Better transmission core charge policy for “due on receipt” wholesale buyers
Traditionally, auto-part dealers charge a “core fee” for valuable replacement parts, such as batteries, alternators, and, of course, transmissions. These charges help ensure that parts stay within the remanufacturing ecosystem and out of the landfill. However, the fee can burden auto repair shops and their customers. That’s why ACE Transmission is now waiving those fees for many of our buyers.
By Chelsie Gott
Table of Contents
Understanding different buyer categories
ACE offers high-quality remanufactured transmissions to commercial clients in three main categories:
- Large distribution centers: These regional warehouses buy our units and sell them to auto repair shops.
- Charge account buyers: These repair shops received approval to order units through our in-house credit system and pay off their balance once a month.
- Due-on-receipt buyers: These shops pay for each unit upfront before it ships.
Why the new policy?
Under the old policy, a due-on-receipt buyer paid for the reman unit, the core charge, and shipping costs upfront. We listened as some clients reported how the policy caused concerns:
- Some transmission core charges are quite expensive. In rare circumstances, the core charge can be higher than the cost of the reman unit.
- Some shops covered the core charge on behalf of the customer, adding extra overhead that might take weeks to recoup.
- Other shops passed the core charge onto their customers, creating friction in the sales process.
How the new policy can help your shop
The new policy allows a due-on-receipt buyer to defer the transmission core charge and return the core within 120 days. If you’re a due-on-receipt buyer, this will immediately benefit your shop in these exciting ways:
- It lowers your costs when ordering remanufactured transmissions.
- It simplifies your accounting, eliminating the need for core deposits and refunds.
- It eliminates core charges for your customers, making the sales process smoother and faster. It also eliminates the need to refund a core charge to your customers later.
- It could give you an advantage over shops that don’t use ACE as a vendor.
Our reusable shipping totes are so easy to use
Another way we make buying reman units easier is by using premium reusable shipping totes. Units that ship directly from our factory come to your shop in these really nice, hard plastic clam shells. This helps your shop in several ways:
- Your reman unit is kept safe inside the tote, using the same type of brackets that hold a transmission into the vehicle.
- You don’t have to tear apart a wooden crate to see your unit. You can open and reclose the tote as needed.
- You won’t fill up your dumpster with scrap wood.
- You don’t have to build a new crate to return the core.
- The valuable core will be kept safe during return shipping, helping ensure you won’t have to pay for additional damages.
When the core arrives at our reman facility, our team will inspect it for excessive damage or missing parts. If the core is badly damaged or unusable, we will contact you. An unusable core could result in an extra charge.
What’s included in a transmission core return?
- The old transmission
- The torque converter
- Protective brackets or converter brackets
What if the transmission core isn’t returned?
We need each and every core returned to our transmission remanufacturing facility right away. Once it arrives, we begin the painstaking process of turning it into a high-quality reman unit. That way, the next time you order a reman unit, it will be ready to ship out the same day!
Since maintaining a constant flow of inbound cores is critical to our reman clients, we incentivize shops and distributors to return each unit in a timely manner.
We offer each client a generous 120-day core return window. That gives you plenty of time to install the reman unit, run all the necessary diagnostic tests, get your customer back on the road, and then place the core in the tote for shipping to our facility.
We’ll send you a reminder to return the core. If you still haven’t done so within 120 days, we’ll send you an invoice to inform you that the warranty on the reman unit has been suspended until the core charge is paid. Once that invoice is paid, the warranty will be reinstated.
We’re working for you
Thank you for your ongoing partnership and trust. We are making these policy improvements to demonstrate our commitment to your business’s growth and success.
As always, do not hesitate to reach out with any questions or suggestions. Your success is ours. Together, we’re pushing the industry forward.
Merry Christmas!
