Making critical decisions for your business will go a long way in determining whether you make it in the automotive industry. Most retailers face the dilemma of going for an OEM part or an aftermarket part. Although both have their advantages and disadvantages, there are some factors to consider when settling for one. Below, we look at the difference between the two automotive parts solutions in terms of quality, performance, prices, and what car owners would consider the most. Let’s dive in.
What is an Aftermarket Part
What are aftermarket car parts? An aftermarket auto part is any automotive part that is not sourced from the original car manufacturer. They are usually produced by third-party companies and supply them to car dealers. Some of the parts that are common in the aftermarket are car lights, mirrors, signal lights, etc.
- Cost-effective: aftermarket suppliers charge less than OEM, saving retailers a lot of expenses. Most retailers will get their parts from aftermarkets at a cheaper price than the original car maker since there is much competition among aftermarket companies. Also, original manufacturers tend to sell their parts at premium prices.
- Spoilt for choice: there is a wide variety to choose from in the aftermarket unlike in OEM where there is only one of a particular part. Aftermarket companies come up with various parts that serve the same purpose making dealers choose according to their preferences and budget.
- Aftermarket is more convenient: aftermarket distributors are situated in many places meaning you can access a store regardless of where you are. Moreover, OEMs usually have authorized dealers but for aftermarket businesses, anyone can sell their parts.
- Quality: the quality of products in the aftermarket business may not always be guaranteed. It is advisable to partner with a reputable brand that you trust for your products.
- Lack of a warranty: most aftermarket companies do not offer warranties on their goods making it hard for retailers. Retailers will often want to sell parts to their customers and issue warranties to gain trust and loyalty in the market.
- Too much variety: even though variety may be a good attribute, it may get confusing on which is the better part. Many aftermarket manufacturers offer the same products, making it hard to choose based on quality.
What Does OEM Part Mean
What does OEM mean for cars? OEM stands for an original equipment manufacturer. These are auto parts that the car manufacturer makes. Most hard-to-find auto parts can be sourced from an OEM company such as manual gearboxes, dashboard panels, radiator hoses, engine parts, etc.
- Quality assurance: OEM parts are made with premium materials; hence quality is assured all the time. The parts are manufactured specifically for a particular car.
- Warranty: there is always an issued warranty with OEM parts giving dealers an easier time to find clients. Most warranties are usually one year.
- Selection: it is easier to choose OEM parts compared to aftermarket since OEM parts are only a single type.
- The parts fit: OEM parts usually fit cars perfectly because the manufacturer made the part precisely for the car.
- Expensive: OEM parts are more expensive than aftermarket parts. OEM auto parts are expensive because they only have one manufacturer hence there is no competition.
- Availability: OEM parts are not as available as aftermarket parts because they usually have authorized dealers making it hard for retailers to source from them.
OEM Parts Quality vs Aftermarket Parts Quality
Quality is a vital aspect to check before buying any auto part. Below standard parts may increase the risks of avoidable accidents or other hazards. The good news is that, whether it is an OEM or an aftermarket part, both parties are usually regulated and inspected to ensure that the parts are up to standard. Although regulation happens, there is still a difference in quality between OEM and aftermarket auto parts.
OEM parts are made with high-grade materials by the manufacturer to suit the car perfectly. Aftermarket parts also have good quality, the problem comes in due to many auto parts suppliers where quality is not always guaranteed. If you are dealing with an aftermarket manufacturer or suppliers, then stick to the ones you trust or are highly recommended.
OEM Parts Price vs Aftermarket Parts Price
Another aspect to consider when choosing your auto part supplier is the price. As a retailer, you want to make profits by selling auto parts hence you will want to consider your investment vs your returns. OEM parts are typically more expensive compared to aftermarket parts. Although quality is a guarantee with OEM parts, the budget also plays a vital role in the final decision. The aftermarket offers a variety of choices meaning you can also get variety in prices and choose according to your set budget.
Additionally, if you would like a lower price, consider negotiating with the manufacturer in terms of wholesale pricing so you can order more goods at an affordable price.
Considerations When Car Owners Buy Auto Parts
As a retailer, you have to consider what car owners would want when buying auto parts. It is best to stock your store with what most would prefer rather than your personal preferences. The following are some things to consider to lure more car owners to your shop.
- Quality and Warranty: most people would want to buy parts that are of good quality since they are more durable and efficient. A warranty guarantees the buyer that the part is of high quality and in case of any problem, their money will not be wasted.
- Performance: how the auto parts work is very essential. Get a good supplier who will provide you with efficient and effective auto parts, making your clients stay loyal to your store.
- Surface finishing: just like with any manufacturing, finishing is a necessary step. The surface finishing of OEM auto parts is usually perfect and fits well with the car. Most if not all car owners would like an auto part that looks like parts of the car and not just an addition. However, if cost is a concern for you, then find a reliable and experienced aftermarket supplier.
- Price: aftermarket parts offer choice meaning the cost will also vary. If you are on a tight budget, then go for aftermarket parts as you will still get quality products at cost-effective prices. If you value quality more than anything else, then OEM parts are for you. Although they might be a bit expensive, the parts will serve you well for a longer period.
- Insurance clause: some insurance companies will direct their clients which parts to use. Depending on various factors, insurance companies may prefer OEM or aftermarket auto parts. If you are insured with a company that uses aftermarket parts for repairs and you would like OEM parts instead, you can go for the OEM and add some money to meet the price.
In summary, both OEM parts and aftermarket parts are equally important. As a retailer or distributor, make your decision according to your situation and your client base. Consider what your clients would prefer among other things. Source your products from Sunway Autoparts, we deal with a variety of car and motorcycle parts both modern and classic. We are a company based in China with capabilities of serving you through product sourcing, quality testing, customization solutions, etc.
We are dedicated to serving you with anything you need. Reach out to us for any inquiries.