A large proportion of the traded-in cars return to traffic – Pohjola Försäkring increases the use of spare parts obtained from traded-in cars in the repair business
In Finland, over ten thousand cars are traded in annually. Of the redeemed cars, the majority are sold for repair or to return to traffic, and only a small number are dismantled for spare parts or finally destroyed.
The availability of new and used spare parts, which are needed when repairing vehicles, has deteriorated, among other things, as a result of growing demand and the uncertain world situation. Spare parts are particularly wanted for older cars, where you want to use the corresponding original parts for your own car.
“Using the quality-controlled car manufacturer’s original recycling parts obtained from redeemed cars in parallel with repairs also increases the industry’s sustainable business models. Fixing the customer’s damaged car qualitatively and sustainably together with our workshop partners is of the utmost importance to us,” says Pohjola Försäkring’s director of compensation services, Sari Styrman.
Pohjola Försäkring increases the availability of high-quality spare parts that are dismantled from redeemed cars by starting a collaboration with Autocirc. Autocirc is the car industry’s leading creator of the circular economy in the Nordic countries, and the aim is to significantly increase the use of these spare parts in damage repairs in the coming years.
“In many cases, it is unnecessary to fly in a new spare part for the car from abroad to Finland. When using a recycled part, the carbon dioxide footprint is 75 percent lower than when a new part is used. Customers’ expectations of the use of recycled parts have also increased,” says Styrman.
According to Pohjola Försäkring’s statistics, in the case of normal crash damage, about half of the fallen sheet metal parts of the car and a third of the front and rear bumpers are replaced.
“Our workshop partners must primarily strive to repair the damaged part, but if it is not possible to do high-quality work, you are forced to replace the part and to replace it you need a corresponding new or used spare part. At the moment, the most used recycling parts are exterior parts of the car that are attached with bolts, such as doors, mudguards and bumpers,” says Styrman.
Fewer redeemed cars back in traffic, and more for spare parts
Often, causes that are easy to solve are collisions, other collisions or disorientation. Even collisions with animals and fires cause the car to be redeemed.
“The car is redeemed from the customer if its value as damaged together with the estimated repair costs exceeds the actual value. Older cars do not need to be damaged that much before they are traded in. According to Pohjola Försäkring’s statistics, the average age of traded-in passenger cars is approximately 13 years,” says Styrman.
Of the redeemed cars in Finland, the majority are sold at the time for repair and to return to traffic, and only a small number are dismantled for spare parts or finally destroyed. In Sweden, all redeemed cars have been used for spare parts for over ten years already
“Within redeemed cars, we talk almost without exception about extensive damage. Sweden’s practice makes it possible for cars whose traffic safety is no longer necessarily at a sufficiently high level not to end up in traffic,” says Styrman.