March 11, 2019 Auto Physical Damage

Average Length of Rental for Repairable Vehicles: Q4 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—Q4 2018

Average Length of Rental (LOR) for Q4 2018 landed at 12.7 days in the United States, an increase of .3 days compared to Q4 2017. This is a departure from the flat year-over-year results in Q2 and Q3. Once again, there was very little consistency between regions and states, suggesting the quarterly result for the U.S. is not reflective of a genuine national trend. The Mountain region produced the largest increase at .9 days, with the Mid-Atlantic close behind at .7 days. The Southwest and Southeast were the only regions to improve with a decrease of -.1 days. The average LOR ranged from a high of 14.5 days in the Mountain region to a low of 11.6 in the Pacific. At the state level, Rhode Island and Colorado were the high-end outliers at 16 days, while North Dakota and Iowa produced the lowest numbers at 9.6 and 10.4 days, respectively. US Industry Avg Length of Rental [dkpdf-remove]US Industry Avg Length of Rental[/dkpdf-remove] At least 21 states deviated significantly in terms of year-over-year change, further demonstrating a lack of consistency. Delaware (1.1) and Colorado (1.2) produced the largest increases. The most significant decreases in LOR included Puerto Rico (-1.9), Nebraska (-1.1) and Florida (-.9).
The average LOR ranged from a high of 14.5 days in the Mountain region to a low of 11.6 in the Pacific.
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 12.7 days for Q4 2018. This result was .7 days higher than the 90-day period immediately preceding it (Q3 2018) and .9 days higher than the same period last year (Q4 2017), where LOR was 11.8 days. The United States witnessed an LOR increase of .3 days (to 12.7) for Q4 2018 vs. Q4 2017, which meant that for Q4 2018, Canada and the U.S. were once again in complete lockstep (as they were in Q3 2018). Interestingly, (because of its relative proximity to major Canadian population centres) the U.S. Northeast region saw an increase of .5 days, from 13. in Q4 2017 to 13.5 days in Q4 2018. Consistent with past results, we saw a large variance when we compared Canada’s provincial results for Q4 2018. Newfoundland was the only province that produced an LOR decrease (.6 days) over Q4 2017. Meanwhile, six provinces posted an increase over last year, ranging from .4 to 1.7 days. Four of those provinces added at least 1 or more days to its 2017 result, including PEI, New Brunswick, Alberta and Nova Scotia. Quebec saw the smallest increase, adding .4 days to its Q4 2017 result. Ontario, Canada’s most populous province, added .9 days Q4 2017, and landed at 13.3 days for Q4 2018. Overall, Canada’s Q4 2018 LOR ranged from a low of 10.3 days in Quebec to a high of 13.4 days in Alberta. Provinces that posted LOR results below (better than) the national average included Quebec, Newfoundland, New Brunswick, Nova Scotia and PEI.
Overall, Canada’s Q4 2018 LOR ranged from a low of 10.3 days in Quebec to a high of 13.4 days in Alberta.
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 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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