Franchise FAQ

do franchise dealerships sell genuine or oem parts

by Dolly Russel Published 2 years ago Updated 1 year ago
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In fact, all new car dealerships are franchised because manufacturers will only sell vehicles to a franchised dealer. When it comes to used cars, though, independent dealers can get vehicles in a number of ways that allow them to avoid buying a franchise. Tip A franchised dealership can buy and sell vehicles direct from the manufacturer.

Yes. The dealership is one of the best places to purchase auto parts. Most auto dealerships only sell standard OEM manufacturer parts. Best of all, they can use your VIN number to find the correct part for your car or truck.

Full Answer

Can a franchised dealer buy used cars from other manufacturers?

When it comes to used cars, franchised dealers can accept trade-ins from any car maker, but they can't resell vehicles from other manufacturers.

Should you buy Original Equipment Manufacturer (OEM) parts?

That brings up a question about part quality. New-car buyers are usually told to stick with their dealership for the best Original Equipment Manufacturer (OEM) parts. This is generally solid advice, as the dealership will only sell quality parts that won't void the vehicle's warranty.

What is the difference between an independent dealer and a franchised dealer?

In between fully franchised dealers and independent dealers are independent franchised dealers. They can sell new cars from a particular manufacturer but not manufacturer certified preowned cars. In exchange for giving up access to manufacturer CPO vehicles, these dealers instead have the flexibility to sell used cars from any manufacturer.

Are aftermarket auto parts the same as OEM?

This is generally solid advice, as the dealership will only sell quality parts that won't void the vehicle's warranty. But the full truth is: Aftermarket auto parts are often the same parts as OEM.

What is a franchise dealership?

What is a used non-franchised vehicle?

What happens if a part fails within warranty?

What happens if you nickel and dime us out of business?

What would happen if I started selling parts at my cost?

What is CompandSave.com?

Can you use aftermarket parts on a car?

See 4 more

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Do dealers always use OEM parts?

Most car and truck dealerships only sell standard OEM manufacturer parts. Best of all, they can help you find specific parts for your vehicle with its vehicle identification .

Which is better the OEM or the genuine parts?

The OEM parts we carry are precisely the same as the part that came with your car. The difference is that it doesn't carry the manufacturer's logo. OEM parts are just as reliable as genuine parts, but you get them for a better value.

Do dealerships use remanufactured parts?

Remanufactured Parts Because these parts often involve extensive work to bring them back to OEM tolerances, they usually have a very good warranty compared to rebuilt parts. Most auto supply stores offer remanufactured parts, and auto dealerships will use them when new parts aren't available.

Is it better to buy OEM parts or aftermarket?

Original equipment manufacturer (OEM) parts match those that came with your car, and are of the same quality as its original parts. They're also the most expensive. Aftermarket parts are cheaper, and made by other manufacturers — often several, giving you more options.

Is genuine the same as OEM?

OEM, Original equipment manufacturer part is a part made by the manufacture or made for them to their specification but an external company. A genuine part is a part supplied by the vehicle manufacturer in their packaging. Aftermarket parts are parts produced by any other company.

What's the difference between OE and OEM?

OEM stands for original equipment manufacturer. OE stands for original equipment. OE parts are the components of the vehicle as it's made in the factory – all of the original parts that the car was first built with. Once the car comes out of the factory, everything else is not an OE part.

Should I buy parts from dealership?

Yes. The dealership is one of the best places to purchase auto parts. Most auto dealerships only sell standard OEM manufacturer parts. Best of all, they can use your VIN number to find the correct part for your car or truck.

Why are OEM parts so expensive?

OEM parts are more expensive, because they're designed specifically for your make and model. Since the parts are only designed for one kind of car, they have to charge more for each unit to make a profit. Aftermarket parts that fit many different vehicles can cost less.

What is better new or remanufactured?

It will show a level of wear, but in terms of quality and robustness a remanufactured part is equivalent to a brand new part. This means that a remanufactured part, sometimes referred to as a 'reman' part, will be just as reliable as a brand new part.

Do mechanics use OEM parts?

Most Auto Repair Shops Use Aftermarket Parts Instead of OEM Parts and Here is Why. According to Tom Torbjornsen, host of America's Car Show, around 80 percent of independent repair shops use aftermarket parts instead of OEM.

How can you tell if an aftermarket is an OEM?

0:202:50How to Spot the Difference Between OEM VS Aftermarket Parts - YouTubeYouTubeStart of suggested clipEnd of suggested clipParts aftermarket parts are often suggested. Or used by insurance companies to repair your car IMoreParts aftermarket parts are often suggested. Or used by insurance companies to repair your car I want to show you the difference this is an original amount manufactured equipment part you just notice

Should I use genuine car parts?

Greater assurance of quality: The OEM part should work exactly as the one you are replacing. It is what the vehicle was manufactured with and provides a peace of mind in its familiarity and performance. Comes with a warranty: Most automakers back up their OEM parts with a one-year warranty.

Should I use genuine car parts?

Greater assurance of quality: The OEM part should work exactly as the one you are replacing. It is what the vehicle was manufactured with and provides a peace of mind in its familiarity and performance. Comes with a warranty: Most automakers back up their OEM parts with a one-year warranty.

What is OEM quality?

OEM stands for Original Equipment Manufacturer, and OEM parts are branded with the automaker's name and/or logo. They also come in the automaker's packaging. Many consider OEM parts to be the best choice. They're built with high-quality materials and to the automaker's specifications.

Why are OEM parts so expensive?

OEM parts are more expensive, because they're designed specifically for your make and model. Since the parts are only designed for one kind of car, they have to charge more for each unit to make a profit. Aftermarket parts that fit many different vehicles can cost less.

What is the best brand of aftermarket car parts?

World's Best Aftermarket Car Part BrandsRobert Bosch GmbH. BOSCH is a German multinational engineering and technology company and is one of the world's largest and oldest automotive parts manufacturers. ... Denso Corp. ... Magna International Inc. ... Continental AG. ... Hyundai Mobis. ... Lear Corp. ... Febi Bilstein. ... Visteon.More items...•

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What is the difference between OEM and aftermarket?

The difference is that it doesn’t carry the manufacturer’s logo. OEM parts are just as reliable as genuine parts, but you get them for a better value. Aftermarket. Once a car is built , companies can manufacturer parts that will work for that vehicle.

What is an OEM?

OEM. Original Equipment Manufacturer (OEM) parts are built by the company that initially made the parts for the auto manufacturer. The OEM parts we carry are precisely the same as the part that came with your car. The difference is that it doesn’t carry the manufacturer’s logo. OEM parts are just as reliable as genuine parts, ...

What is replacement auto?

Let’s describe and compare the parts. Genuine. A genuine part is an auto component that was installed in your vehicle when the vehicle was first manufactured.

What is the phone number for used car parts in Minneapolis?

You can also call us at 651-717-4299, or you can message us on our contact page. We provide used auto parts for vehicle owners in Minneapolis and St. Paul, Minnesota. TAGS: Used Parts, Used Automotive Parts, Installation, Auto Repair.

Do aftermarket parts look like OEM?

To do this, they buy the rights to make the parts. The aftermarket parts we sell do not always look like OEM or genuine parts, but they perform the function needed to operate the car. Just like you can trust OEM parts, you can also rely on aftermarket parts to work well.

What Is a Franchised Dealer?

Just like when someone buys a McDonald's franchise so they can sell McDonald's products, an Audi dealership is owned by someone who has bought a franchise to sell Audis. This means he can only buy and sell Audi vehicles. While you may occasionally see a franchise that works with different brands, this is actually because those brands are owned by one large parent company. For example, General Motors owns Buick, Chevrolet, GMC and Cadillac, while Infiniti, Mitsubishi and Nissan are all owned by Renault-Nissan-Mitsubishi Alliance.

Why are all new car dealerships franchised?

In fact, all new car dealerships are franchised because manufacturers will only sell vehicles to a franchised dealer. When it comes to used cars, though, independent dealers can get vehicles in a number of ways that allow them to avoid buying a franchise.

What is an independent car dealer?

Independent used car dealers are those who have no affiliation with a specific manufacturer and sell vehicles of any make or model. These are often local dealerships with names like John's Used Cars or Globetown Used Car Emporium, unlike franchised dealerships that will always have the brand in its name, such as Bigtown Ford or Bob Stranger's BMW. There are some larger chains of independent dealerships as well, such as CarMax and AutoNation.

How do independent car dealerships get their cars?

Independent dealerships get their vehicles through trade-ins, auctions, private sales and other sources but never from the manufacturers themselves. While they can offer CPOs that are certified by other agencies, these will not be manufacturer certified preowned cars and will lack the manufacturer-backed warranty for which many buyers are looking when they seek out CPOs.

What are the benefits of franchisees?

The benefit to the franchisee is that it has the option to sell new and CPO cars from a certain manufacturer, which they would not get to do otherwise. Manufacturers benefit because they do not need to distribute their products, and dealers order vehicles before the production is complete , so the risk of unsold inventory is transferred to the dealerships . It's worth noting that many states actually prohibit manufacturers from opening their own dealerships to sell vehicles directly to the public in what are known as "dealer franchise laws". Some new car companies, like Tesla, are trying to have these laws repealed so they can sell vehicles to the public without third-party dealerships.

Can a dealership sell a used car from a manufacturer?

In exchange for giving up access to manufacturer CPO vehicles, these dealers instead have the flexibility to sell used cars from any manufacturer. This makes it easier to deal with trade-ins since the dealership can resell the vehicle itself, but it does prevent the dealership from being able to sell potential manufacturer CPOs back to the manufacturer and does not allow them the income from this premium used car market.

Who owns the Infiniti?

For example, General Motors owns Buick, Chevrolet, GMC and Cadillac, while Infiniti, Mitsubishi and Nissan are all owned by Renault-Nissan-Mitsubishi Alliance. When it comes to used cars, franchised dealers can accept trade-ins from any car maker, but they can't resell vehicles from other manufacturers.

Why doesn't OEM advance the product?

On the other hand, the OEM doesn't advance the product, because the vehicle is already selling or even out of production.

Does Ford make shocks?

Ford factories don't make the shocks, tie rods, brake pads, or headlights. Even complicated parts like the clutch, master cylinder, and usually even the transmission are farmed out to other companies, making the factory more of a final assembly rather than actually creating the vehicle's parts. That brings up a question about part quality.

Is Denso an OEM?

Denso parts are in stock, which is OEM for several Japanese manufacturers. OEM is available even down to the oil. Pentosin and Liqui Moly are highly regarded in Europe, and German car fans especially swear by this stuff. The thing is, both brands are a factory fill.

Is aftermarket better than factory?

We've shown how the aftermarket is just as good as factory parts, but sometimes aftermarket can mean better-than-factory parts. Parts companies like Federal-Mogul, Dorman, MOOG, and others make aftermarket parts that are improved designs over what left the factory on the vehicle.

Is a problem solver part better than an OEM part?

These problem-solver parts often feature a better design than the OEM parts, and are easier to install and longer lasting. It may seem hard to believe that someone else could build a better part than the company that originally assembled the entire vehicle.

Is an aftermarket car the same as an OEM?

But the full truth is: Aftermarket auto parts are often the same parts as OEM. Here's a few examples:

Does Advance have OEM parts?

Convinced but still want OEM-labelled parts? Advance has those, too . If your project car is a classic Corvette, Advance stocks an expanding lineup of AC Delco products, which is traditionally GM OEM parts. Maybe you have a newer Mustang, in which case Motorcraft, Ford OEM, is your thing and available at Advance. MOPAR (Chrysler OEM)? Yup, stocking parts for the Charger drivers. Maybe you have a mid-'90s Toyota Supra, and you need a new fuel pump or oxygen sensor. Denso parts are in stock, which is OEM for several Japanese manufacturers.

How Do Shops Know What Dealerships Sell Parts Online?

Your dealership will automatically be added to their Supplier List, allowing them to regularly order from you with ease.

What happens when a dealer registers?

When a specific dealer registers, the shop will receive a notification telling them that you are now live and accepting orders. If a shop has not opted to receive this information, your dealership is still searchable in the Supplier List Search.

What is a franchise dealership?

Franchised dealerships (those selling brand new vehicles direct from a manufacturer) are required under the franchise agreement to use only OEM replacement parts purchased through the manufacturers parts distribution system.

What is a used non-franchised vehicle?

Used non-franchised vehicles. A used car that is being reconditioned/repaired by a dealership that is not the vehicle type sold new by the dealer or a maintenance item (brakes, water pump, oil filters) on a car no longer covered under a new car factory warranty can receive aftermarket replacement parts.

What happens if a part fails within warranty?

If anything happens to a part that I buy and re sell to a customer and that part fails within the warranty period, the manufacturer will give me another part and will pay for the labour.

What happens if you nickel and dime us out of business?

If you nickel and dime us out of business and we cannot afford to hire and pay qualified technicians and keep upgrading our very expensive tooling such as scanners and lab scopes and subscriptions to factory repair information, we will fade away and then the only option you have is the dealerships.

What would happen if I started selling parts at my cost?

If I were to start selling parts at my cost or install parts that the customer supplies then I would have to increase my labour rate considerably to make up for that loss of income. That would mean that I would be going out of business as garages are bound by the competition in their localities to stay within a reasonable labour rate.

What is CompandSave.com?

CompAndSave.com features an extensive collection of discounted ink refill cartridges. Shop and save now!

Can you use aftermarket parts on a car?

Yes, but we have some manufacturer certified aftermarket parts as a more affordable option. If it’s warranty repairs, techs MUST use OEM parts. We also use OEM parts if the vehicle owner wants them

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