Record Alternative Parts Usage Signals a Shift in Collision Repair

The collision repair industry is seeing a notable change in how replacement parts are sourced and used.

LKQ Corporation’s North American business returned to positive organic growth during the second quarter of 2026, marking its first growth in nine quarters. The recovery was supported by record alternative parts utilization of more than 40%, along with improving repairable claim volumes. Autobody News

While the figures reflect one company’s performance, they also point to broader changes affecting repair facilities, insurers, suppliers and automotive technology providers.

Alternative Parts Move Further Into the Mainstream

Alternative parts can include aftermarket, recycled, remanufactured and reconditioned components used in place of new OEM parts. Their growing use reflects the industry’s continued focus on controlling repair costs, improving parts availability and managing increasingly complex claims.

LKQ reported that alternative parts represented more than 40% of its North American aftermarket collision business, exceeding the record established during the previous quarter. North American parts and services organic revenue increased by 0.5%.

The results suggest that alternative parts are becoming an increasingly important part of the collision repair supply chain, particularly as insurers and repair networks look for ways to balance repair quality with economic pressures.

Repairable Claims Are Showing Signs of Improvement

Collision repair demand has faced pressure from declining claim frequency and elevated total-loss rates. During the second quarter, however, LKQ estimated that the decline in repairable claims had narrowed to between 1% and 3%.

Several factors may be contributing to this shift, including moderating insurance premiums and stronger used-vehicle values. When vehicle values rise, damaged vehicles may be more likely to remain economically repairable instead of being declared total losses.

This does not necessarily indicate a full return to previous claim volumes, but it suggests that market conditions may be beginning to stabilize.

Greater Parts Choice Creates Greater Data Demands

Increased alternative parts usage introduces more options into the repair process. It can also create additional complexity.

Repairers must identify the correct component, confirm availability, evaluate quality and fit, account for reconditioning requirements and document why a particular part was selected. Insurers and repair networks need reliable information to compare costs, monitor performance and understand how parts decisions affect repair outcomes.

This makes accurate, connected data essential. Poorly structured information can lead to incorrect orders, supplements, repair delays and added rental costs. When systems communicate effectively, organizations can make faster decisions and evaluate the true cost of a part rather than focusing only on its initial price.

MSOs Are Helping Drive Adoption

Multi-shop operators are often among the largest users of alternative parts. Their purchasing volume, standardized workflows and technology integrations can make it easier to incorporate multiple parts categories across a large repair network.

LKQ has continued developing ordering integrations intended to simplify procurement and increase ordering speed. These connections demonstrate how technology is becoming central to parts selection and supply-chain performance.

As alternative parts usage grows, repair organizations will need systems that provide clear information across estimating, procurement, inventory, claims and repair planning.

Quality and Safety Must Remain Central

Cost and availability are important, but they cannot be the only considerations.

Repair facilities remain responsible for confirming that every component is appropriate for the vehicle and repair procedure. Fit, function, material, condition and compatibility with safety systems must all be considered. Modern vehicles may also require scanning, diagnostics or calibration after certain parts are replaced.

Strong documentation and quality-control processes help shops demonstrate that parts decisions support both an efficient repair and a safe outcome.

What This Means for the Industry

The record use of alternative parts reflects an industry adapting to cost pressures, supply-chain demands and changing claim volumes. It also reinforces the need for better visibility across the repair ecosystem.

For collision repair organizations, insurers and automotive technology providers, the priorities are becoming clear:

• Connect estimating, ordering and repair information across systems.

• Improve the accuracy and consistency of parts data.

• Evaluate total repair impact, not simply the listed component price.

• Document parts decisions and quality checks.

• Monitor how parts choices affect cycle time, supplements and customer outcomes.

At CCi, we see this shift as another example of why trusted automotive data infrastructure matters. As repair decisions become more complex, organizations need information that is accurate, accessible and connected throughout the claims and repair process.

Alternative parts may help control costs and improve availability, but data will determine how effectively the industry can use them.