Saving Money by Ordering Car Parts from Amazon or eBay

Here is a personal economical anecdote from this week. A medium-sized dead branch fell from a tall tree and ripped off the driver side mirror on my old Honda. My local repair shop said it would cost around $600 to replace it. That is a significant percentage of what the old clunker is worth. Ouch.

They kindly noted that most of that cost would was ordering a replacement mirror assembly from Honda, which would cost over $400 and take several days to arrive.  I asked if I could try to get a mirror from a junkyard, to save money. The repair guy said they would be willing to install a part I brought in, but suggested eBay or Amazon instead.

Back 20 years ago, before online commerce was so established, my local repair shop would routinely save us money by getting used parts from some sort of junkyard network.
So, I started looking into that route. First, junkyards are not junkyards anymore, they are “salvage yards.” Second, it turns out that to remove a side mirror from a Honda is not a simple matter. You have to remove the inside whole plastic door panel to get at the mirror mounting screws, and removing that panel has some complications. Also, I could not find a clear online resource for locating parts at regional salvage yards. It looks like you have to drive to a salvage yard, and perhaps have them search some sort of database to find a comparable vehicle somewhere that might have the part you want.


All this seemed like a lot of hassle, so I went to eBay, and found a promising looking new replacement part there for about $56, including shipping. It would take about a week to get here (probably being direct shipped from China). On Amazon, I found essentially the same part for about $63, that would get here the next day. For the small difference and price, I went the Amazon route, partly for the no hassle returns if the part turned out to be defective and partly because I get 5% back on my Amazon credit card there.
I just got the car back from the repair shop with the replacement mirror, and it works fine. The total cost, with labor was about $230, which is much better than the original $600+ estimate.


I’m not sure how broadly to generalize this experience. Some further observations:

( 1 ) For a really critical car part, I’d have to consider carefully if the Chinese knock-off would perform appreciably worse than some name-brand part – -although, I believe many repair shops often use parts that are not strictly original parts.

( 2 ) Commonly replaced parts like oil and air filters are typically cheaper to buy on-line than from your local Auto Zone or other local merchant. I like supporting local shops, so sometimes I eat the few extra $$ and shopping time, and buy from bricks and mortar.

( 3 ) Some repair shops make significant money on their markup on parts, and so they might not be happy about you bringing in your own parts. They also might decline to warrant the operation of that part. And many big box franchise repair shops may simply refuse to install customer-supplied parts.

( 4 ) For a newish car, still under warranty, the manufacturer warranty might be affected by using non-original parts.

( 5 ) Back to junk/salvage yards: there are some car parts, so-called hard parts, that are expected to last the life of the car. Things like the mounting brackets for engine parts. Typically, no spares of these are manufactured. So, if one of those parts gets dinged up in an accident, your only option may be used parts taken from a junker.

Amazon Credit Card Rewards

I have a credit card that gives me rewards. I get a nice 5% cash-back on purchases from Amazon and a lower cash-back rate on other purchases. Sometimes, there are promotions that provide a rate of 10% or even 15%. But what are these rewards worth?

To simplify, there are two reward options:

Option 1 adds to my Amazon gift-card balance. It’s attractive. When I’m checking out at Amazon, it shows me my reward balance and it also shows me what the total cost of my purchase could be if I applied the gift card. It’s like they’re trying to pressure me to redeem my rewards in this particular way.

Option 2 is simply to transfer my rewards as a payment on my credit card or as a credit to my bank account (for the current purposes, they’re identical). Either way, the rewards translate to the same number of dollars.

Say that I spend $1,000 at Amazon. Whether I choose option 1 or 2 has value implications.

Option 1

The calculation is simple. If I spend $1,000 at amazon this month, then I can spend another $50 in gift card credits at Amazon next month. That’s the end. There are no more relevant cashflows. I used my credit card one month, and then was rewarded the next month. The only detail worth adding is the time value of money, which at 7% per year*, yields a present value of rewards at $49.72. Option 1 is nice in the moment. It’s so enticing to have a lower Amazon check-out balance due.

But you should never select Option 1.

Option 2

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