OEM vs. aftermarket vs. recycled parts explained

Hey folks! This is Mike and Tom from Pacific One Collision and Restoration.

Welcome to another Q&A session where I answer questions from you all on the internet.

Today's question is:

"OEM vs. aftermarket vs. recycled parts explained"

Summary:

Mike defines OEM parts as original equipment from the vehicle's manufacturer, recycled parts as the same OE parts previously used on another vehicle, and aftermarket parts as those made by a company other than the manufacturer, such as Tongyang building a bumper for a Ford. He notes recycled parts are mostly OE and are favored by insurers because they're cheaper than buying new from the dealer, though they're occasionally mislabeled. Aftermarket quality has improved dramatically; 15 years ago there was a significant gap versus OE, but certifications like CAPA and Diamond Standard now indicate parts meeting or exceeding OE standards. Insurers push aftermarket to save cost, and on an older car like a 2010 Corolla they argue a new factory bumper isn't warranted. Customers can request OEM-only on their own policy for an added rider cost. Mike's own preference varies; he values OEM fit but uses OE when it makes the most sense.

Answer:

What is the difference between OEM, aftermarket, and recycled parts? There's a lot of difference, and there really isn't a lot of difference. OEM parts are original equipment parts that come directly from the manufacturer that built your vehicle. Recycled parts are the same, however they were previously enjoyed by another person on their vehicle. So recycled parts are mostly OE. Sometimes they do get mislabeled, where they'll have an aftermarket part listed as a recycled OE part and it's not. It doesn't happen often, but it does occasionally. The insurance companies really enjoy using recycled parts because they're a lot cheaper than buying straight from the dealer. Aftermarket parts are where another company, other than the manufacturer of the vehicle, made the part; say Ford did not make this bumper, it was made by a different company like Tongyang. I've been in this business a long time, and 15 years ago there was a significant difference between aftermarket parts and OE. Most body techs and body shops always want to use OE, but oftentimes the insurance companies, due to cost, want the shops to use aftermarket. In the aftermarket arena there are a lot of certifications that the manufacturers give to say this aftermarket part meets or exceeds OE standards, which means the quality is almost identical. Fifteen years ago that wasn't the same. They have CAPA certifications on parts, they have Diamond Standard certifications on aftermarket parts, so the aftermarket industry has become very competitive. The better option in trying to get your car to pre-accident condition is OEM. But if you have a 2010 Toyota Corolla, does it make sense to put a brand new Toyota bumper on the front of it? That's the insurance company's argument; they say your car is 16 or 17 years old, so we can use a recycled part because your part was already aged to begin with, or an aftermarket part because it's more affordable. One thing people need to consider is that you can request on your own insurance policy no aftermarket and no recycled parts. A lot of people don't understand that it's an option. However, you do pay for that option; your insurance company will write your policy with OEM parts only, but they're going to charge you a certain amount for that rider. My personal opinion is that I go multiple directions, because I've been in the aftermarket parts industry and I've seen the quality they have. I do enjoy using OEM parts because they usually fit correctly the first time. Recycled parts come with a bit of extra work, like cleaning and prepping the part to go on the car and then painting it. OEM parts are faster for production, but I can't say I typically go one way or the other; we try to use OE when it makes the most sense.