According to Copart Ireland, to write-off or not to write-off? That is the question for many insurers now that Brexit has placed obstacles into the supply chain for vehicle parts.
Since the Brexit transition period ended, the UK is now deemed a “third country” by the EU, meaning VAT is payable on used vehicle parts coming into the Republic of Ireland from England, Scotland, and Wales.
Combined with additional delays caused by trying to source parts from other countries, this all adds up to a dilemma for insurers when it comes to making a total-loss decision.
Gerry Traynor, Managing Director at Copart Ireland, said:
“There is a growing concern in the insurance and vehicle repair sectors around increasing repair costs following Brexit. Insurers need to consider the additional time it now takes to access parts and factor this into their decision-making for vehicles which are borderline between repair and total loss.
Many vehicles now sit in body shops for longer periods awaiting parts, potentially creating longer hire car periods for policyholders. Insurers are going to need to take all of this to account and decide whether it is more cost-effective to deem them a total loss and maximise vehicle returns through Copart’s auctions.
In addition, there has been a dramatic reduction in the number of used vehicles being imported into Ireland. As a result, the demand for stock has increased significantly which has driven up the returns that our auctions are delivering. As this is likely to continue into the future, it is another aspect that the insurance industry will need to factor into its decision-making process.”
With an advanced online auction platform and extensive global buyer base, Copart Ireland is on hand to offer a cost-effective solution to any of their insurance customers who find themselves in this position.
- Monthly live auctions
- Buyers from over 110 countries bidding and buying across the globe
- Fast sales and maximum returns
- Exciting and interactive auction experience for buyers
- Auctions accessible through multiple devices
Discover more about how Copart’s auctions work here