Why auto parts store charge a core charge

A core charge is a deposit to give you an incentive to return the old part

A core charge is a deposit

When you buy a rebuilt part, the auto parts store charges you a core charge. It’s simply a deposit. When you return the broken/worn out part, you get the deposit back. The auto part store then returns the broken/worn part to the rebuilder so it can be rebuilt.

Core charges encouraging recycling

Core charges encourage customers to return their old, used parts for recycling or remanufacturing. Recycling old automotive components is environmentally responsible, as it reduces the need for raw materials and minimizes waste.

Charging a deposit ensures the rebuilder will continue to have a supply of parts

Core charges help ensure a steady supply of reusable parts for remanufacturing. Without a core charge, customers might be less inclined to return their old parts, making it difficult for auto parts stores to maintain an inventory of remanufactured items.

The core must be in good condition in order to be rebuilt

When you return a core to the auto parts store, it must be the same part that came in the box. It must be in rebuildable condition. It you’re returning an engine, for example, it can’t have a cracked block, since that would not be rebuildable.

The returned core must have all the parts attached and be in rebuildable condition.

Some rebuilt parts don’t require a core charge

Rebuilder often purchase their first inventory of rebuildable parts from a junk yard. After the initial inventory, they rely of returned cores for rebuilding. However, after a model have been on the market for many years, there’s such a huge supply of rebuilder parts in local junk yards that the rebuilder many find it cheaper to buy inventory from the junk yard instead of having parts stores return cores.

Returning cores to the rebuilder is a costly process

Returning cores is costly to the auto parts store. Each store in an auto parts chain must separate the cores by rebuilder and return the cores to their local warehouse. From there, the auto parts store must ship the cores back to each rebuilder; alternators to the alternator rebuilder, brake calipers to the caliper rebuilder, steering racks to the rack rebuilder, etc. So there’s local transportation from the store to the warehouse and from the warehouse to each rebuilder. The auto parts store doesn’t make any money on the core charge, so all those expenses have to come from the sale price of the rebuilt part.

©, 2023 Rick Muscoplat