When purchasing an exchange part, there some key factors that you need to be aware of during the transaction. Here are a few tips.
First decide what condition you will accept, such as overhauled, serviceable, new surplus or as removed. When you can start looking for your unit, you need to ask these questions so you can make an informed decision:
Who tagged the unit?
What is the tag date?
Is there a warranty? If so, what are the terms?
What is the core value?
Is there a repair cap or allowance?
What is the average repair cost and/or average overhaul cost and bill back history?
If it is a life-limited part, how much time is left on the unit?
Also be ready to provide the squawk on the unit, serial number, time and/or cycles on the unit if applicable, and the basic aircraft information, tail number, times and cycles. If this is for an engine or APU, you will need to provide the same information.
The factory exchange is typically the most expensive, but it comes with warranty and limited exposure to bill back. If you have a failure while under warranty, the manufacturer usually provides a warranty exchange to get your aircraft back in service.
An exchange from a third party will usually be a better value up front, but may not have a warranty exchange available if your unit fails. In addition, your exposure to bill backs is greater.
A good method is to set up a basic matrix with vendor down the left and the factor across the top. Try and get as much information filled in each column so you can make the best decision based on your needs.
“Factory new” comes new from OEM a factory warranty. “New surplus” is new equipment without factory warranty. The units can still be purchased with a warranty from the seller but not from the factory.
“Overhauled” is equipment that has been returned to factory new specifications. If the unit was overhauled from the OEM, it should come with factory warranty. Aftermarket shops can OH units as well. In these cases, the warranty will be covered by them for a usual span of six months to one year. Warranty from the OEM typically means if you have a failure, they will provide you with a warranty exchange. Some aftermarket shops may provide a warranty exchange or they may require you to send the unit in for repair and not have a replacement available.
“Serviceable equipment” has been found to be functioning but was not returned to factory new specifications. These units carry multiple statuses on the 8130-3. Examples are repaired, modified, inspected and functional tested.
“As removed” units will not have a 8130-3. They were typically removed from aircraft during upgrades and teardown of aircraft. They may be functioning properly but require sending to a repair shop or OEM for testing and a 8130-3 for the unit.
Repair cap/repair allowance is used on flat rate exchanges. The vendor will usually cover a repair on your core up to a certain amount. If your repair exceeds this amount, then they will bill you the difference (bill back) up to outright price, plus any declined evaluation fees on the core. When getting pricing for an exchange, some shops will offer you a very low exchange price but will end up sending you a bill for the repair. If you find out the average repair cost and the exchange price is 20-25 percent above the average repair, you will have less exposure to a bill backs.
There is also cost plus exchanges. This is a flat fee for the exchange and when your core is repaired you will be billed the repair cost.