Choosing between original equipment manufacturer, or OEM, and aftermarket car parts is all about squaring your priorities with your budget.
Each option has its benefits, but how long a part will last and its initial cost can vary widely depending on if you go with OEM or aftermarket parts. Which one you decide to go with will determine the impact on the overall cost of owning your car.
Here’s a comparison of the perks and drawbacks of OEM and aftermarket parts and which is the best option for certain situations.
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What's the difference between OEM and aftermarket parts?
Let’s start with genuine parts, which are parts that were installed in your vehicle by the manufacturer when it was first sold. They often have the logo of the vehicle manufacturer, such as Honda or Subaru, printed on them.
Once you’ve purchased a vehicle and need to make repairs or replace parts for maintenance, the terminology changes to the following:
Original equipment manufacturer, or OEM. These parts are made by the same manufacturer that made the genuine parts in a car, but they’re installed when a car needs a repair. Because the same manufacturer makes OEM parts, they are guaranteed to fit in your car.
🤓Nerdy Tip
Some retailers use “genuine” to refer to OEM parts. This is a marketing tactic and doesn’t mean that the part will work better. A part is either an OEM part or not an OEM part — regardless of if it is described as “genuine.”
Aftermarket parts. These are made by manufacturers that did not make the original car parts and therefore do not qualify as OEM parts. They can often be used in place of OEM parts, but they carry the potential of not being fully compatible with your car.
Comparing OEM and aftermarket parts
There are benefits and downsides to OEM and aftermarket parts, and a quick comparison shows that OEM parts win for dependability as a longer-term investment. On the other hand, aftermarket parts offer more options and tend to be more affordable.
Here’s a quick comparison of their pros and cons.
OEM parts | Aftermarket parts | |
---|---|---|
Compatibility | ✓ | × |
Life span | ✓ | × |
Warranty | ✓ | × |
Availability | × | ✓ |
Options | × | ✓ |
Cost | × | ✓ |
Pros and cons of OEM parts
In general, OEM parts offer peace of mind, but that comes at a higher cost. Here are a few benefits and drawbacks to buying OEM parts.
Pros
Compatibility. OEM parts are manufactured to fit your vehicle and work like they’re supposed to with your car’s systems.
Longer life. Because they are made in the same way as genuine parts, OEM parts tend to be more reliable than aftermarket parts and last for longer.
Warranty. OEM parts should come with a warranty to protect you if the part is defective or doesn’t work properly. The specific warranty will differ by manufacturer.
Cons
Higher cost. Due to their better quality, OEM parts tend to cost more than aftermarket parts.
Limited availability. With a higher demand, OEM parts can have limited availability and take longer to order and get into stock.
Pros and cons of aftermarket parts
Aftermarket parts tend to go easier on your budget but don’t come with the guarantee that they’ll work for you.
Pros
More options. Aftermarket parts can be made by any company that wants to manufacture car parts, so you have more options when looking for a part.
Cheaper cost. Because there are more options available for aftermarket parts, they tend to be cheaper.
Cons
Inconsistent quality. Car manufacturers do not oversee the quality of aftermarket parts, so there's no guarantee that the part will work well or even fit your car correctly.
Limited warranty. Most aftermarket parts have limited warranties or no warranty at all, which means you’re out more money if the part is defective or doesn’t fit.
» MORE: Why your $50 oil change just cost $500
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When to use OEM or aftermarket parts
Choosing between OEM and aftermarket parts might come down to what is the most important aspect for you and your budget.
If one of the scenarios below ranks at the top of your list, you’re likely to prefer one option over the other.
You have a warranty
If your vehicle is under warranty, using aftermarket parts could affect your warranty. As long as the aftermarket part works properly, your warranty will probably stay in effect. However, if the part causes an issue that then needs to be repaired, and a dealership can prove that the aftermarket part caused the problem, it could deny warranty coverage for that specific repair.
Consider: OEM parts.
You're on a tight budget
Car repairs can be a big hit to your auto budget. But avoiding a necessary repair is the worst option because it could cause more damage to your car and end up costing you more down the road. So if your budget can’t support the cost of an OEM part for a necessary repair, looking into aftermarket parts might be a better option.
Consider: Aftermarket parts.
You want the most time between replacing parts
Investing in car parts might be the way to go if you're looking to skip extra trips to the mechanic as much as possible. Choosing to install parts that have longer lifespans and tend to be more reliable can help you avoid the potential of more frequent part replacements in the future.
Consider: OEM parts.
You need a quick repair
If you need a repair performed immediately, you might need to consider availability more than anything else. Certain types of parts are more commonly kept in stock, but aftermarket options might be more readily available than OEM parts, depending on the auto shop’s inventory.
Consider: Aftermarket parts.
You want a guarantee that the part will work
Because manufacturers have different standards, not all parts will provide the same quality — and not all manufacturers offer a warranty for their parts. If the possibility of a newly-installed part failing within a year stresses you out, you’ll probably want to go with one that has a warranty in case it is faulty.
Consider: OEM parts.
Where to get parts
The options you’ll have for parts depend on the nature of the repairs and what type of shop you take your car to.
OEM parts are mostly easily available at dealership repair shops, while independent mechanics may be able to offer you a choice between OEM and aftermarket parts. Independent garages that specialize in your type of vehicle and auto body shops will likely be able to order both.
» MORE: How to handle a bad mechanic
If your repair is part of an insurance claim, the insurer might prefer aftermarket parts to save money. However, you have the option to pay the difference between the insurer’s preferred aftermarket part and the cost of an OEM part.
Depending on the job, the cost of OEM versus aftermarket parts varies. Whenever you’re given the choice, ask to see estimates for both so you can weigh your options.
» MORE: Should I sell my car or repair it?
FAQs
OEM vs. Aftermarket Parts: When One Makes More Sense for Your Car - NerdWallet? ›
Because they are made in the same way as genuine parts, OEM parts tend to be more reliable than aftermarket parts and last for longer. Warranty. OEM parts should come with a warranty to protect you if the part is defective or doesn't work properly. The specific warranty will differ by manufacturer.
Is a car worth more with aftermarket parts? ›No, they do not. Modifications do not add value to your car. Of course, nothing in life is quite that simple. But in general, aftermarket mods will not increase the resale value of your automobile in a private party transaction.
What are the disadvantages of OEM parts? ›Cons of OEM Parts
Cost: OEM parts can be more expensive than aftermarket parts. This is because they are produced by the original equipment manufacturer and may include a markup from the dealership. Availability: Some OEM parts may not be readily available, especially for older or less common vehicles.
Most people assume adding the various aftermarket features they want will increase their vehicle's value. Unfortunately, this is almost never true. In fact, aftermarket features often reduce car value.
Do aftermarket parts improve performance? ›Aftermarket performance parts will make a difference in handling, braking, or acceleration, depending on the part itself. One of the most popular car modifications is reducing the ride height. This alone will improve handling and cornering at higher speeds.
Do aftermarket parts last longer than OEM? ›Because they are made in the same way as genuine parts, OEM parts tend to be more reliable than aftermarket parts and last for longer. Warranty. OEM parts should come with a warranty to protect you if the part is defective or doesn't work properly.
Why are OEM parts better than aftermarket? ›OEM parts are guaranteed to fit and almost always come with a manufacturer-backed warranty. They may cost more than what the aftermarket offers, but the trade-off is a likely simpler purchase process. If you're looking for a fast, simple experience and don't mind paying extra, OEM is often the way to go.
What are the disadvantages of aftermarket? ›One of the main drawbacks of aftermarket parts is that the quality and durability may be inferior to OEM parts. While some aftermarket parts are designed and manufactured to meet or exceed OEM standards, others may be of lower quality and may not last as long as OEM parts.
What are the pros and cons of OEM? ›OEMs provide service that aligns with their warranty standards. An OEM also will have a track record of service that demonstrates your preference for their service. The drawbacks of OEM service are cost and inflexibility. Typically, OEM service is expensive because much of the risk mitigation is built into the price.
Why should you use OEM parts? ›Since they're made for your make and model specifically, they'll get your vehicle back to its original state. This makes OEM parts easier to install as well, with less room for error. If you want your car in its original condition, go with the part you know fits with your vehicle.
Do aftermarket parts affect insurance? ›
Insurance companies write estimates that include aftermarket parts for repairs because they can return a vehicle to pre-loss condition and usually cost less than OEM parts. This helps keep repair costs in check, resulting in lower premiums for all policyholders.
Do luxury cars use better parts? ›Luxury cars often use higher-quality interior materials and have features that aren't available on lower-priced models — engines, transmissions, sound systems, telematics, safety features — and are packed with more amenities.
Do aftermarket parts void factory warranty? ›While some dealers would have you think otherwise, simply having an aftermarket part or modifying your vehicle cannot void your warranty. However, if that part led to something breaking on the vehicle, the dealership can deny your warranty claim.
Can aftermarket be better than OEM? ›High-quality aftermarket parts are as good as OEM parts, or in some cases, can perform better. You really do get what you pay for, and the higher the cost, the better the build or materials. There are hundreds of manufacturers to choose from, so be sure to ask your mechanic about your options.
Are performance parts better than OEM? ›Performance exhaust pieces are designed for better flow and less back pressure than OEM parts, enabling the engine to make more power since it doesn't have to work hard to push the spent exhaust gases out of the system. If your catalytic converter fails, you need to replace it before it leads to more damage.
Is aftermarket better than stock? ›While they may look identical on the outside, the aftermarket version of a shaft is housing better performance and for most golfers, that's worth a slight increase in cost.
What is genuine vs OEM vs aftermarket? ›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 is the difference between genuine OEM and aftermarket? ›OEM stands for Original Equipment Manufacturer, which means the parts are made by the same company that makes the vehicle. Meanwhile, aftermarket parts are produced by a different parts company and are often designed to be compatible with as many makes and/or models as possible.
Are OEM parts refurbished? ›OEM, or Original Equipment Manufactured parts, are made by the vehicle's factory supplier and are completely new parts. This means you'll get great quality and a great fit for your car.
Is it worth it to buy OEM products? ›Is It Worth Paying for OEM Parts? OEM parts tend to be more expensive than third-party manufacturers, but they are also made to a more exacting set of specifications. However, some third-party products are considered just as reliable as OEM parts, and others may be significantly cheaper.
Are used OEM parts going to affect the worth of my car? ›
Aftermarket vs.
Some people think that by sticking only to OEM parts will increase the vehicle's value because the car is more or less original. But the truth is, using OEM parts unfortunately won't matter too much when it comes to value. Nor will using non-OEM parts void your vehicle warranty.
OEM parts are made by your vehicle's manufacturer and are designed and manufactured to exacting standards specifically for your Ford vehicle. As a result, they work better and fit better than aftermarket replacement parts.
How can you tell if an aftermarket is an OEM? ›The best way to tell the difference between an OEM part and aftermarket part is to go to an experienced auto body shop, where technicians will know what to look for. There are very reputable aftermarket manufacturers nowadays but, unfortunately, there are also counterfeit OEM parts.
Are aftermarket parts new or used? ›Aftermarket parts, also called generic parts, are made by a company other than your vehicle's original manufacturer. They're brand new replacement parts—not used parts. They're made by a third-party manufacturer, so they might not be a perfect fit the same way OEM parts are.
What is the disadvantage of manufacturer? ›- High Capital Investment Required. ...
- Difficulty In Communication. ...
- Lack Of Flexibility. ...
- High Risk. ...
- Poor Quality Control. ...
- Shortage Of Skilled And Unskilled Labor Force. ...
- Unstable Demand for Products. ...
- Increased Competition.
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 car parts so expensive? ›Because OEM parts are made by a specific manufacturer to align with a vehicle's exact specifications, they fit perfectly into that space. They are more expensive than aftermarket parts as a result.
What is the competitive advantage of OEM? ›OEM companies work directly with their customers. Because of this, they're better prepared to produce products that perform exactly as their customers need them to. This often leads to sturdier, longer-lasting parts than aftermarket manufacturers can provide.
Why is OEM cheaper than original? ›Products from an OEM are normally cheaper thanks to economies of scale. As the company partners with others to manufacture goods in large numbers, both the price and production time are significantly reduced. However, you need to verify what you're getting when you purchase a product from an OEM.
What is the difference between OEM and OE car parts? ›One of the biggest questions car owners have is: what is the difference between OEM and OE? 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.
Does Geico allow OEM parts? ›
Companies like Geico, State Farm, and Allstate don't offer auto insurance with OEM coverage, but that doesn't mean you're stuck with aftermarket parts. Instead, these companies allow customers to choose between aftermarket and OEM parts. If you choose OEM parts, you'll have to pay the difference.
Do car mods void insurance? ›If you modify your vehicle to improve its performance or enhance its appearance, you'll typically need a coverage endorsement or a separate, custom car insurance policy. The reason is simple: modified cars usually feature expensive parts and often require special attention at the shop.
Are tires considered aftermarket parts? ›“Aftermarket” includes vehicle parts, equipment, replacement tires, service repair, collision repair and accessories, sold after the sale of the original vehicle.
What happens if you put regular in a luxury car? ›Gasoline with a high octane rating is more difficult to ignite, which helps prevent pre-ignition and knocking in high performance engines. If your car requires premium gas, you can damage the engine if you consistently fill up with regular.
What brand is considered a luxury car? ›We call brands such as Mercedes-Benz, BMW, Cadillac, Lexus, Audi, and Acura “luxury” brands.
What are 5 common acts that void your vehicle's warranty? ›- Off-Road Driving.
- Racing or Reckless Driving.
- Overloading.
- Natural Disasters (flooding, fire, earthquake, etc.)
- Poor Car Maintenance.
- Using Improper Fluids.
- Some Aftermarket Parts or Modifications (see above)
- Wheels. Wheels are always a safe bet! ...
- Brakes. Brakes are another one of those systems that are pretty independent. ...
- Sway Bars. Sway bars are another suspension component that does not affect any drivetrain or powertrain warranties. ...
- Short Shifter. ...
- Exterior Mods.
- Alloy Wheels. ...
- Electrical Modifications. ...
- Engine Remap. ...
- Exhaust. ...
- Audio.
OEM Bearings Usually Last Longer Than Aftermarket Bearings
OEM bearings come with the right dimensions, materials, and tolerances. Aftermarket bearings rarely come with the right dimensions, materials, and tolerances. OEM bearings are usually stronger than aftermarket bearings.
An OEM windshield replacement will get the exact same level of safety, fit and finish as the vehicle's original windshield. Aftermarket auto glass meets or exceeds the minimum safety standards set by the Department of Transportation. However, they may not be up to OEM standards.
Are non OEM parts safe? ›
Safety is another reason why aftermarket parts are not always a good choice. Aftermarket parts do not have to pass the same crash tests or corrosion protection tests that OEM parts do. So if you want your passengers to be safe, and your vehicle to remain looking nice for years to come, always try to use OEM parts.
Which is the best OEM? ›- Volkswagen. Volkswagen was founded in 1937 and is headquartered in Wolfsburg, Germany. ...
- Toyota. Toyota is a Japanese automotive manufacturer headquartered in Toyota City, Aichi. ...
- Mercedes-Benz. ...
- Ford. ...
- General Motors (GM) ...
- BMW. ...
- Honda. ...
- SAIC Motor.
Every piece of the car as it exits the factory is an original part. Anything that is replaced, including a tail light, is no longer an original part. However, OEM parts are the same as the original in the sense that they are made by the same manufacturer, with the same materials, to the same specifications.
What does OEM exhaust mean? ›OEM stands for original equipment manufacturer. The original manufacturer of the auto parts sold at Penske Chevrolet of Cerritos is GM. Aftermarket auto parts are parts made by third party companies based on OEM part designs. Which is better?
Do aftermarket parts reduce trade value? ›Additionally, some modifications may void the vehicle's original warranty. It is likely that any customizations will actually reduce a vehicle's trade-in value because the dealer will choose to return the vehicle to its original stock condition before offering it for sale again.
How long does the aftermarket last? ›The 3 Stock Trading Sessions
The regular market trades from 9:30 a.m. to 4 p.m. ET. The after-hours market trades from 4 p.m. to 8 p.m. ET.
One of the biggest advantages of aftermarket parts is their lower cost compared to OEM parts. These parts are often less expensive and can help you save money on repairs or upgrades. Additionally, aftermarket parts are widely available and offer a greater variety of options than OEM parts.
What is the difference between genuine and aftermarket parts? ›A genuine part is a part supplied by the vehicle manufacturer in their packaging. Aftermarket parts are parts produced by any other company. Often they are reverse engineered to be a very close to the original specification. Many options are available which can vary wildly in price and quality.
Are OEM brakes better than aftermarket? ›A: OEM stands for “original equipment manufacturer,” so OEM brake pads are the same as those that came with the vehicle. The friction material on the brake pads may be organic, semi-metallic or ceramic. Brand-name aftermarket pads are just as good — and sometimes better — than OEM. Don't waste money.
Why use OEM parts? ›Since they're made for your make and model specifically, they'll get your vehicle back to its original state. This makes OEM parts easier to install as well, with less room for error. If you want your car in its original condition, go with the part you know fits with your vehicle.
Do aftermarket parts void warranty? ›
While some dealers would have you think otherwise, simply having an aftermarket part or modifying your vehicle cannot void your warranty. However, if that part led to something breaking on the vehicle, the dealership can deny your warranty claim.
What is the purpose of the automotive aftermarket? ›The automotive aftermarket provides motorists with a choice over how to repair, maintain and service their vehicles. The automotive aftermarket is broadly split into two segments; dealer networks and independent, non-dealer repairers.
What is an aftermarket good? ›Accordingly, the "aftermarket goods" mainly include products and services for replacement parts, upgrade, maintenance and enhancement of the use of its original equipment.
What is the difference between stock and aftermarket car parts? ›OEM stands for Original Equipment Manufacturer, which means the parts are made by the same company that makes the vehicle. Meanwhile, aftermarket parts are produced by a different parts company and are often designed to be compatible with as many makes and/or models as possible.
Is genuine better than OEM? ›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 the difference between OE and OEM? ›One of the biggest questions car owners have is: what is the difference between OEM and OE? 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.