Recyclers are increasingly seen as offering significant advantages for mechanical service centres as well as collision shops.
As we head further into spring, and attention turns to vehicle maintenance and repairs, auto recyclers are today, well positioned to offer reliable and affordable solutions when it comes to replacement parts. A good example are engines and transmissions. There have been studies done in Australia and the UK that show that around 83% of consumers are willing to use parts sourced from recyclers due to the often prohibitive costs in sourcing new components.
Going the extra mile
When it comes to big ticket items like engines and transmissions, top tier recyclers are going the extra mile to ensure they are supplying high quality parts, and backing them up with both good parts and labour warranties. In some cases, a good condition, low mileage engine or transmission sourced from a recycler can cost a third the price of a new one, so the savings are significant, particularly during times of economic uncertainty.
The reality is, that here in Canada and elsewhere, consumer budgets are being squeezed, so any benefits we can provide in terms of cost savings, can go a long way.
As these words are written, we have been working on a RFP for a social media company to help us create messaging around the uptake on recycled parts, the benefits and cost savings they provide in addition to the environmental benefits.
GHG benefits
On the environmental and Green House Gas (GHG) side, our studies at OARA have revealed the costs and effects in manufacturing new parts versus using recycled ones, and today, with the conflict in the Middle East and oil prices rising, the cost of transportation is increasing across the supply chain. This presents another opportunity for auto recyclers to leverage their advantage in being local and having a wide range of quality parts available for significantly less than sourcing new ones, as well as providing a much reduced carbon footprint.
Combine that with the fact that the vehicle fleet continues to age and that consumers are keeping their cars longer—a 60-70% saving on a repair bill for a consumer goes along way in keeping their vehicle on the road and helping them over the longer term.
Processes and practices
Another aspect to competing successfully on the replacement parts side also comes down processes and business practices. In previous columns, we’ve discussed revamping the Gold Seal standard on the collision side, but at ARC and OARA we are also working on implementing best practices on the mechanical parts side as well.
Some of these include having solid information when it comes to condition and mileage of items like engines and transmissions, as well as good photos and descriptions and having the right tools and equipment, including scan tools, so each facility that obtains these parts knows what they’re selling.
A good example are engines that cannot be turned backwards, and providing warning labels and lockout devices to prevent that from happening and causing unnecessary damage to these engines. Another example is also placing warning labels on transmissions that indicate whether the unit has been drained of fluid or not, since a lot of transmissions no longer come with dipsticks to check the fluid level. These are just some of the efforts that our top tier recycler members within ARC and OARA are doing so they can ensure their customers get the best parts at the most competitive prices.
Greater communication
We’re also seeing greater communication between our association and others on the mechanical/service side, as there are opportunities for both our sectors to work more closely together. Ultimately, our goal, both on the collision and the mechanical side is to provide comfort and assurance that the parts that shops receive from a Gold Seal certified auto recycling facility will meet their requirements and consistently ensure a successful repair and a happy customer.
Our industry has been around for over 100 years and being well-established gives us unique insights. We understand what it takes to an acquire a customer and to keep them, and we have, and will continue to stand behind the products we sell. We will also continue to seek out partnerships and focus on initiatives that spread awareness around what professional auto recyclers do and the growing benefits they provide to both the automotive service sector and the wider circular economy.
Article originally appeared in Autosphere Magazine May 2026.