Repair costs outstrip inflation

Repair costs rose faster than inflation between July 2023 and 2024, according to Trend Tracker’s latest monthly report on the status of the UK vehicle incident repair market.

The report also found that after mixed levels earlier in the year, volumes have risen again through the summer and are now up to 91% of pre-pandemic levels. The uptick was driven by an increase in EV repairs, with repairs of ICE models actually down year-on-year.

Further indication of a ‘return to normal’ is a fall in both cycle times and lead times – although an increase in working days during this period should also be considered.

Trend Tracker Director Paul Sell said, “Repair costs continue to climb, July to July up at a rate higher than inflation, but this could be influenced by Repair mix with a greater volume heading into Retail (at the lower end), something we will dive into shortly.

“Volumes have jumped back up in July, but still 91% of pre pandemic levels for the month- within this ICE volume is down year on year considerably (remembering average vehicle age of car parc is 9) and BEV volume up; again, not a surprising statistic and one we will be delving into soon too.

“Cycle time and critically lead times have fallen again, really marking the return of ‘normal working patterns’ now having recovered from the effects of the pandemic, brexit and supply chain disruptions. There remain some parts supply outliers but a more consistent service level now which work providers will be comforted with.”