawaii (+1.9) was the only other state with less than a two-day increase.

 

On the other end, New Mexico had the largest increase at 5.6 days, followed by Louisiana (+5.5), Arizona (+5.3), DC (+5.0) and South Carolina (+5.0). Thirteen states had increases between 4.0 and 4.9 days, and another 23 states had increases between 3.0 and 3.9 days.

 

Enterprise consulted several industry experts to weigh in on the driving factors behind the rise in LOR, and all agreed on the main factors of staffing, backordered parts, claim processes and increased severity---all of which contribute to a backlog of repairs.

 

John Yoswick, editor of the weekly CRASH Network newsletter, noted: “The average scheduling backlog hit new record levels again in the fourth quarter of 2021, reaching an average of 3.4 weeks nationally---twice the length of the typical 4th quarter backlog. The average backlog for the fourth quarter prior to the pandemic was consistently about 1.7 weeks.”

 

Last year, nearly half of all shops said...


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