5 January 2009
New vs. Used vs. Reman
Although you may be tempted to skimp on parts for your fleet, here’s why going for the cheapest isn’t the best option.
Car repairs strain the budget at the best of times. But in the fleet world, where maintenance and repair costs are multiplied by the number of vehicles in a fleet, costs rise exponentially. So when you’re looking at replacing fourteen sets of brakes and three transmissions, getting the best deal on parts is paramount.
 Used parts
I probably don’t have to say it, but just to be sure…stay away from used parts. A lot of people try to save money by putting used parts in, but the savings just don’t add up. First, you can’t trust the part. Second, if the part is a dud, you’re stuck paying for the labour needed to replace it.
In my garage, when we buy a used part from an auto wrecker, we become the quality control for that auto wrecker. They give us a transmission, for instance, we install it and it doesn’t work. So we phone them and they’ll say, “Oh, well, we’ve got another one on the floor here, maybe you can try this one.”
But we’ve spent seven or eight hours installing and taking out a transmission, so who’s going to pay for the labour? The auto wreckers won’t pay for the labour, they’ll just give you a new transmission. You’re stuck with the labour costs.
New
New parts come in a number of grades. From most to least expensive, you have the OEM parts. Then there are the brand name parts that come with a warranty, followed by what’s known as “white box” parts.
White box parts have no label on them and they come with a shorter warranty – usually about 90 days. They’re also of a lesser quality.
Below that you have an even lesser grade. A lot of these parts originate in China, and although it’s a harsh word to use, I think they’re forged. They steal the design and then produce the parts. The price is a lot cheaper.
Many insurance companies will not allow you to use these parts, while others demand that you put them on.
Remanufactured
Remanufactured parts, or reman as they’re known, are another option. With remanufactured parts you can shave a bit of the cost.
We use reman, especially when the manufacturer no longer carries the part we need. If you want to buy a transmission for a Buick Riviera, for example, you can’t buy it from the manufacturer. It’s just not available. You have to go to the aftermarket for reman.
Reman is a viable option to new. These parts come with a warranty, but the length of the warranty depends on the reman manufacturer and the type of part.
Best option
Which option is best, depends on how long you plan to keep the vehicle on the road. If you plan to keep it in service, I would suggest you get the best parts you can. Spend the money and it will last.
There used to be a time when the cost of a repair was split 50/50 between the cost of the part and the cost of labour. Now, the labour has skyrocketed, so if you try to save a few bucks by using an inferior part, you may end up spending more in the long run on labour when the part fails.
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