What does the parts-to-whole ratio coefficient mean?
2 Answers
The parts-to-whole ratio coefficient refers to the ratio between the price of parts and the sales price of the whole vehicle. Specific meaning of the parts-to-whole ratio coefficient: The parts-to-whole ratio refers to the sum of the prices of all vehicle parts divided by the sales price of the whole vehicle, multiplied by 100%, resulting in a percentage coefficient. A high parts-to-whole ratio coefficient indicates high vehicle repair costs, which will directly affect future insurance premium prices. Function of the parts-to-whole ratio coefficient: The parts-to-whole ratio coefficient serves to safeguard consumers' right to know and protect their legitimate rights by making repair prices more transparent. It provides a relatively scientific reference value for pricing in both the insurance and repair industries.
I've been repairing cars for over a decade, and the parts-to-whole ratio simply shows you how outrageous it is to sell car parts separately. For example, if a car costs 150,000 yuan in total, but buying all the parts individually would cost 300,000 yuan, then the parts-to-whole ratio is 200%. The other day, a car owner came in to replace a headlight, and the original manufacturer quoted 12,000 yuan—he exclaimed it was almost as much as the down payment when he bought the car! Cars with a high ratio like this have brutal maintenance costs later on. Especially for luxury cars, replacing parts like bumpers or infotainment systems can be painfully expensive. Before buying a car, I recommend checking the China Insurance Automotive Safety Index's parts-to-whole ratio rankings—don’t just look at the sticker price; maintenance is the long-term expense.
