November 29, 2020

The Biggest Stories and News on Finance and Accounting

OEM Auto Parts

Why Are OEM Parts So Expensive?

To know whether your vehicle requires aftermarket or OEM replacement parts, you have to learn the difference between these types of auto parts. We discuss them below.

Before we get to the gist of why are OEM parts so expensive, it is vital that we first understand what these parts are. If you’re wondering, “what does OEM parts mean” OEM (Original Equipment Parts) are original car parts that come straight from the manufacturer. To know whether your vehicle requires aftermarket or OEM replacement parts, you have to learn the difference between these types of auto parts. We discuss them below.

Different Parts Of Vehicle Components

OEM Car Parts
OEM Car Parts

It was a tradition for vehicle manufacturers to build all the components used in cars with their names. But, this no longer happens as manufacturers now use third parties to produce the parts for them. Using third parties to make their parts doesn’t affect the quality since such companies have the expertise to make specialized parts.

If you want to differentiate between OEM auto parts and aftermarket ones, you have to know who manufactured them. If the vehicle is old or damaged, it may need a replacement for some of its parts. Your body shop can provide the parts that you need.

However, the type of parts you have access to will depend on different factors. In most cases, the parts you get will be dependent on the cover that your insurance offers you. While asking your insurance carrier if they cover OEM, you might also want to learn about auto parts and general taxes worth knowing, so you can have an idea of why some parts are expensive.

The Difference Between OEM and Aftermarket Parts

In most cases, if you take your car to an independent body shop for repairs, they will offer you aftermarket parts. Car dealerships typically stock OEM car parts. The manufacturer of OEM parts is the company that produces the auto parts to fit in a new vehicle. If you’ve been wondering why are OEM parts so expensive, it is because they are made to fit a vehicle while it is still new.

Aftermarket parts are made by a different company than the one contracted by the vehicle manufacturer to make parts. Companies that make these parts mass-produce them. One part can fit different models of cars.

Which Parts Are The Best?

Most people assume that OEM parts are better to use since they are made to fit exact specifications. However, which part to use depends on preference. Aftermarket parts are cheaper and would be suitable for most people.

Some people prefer only to use OEM parts. If you do, you may want to find out how does a Roth IRA work to ensure you can afford these parts for your vehicle even after retirement. While using these parts means you’re getting original made-to-fit parts, when your car leaves the dealership, its value goes down. Therefore using only OEM parts may not make much of a difference.

The Advantages and Disadvantages Of OEM Parts

Original Car Parts
Original Car Parts

Before you decide on the type of part to use for your car, you should know the benefits and disadvantages associated with them.

Quality Assurance: if you go for an OEM part, it will function exactly like the part you’re replacing. You will have peace of mind since you know exactly how the part functions.

Price: OEM parts are more expensive than aftermarket parts.

Availability: it is possible to buy OEM parts online. But, most people prefer to get them from a dealership. Your local body shop could have access to OEM parts, but they will have to order them, which may take a longer time to repair.

Better Quality: there are instances where an aftermarket part works much better than an OEM part. This is because aftermarket manufacturers use reverse engineering to produce the parts so they can make improvements.

Variety: the auto market is full of companies that make aftermarket parts. Some of these companies manufacture specific parts, and others are more general in their production. With this kind of variety, pricing for aftermarket parts becomes competitive. Even though there may be a variety in aftermarket parts, choosing a specific one is confusing. If you aren’t familiar with the quality of the parts you’re choosing from, you may end up settling for a low-quality part.

Any Other Concerns?

Having concerns about product maintenance and costs is expected. It is why you may ask, “why are OEM parts so expensive?”. When you need repairs or replacements for your vehicle, you have to choose whether you want aftermarket parts or OEM parts. When making your decision, you should consider your insurance cover, the quality of the parts, cost, and advice from your service technician.