Sunday, August 8, 2010

A Trip Through The Junkyard, Part 4



You may want to begin with Part 1 and follow the links back to here.

Generally speaking, used auto parts are priced at 1/2 the current price of new OEM (Original Equipment Manufacturer) prices. That means the price you'd pay if you bought your part from the new car dealer who first sold your car.

Of course there are exceptions to that rule and most often the exceptions will work in your favor. Any of the following reasons and more will lower the price the used parts dealer expects to receive.

* Too many of that same part in stock.
* The competition has too many of that same part in stock.
* The part is in less than perfect condition.
* Cheap aftermarket parts are plentiful.
* The dealer has had that part for far longer than he thinks he should have.
* You're shopping at a pull-a-part yard and removing the part yourself. (More on pull-a-part yards in future installments.)

Now there are times when the used parts dealer will charge more than 1/2 the price of a new part, sometimes as much as a new part and occasionally more. Fortunately for you, these instances are increasingly rare.

* When new car models first come out, the new car dealers don't yet have replacement parts and the only replacement part available for your car came from a brand new wreck.
* When your car is so old that no one manufactures the part you need.
* When the used parts dealer is confident that he has the only remaining part for your car.
* When the part you need is currently selling like hotcakes.
* The only new parts available are crappy, imported, aftermarket parts that don''t fit well and won't last as long as the used part.
* When the used parts dealer has to buy the part from another used parts dealer to resell to you.
* When you're working to restore a valuable antique car with parts that were made many years ago.

Used auto parts prices represent the most basic economic principles of supply vs demand. Luckily, for you and I, used auto parts aren't yet traded on stock exchanges where speculators can run up prices. But a savvy dealer will consider the current scrap metal value of a used part in the pricing of that part. Volume discounts rarely apply in the used parts industry because very few customers buy a huge volume of the exact same used part but should you want to stock up on say, used radiator caps, I'm sure you can find someone who will cut you a deal.

In Part 5 we'll talk about used parts that used parts dealers will probably sell you but don't recommend you buy.