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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