‘Warranties’ or ‘Guarantees’ When Buying Used Machinery

When buying used machinery from a reputable dealer of equipment there a few terms of the sale regarding the ‘Warranties’ or ‘Guarantees’, that are worth discussing.  You want to make certain that the dealer is clear with you and you fully understand each other’s expectations in regard to this aspect of the sale/purchase.  Essentially you are defining who is responsible for what cost and expenses should there be a problem.  Below are the most common ways in which we see machinery sold:

1.  “Sold as is, Where is” – this implies that the machine tool is sold on site with no guarantees or warranties.  In this instance it is always best to confirm as much about the machine tool as possible as ALL the risk regarding condition and operation of the machine are on the buyer.
2. “Sold with a Startup Guarantee” – the machine is being represented to work and function properly when it is set into place at the buyer’s facility.  The selling dealer is stating that if there is a problem with the machine he will take care of having it fixed properly.  I would recommend language that states machine is represented to be ‘fully functional and operational”.
3.  “Sold with a Return Privilege” – buyer can send the machine back if it is found to be mechanically unsatisfactory.  In this instance the machine needs to have a problem in order to have a dealer take it back; they will not take a machine back because the job went away or you found a better deal on a similar machine.
4.  “Sold with a 30 Day MDNA Repair/Return Guarantee” – this is available when buying from an MDNA dealer.  This was created by the MDNA in order to give a buyer some recourse should they feel a machine they bought was misrepresented.  With this particular guarantee, if a machine is found to be unsatisfactory (not working as promised) the selling dealer can repair it or take it back and give the buyer a full refund of his purchase price.  One caveat is that before the money is refunded, the buyer has to ship the machine tool back to the seller.

Some points to remember in purchasing used equipment are:

               

• Know who you are dealing with; the guarantee is only as good as the company or individual behind it.  If you are buying something from someone you have not dealt with before ask about them from someone you have.  A good and trustworthy machine tool dealer will be happy to help you even when you are not making a purchase from them.
• Be as clear as possible in your expectations of the transaction and make sure you understand the seller’s as well.  Get as much of that in writing (either via email or on the invoice) as possible. 

Good luck and if we can assist you with clarification on any of the above please do not hesitate to contact us.