Repair Costs Recover Post-Recession
The average total cost of repair for vehicle appraisals in 2013 was $2,638, up 2.9 percent from 2012. This increase is consistent with the increases seen year-over-year since mid-year 2009 when repair costs flattened. To better understand the dynamics behind the change in average repair cost, in this article we will look in detail at one of the largest components contributing to overall repair costs – parts. We will also look at how differences in vehicle and part mix can drive the metrics typically used to measure parts utilization in the auto claims and collision repair markets.
Repair Cost Dollar Distribution – The Parts That Have Changed
The distribution of repair cost dollars has seen little change over the last fifteen-plus years that this has been tracked by CCC (see below). Over the last five years, total spend on replacement parts (pre-tax) has accounted for 38 to 40 percent of the total vehicle repair cost.
Within the total dollars spent on parts however there has been a shift towards more alternative, non-OEM parts, with the largest increase occurring within aftermarket parts. At the close of 2013, the industry’s share of replacement part dollars was split at 63 percent OEM versus 37 percent non-OEM (see below).
