Toronto, Ontario — Enterprise Holdings released its Q1 Length of Rental report on Thursday, showing that LOR for collision-replacement rentals continues to climb in Canada and the U.S.
The company reported an increase of four full days to the LOR for collision-replacement rentals, bringing the current Canadian average to 15.1 days for Q1 2022. The U.S. saw a similar increase by 4.9 days, making an average LOR of 18.2 days.
Province-by-province, Nova Scotia experienced the greatest jump in LOR, showing a five full-day increase from Q1 2021 to Q1 2022. This jump puts the province just slightly behind Ontario, which ranks the highest for LOR nationally, at 16.9 days, compared to Nova Scotia’s 16.4 days.
Newfoundland and Labrador incurred the least change from 2021, reporting an LOR increase of only 1.6 days, bringing the average from 11.9 to 13.5 days.
Enterprise attributes these longer rental periods to ongoing staffing and parts shortages, as well as inflated new and used vehicle pricing.
John Yoswick, editor of the weekly U.S. CRASH Network newsletter, was quoted in Enterprise’s report, to give an American perspective on Canada’s rising LOR averages.
“The length of rental for the first quarter doesn’t come as much of a surprise based on what we were seeing in terms of the backlog of work at U.S. bodyshops at the start of the year,” said Yoswick.
“Our survey of nearly 500 shops in January found that if you wanted collision work done right away, you likely would have needed to call more than 100 shops before finding one that could start work immediately. The average scheduling backlog jumped to more than a month in January, reaching an average of 4.5 weeks nationally. That is more than a week longer than the record-high Q4 2021 backlog.”
According to Yoswick’s research, the Q1 2022 backlog was almost 2.5 times the length of the typical first-quarter backlog.
Overall LOR for replaceable rentals for drivable claims increased to 10.9 days, a 2.3-day increase compared to 8.6 days in Q1 2021.
Non-drivable claims LOR is up by 8.3 days, bringing the Q1 2022 average to 25.8.
Finally, total loss LOR is up 4.9 days to 15.2 days on average.