OEM vs. aftermarket parts debate is not clear cut

Jan. 1, 2020
What choice do repairers have when an insurance company isn't going to cover the cost of the parts used because it is trying to keep the cost of the repair to a minimum?
Silvey ABRN auto body repair collision repair aftermarket parts OEM

Just use OEM parts. End of story. Done deal.

That is the attitude of many, if not most collision repairers, when it comes to the parts they prefer to use in the repair of their customers' vehicles. But with the insurers playing the lead part in the "Bend it, Shape It, Anyway You Want It" movie, it's a tad more complicated than just waiting for the Mopar truck to show up on time.

When an insurance company isn't going to cover the cost of the parts used because it is trying to keep the cost of the repair to a minimum, what choice do repairers have other than to follow an insurer's edict? Well, the choice would be to not deal with insurance companies that put them in that position. But that may mean implementing an early retirement plan as business slips away to other shops willing to play the DRP game.

With the ongoing pressure from insurance companies to drive down the cost of repairs so that they can pass the "savings" on to consumers, I think there's little argument that we're likely to see an increase in less expensive aftermarket parts in the distribution system. As we all know, these parts range in quality from junk to like quality (whatever that really means) to some almost indiscernible replacements. The trick is working with the right insurers and having a tenacious attitude about scrutinizing every part that is delivered to your shop. Because of counterfeiting, this kind of diligence should be used whether a part is marked as OEM, Certified Automotive Parts Association (CAPA) or whatever.

A word about CAPA: Presently, it is conducting a campaign to try to change its image. In fact, a few trade editors, including me, were guests of CAPA to tour the Intertek lab in Grand Rapids, Mich., which certifies CAPA parts. Without going into detail, suffice it to say that there's a great deal of evidence that CAPA is delivering what it says it's delivering. But before you think I was courted and swept off my feet, I have to say that I may have left this orchestrated press tour with a favorable impression, but if I were an actual repairer I would want to study independently audited data that backs up all claims. In such an important debate, it just may be beneficial to look at the other side of the coin.

However, I understand the reluctance to flip the coin over. Although CAPA claims to be an independent third-party certifier, it pushes the definition by being funded by some insurers and manufacturers who both have self-interest in the matter. Perhaps we need to ask what the true independent alternative would be. Government regulation?

Well if that one's hard to swallow, how about you, the repairers, fund CAPA or an organization like it? Now we're getting into sacred territory. Even repairers who are committed to the highest quality repairs surely are not going to see that as their role. Repairers on the opposite end of quality repairs are certainly not motivated to a watchdog role because they benefit from the availability of cheaper parts. The aftermarket manufacturers have little motivation because the market is demanding lower-cost parts and insurance companies benefit by squeezing every last dollar out of each repair. And so it goes.

The funny thing in this ongoing parts debate is the pass most repairers give the OEMs. For the most part, OEM parts – deservedly so – are considered the gold standard for parts. Yet life in paradise is not always what it seems to be. Who among you haven't run into OEM parts that don't fit or have flaws of some sort?

Having worked in a car manufacturing stamping plant that made parts for both new car assembly and replacement, I can attest that there are no guarantees that all parts will be delivered as ordered. I have seen production lines stamping parts when the supervisors knew they were defective just so that they could meet their quotas. This doesn't happen in every OEM plant every day, but it does happen more often than you think.

And then there's the consumer who shops insurance companies for price. Before an accident, they have no clue about the parts that might be used on their cars. Even after they have an accident, a consumer just wants his/hers "to look like it did" and to get it back as soon as possible. Although repairers need to have the OEM versus aftermarket parts talk with customers, it's pretty much going to sound like gobbledygook to them. What consumers really are buying is trust in their insurance company and you. The many choices that both of you make that affect the final repair, including the choice and scrutiny of parts, will determine whether or not that trust is deserved.

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