Good morning, and welcome back. SEMA and AAPEX kick off tomorrow in Las Vegas, so safe travels if you’re heading out. For everyone holding down the shop this week, here’s what you need to know.

— Alex M, Editor

O’Reilly Auto Parts reported a strong third quarter, with sales at existing stores up 7.2%. The professional side, which sells to repair shops, grew a little over 10%. Shops bought more often and spent more per order.

Sales to do-it-yourself customers grew too, but more slowly. Fewer DIY customers came into stores, though each one spent more. CEO Brad Beckham said lower-income DIY customers are having a harder time affording things right now, but most drivers are still spending on maintenance and repair.

A few other numbers stood out:

Why it matters: Strong growth on the pro side means shops are still busy and still buying, even as fewer DIY customers come into O’Reilly stores. O’Reilly says it is also winning business from other parts suppliers, so expect it to keep pushing hard for your orders.

Most of that 4% price increase came from motor oil. If your oil change price has not moved this year, you may be making less on each one. Executives also noted that this summer’s heat is hard on batteries, starters, and alternators, which can fail once it turns cold. For some shops, that may be worth planning around as winter sets in.

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J.D. Power’s yearly auto claims study found that 26% of auto insurance claims ended in a total loss this year, up from 16% four years ago. Repairs cost more, people keep cars longer, and higher deductibles push smaller jobs out of the claims process altogether.

Customers whose cars get totaled are growing less happy with how insurers handle those claims. Satisfaction with the total loss process has dropped three years in a row. Among total loss customers with a car loan, one in four got a payout smaller than what they still owed.

When the car could be repaired instead, the picture looks very different:

Why it matters: Every total is a car that does not come through your doors. As that share climbs, collision shops compete for a smaller pool of repairable work. The shorter repair times are a good sign for customers, but they also reflect fewer claims coming in.

The study also found insurers deliver a smooth experience across phone, app, and email only about half the time. Customers often turn to the shop when the insurer leaves them confused. Clear updates from your side may be one of the easier ways to stand out.

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A senior Honda executive warned this week that the auto industry faces a catastrophic scenario if the U.S. and Canada fail to reach a trade deal by year end. Without one, U.S. tariffs on Canadian vehicles and parts are set to double from 25% to 50% on January 1.

Honda is the second-largest vehicle maker in Canada, behind Toyota. Jennifer Thomas, a Honda senior vice president, said she is cautiously optimistic after reports that the two countries restarted talks. Honda and other automakers want a three-way deal that keeps Mexico in as well.

Why it matters: January 1 is two months away. Parts cross the Canadian border several times before a car gets built, which is why the whole industry is watching this deadline, not just Honda.

We covered the tariff threat in August and September, and the risk to repair costs has not changed. If talks fail, expect pressure on parts prices and availability early next year. For some shops, it may be worth asking your suppliers now how they plan to handle it.

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📝 CRASH Network’s annual Insurer Report Card survey is open, letting collision shops grade the insurers in their state in under three minutes, with results shared with consumers and outlets like the Wall Street Journal.

💸 Freeway Insurance revealed the states with the highest car insurance rates based on what its customers actually paid, with South Carolina, New York, and Rhode Island topping the list.

🔩 Mazda picked CCC to show promotional pricing on genuine Mazda parts directly inside the estimating software used by more than 30,000 collision shops.

🧪 Plasnomic is building a plastic repair center in Argyle, Texas, for training, research, and repair work focused on fixing plastic parts instead of replacing them.

🧰 TOPDON USA launched a $37,000 scholarship program for auto tech students, with four awards each year that pair cash with a professional toolbox.

One question for you: Have your parts costs gone up this year, and how much of that have you been able to pass on to customers? Hit reply and tell us what you’re seeing.

Thanks for reading. Send us any feedback too. We read all of it.