If you’ve ever shopped around for replacement parts for a vehicle, you may have noticed that there can be a wide price difference between OEM parts and aftermarket parts. While every part is priced differently, sometimes OEM parts can be double the price of aftermarket parts. So that begs the question, why are OEM parts commonly priced so much higher? There is no single reason, but several reasons why that is the case.
Before exploring the reasons for OEM parts being so expensive, it’s good to look deeper into what OEM means. OEM stands for original equipment manufacturer, but it doesn’t mean that one company manufactures every part in your vehicle or equipment. Ford and Toyota don’t make every part that goes into their cars and trucks. John Deere doesn’t make every part that goes into their tractors and mowers. Polaris and Kawasaki don’t make every part that goes into their ATVs. Manufacturers commonly make some parts and contract with other companies to make other parts, yet both types of parts are labeled as OEM.
Common reasons OEM parts are priced high
1) Brand loyalty: Companies do a lot to instill brand loyalty in customers, and the benefits may be real or merely perceived. People may have had a good experience with a brand in the past and continue to choose that brand without any thought whether it still makes sense to do so. It just becomes an automatic decision.
2) Perceived quality: Brands work tirelessly to create the impression that their products are better than alternatives. While OEM parts are generally good quality, they are not necessarily better. Many aftermarket suppliers offer parts that are just as good quality, but at substantially lower prices.
3) Captive customer: If you bring your vehicle to a dealership for repairs, you will most likely get OEM parts because that is what they sell. Once your vehicle is in the shop, it’s hard to escape the pressure of installing OEM parts. You’re much more likely to get lower priced aftermarket products at an independent repair shop. Of course, for do-it-yourselfers, the choice is totally yours.
4) Convenience: If you don’t want to research parts for your vehicle or equipment, simply purchasing them from a dealer is a convenient way to go. You just need to know you’ll be paying a premium for the convenience.
5) Warranty issues: OEM manufacturers like to put a little fear into people that using aftermarket parts will void a warranty, but it’s not true. In fact, the Magnuson-Moss Warranty Act prohibits it. You can safely save money with aftermarket parts like alternators, starters and many other replacement parts and still be protected by your vehicle warranty.
Higher OEM prices for vehicle parts don’t necessarily mean better quality
There are many reasons that lead to higher prices than quality itself. Consumers need to evaluate whether those extraneous reasons are worth the extra cost. Everyone places a different value on what they are willing to pay for when shopping, but it’s important to have all the facts to make an informed decision.
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