Parts prices on top-selling vehicles drop, Mitchell says
SAN DIEGO — Parts prices dropped on the three top-selling vehicles since 2003, according to Mitchell International’s Industry Trends Report.
This article, "A Deeper Dive into the Latest Crash Parts Index Analysis Yields Unexpected Results," is written by Greg Horn, Mitchell's vice president of industry relations. The Mitchell analysis organizes crash parts data into a general "collision parts market basket" and tracks changes in the average prices over time.
The Mitchell Crash Parts Index Analysis methodology examines data from 2003-2008, creating a weighted average price for parts in the aggregate in order to compare inflationary trends by part type over time. Mitchell said it will continue to track crash parts data in future reports.
Examining collision repair data in this way — isolating the parts price index according to top selling vehicles by part type — helps Mitchell customers understand where pricing trends are going and how part type pricing is interrelated for vehicles that are commonly insured and repaired. Mitchell's analysis reveals that decreasing new OEM prices and recycled/used prices are actually driving the overall decrease in the parts price in the case of the most popular vehicles. In contrast, the overall collision parts price index is increasing as a whole.
"The first installment of the Mitchell Crash Parts Index Analysis was enthusiastically received by the collision repair industry, and we received many requests to examine the data in more depth and detail," says Horn. "This time, we analyzed some of the most popular cars (the most often insured and repaired) and their collision parts. The data showed, surprisingly, that in contrast to earlier findings, today's composite crash parts price market basket is lower than it was in 2003."
Other report findings include:
• In the first quarter of 2009, the average initial gross appraisal value for comprehensive coverage estimates processed through Mitchell servers was $2,302, compared to $2,242 in the first quarter of 2008. Applying the prescribed development factor of 3 percent for this data set produces an adjusted value of $2,359 — a $117 increase from this same period last year.
• On the average, actual cash value of vehicles appraised for collision losses during the first quarter of 2009 was $12,253 — $1,171 less than in the first quarter of 2008, reflecting the lowered value of today's older vehicle mix.
For more information about Mitchell’s Industry Trends Report, visit www.mitchell.com.