Alliance Study: Car Parts Cost ?Outrageous'

NU Online News Service, Oct. 9, 4:09 p.m. EST?

" demonstrates "that auto owners and their insurance companies continue to pay outrageous prices to repair damaged vehicles using so-called ?genuine' parts supplied by car manufacturers."

In studying car parts for various models over the past 21 years, the Alliance said that it has found the cost of rebuilding a vehicle with original equipment manufacturer parts generally triples the car's original cost.

"The cost of repairing damaged automobiles accounts for between 40- and 50 percent of the insurance premium for most auto insurance consumers," said Kirk Hansen, Alliance director of claims.

Crash parts costs have "a significant, direct impact on the price consumers pay for auto insurance. Expensive parts result in more costly repairs, which in turn result in higher premiums. In addition, many vehicles that should be repaired must be totaled due to the high cost of car company parts," Mr. Hansen said.

The Alliance noted that the Certified Automotive Parts Association in Washington had announced recently that between 1999 and 2002, it had put 1,907 "genuine" car company parts through an extensive vehicle test fit, and discovered that 50 percent of the parts did not meet CAPA standards for fit, finish and appearance.

The Alliance said that despite the questions of quality that this raises, car companies consistently market their parts as "genuine" and charge an average of 60 percent more than generic parts supplied by independent manufacturers.

To help hold down the cost of vehicle repairs while assuring quality, the Alliance said it supports the sale of competitive replacement parts certified by CAPA.

To earn the CAPA seal of approval, the Alliance said, a part from an independent manufacturer must pass stringent tests by an independent laboratory to assure that it is equal or superior to its car company counterpart. The only difference is price, the Alliance said.

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Alliance Study: Car Parts Cost ?Outrageous'

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