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ORLY - O'Reilly Auto Parts


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I don't see a thread for them.

 

Today I heard a radio ad that said something about them helping folks for free with the "check engine light" issue. Have they always been doing this and does it lead to a significant amount of sales? Does this type of thing differentiate them from Amazon in a meaningful way?

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I don't see a thread for them.

 

Today I heard a radio ad that said something about them helping folks for free with the "check engine light" issue. Have they always been doing this and does it lead to a significant amount of sales? Does this type of thing differentiate them from Amazon in a meaningful way?

 

They are not the only autoparts store who does this.  Whenever my check engine light comes on I pull into an Autozone or O'reilly's to get it read for free.

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Probably not much new here that hasn't been said in other auto parts retailer's threads, but oh well.

 

O'Reilley's stores have several free services that distinguish them from a Walmart or any online retailer.  They are: engine code diagnostics, battery testing, alternator testing, installing wiper blades, installing a battery, and used oil recycling.  The check engine light diagnostic service is a no-brainer.  Sometimes the problem is as simple as a bad seal on a gas cap, so the customer will buy a replacement while they are at the store.  Probably the only reason I go to O'Reilley's is the used oil recycling service.  It makes it worthwhile for me.

 

Also, these stores are typically located in more rural areas.  They're not stupid.  They're not going to open a store in New York City where nobody owns a car, much less knows how to change their own oil.  The additional advantage of targeting rural areas is there is threat of self-driving cars is decades off.  A farmer doesn't care about renting a self-driving electric car when he needs drive through his cow pasture to load cattle.  The majority of the U.S population may live in cities, but the majority of ORLY's customers live in rural areas.

 

Walmart and RockAuto have been around for a long time in the auto parts space.  Walmart is not worth the hassle, but I've had very good experiences with RockAuto.  However, for the people interested in DIY but need some advice or hand-holding, auto parts retailers like ORLY offer a staff that can typically handle basic questions.  However, I've noticed the store by me has had a lot of turnover in the past few years, and the staff is relatively young.  I haven't been overly impressed with their experience or knowledge lately.

 

With all of that said, I haven't spent a lot of time with the valuation.  I think the autoparts retailers were overbought because they were viewed as being "Amazon proof".  Now they have sold off heavily because of the opposite fears.  Someday electric vehicles and self-driving technology will obsolete the auto parts retail model, but I think that is at least 20 years away.

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A farmer doesn't care about renting a self-driving electric car when he needs drive through his cow pasture to load cattle.  The majority of the U.S population may live in cities, but the majority of ORLY's customers live in rural areas.

True, some changes with electric cars might be further out than we think.

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Be careful not to confuse price with quality.  O'Reilly's sells many OEM parts for almost all makes and models.  Just because a replacement wheel on a Tesla costs $2,000 doesn't mean its better quality than the alternative.

 

They typically carry parts in a low, middle, and upper grade categories.  I usually buy the higher grade parts when it makes a difference, and I've been pleased with the quality.  Just one anecdotal data point.

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Also keep in mind that the likes of O'Reilly and Autozone ten to sell lower quality/cheaper parts. Anyone even thinking of buying a Tesla is not part of their market.

 

That sounds true for the most part but there are exceptions. I'm thinking about getting a Tesla at some point but I'm not ready to part with my Lexus 450 hybrid. I've purchased a cabin air filter and replacement wiper blades for it from AutoZone.

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Keep in mind the majority of Orly customers are professional mechanics not diy which is the reason Orly has been viewed as supper or to azo. With Orly you have pros spending other people's money who are not as price sensitive and orly's relationship with garages makes them even less susceptible to amzn losses.

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Keep in mind the majority of Orly customers are professional mechanics not diy which is the reason Orly has been viewed as supper or to azo. With Orly you have pros spending other people's money who are not as price sensitive and orly's relationship with garages makes them even less susceptible to amzn losses.

 

GPC has a high level of DIFM & the NAPA brand is well known.

Has more owner / operators which ups the level of knowledge & service.

 

I also like their Motion Industries division...

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