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Why
LKQ?
When an insurance appraiser writes a damage
estimate on your property, let's use an automobile as an
example, he has to consider repair cost and replacement cost. Repair cost consist of
many items, the highest dollar amounts are usually labor and materials.
Choices for materials can come from four categories;
New O.E.M. (Original Equipment Manufacturer)
New Aftermarket (This can be from Taiwan or anywhere, quality not as good
as O.E.M.)
Rebuilt or Remanufactured (Rebuilt Engine, Rechromed
Bumper, etc.
Used LKQ (Used parts from a automobile recycler)
Let's look at the pros and cons of each.
New O.E.M. is, in most instances, the best, but
if this was the only option, none of us could afford insurance. Not only do insurance
companies and individuals save tremendous amounts of money on LKQ parts
to do the repair, insurance companies recover a lot of money from vehicles they wish not
to repair. "The insurance industry re-coups about 25% of their
total lost costs through auto recycler's purchases of salvage autos for parts."
These vehicles are sold to automobile recyclers to be dismantled
and the parts sold a savings to consumers.
As I said, O.E.M. is best but is available in
new and used. If you have an estimate written on your car,
O.E.M. means new original equipment, and LKQ means used
original equipment. The advantage for used is sometimes two
fold.
One example would be a convertible top frame. One model may cost
$2500 from the manufacturer and require many hours to assemble. The same unit LKQ,
might cost $500 to $1000 dollars and just need to be installed, not assembled.
Another example is a car door. While a new door shell may cost $1000
and a used door also cost $1000, the advantages of used are not always clear to the
uninformed. First of all, a door shell is far from a complete door. A new door for the
same vehicle, if complete, may cost $2500 and need assembly. Even if the shell is all that
is damaged, seldom have a seen a door assembled in a repair facility not rattle. Assembly
done at the factory is just better. |
