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Why Used Auto Parts?
When an insurance appraiser writes a damage estimate on
your property, let's use an automobile as an example, he has to
consider repair cost and replacement cost. Repair cost consist of many
items, the highest dollar amounts are usually labor and materials.
Choices for materials can come from four categories;
New O.E.M. (Original Equipment Manufacturer)
New Aftermarket (This can be from Taiwan or anywhere,
quality not as good as O.E.M.)
Rebuilt or Remanufactured (Rebuilt
Engine, Re-chromed Bumper, etc.
Used (Used auto parts from a automobile recycler)
Let's look at the pros and cons of each.
New O.E.M. is, in most instances, the best, but if
this was the only option, none of us could afford insurance. Not only do
insurance companies and individuals save tremendous amounts of money on
used auto parts to do the repair, insurance companies recover a
lot of money from vehicles they wish not to repair.
"The insurance industry re-coups about 25% of their total lost costs
through auto recycler's purchases of salvage autos for parts."
These vehicles are sold to automobile recyclers
to be dismantled and the parts sold a savings to consumers.
As I said, O.E.M. is best but is available in new
and used. If you have an estimate written on your car,
O.E.M. means new original equipment, and used auto parts
means used original equipment. The advantage for used is sometimes
two fold.
One example would be a convertible top frame. One model may cost
$2500 from the manufacturer and require many hours to assemble. The same
unit Used auto parts, might cost $500 to $1000 dollars and just need to
be installed, not assembled.
Another example is a car door. While a new door shell may cost $1000
and a used door also cost $1000, the advantages of used are not always
clear to the uninformed. First of all, a door shell is far from a
complete door. A new door for the same vehicle, if complete, may cost
$2500 and need assembly. Even if the shell is all that is damaged,
seldom have a seen a door assembled in a repair facility not rattle.
Assembly done at the factory is just better. |
