Feb. 9, 2016—Mitchell has released its Industry Trends Report (ITR) for the first quarter of 2016.
In this ITR, experts discuss the inflation rate driving car repair prices.
Getting to the root of the common phrase that ‘Cars cost more to repair than they used to,’ Greg Horn, vice president of industry relations at Mitchell, analyzes repair cost inflation rates as reflected by total loss frequency, rising insurance rates and repair order costs. Horn compared two popular passenger cars, the 2010 and 2015 Toyota Camry and the 2010 and 2015 Chevrolet Malibu, and by taking the Consumer Price index rate into account, discovered a few surprising data points driving the inflation rate.
For example, inflation adjusted over repair severity increased at more than double the rate for the Malibu, despite the number of labor hours staying the same. Horn further explained that while the improved parts and technology result in better outcomes and safer vehicles, they come at a significant cost.
Horn will provide a deeper look into the findings during Mitchell’s webinar “Industry Trends Live,” on Feb. 23. To register for the webinar, click here.