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eBay calls on UK insurers to make vehicle repairs more sustainable and affordable

 

  • Only 2% of vehicle repairs in the UK use recycled parts, significantly behind comparative international markets¹
  • eBay estimates that increasing the number of recycled parts in UK repairs by 10% would prevent 390,000 car parts entering landfill and cut the need for 190,000 tonnes of carbon dioxide annually²
  • Recycled parts can be up to 60% cheaper than new, drastically lowering the pressure on insurance premiums³
  • eBay, the largest marketplace for vehicle parts and accessories in the UK, has today announced its ​sponsorship of a new, independent safety parts standards​ certification scheme to help increase the use of recycled parts in repairs.


eBay calls on UK insurers to make vehicle repairs more sustainable and affordableWednesday 23rd October, London eBay is calling on UK insurers and independent garages to commit to offer consumers the option of purchasing a recycled car part, rather than just a new one, when their vehicle is being repaired.

Estimates suggest just two per cent of vehicle repairs in the UK use recycled parts – well behind nations including New Zealand, the USA, and Australia. This is despite the fact that most insurance policies allow for the use of reused parts.

eBay estimates that increasing the use of recycled car parts in the UK by 10% could prevent 390,000 car parts going to landfill, and save nearly 190,000 tonnes in carbon emissions through reducing demand for the manufacture of new materials, each year. Additionally, refurbished parts can cost up to 60% less than new, meaning greater use of recycled components could lead to drastically lower insurance premiums for policyholders.

A commitment to always offer reused or remanufactured vehicle parts by insurance companies and garages would bring the UK in line with France, where the Government passed a Circular Economy Law in February 2019, in which the use of recycled vehicle parts in repairs is mandatory.

eBay today has launched a sponsorship of a new, independent safety parts standards certification scheme, run by the Vehicle Recyclers’ Association. Vehicle recycling businesses that meet the criteria will benefit from increased exposure on eBay.co.uk.

eBay, which is the largest marketplace for vehicle parts and accessories in the UK, has 1.4 million customers buying recycled vehicle parts each year – with a car part sold, on average, every two seconds.

Laura Richards, Senior Automotive Business Manager at eBay UK,said:

“Increasing the use of reused car parts in vehicle repairs in the UK would see huge environmental benefits, as well as helping to drastically reduce pressure on premiums. However, the UK lags far behind other countries in the use of recycled parts, which is why insurers and garages should commit to always offer customers the choice when their vehicles are in for repair.

“The launch of our new pilot scheme will help provide extra guarantees for the safety and quality of used parts, building on eBay’s position as the biggest marketplace for buying and selling vehicle parts and accessories.”

Tania Tucker, Senior Advisor, Environment Agency​, said: ​

“We support eBay’s plans to encourage the safe use of recycled car parts.

“The scheme supports both the Environment Agency’s commitment to move towards a circular economy and the 95% recycling target set for end of life vehicles. It also enables consumers to make sustainable purchasing decisions.”

Marc Trent, co-owner of vehicle recycling business C​harles Trent Limited,​ commented​:

Car parts have become very expensive over the years, and increasingly we’re seeing consumers turning to recycled parts – not only does it make sense financially, but it’s also beneficial for the environment. Since we started selling our stock on eBay 15 years ago, our business has grown exponentially.

“We’re absolutely in support of the idea of a certification scheme, as it would give customers the necessary comfort that they are buying from an accredited company. With eBay’s support, we’re hoping more insurers and consumers will start to recognise the advantages of using recycled car parts.”

1 ​www.mpower.mitchell.com/mitchell-collision-repair-industry-data-q2-2018/ 
2 Tachiaos, A. A., Puksta, M. P., Siddiq, M. S., & Coffin, R. J. (2017). Assessing the Environmental Impact of Automotive Recyclers of Massachusetts. Retrieved from ​www.digitalcommons.wpi.edu/mqp-all/3729
3 Based on comparison of prices of used parts on eBay on 22 April 2019 vs the new equivalent part from OEM manufacturer (e.g 2007 BMW 3 Series Wing Mirror, OEM >£375, Recycled ~£85, Saving 77%)

 

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SYNETIQ April 2023 M

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Owain Griffiths

Owain Griffiths

Head of Circular Economy at Volvo Cars

Owain joined Volvo Cars in June 2021 to lead Circular Economy in the Global Sustainability Team. The company has committed to being a circular business by 2040 and has financial, recycled content and CO2 based targets for 2025, all of which Owain is working across the company to make happen. Owain previously worked for circular economy consultancy Oakdene Hollins where he advised businesses on evidence led circular economy implementation. 

Turning into a circular business and the importance of vehicle reuse and recycling.

The presentation will cover the work Volvo Cars is doing to achieve 2025 but mainly focus on the transformational work towards 2040 and the business and value chain changes being considered. Attention will be paid to the way vehicles are being dealt with at the end of life and the complexities of closing material and component loops. Opportunities and challenges which Volvo Cars is facing will be presented including engagement with 3rd parties and increasing pressure from stakeholders.

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e2e Total Loss Vehicle Management [e2e] is the UK’s only salvage and automotive recycling network with nationwide, environmentally compliant sites delivering performance resilience and service reliability to the insurance and fleet markets.  The network’s online salvage auction www.salvagemarket.co.uk drives strong salvage resale values and faster sales.  e2e’s salvage clients have access to the network’s stocks of over 5 million quality graded, warranty assured reclaimed parts. 

The power of the network model means e2e has the ability to influence industry standards and is committed to continually raising the bar whilst redefining the role and perceived value of the salvage operator.  Network members adhere to robust service level agreements, against which they are audited, in order to ensure performance consistency and a market leading customer experience.  

The salvage and recycling operating environment is evolving rapidly, and e2e is anticipating, listening and responding to changing market needs.  Regulatory compliance, ESG, reclaimed parts, customer experience, EVs, new vehicle technologies, data and reputation risk are just some of many considerations linked to the procurement of salvage services.  e2e will drive further added value to clients and members through the adoption and application of emerging technologies, continuing to differentiate its proposition and position salvage services as a professional partnership. 

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