December 10, 2018 Auto Physical Damage

Average Length of Rental for Repairable Vehicles: Q3 2018

<em>The quarterly LOR summary is produced by <a style="color: #00a3dd;" href="https://www.enterpriseholdings.com/en/index.html" target="_blank" rel="noopener">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—Q3 2018

Average Length of Rental (LOR) for Q3 2018 landed at 12 days in the United States which is even compared to Q3 2017. This is the second consecutive year that Q3 LOR has been flat versus the prior year. 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 Pacific, Northeast and Mid-Atlantic regions produced the largest increases at 0.6, 0.5 and 0.4 days, respectively, while the Mountain and Southwest saw the steepest declines at -0.5 days. The average LOR ranged from a high of 13.2 days in the Northeast and Mountain, to a low of 11.2 in the Pacific and Midwest. US Industry Avg Length of Rental [dkpdf-remove]US Industry Avg Length of Rental[/dkpdf-remove] At the state level, Puerto Rico and Rhode Island were the high-end outliers at 15.5 days while North Dakota once again produced the lowest number at 9.5 days. At least 21 states deviated significantly in terms of year-over-year change, further demonstrating a lack of consistency. Puerto Rico (2.3) and West Virginia (1) produced the largest increases with the Island still being impacted by capacity issues caused by Hurricane Maria. The most significant decreases in LOR included Nebraska (-1) and Wyoming (-0.9).
The average LOR ranged from a high of 13.2 days in the Northeast and Mountain, to a low of 11.2 in the Pacific and 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 [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—Q3 2018

Canada’s Length of Rental (LOR) was 12 days for Q3 2018. This result was 0.3 days higher than the 90-day period immediately preceding it (Q2 2018) and .9 days higher than the same period last year (Q3 2017), where LOR was 11.1 days. The United States witnessed no LOR increase for Q3 2018 vs. Q3 2017, which meant Canada and the US were in complete lockstep for Q3 2018 at 12 days. Interestingly, the US northeast region saw an increase of 0.5 days, from 12.7 in Q3 2017 to 13.2 days in Q3 2018. Consistent with past results, we saw a large variance when we compared Canada’s provincial results for Q3 2018. Newfoundland was the only province that produced a LOR decrease (and it was a significant reduction of 1.8 days) over Q3 2017. Meanwhile, six provinces posted an increase over last year, ranging from 0.4 to 1.5 days. Ontario added 1.5 days to its LOR and finished at 13.1 days. PEI was the only other province to add a full day (or more) to its result and came in at 9.7 days. Alberta and Quebec saw the smallest increase, with each province adding 0.4 days to its Q3 2017 result. Overall, Canada’s Q3 2018 LOR ranged from a low of 9.7 days in PEI to a high of 13.1 days in Ontario. Provinces that posted LOR results below (better than) the national average included Alberta, Quebec, Newfoundland, New Brunswick, Nova Scotia, and PEI.
Overall, Canada’s Q3 2018 LOR ranged from a low of 9.7 days in PEI to a high of 13.1 days in Ontario.
As in the US, 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 market average. Province Avg Billed Days for Canada [dkpdf-remove]Province Avg Billed Days for Canada[/dkpdf-remove]

Dipa Desai

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