June 10, 2019 Auto Physical Damage

Average Length of Rental for Repairable Vehicles: Q1 2019

<em>The quarterly LOR summary is produced by <a style="color: #00a3dd;" href="https://www.enterpriseholdings.com/en/index.html" target="_blank" rel="noopener noreferrer">Dan Friedman</a>, Assistant Vice President Collision Industry Relations and Sales at Enterprise Rent-A-Car. Dan has 23 years of experience with Enterprise working within the collision repair industry.</em>

The quarterly LOR summary is produced by Dan Friedman, Assistant Vice President Collision Industry Relations and Sales at Enterprise Rent-A-Car. Dan has 23 years of experience with Enterprise working within the collision repair industry. Through its ARMS® Automotive Suite of Products, Enterprise provides collision repair facilities with free cycle time reporting with market comparisons, free text/email capability to update their customers on vehicle repair status, and online reservations. More information is available at armsautosuite.com or by contacting Dan Friedman at Daniel.Friedman@ehi.com. U.S. Length of Rental by State [dkpdf-remove]U.S. Length of Rental by State[/dkpdf-remove]

U.S. Length of Rental—Q1 2019

Average Length of Rental (LOR) for Q1 2019 landed at 12.8 days in the United States, an increase of 0.3 days compared to Q1 2018. Once again, there was very little consistency between regions and states, suggesting that the quarterly result for the U.S. is not reflective of a genuine national trend. The Mountain and Pacific regions produced the largest increases at 1.1 and 0.9 days respectively. The Southwest was the only region that did not increase by staying even at 13 days. This follows a decrease of -0.2 days the previous quarter. The average LOR ranged from a high of 14.1 days in the Mountain region to a low of 11.9 days in the Midwest. At the state level, Rhode Island, Puerto Rico and Colorado were the high-end outliers at 16, 16 and 15.4 days while North Dakota and Iowa produced the lowest numbers at 10.5 days each. US Industry Avg Length of Rental [dkpdf-remove]US Industry Avg Length of Rental[/dkpdf-remove] At least 25 states deviated significantly in terms of year-over-year change, further demonstrating a lack of consistency. Wyoming (2), Colorado (1.3) and South Dakota (1.3) produced the largest increases. The most significant decreases in LOR included Puerto Rico (-2.1), Rhode Island (-0.6) and Louisiana (-0.5).
The average LOR ranged from a high of 14.1 days in the Mountain region to a low of 11.9 days in the Midwest.
As pointed out in previous updates, there remains a significant delta between average and best in class. Collision centers that invest in extensive training, consistently execute a robust scheduling strategy, and properly utilize the ARMS® Auto application, routinely outperform market-average LOR metrics. Average Billed Days for US by Region A[dkpdf-remove]Average Billed Days for US by Region[/dkpdf-remove] Average Billed Days for US by Region B[dkpdf-remove]Average Billed Days for US by Region[/dkpdf-remove] Average Billed Days for US by Region C[dkpdf-remove]Average Billed Days for US by Region[/dkpdf-remove] Canada Average Length of Rental by Province [dkpdf-remove]Canada Average Length of Rental by Province[/dkpdf-remove]

Canada Length of Rental—Q4 2018

Canada’s Length of Rental (LOR) was 13.3 days for Q1 2019. This result was 0.6 days higher than both the 90-day period immediately preceding it (Q4 2018) and the same period last year (Q1 2018), where LOR for each quarter was 12.7 days. The United States witnessed an LOR increase of 0.3 days (to 12.8) for Q1 2019 vs. Q1 2018, which meant that for Q1 2019, Canada’s LOR was a half day longer than the U.S. Because of its relative proximity to major Canadian population centres, the Northeast U.S. is an interesting data comparison point. It’s LOR landed at 13.7 days for Q1 2019. Consistent with past results, we saw a large variance when we compared Canada’s provincial results for Q1 2019. Quebec was the only province that produced an LOR decrease (0.2 days) over Q1 2018. Meanwhile, six provinces posted an increase over last year, ranging from 0.5 to 1.6 days. Ontario saw the smallest of those increases, adding 0.5 days to its 2018 result. Overall, Canada’s Q1 2019 LOR ranged from a low of 10.1 days in PEI to a high of 14.1 days in Ontario. Provinces that posted LOR results below (better than) the national average included Quebec, Newfoundland, New Brunswick, Nova Scotia and PEI. In fact, the only two provinces above (worse than) the national average were Ontario and Alberta.
Overall, Canada’s Q1 2019 LOR ranged from a low of 10.1 days in PEI to a high of 14.1 days in Ontario.
As in the U.S., there is a significant difference between “average” and “best in class” results for Canada. Collision centres that invest in an effective scheduling strategy, extensive employee training and proper utilization of the ARMS® Auto suite of products should expect to outperform the Canadian market average. Province Avg Billed Days for Canada [dkpdf-remove]Province Avg Billed Days for Canada[/dkpdf-remove]

Amanda Pike

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