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Extended Trial Period: LORs skyrocket for non-drivable claims nationwide, Enterprise report says

Toronto, Ontario — Canada is quickly losing its edge in the collision replacement-related rental market, as the latest Enterprise LOR (length of rental) report showed that the average rental in the nation is up 5.8 days from the second quarter last year, significantly closing the gap to the U.S.’s 17.7 day average.

The average LOR in Canada currently stands at a round 16 days, marking a slightly superior performance than in the U.S., but still represent the reality of ongoing parts and materials shortages that wind up keeping drivers in rental vehicles for longer.

The report did note, however, that quarter-over-quarter results are returning to historical trends of half-a-day LOR decreases.

In Ontario, the LOR has skyrocketed both at the highest rate of any other region recorded and currently sits at the highest level nationally at 18.3 days, up from 11.1 in Q2 2021. This marks a 7.2 day increase over the year.

Similarly, Nova Scotia experienced a 7.1 day LOR increase, from 10.3 to 17.4 days, and Quebec an increase of 6.9 days, from 10.3 to 17.2 days.

New Brunswick and Newfoundland and Labrador boasted the lowest average LORs nationally, at 13.4 days and 14.6 days respectively. Additionally, both provinces experienced an average increase of 4 and 4.1 days respectively.

Enterprise spoke with Greg Horn, chief innovation officer at PartsTrader, for his thoughts on the current state of the parts shortage and rental market.

“New OEM parts availability is still driving many delays, but the good news is there are fewer brands showing big delays. Six OEM brands had median (plus two standard deviations) delays of more than 20 days in Q1 of this year; while the same was true for only three OEM brands in Q2 2022,” said Horn.

“As we head into the second half of 2022, aftermarket and recycled parts supply and deliveries are returning to pre-Covid levels. Most OEMs have made significant improvements as well.”

Average LOR for rentals associated with drivable claims was 11.4 days in Q2 2022, up 3.3 days from the same time last year. Ontario’s drivable LOR was highest at 13.2 days, up 4.5 days, and lowest drivable LOR was New Brunswick at 8.7 days.

As for non-drivable claims rentals, the nation saw a 13.2 day increase from Q2 2021, bringing the average LOR to 30.3 days. Prince Edward Island was the most significantly affected, reporting a 35.4 day LOR.

The report noted Quebec and New Brunswick were the only provinces to report average LORs under 30 days for non-drivable claims rentals, at 24.1 and 28.4 days respectively.

Enterprise concluded the report with the following statement: “The results for the second quarter of this year are significant, as it appears many of the factors affecting everyone in the collision industry—including technician staffing, ever-changing parts availabilities, new and used vehicle pricing, inflationary pressures, and new claims processes—are becoming prevalent.”

Enterprise’s full Q2 LOR report can be found here.

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