Core "charge".
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Senior User
Joined: May 2013
Posts: 188
Likes: 1
From: Montana
Core "charge".
So my colleagues and I were just discussing this practice since I just bought that power steering control valve. So the part itself was like 365, with a core charge of 200 dollars. But I checked other places and of course it all varied, some the part was only 200, but a core "charge" or deposit of 500, some more some less. So what is the story here. I pay a price for the part. But I have to front an amount of money just to get that part somehow in agreement that I am going to GIVE them my old metal that I own to get MY money back. Plus I have to pay shipping on that heavy part. Buy packaging, etc.
I guess I don't understand this practice. So then they can do what? Re-build my part that I gave them for free and re-sell it in a different market? Or re-cycle it and get that metal money? I must be missing something here. Seems fishy.
I guess I don't understand this practice. So then they can do what? Re-build my part that I gave them for free and re-sell it in a different market? Or re-cycle it and get that metal money? I must be missing something here. Seems fishy.
Elder User
Joined: Jan 2014
Posts: 898
Likes: 3
From: Chillicothe, IA
Core charges are common place for re-manufactured parts. The old part is used to supply the base of the re-manufacture process. This is very important for our trucks and other considering most of these things aren't made unless they fit a bazillion other things.
Posting Guru
Joined: Aug 2010
Posts: 1,761
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From: Knoxville, TN
Yeah, core charges are standard for any rebuilt auto parts. If you don't have one to return, you can just pay the combined price; if you have one to turn in, they'll refund that portion of it. Think of it as the whole thing costing the combined price + core, but they'll take a trade-in. That's the only way they can get enough cores to rebuild and sustain the business. It's the same deal if you go to an auto parts store and get an alternator, starter, steering gear, etc.
Senior User
Joined: Jan 2015
Posts: 348
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From: Vidalia onion,GA
I understand the process. New engine cost $1600 plus the old engine or plus another ~$400, your choice.
But if my engine is worth 400 to them or my battery worth $10. Why can't I sell them used parts for that price? Just a thought
But if my engine is worth 400 to them or my battery worth $10. Why can't I sell them used parts for that price? Just a thought
Hotshot
Joined: Apr 2009
Posts: 14,333
Likes: 247
From: Stanley, VA
Core charges are varied and usually depend on the laws of supply and demand.
In the case of your steering control valve, they haven't been available new for years. The used ones get rebuilt and sold, then years later they get rebuilt and sold again. Each time it goes through the rebuild cycle, more and more are too worn to be rebuildable so the available core supply gets less and less. If the part still has a decent sales volume, the rebuilder wants to be damn sure they get a rebuildable core in exchange for the rebuilt unit they just sold, hence the high core charge.
You think car parts have some high core charges, check the core charge for a Lycoming or Continental aircraft engine, or worse, a Pratt & Whitney PT-6.
As a rule of thumb, the scarcer the part, the higher the core charge.
In the case of your steering control valve, they haven't been available new for years. The used ones get rebuilt and sold, then years later they get rebuilt and sold again. Each time it goes through the rebuild cycle, more and more are too worn to be rebuildable so the available core supply gets less and less. If the part still has a decent sales volume, the rebuilder wants to be damn sure they get a rebuildable core in exchange for the rebuilt unit they just sold, hence the high core charge.
You think car parts have some high core charges, check the core charge for a Lycoming or Continental aircraft engine, or worse, a Pratt & Whitney PT-6.
As a rule of thumb, the scarcer the part, the higher the core charge.
Hotshot
Joined: Feb 2004
Posts: 10,808
Likes: 2,604
From: The Shenandoah Valley
Yeah, like say when Red Head sold me a remanufactured steering box with their upgrades for $326 plus a $90 core charge .... I pay them $326 for their labor and parts and expertise and I pay them $90 just for the raw core they used ..... then they buy back my old one by refunding that core charge if I send it back so they can do another and have on hand for you.
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Save the old ones
Joined: Dec 2002
Posts: 666
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From: Boyne Mich
In Michigan, at least, the real SCAM on cores is the sales tax scam by our own State government. You go to the auto parts store and purchase a part that has a core charge. You pay tax on the part and the core. Then when you return your core and get your money back, you do not get the tax on the core back. At 6% sales tax and a $200 core your going to be out $12. Doesnt seem like a lot , but it doesn't seem right either. Bastrds!!
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Joined: Nov 2010
Posts: 682
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From: NB, Canada
In Michigan, at least, the real SCAM on cores is the sales tax scam by our own State government. You go to the auto parts store and purchase a part that has a core charge. You pay tax on the part and the core. Then when you return your core and get your money back, you do not get the tax on the core back. At 6% sales tax and a $200 core your going to be out $12. Doesnt seem like a lot , but it doesn't seem right either. Bastrds!!
Hotshot
Joined: Feb 2004
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From: The Shenandoah Valley
Mountain Pass
Joined: Sep 2008
Posts: 191
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USPS lost my core last week!
Well technically I sent original gearbox to Redhead last Monday for a custom rebuild. I kinda wanted the original parts back on my pickup. Even asked them not to paint it red/black. Anyways I called Redhead yesterday and they have not seen it. Tracking number says it will be delivered by 3-20-15 (last Friday). Called local post office who launched an "internal investigation". If anyone has a '78 f-250 4x4 show up on their doorstep by mistake it's mine!
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