Core charges are commonplace in the diesel engine industry, but surprisingly, many customers don’t know what they are. If you’re one of our many curious customers, we’ve compiled this handy guide on core charges. We recommend that anyone planning on buying replacement parts check it out!
And why do I have to pay it?
A Core Charge is a Ransom for Your Old Parts
What is a core charge? A core charge is a fee you pay when buying a replacement part. The core fee is temporary; your charge disappears when you send back the old part. For example, if you buy a turbocharger for $1,000 with a $400 core charge, you pay $1,400 upfront. Once your new turbo shows up, you take it out of its box, place your old turbo inside the box, and send it back to the manufacturer. Once the box returns to the manufacturer, you’ll be credited back the $400 core charge, making your net payment $1,000. It’s a monetary incentive to get your old part.
We Want Your Old Dirty Junk Parts
Why would manufacturers want a broken turbo or any other broken part? These broken parts are the only way companies can make remanufactured parts.
A product’s core charge is not random: the fee covers what it would cost for them to buy a broken part like yours. By charging you, manufacturers can remanufacture another part and sell it again. They’re getting you to replenish their stock. Through this process, manufacturers get refurbished parts they can offer, and you get a cheaper alternative to buying brand new.
Core Charges Do Not Make Remanufactured Parts More Expensive.
A core charge doesn’t make remanufactured parts more expensive than buying new ones. At least it shouldn’t. When you see a core charge applied, you may get sticker shock. However, it’s important to remember that it’s only temporary. If your core is accepted, the charge is credited back to you.
The only way you wouldn’t get the core charge back was if you returned a core in an unacceptable condition. Even if you don’t get a refund, the combined cost of a refurbished part and its core charge are usually cheaper than buying one brand new.
You might be able to keep yourself from losing out on a core charge refund. Check the manufacturer’s core return policy. Some manufacturers will be pickier than others. We took a look at different manufacturer policies. One cylinder head manufacturer has a 100% core return acceptance policy, meaning they’ll accept any used cylinder head you send back, as long as it’s the same part you bought.
But not every manufacturer has that policy. We also source from a fuel injector manufacturer that only accepts cores with three main components in good condition.
If you’re installing a cylinder head in your diesel engine, be sure to read our cylinder head installation tips!
Unsure if your old parts will make a good core? Talk to our ASE Certified Technicians!
It’s Good to Be Picky
Not getting your core charge back can be frustrating, but manufacturers should be picky over which cores they accept. Businesses that sell remanufactured parts need quality parts to rebuild from.
The fuel injector manufacturer whose policy we researched requires the injector tip to be in good condition. Tips are incredibly precise and can’t be/shouldn’t be remanufactured. If manufacturers are less picky over what they accept, they risk compromising the integrity of the parts they sell. The part you’re buying from them will be of lower quality.
In the market for a camshaft and wondering if your old one will be accepted as a core? Check out our guide, How Do I Know if My Camshaft is a Good Core? to learn more!
New Parts Can Have Core Charges Too
New parts can have core charges too –it’s rare, but possible. Turbochargers on Cummins ISX engines include a core fee, regardless if they’re new or rebuilt. This charge lets them offer remanufactured versions of the product. After all, remanufactured parts would never be sold if core parts were never returned for new ones.Still have questions about core charges or your upcoming diesel engine repair? Our ASE Certified Techs are here for you! Give us a call at 844-215-3406. You can also request a quote online!
FAQs About Core Charges
Q: What is a core charge?
A: When buying remanufactured parts (also known as reman parts), you pay for the original core, plus the new parts and the time that went into making the old part “like new.” You can often “sell” your old and/or damaged parts back to the remanufacturer for a set fee. That set fee is called a core charge. It’s a way to make a little money back on the part you removed from your vehicle.
Q: Why didn’t I get more money for my core?
A: You are replacing the part for a reason. Whether it’s old and needs to be reworked or maybe it’s damaged or completely shot. It’s basically the housing of the part you selling to a remanufacturing company. All of the components inside or that make up the working parts get thrown away. They have to spend a lot of time and money reworking that “housing” to clean it up and replace all old, worn, and damaged parts with new parts. Then, they have to test it for proper tolerances to make sure that the part meets or exceeds the OEM specs. This all goes into the remanufactured resell price. At the end of the day, you often get a better-than-new part for less money.
Q: What are some of the diesel engine parts that commonly come with core charges?
A: There can be any number of diesel parts that come with core charges, but some of the most common parts are diesel fuel injectors, cylinder heads, and turbochargers.
