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Features

Watch out, there’s fraud about
Buying used machinery can make good economic sense but, Mike Steele, chairman of the British Used Printing Machinery Suppliers Association, warns of scammers operating in the industry and provides tips on how to make sure you get what you’re paying for.

Buying used has never seemed easier. There are websites galore of both UK and overseas dealers, there are specialist auctions and auction sites, plus of course, media advertisements. Dealers regularly make direct contact with end-users and the major exhibitions will have a used machinery dealer area. UPEX (the used machinery specialist show) had some 100 dealers at the last Ipex and recently had space in shows in Dubai and India. The forthcoming Drupa 2008 will have its largest ever area of international used machinery dealers.

But wherever you look to buy it is always as well to remember the old adage ‘caveat emptor’ - ‘let the buyer beware’. There are good savings to be made by purchasing pre-owned equipment and provided care is taken it should be no more of a risk than buying new machinery. But that ‘too good to be true’ bargain is probably just that. Particularly at the moment there are a lot of machines being offered by fraudulent dealers based abroad but claiming to be UK based.

These fraudsters contact buyers usually by email, or sometimes advertise on one of the free to advertise machinery websites. They allege that they own a machine, offer it for an apparently bargain price and then ask for a ‘refundable’ deposit to hold the machine. Needless to say, it doesn’t exist. The machine’s description has often been cloned from a reputable dealer’s website or advertisement and any deposit paid will disappear as fast as the alleged dealer.

The BUPMSA has been co-operating with the Fraud Squad to help to stamp out this scam. Details of what to do if you suspect you are being offered a non-existent machine can be found on the BUPMSA website home page (www.bupmsa.org.uk)

Also be aware that there are no international, or for that matter national, industry standards when it comes to the description of a machine’s condition. It is therefore vital that you fully understand the seller’s interpretation of commonly used industry terms. Take the following examples:

- Site-to-site – when a machine is sold ‘as seen’. The seller merely transports the machine and re-assembles at the new location. Any extra work involved to improve the machine would be chargeable.

- Cleaned and painted – is just that. The machine would be taken to the seller’s plant and subjected to a variety of cleaning methods to remove old ink, surplus grease and anti set-off spray. It would then be repainted, usually in the original manufacturer’s colours.

There are then a variety of terms to describe a machine that has been worked on; re-conditioned, refurbished, remanufactured to imply a degree of re-engineering and replacement of worn or damaged parts. It is important that you fully understand what has been checked or replaced on a machine, and just what is guaranteed; parts, parts and labour, and for what period.

With the used machinery market becoming ever more international it is not uncommon for machines to be sourced from abroad. Even from within the EU, great care has to be taken to ensure that they conform to UK Health & Safety rules. For example, guillotines that are legal in Germany have to be extensively modified to be legal within the UK. Reputable dealers understand the legislation involved and are able to carry out the necessary work.

Guarantees were mentioned earlier. Most dealers will offer various levels of warranty with a used machine. Put simply, the better the guarantee, the higher the machine’s price. It is well worth thinking seriously about the level of back-up you really need. Saying that, it’s also worth considering being independently insured to further minimise any risk.

Hints and tips on buying used

  • Establish exactly what equipment you need before speaking with dealers/sellers. Some basic specifications if not an exact model is the ideal.
  • If you don’t know the seller, talk to someone who does. The dealer should be happy to provide a list of previous customers and they are the best to judge whether he/she fulfils promises. When buying from a member of the BUPMSA you know that the dealer has signed up to a code of ethics, that the machine will be accurately described and there will be a written contract.
  • Establish that the seller has title to the machine that you are buying. It is essential to check whether a bank or finance company has an interest in the machine.
  • Understand exactly what you are buying, and what the purchase price includes. If it is being imported, who is responsible for any duty payable for example?
  • Does the machine comply with UK Health & Safety legislation?
  • Be sure to get everything in writing, and understand the terms and conditions, especially regarding guarantees.
  • Probably the best way to see a used machine is in production at the present owners site. Next best is on site but not running. In any event, it is vital that the machine is running and producing satisfactory work before full final payment is made.

Getting it right
Commenting on the benefits of buying reconditioned machinery, Michael Donnelly, print officer at Allerdale Borough Council in Cumbria (which recently invested in a reconditioned Duplo DC10 collator with an inline Kasfold bookletmaker and trimming unit bought from Total Print Finishing Services) says: “As an organisation directly answerable to the public and spending public money, we must ensure we balance our requirements for new machinery with the need to keep the expenditure tightly in line with budgets.

“The Duplo and Kasfold machines are the latest in a succession of reconditioned machines purchased by the council over the years. We have always been generally happy with the performance and longevity of all our reconditioned machinery – in fact, we are still using a saddlestitcher that was built in 1965.

Donnelly adds: “One piece of advice I would give is to make sure you deal with a reputable supplier. While you can still get many years’ service out of a reconditioned machine, they are secondhand, so you must ensure the reconditioning process has been undertaken by someone with specialist knowledge of the sector.

This is a view echoed by Chris Hobbs, media creation manager at Tandridge District Council, Surrey which recently bought a reconditioned Eurofold 235 suction folder with cross-fold unit (also from TPFS). “When we decided to look for this type of kit we did consider a range of machines right across the spectrum, from the latest technology to a selection of reconditioned machines. Usually we buy new due to servicing agreements and guarantees generally offered with new equipment, however, on this occasion, the new machines we looked at exceeded our budget.

“There may be a perception that if you buy reconditioned you just end up with a machine and no additional support. However, good suppliers will still provide you with most of the service and support benefits associated with a new machine. For example, we were still able to part-exchange our old machine, we have a guarantee, and Total’s engineers came and installed the machine and trained the staff.

“My advice to anyone buying used kit is to be very clear on your criteria before you start investigating options. Then, spend time exploring the market - new and used - to see how all machines compare. There really is nothing wrong with buying reconditioned equipment as long as it is from a supplier you can trust with the right level of services to support your purchase.”

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