Cost of Vehicle spare parts

Forums › Transport (cars, bikes and boats) › Cost of Vehicle spare parts

surfisup1000

5288 posts

Uber Geek

#207358 20-Dec-2016 15:45

I've just been in Aus, and the local paper had a story about the high cost of spare car parts in Aus, which is something I've wondered about before here in NZ.

They state that a $21,000 hatchback built from branded parts would cost $114,000.

The automakers are using warranties, secret computer codes, and authorised repair agents to force consumers to pay through the nose. ie, venture outside the manufacture ecosystem and say goodbye to your warranty.

Some of the same tricks would apply in NZ -- the difference is that the aussie regulator is investigating , I wonder if ours keep an eye on such things going on over the tasman.

1 | 2

1723 posts

Uber Geek

Trusted

Chorus

#1693068 21-Dec-2016 08:35

It reminds me of when I called a high profile auto glass provider to get a quote to replace a side window in my old Hilux. I was quoted a price over the phone, and I must have sounded shocked when I heard the figure, because the company rep then asked if I was claiming insurance. When I replied no, the company rep said "Oh, in that case it will only be $x".

$x equated to around half of the original quote. From this exchange I gather that glass companies charge insurance companies a 'standard' fee for vehicle window replacements, while Joe Public is sometimes offered the "economy' rate if they baulk at the 'standard' rate when being quoted.

If the glass company is still making money at the rate they charged me, surely it is price gouging to charge more (in this case, roughly double) for an insurance job. You'd think the insurance companies would actually be charged less than Joe Public based on the sheer volume of work they feed to the glass companies.

I don't have the answers but it was a very strange situation nonetheless...

sbiddle

30853 posts

Uber Geek

Retired Mod

Trusted

Biddle Corp

Lifetime subscriber

#1693078 21-Dec-2016 09:04

I'm surprised it's only $114,000 to build a car from spare parts.

Bung

6477 posts

Uber Geek

Subscriber

#1693079 21-Dec-2016 09:05

The Insurance Co might be getting genuine glass as they should be restoring to original condition whereas you might get some cheaper supply. You'd have to know the detail to compare prices.

PS I seem to recall a Morris Minor 1000 assembled from the last of the spares here. If the parts were priced individually the bill would have been $60,000.

tchart

2379 posts

Uber Geek

ID Verified

Trusted

#1693101 21-Dec-2016 09:55

surfisup1000:

I've just been in Aus, and the local paper had a story about the high cost of spare car parts in Aus, which is something I've wondered about before here in NZ.

They state that a $21,000 hatchback built from branded parts would cost $114,000.

The automakers are using warranties, secret computer codes, and authorised repair agents to force consumers to pay through the nose. ie, venture outside the manufacture ecosystem and say goodbye to your warranty.

Some of the same tricks would apply in NZ -- the difference is that the aussie regulator is investigating , I wonder if ours keep an eye on such things going on over the tasman.

When I lived in South Africa they did they (AA or similar) exercise every year for the 10 most popular selling cars. Was an eye opener to see the cost of spare parts for each manufacturer.

Journeyman

1186 posts

Uber Geek

#1693120 21-Dec-2016 10:10

I want to know why transponder keys cost so much. I know they need to program the fob, but I'm certain it's a pretty simple process. Seems like the fees are a massive rort.

Wade

2225 posts

Uber Geek

#1693128 21-Dec-2016 10:26

Factor in the cost of stocking that widget and tying up money having something sit on the shelf for maybe months then the resource to sell said widget...

Costs may have moved but from memory it costs a business $50 to complete a sale end to end, so a $1 object needs to attract a huge margin to cover this cost let alone be profitable, so sell 1 for $51 or 10 for $6ea, both scenarios only cover actual cost to business

Dingbatt

6754 posts

Uber Geek

Lifetime subscriber

#1693131 21-Dec-2016 10:29

As I understand it, franchised dealerships make most of their revenue from servicing, spare parts, vehicle finance and distributor incentives. The cost of does is nothing new, I remember similar articles as far back as the 1970s.
There will obviously be a cost to holding inventory and the more specific the part, the higher the cost of holding it. Because things like wipers, wheels, bulbs, etc are a universal fit, their inventory cost is low. But holding individual model specific parts for every car released in the last 20 years would be very expensive.
Not excusing dealers and their 300+% markup, just need to adjust the base point of the wholesale cost of the part initially.

“We’ve arranged a society based on science and technology, in which nobody understands anything about science technology. Carl Sagan 1996

Equinox IT

Cloud spending continues to surge globally, but most organisations haven’t made the changes necessary to maximise the value and cost-efficiency benefits of their cloud investments. Download the whitepaper From Overspend to Advantage now.

Gilco2

1556 posts

Uber Geek

#1693133 21-Dec-2016 10:31

remember back in 1972 one guy wanted new Morris Minor. Had one made out of parts. Don't remember the cost but often wonder if it is still around.

robjg63

4096 posts

Uber Geek

Subscriber

#1693150 21-Dec-2016 11:08

Gilco2:

remember back in 1972 one guy wanted new Morris Minor. Had one made out of parts. Don't remember the cost but often wonder if it is still around.

There was a guy in the UK did that in the late 70's. He got it built for his elderly dad as a present. I recall it did cost quite a bit.

I actually google to see if the story was somewhere online and found this:

http://www.telegraph.co.uk/motoring/classiccars/10372863/Morris-Minor-still-big-in-Sri-Lanka.html

My brother had an MG-BGT a few years ago (Probably early 2000's) - it was possible then to get a catalog with just about every part for it. Even down to replacement tail lights, chrome fittings, heater knobs etc. The body panel presses had been given away by British Leyland (or whatever it ended up as) to a company that specialised in supplying components - so you could theoretically get pretty much an entire new body shell. I seem to recall the prices were very reasonable too.

Nothing is impossible for the man who doesn't have to do it himself - A. H. Weiler

Sidestep

1013 posts

Uber Geek

Lifetime subscriber

#1693212 21-Dec-2016 12:50

Gilco2:

remember back in 1972 one guy wanted new Morris Minor. Had one made out of parts. Don't remember the cost but often wonder if it is still around.

Want a 64 1/2 Mustang, 68 Charger, 69 GTO, 70 Nova? How about a 1932 Ford?

You can build one right now out of repro parts. If you've got enough $$ you can still pretty much build one out of NOS parts..
I've seen many built back to show standard from a stripped rusted shell and seized block.

All you need is a few bits of the original car.. such as the Data plate & VIN tag.

A couple of mates went across the US in the 90's buying up closed dealer's stock, dealer excess and old stock parts - anything from the 70's & earlier.
They've now got a warehouse full of '50s - '70s NOS parts. And if you think manufacturers charge a lot for genuine parts...!

Coil

6614 posts

Uber Geek
Inactive user

#1693223 21-Dec-2016 13:10

A large portion of the parts cost is stocking them on the shelf and shipping.
Importers usually get the parts at 30% of the retail price and sell to the dealer at 50-70% of retail depending on what it is.

Sure they are more expensive than the aftermarket alternatives but in this modern day and age unless its something dumb like a key or electronics everything is reasonably price.
Another thing to note is that your after market parts most of the time are no way near the quality of the genuine one. Mainly brakes and suspension components.
You tell me if you consider stopping for 100KPH 5 meters shorter is worth spending a tiny bit extra on genuine parts. Cause it could be your life.

k1w1k1d

1519 posts

Uber Geek

#1693264 21-Dec-2016 13:56

Aftermarket parts are not always inferior to genuine. Some are exactly the same off the same production line as genuine. Some aftermarket parts are also better than genuine.

Coil

6614 posts

Uber Geek
Inactive user

#1693352 21-Dec-2016 15:29

k1w1k1d:

Aftermarket parts are not always inferior to genuine. Some are exactly the same off the same production line as genuine. Some aftermarket parts are also better than genuine.

Your correct yes, Performance after market parts are sometimes better than the factory ones. But ill give you this example. I had high performance brakes in an Audi of mine. They were noisy and harsh. They stopped my car and didn't fade like the OEM ones. But i lost all comfort. Its all relative and from my experience stick to your OEM parts if you want your vehicle to drive the same it did out of the factory. But speaking for the vast majority of the Geekzone population i can guarantee you those OE+ brakes or Icer are not as effective as a genuine part designed for that car.

I wouldn't go as far as saying it comes off the same production line either, Thats a very common line i hear from idiots in shops.
"Goodride tyres are the same as good year just re branded in the factory" Heard that one before, Stared at sales rep for a solid 5 seconds said your full of it and left.

Unless its a factory aftermarket brand id suggest they are not coming from the same plant. Most car brands dont support the competition especially in the cheap after market department.

(Mugen, TRD, Spoon, Nismo, Alpina, DINAN, STI etc...)

Geektastic

17942 posts

Uber Geek

Trusted

Lifetime subscriber

#1696459 30-Dec-2016 11:29

I know Land Rover parts here are many times more expensive than they are in the UK. A friend of mine with a 110 brings things like springs back in his suitcase when he goes to visit his mother in Yorkshire!

cadman

1014 posts

Uber Geek
Inactive user

#1699680 7-Jan-2017 02:41

k1w1k1d:

Aftermarket parts are not always inferior to genuine. Some are exactly the same off the same production line as genuine. Some aftermarket parts are also better than genuine.

Almost all are off the same line but that doesn't always mean to the same quality control standards.

1 | 2