Collision Repair Trends

[The Critic]

https://www.fenderbender.com/running-a-shop/operations/article/55321249/preventing-total-losses?o_eid=5743B7674190I7J&rdx.ident[pull]=omeda|5743B7674190I7J&utm_campaign=CPS251120070&utm_medium=email&utm_source=FB+Today%27s+Collision+Repair+News

Key Takeaways:

- Average repair has increased from $3200 to $5K.
- Average cycle time is now 15 days due to ADAS calibration and other related sublet items.
- Total loss percentage is 24%-28% in 2025 vs. 10-14% in 2015.
- Some insurers have lowered total loss thresholds to as low as 55% due to stronger salvage market.
- Percentage of repairs with structural work has decreased from 3-5% to .2-.5%.

Article discusses ways for body shops to reduce repair costs in order to prevent the vehicle from becoming a total loss.

 

[fantastic]

I know there for a long time there was one outlet that had someone up their sleeves repairing Honda's & Toyota's. Obviously, they can make money reselling for high demand vehicles. I'd be curious if these costs represent reseller information, owner repair, or a combination. I bought a rebuilt Saturn...One of my all time best buys & the niece is still using it at 200k+ miles. Trucks vs cars might make some differences...more metal on a truck.

 

[The Critic]

I know there for a long time there was one outlet that had someone up their sleeves repairing Honda's & Toyota's. Obviously, they can make money reselling for high demand vehicles. I'd be curious if these costs represent reseller information, owner repair, or a combination. I bought a rebuilt Saturn...One of my all time best buys & the niece is still using it at 200k+ miles. Trucks vs cars might make some differences...more metal on a truck.

This article was intended for operators of large, high-volume collision repair facilities.

 

[bdcardinal]

I am so happy we are pulling back on collision parts sales. We no longer have any national chain customers outside of random small items. Our GP% is up and our returns are lower once they stopped buying from us. We actually just had a record November for gross profit with minimal collision sales.

 

[fdcg27]

From what I have seen, most written off vehicles can be restored to good enough condition for a fraction of what the restore to as new condition that insurance estimates are usually based on. Also, insurers would rather pay a vehicle out than to authorize repairs only to find out that supplemental damage found on teardown will greatly increase the cost that they're now stuck with.
Finally, there is a strong auction market for total loss vehicles. Some will be restored and resold here while others will go to countries with lower skilled labor rates and be restored and put back on the road.
You live in Russia and want a newish Western vehicle? No worries, you can buy a rebuilt wreck from Georgia.
From Tesla to Tahoe, they have them all.

 

[D60]

Honestly I've seen these trends VERY informally and VERY anecdotally, which is not necessarily bad for hacks like me and the locale in which we live (rural, older vehicles).

People would rather have me bolt on some cheap parts, get a cheap paint job and move on rather than try to deal with insurance. I enjoy that kinda work, but if there's frame or significant unibody damage I can't do much obviously.

But yeah, at "real" body shops even a basic deer collision starts around $5k and climbs rapidly from there. I'm not saying the shops aren't worth it, but a lot of the stuff I work on ain't worth it!

 

[dishdude]

But yeah, at "real" body shops even a basic deer collision starts around $5k and climbs rapidly from there. I'm not saying the shops aren't worth it, but a lot of the stuff I work on ain't worth it!

All those plastic front end bits cost a fortune and for a lot of the newer stuff there isn't a lot of aftermarket support. Plus all the programming and calibration of the sensors...it all just adds up quickly.

 

[clinebarger]

I'm not on the collision side of the industry, But have done some work for body shops & bigger collision centers (Mostly electrical)....It's a headache to deal with them as they try to push their margin shortcoming onto me. Not my problem!

 

[GON]

The export tax on salvage vehicles as discussed in the article would be a game changer. That would significantly reduce the sales price of salvage vehicles at auction.

Fascinating...

 

[Arc]

From what I have seen, most written off vehicles can be restored to good enough condition for a fraction of what the restore to as new condition that insurance estimates are usually based on. Also, insurers would rather pay a vehicle out than to authorize repairs only to find out that supplemental damage found on teardown will greatly increase the cost that they're now stuck with.
Finally, there is a strong auction market for total loss vehicles. Some will be restored and resold here while others will go to countries with lower skilled labor rates and be restored and put back on the road.
You live in Russia and want a newish Western vehicle? No worries, you can buy a rebuilt wreck from Georgia.
From Tesla to Tahoe, they have them all.

I bought several bucket trucks and 1 ton trucks from a car lot that never seemed to be very busy. One day while I was there the owners mentally challenged son who loved to talk told me about all the brand new trucks that they cut in half and loaded into shipping containers in the middle of the night. He said "we do it once a week and he doesn't like staying up so late". You have to wonder what country they are being shipped to and you know they are listed as parts.

 

[D60]

I bought several bucket trucks and 1 ton trucks from a car lot that never seemed to be very busy. One day while I was there the owners mentally challenged son who loved to talk told me about all the brand new trucks that they cut in half and loaded into shipping containers in the middle of the night. He said "we do it once a week and he doesn't like staying up so late". You have to wonder what country they are being shipped to and you know they are listed as parts.

Funny, we personally know a guy here from Nigeria. If you saw his garage you'd swear it's an episode of Hoarders. It's just a huge pile of everything: strollers, clothes, kitchen stuff, tools, appliances -- name an object and it's probably there.

He packs it all in old -- and typically non-running -- vehicles and ships it to Nigeria. I've always wondered about cost, logistics, and where they get it "on the boat" because Colorado doesn't have much ocean front property.

I also have no idea if recent policy changes have made this more difficult or more expensive, nor am I saying such would be good or bad.