Engine Series: Highlight — Economic Considerations For Everyday Vehicles -

Engine Series: Highlight — Economic Considerations For Everyday Vehicles

Over the past decade, the average life of a vehicle has grown to nearly 10 years.

With the downturn in the economy, some industry experts believe that there will be an increase in the engine installation market as drivers try to hold onto their vehicles longer.

Over the past decade, the average life of a vehicle has grown to nearly 10 years. Median age of passenger cars in operation remained at 9.2 years in 2007, tying a record high in 2006, according to the vehicle population report released this year by R. L. Polk & Co.

The median age for trucks increased 5.8 percent to 7.3 years in 2007. Although registrations were down, the median age for light trucks in 2007 increased by 4.4 percent to 7.1 years, according to Polk’s findings.

New carmakers have seen a decline in new car purchases with the tightening economy, and some have even ended or plan to end their lease options.

As a future technician, you will need to educate yourself on discussing service options with potential customers when an engine fails. The question becomes, what is the best choice for that driver? Should they purchase a new car or a newer used (pre-owned) vehicle, invest in a salvaged (junkyard) engine, have the engine rebuilt or purchase a remanufactured engine.

The good news is that as more owners decide to hold onto their vehicle longer, it provides more opportunities for service and repair technicians in the automotive aftermarket who provide engine installation services. The following are some considerations to discuss with a vehicle owner with a failing engine in a tight economy:
 
New vehicles:
• Lose $2,000 – $3,000 in value right out of the showroom
• In the first two years, wholesale value depreciates by 35-50%
• In three years, an average new car loses 54% of the original purchase value
• New vehicles carry higher tax, licensing and insurance costs

Used (pre-own) vehicle:
• Lose $1,000 – $1,200 in value when they leave the lot
• May have a minimal warranty, if any
• May have hidden problems requiring expensive repairs

Junkyard or salvaged parts:
 • May have high miles and a poor maintenance history – a
     failure waiting to happen
• May have come from a vehicle that was involved in an
     accident and might have unseen damage

Overhauling:
• Overhauls generally replace only severely defective parts
• The quality of the overhaul varies widely
• Often come with only minimal warranty

Remanufactured product:
• Adds worry-free years to the life of your vehicle
• Saves money over the purchase of a new or another used
      vehicle
• Can add to eventual resale value of your vehicle
• Should be accompanied with a national transferable warranty
     for parts and labor

Source: Jasper Engines & Transmissions

You May Also Like

Standard Motor Products Introduces 200 New Numbers

The release provides new coverage in 60 distinct product categories and 75 part numbers for 2023 and 2024 model-year vehicles.

Standard Motor Products, Inc. (SMP) announced it released 200 new part numbers in its May new number announcement. This most recent release provides new coverage in 60 distinct product categories and 75 part numbers for 2023 and 2024 model-year vehicles, according to SMP.

As vehicle technology evolves, Advanced Driver Assistance Systems (ADAS) become more complex to keep vehicle occupants safe. New releases include 18 new Park Assist Cameras, adding coverage for more than 9 million import and domestic vehicles, as well as Park Assist Sensors for Ford, Kia and Nissan vehicles. Seven ABS Speed Sensors have been added covering many popular vehicles, including 2019 Chevrolet and GMC 1500 trucks, the 2024-20 Cadillac CT4 and the 2023-19 Nissan Titan XD. Electronic Parking Brake Actuators are new for the 2023-19 RAM 1500 and Ford vehicles like the 2021-20 Escape and 2023-21 Mustang Mach-E. Accelerator Pedal Sensors are newly released for the 2023-22 Hyundai Tucson and 2023 Kia Sportage.

CRP Industries Announces New VP of Finance

Luis Vargas will provide CRP with financial leadership, planning and analysis.

ASE Spring Testing is Underway

Those who register by June 30 will have 90 days to schedule an appointment to take their selected ASE tests.

Advance Auto Parts Celebrates ‘National Road Trip Day’

Advance’s “Check Your Battery, Not Your Bag” campaign offers free gift cards for road trip essentials and curbside services, beginning National Road Trip Day – Friday, May 24.

Lumileds to Sell Lamps/Accessories Business to First Brands

Lumileds’ automotive lamps factories in China, Germany and Poland are included in the acquisition.

Other Posts
Hunter Engineering Releases New Alignment Coverage

The semi-annual specification update includes new and existing records.

FCS Introduces 42 New Numbers in May

Complete strut assemblies, shock absorbers, shock absorber assembly kits and suspension struts for popular VIO applications are included.

NHTSA Issues New Standard for Automatic Emergency Braking

The rule makes AEB standard on all passenger cars and light trucks weighing up to 10,000 lbs. by September 2029.

MEYLE Expands Electronics, Sensor Product Portfolio

The focus is on assistance systems and engine and transmission management, with more than 300 new part numbers.