mrcnewslatest

[mrcnewslatest]

Hi-tech cars costing too much to fix

A $A1.6 million unfunny incident involving British comedian Rowan Atkinson's car crashing into a tree, a stop sign, and catching fire in England in 2011 brought attention to the rising cost of auto repair, which affects not only luxury vehicles like his McLaren but also everyday vehicles are driven by people like you and me.Hi-tech cars costing too much to fix 

Hi-tech cars cost too much to fix 

Today's auto repairs are beginning to resemble Mr. Bean's alter ego. Expensive. Now, you don't have to collide with some roadside decorations and catch fire; a decent rear-end collision will cost you (or your insurer) a lot of money and take the smash repair industry weeks to finish due to labor shortages and limited part availability. In contrast to Mr. Atkinson, who sold his car (which he had pranged twice over 15 years of ownership) for $14.1 million and earned a profit of $13 million, you return to a car in like-new condition and the loss of insurance excess. Cost increases for parts have been a long-term issue. While customers of moderately priced cars Insurance desire all the high-end safety and convenience amenities, regulation is forcing automakers to increase their vehicles' safety equipment standards. Low retail prices are maintained via brand competition. Unfortunately, the cost of the car does not equal the whole cost of its parts. For a BMW X1 SUV, which starts at $53,900 plus on-road expenses, a headlamp costs roughly $2200 (about 4% of the car's price in one headlight), while a bonnet badge costs $100. A headlamp costs $1700 even for a Mazda 3, while a plastic Mazda grille costs $2000. A combination of factors, including the high cost of parts, the complexity of the repair job brought on primarily by sophisticated advanced driver assistance systems (ADAS), the cost and availability of labor, and the difficulty in obtaining parts, have resulted in an increasing number of cases where the cost of repairing relatively minor accidents has led to cars being written off. Although it hasn't noticed a noticeable rise in automobiles being written off after only minor repairs, the Capital SMART collision repair company predicted it will eventually. According to Justin Sheppard, process improvement manager at Capital SMART, the increased use of high-tech equipment, such as ADAS, would probably result in more write-offs than, say, ten years ago. According to him, the cost of used cars is currently artificially inflated, and vehicles that are only a few years old can be purchased for a price that is comparable to that of a new vehicle. The prices of repairs are undoubtedly being impacted by the fact that vehicle values are actually rising in comparison to a few years ago. "In general, we have witnessed a rise in the value of cars, and the amount of money we have to spend on fixing those cars that is very significant." Before retiring this year, the seasoned smash repair business manager led the MTA WA body-repair section for more than 30 years as chairman and committee member while also running his prosperous Perth firm for 45 years.

He acknowledged to GoAuto that more vehicles are being written off.

"Fixing one accident damage is one thing, but insurance companies also have to take into account supplemental repairs, the cost of the parts, the cost of the automobile, and how How long would it take to fix it? he asked. Therefore, an automobile that seems to be in good condition occasionally gets written off. There are also instances where the repairer refuses to fix the car because it is a tough task that would divert business from the other work that is building up and the repairer is aware that components for a specific brand or model are hard to come by. As a result of the original manufacturer's supply of parts ceasing or at least slowing down, the rate at which new cars are produced by the manufacturer, and the cost of fixing used cars has grown. Additionally, Mr. Phipps stated that "auto dismantlers are paying significant sums for damaged automobiles to sell recycled parts at a premium price" due to a shortage of new parts.

This is pushing insurers to write off cars so they can collect big money for the salvage, he added. The cost of parts, according to Mr. Phipps, is high, but that isn't the only factor driving up repair costs. Getting the part, he claimed, is turning out to be the bigger issue.

He explained that it typically takes five to six weeks for a car to be at the crash repair facility before work can begin.

When a simple front-end collision occurs, we inspect the car and find that it needs a bumper bar, so we conclude that it also needs a few clips.

When we pull the bumper down, we can see damage to it, but we also see a bracket, reinforcement, or absorber behind it. Unfortunately, access to these regions is not available to Western Australia.

"Soon after, we run into a situation where a three-day repair job can take up to ten days. It will take a minimum of five days to obtain anything from Melbourne, such as a bumper slide.

Mr. Sheppard added that it was crucial to comprehend the impact damage's effects, particularly if they seemed really little.

With today's technology and items like specialised plastic bits and brackets, he observed, "there are a lot more components after you pull the bumper out."The price of a component like an adaptive headlight, for example, might range from $1500 to $8000.A headlight that has even a tiny lens break needs to be replaced because it is no longer functional.

The same, according to him, holds true for elements like radar units used in adaptive cruise control.

He stated, "These units need to be maintained, and if they get a crack or a scratch on the lens, they might cost thousands of dollars. Additionally, you require highly particular calibration specifications, which drives up the cost and makes it more difficult to restore the automobile logistically. Because they have the specialized instruments needed to complete the task, "those cars sometimes have to travel back to a dealer merely to get the calibration done." Static calibration, according to Mr. Phipps, can start at around $175, but more complicated calibration can cost "into the hundreds of dollars," depending on what needs to be done. Time is also a factor, he added. "We need to transport the vehicle to the dealer, do the task, and then pick it up. Even something as basic as a cracked windscreen on a new car with ADAS might cause the radar, cameras, and ultimately the automated emergency braking system to need repair or replacement. "You still need to get that equipment recalibrated, even if there is no damage to it. That applies to all of the car's front-mounted technologies. "Most of the time, an automobile still needs to undergo calibration after being disassembled to make sure the equipment is functioning properly.

He claimed that the rise in car values was the only factor preventing a high write-off rate.  According to Mr. Phipps, all of this ultimately has an impact on the insurance firms' operating expenses and repair costs. And it's obvious that insurance companies are spending more, so it makes sense that premiums for vehicles equipped with features like ADAS, as well as reverse cameras, mirrors with monitors, and parking sensors, are likely to increase. As if these issues weren't challenging enough, the workshop's delay in scheduling the repair job adds to the difficulties of obtaining the part and paying for it. Most repair shops in Perth, according to Mr. Phipps, are booked solid through January. Bodywork repair is one of the areas of the automotive industry with the lowest apprentice take-up, so there wasn't enough labor to go around. Mr. Phipps, who is now active in consulting with shops to boost efficiency, claimed that even shop owners don't have much time to educate these apprentices. The involvement of insurance firms in the smash repair sector may be the straw that breaks the camel's back. According to Mr. Phipps, the insurance business spends countless millions of dollars managing the repair sector. Why not allow the smash repair industry to run the repair industry instead of spending all that time and money attempting to do it? They could save a fortune while we make just a dollar. A response to this item was requested from the Insurance Council of Australia.

Read More;