Domestic Used Car Parts, Why Are They Harder to Find? (Export Boom and Supply Cliff)

have you recently taken your car to the shop for repairs only to hear the embarrassing response, "We don't have the parts"? It's a common occurrence, and it's becoming increasingly common to have your repair delayed by days or even weeks because you can't find thedomestic used carparts youneedfor your car .

there is ashortage of domestic used car parts in the domestic repair market. this is because all the parts that should be available in the domestic market are being shipped overseas, and the junkyards that used to supply them are drying up. Today, we're going to take a look at what's going on, the underlying causes, and some smart alternatives.

1. why are my car parts going to Central Asia?

the biggest culprit in this parts shortage is the explosion ofused car exports.

demand explosion: 75% surge in 'K-cars'

the popularity of 'Korean-made used cars' overseas is unimaginable. as the perception of their durability and well-maintained condition spreads, demand has exploded, especially in Central Asia and the Middle East.

in fact, according to Korea Customs Service statistics, exports of used passenger cars in the third quarter of this year were valued at around $1.52 billion (approximately KRW 2.2 trillion), a surge of more than 75% from the same period last year.

the magic of lower tariffs: 'parts' instead of 'complete cars'

as used car exports rise, so does the demand for exporting used car parts for local repair. older cars require more frequent parts replacement, and locals overwhelmingly prefer cheap and compatibleKorean-made used carparts to expensive new parts.

there's a crucial reason for this: tariffs. if you export a complete car, you pay a high tariff of 8-40%, but if you export it as 'parts', you only pay a tariff of about 8%. for the exporter, it is much more profitable to dismantle the car domestically and sell it for parts than to sell it as a complete car.

especially after the Russian-Ukrainian war, the blockage of new car exports to Russia has led to a rise in diversionary exports via the "Central Asian used car market" in Kazakhstan, Uzbekistan, and elsewhere, fueling demand for parts.

2. the supply cliff: why junkyards are emptying out

while demand is exploding, the only sourceof domestic used car parts- the junkyard - is drying up.

the butterfly effect of recession and rising new car prices

the number of vehicles scrapped in Korea is falling sharply every year. from 970,000 vehicles in 2019, the number of scrapped vehicles dropped to about 790,000 last year.

the cause is clear. the slowing economy and the unimaginable rise in new car prices have made consumers hesitant to replace their vehicles, and have encouraged them to keep their old ones for another year or two.

the tendency to hold onto internal combustion engines longer due to the "chasm" phenomenon of high prices, scarce charging infrastructure, and dwindling subsidies even when they do make the jump to electric vehicles has also contributed to the "scrappage fleet decline.

the transformation of junkyards: becoming 'parts dismantlers'

as a result of this situation, junkyards have also changed their survival strategy. Whereas in the past, their main source of income was to compress cars and collect 'scrap metal', they have now transformed into 'parts dismantlers'.

in addition to the 600,000 to 1.5 million won they receive for scrapping the car, they make an additional 200,000 to 700,000 won per car by separating and selling major parts such as engines, tires, wheels, and bumpers, which are popular with overseas exporters.

the problem is that these "cheap" parts go directly to the exporters, who charge higher prices, rather than to the domestic repair market. domestic used car partsfor domestic consumers disappear before they even reach the market.

3. dangerous shadows and consumer double-dipping

this imbalance of supply and demand is fostering a dangerous 'shadow market'.

the shadow of 'assembled' illegal used car exports

'Illegal used car exports' targeting high parts prices are on the rise. Exporting whole 'cannonballs' or stolen vehicles with different registered owners and actual drivers is a high risk of detection.

so they cut the vehicle into front, middle, and rear sections and disguise them as chunks of parts called "assemblies" and send them in containers. this is a clear crime, different from legitimatescrap car parts export , and further disrupts the domestic parts market.

to make matters worse, domestic consumers are faced with a "double whammy": when they look for new parts (after-sales parts) because there areno domestic used car parts, they are told "no new parts".

this is because automakers prioritize limited parts for the 'new car production line' rather than the after-sales service market. while the new car shortage has recently eased, the repair parts shortage remains, leading to the laughable situation where it can take months to replace a single bumper.

4. smart alternatives for fixing your car

so, is the only answer to sitting on your hands and waiting for expensive repairs? We offer two smart alternatives.

there's a difference between "used parts" and "remanufactured parts. remanufactured parts are used parts that have been salvaged, disassembled, cleaned, reassembled, and inspected to restore like-new performance.

they cost 30 to 60 percent less than new and come with a warranty of six months to a year from the manufacturer or certifier. under the Motor Vehicle Administration Act, mechanics are required to inform consumers of their options: new, used, or remanufactured. don't be afraid to ask your mechanic for "remanufactured parts.

you can also utilize online used parts platforms like G-Parts to access inventoryfromjunkyards and salvage yards across the country.

5. domestic Used Car Parts Shortage, Frequently Asked Questions (FAQ)

Q: Why is it so hard to find parts for domestic cars these days?

A: It's a combination of two main reasons: First, thepopularityof K-midsize cars has led to a 75% surge inused carexports, which is eating up domestic parts. Second, the recession and high new carprices have led to a decline in the numberof scrapped vehicles , which has reduced the source of parts.

Q: Are 'remanufactured parts' different from 'used parts' and can I trust them?

A: They are different. While "used parts" are simply parts that have been removed from a junked vehicle, "remanufactured parts" have undergone a rigorous process to restore them to like-new condition and have been tested for performance. some are government certified and even come with like-new warranties, making them a safe and affordable alternative.

Q: What is the illegal export of 'assemblies'?

A: It is an illegal practice, such as "exporting cannonball parts. since it is difficult to export a stolen vehicle or cannonball as a whole, the body is cut into three parts - front, middle, and rear - and disguised as 'parts'.

conclusion and one-line summary

the shortage of domestic used car parts is a structural problem caused by a huge demand (global export boom) and a supply cliff (domestic scrapping).

if you're stuck fixing your car, it's time for consumers to proactively seek out smart alternatives like "remanufactured parts" first.

have you ever been stuck for parts for your car? Share your experiences or helpful tips in the comments. for more car saving tips and industry news, hit the subscribe button today!