Nov. 3, 2010—OEM part prices have risen and overall consumer OEM part spending has decreased, according to a quarterly Industry Trends Report release_notesd Wednesday by Mitchell International Inc.
Parts represent approximately 42 percent of the average repair estimate, according to Greg Horn, Mitchell's vice president of industry relations and author of "The Trend in Estimate Severity is Part Inflation and Part Parts” report. The report also indicated:
• A modest inflation in the first half of 2010 impacted the price of all parts;
• Salvage parts have become neither less available nor more expensive;
• The LKQ/used parts price index shows a decrease in the price of parts;
• The average gross collision appraisal value is $2,748, which is less than the same time last year;
• The average actual cash value of vehicles appraised for collision losses was $13,417, an increase from last year.
“Future estimate severity trends will arise from the interplay of parts prices, inflation and general economic conditions, which Mitchell will continue to monitor especially as we move out of the recession," said Horn.
For a complete PDF of the fourth quarter Industry Trends Report, go to mitchell.com.
A theme at the conference was for Abra, CARSTAR, and Fix Auto USA stakeholders to use technology to improve the customer experience and reduce the strain on estimators.
