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How do I know if it's a legit dealer ?

dandjp

Aluminum
Joined
Feb 10, 2007
Location
michigan
I want to buy a piece of equipment in the 30 thousand range from a dealer. How do I know it is not a scam? I have no reason to doubt this dealer but don't want to send that kind of money and not get the machine.
This may sound silly to you but I have been scamed before and really don't know how to protect myself from it happening again.
The dealer is Dynamic Machine Resources in California. They sound legit and very knowlegeble and helpful.
Thanks
 
I think the MDNA has a code of ethics....something to your benefit regarding money back within 30 days.

...however that might get a little spendy you being in Michigan and they in CA. You might hedge your bets by flying there (couple hundred for plane ticket, couple thousand for trucking and rigging and many thousands to purchase) and testing the machine under power (another thing a legit dealer will give absolutely no trouble with).
 
FWIW, they advertise in MMS, click here.

And Production Machining, click here.

Also, ask for three or four references, preferably near your location. Most companies are happy to provide names & contact info of satisfied customers.

-------------------
Barry Milton
 
"I think the MDNA has a code of ethics....something to your benefit regarding money back within 30 days."

LOL...ever try to collect on that promise?


"...however that might get a little spendy you being in Michigan and they in CA. You might hedge your bets by flying there (couple hundred for plane ticket, couple thousand for trucking and rigging and many thousands to purchase) and testing the machine under power (another thing a legit dealer will give absolutely no trouble with). "

EXCELLENT ADVICE.

TMT
 
Quote: "I think the MDNA has a code of ethics....something to your benefit regarding money back within 30 days."

LOL...ever try to collect on that promise?"

Actually, I did. and was fairly impressed with the action and results.

A customer of mine was looking for a Porter or Oliver facer. His requirements were that it be the smaller, and somewhat uncommon 24" wide version (most are 30" or 36" wide). Price was not the biggest factor. We put out an RFQ on several machinery dealer FAX lists (this was back when Fax machines were just starting to become common, forget about the net). It was an MDNA dealer with a fairly good rep, several states away. Over several days of negotiations the salesperson told a very good story, everything was as required.

I am always leery of somewhat complex machines like that in used condition and proposed flying out to look at it before cutting any checks. Offered to do it merely for meals and fuel. (will fly for food :D ) But my customer said he trusted the salesperson, it was the size machine he needed, and the price was under market but fair.

The customer made the arrangements, had a crane ready, and offloaded the machine before calling me to come set it up. Upon inspection, it turned out to be a junk machine that had been wrecked. It was not a 24" machine, but a 30" machine that had the fence moved in and restrictor plates to limit it to 24" wide capacity, due to severe table damage from the feed works dragging on it, shortened knives in a damaged cylinder, and an incomplete and wrecked feed works.

The story is long and convoluted, but apparently there are (or were) sales persons who make a business of showing up at a dealers, and offering to move their old, slow moving, or non-normal machines for a good commission, sometimes 50- 50 split. The dealer gives them an office, they set up shop & burn up the phone & FAX lines to sell everything they can that the dealer has not been able, or not got around to making time, to sell off. It can work for both. However, the salesperson has no downside to what he sells, he's gone in a month or 2. Of course, the dealer is somewhat complicit in the arrangement, he does not necessarily need to know the details of how his "distressed" inventory is being rapidly moved out of the shop and perfectly good checks are coming in.

In this case, I had full documentation of our questions, qualifiers, and their representations. The check had been made to the dealer not the salesperson, and i we had good documentation & pricing of the issues with the machine. The dealer was "helpful) but still reluctant over a couple weeks to make any settlement. Finally I let him know that the only reason we had accepted the machine as represented, was because they were a listed MDNA member who used that fact in their advertising, and that it was time to take it to the next step (their arbitration) if he could not come to terms with my customer.

The dealer was on the line with my customer the next day, they agreed to a price based on my estimated repairs costs rather than returning the machine (my reccommendation was to return the machine), and a check was in the customers hands within a week. It did give me a lot of respect for the power of the MDNA name.

But the best situation is to do due diligence, and not have to get into the situation of needing to use it. Just regular detailing and documentation to make it effective is a very tedious time consuming enterprise.

smt

[ 05-12-2007, 09:02 AM: Message edited by: stephen thomas ]
 
Quote: "I think the MDNA has a code of ethics....something to your benefit regarding money back within 30 days."

LOL...ever try to collect on that promise?"

Actually, I did. and was fairly impressed with the action and results.
Pay TMT no mind...he's just making his usual negative assumptions based on zero facts and experience, hoping to create the illusion he knows something.
 
"LOL...ever try to collect on that promise?"

Yes, I did, and otherwise wouldn't have posted ;)

The name of the dealer escapes me but its in Cincinnati, I bought an ebay universal table horizontal mill called the "Sturdimill". I had a project in mind and needed something that worked. I had paid them and was calling to make pickup arrangements.

To their credit, they disclosed over the phone and after the fact that the table feed was more or less a pile of parts and nobody knew if there was enough parts to make it a runner. I, needing a machine that worked and not another project, asked politely if I could have my money back if I paid their ebay listing fees since the issues weren't originally disclosed and they said absolutely and sent me a check for the full purchase amount within 2 days.

They of course had me in a position where the answer could have been, you should have asked these questions before bidding, especially as I had nearly zero leverage in negotiations with full payment in their hands and sitting ~7 hrs drive away.
 
Sniping at old TMT seems to becoming a habit Milacron...having a bad day?

I am aware of a number of deals gone bad where the MDNA code of "ethics" were of no help.

Knowing this, I felt a warning that the MDNA label is not a golden guarantee was warranted.

For many people, their ethics end where their wallets begin.

TMT
 
Yup, pay with a credit card! If you feel you've been swindled, you can contest the charges. It looks like a hell of a pain, and I have never gone fully through the process, but I have begun the process and had the seller change his tune mighty quick. Also, you get all them miles!

Just can't pay the credit card bill until you are sure you've got what you wanted... once you pay the bill, you're on you own again.

B
 
I am aware of a number of deals gone bad where the MDNA code of "ethics" were of no help.
Fellow members have made traceable references to "deals gone good" via MDNA returns and I can reference a couple if called upon, so why don't you reference the "deals gone bad" that you are "aware" of for us to examine.

I actually am aware of one MDNA deal gone bad and am curious if it's the same one you know about since it was plastered all over the web a few years ago. But overall the vast majority of MDNA disputes are resolved in favor of the customer.
 
MDNA dealers are not walmart, in other words the buyer still has to understand the deal and what he is buying. It does not give you a free ticket to change your mind or to expect a new machine when a used one is being sold. In my expereince MDNA dealers carefully guard their reputation. I was not MDNA but still followed their guide lines. Of course those guide lines do not apply when selling something as is.
 
surplus, right..plus one must consider the customer is supposed to pay shipping both ways. That fact alone is enough to tell someone to investigate the machine and their use for it pretty seriously before taking the plunge, since even if the dealer will take it back you will have just blown quite a bit of money.

Re the "paying with credit card" idea...pretty silly really considering even if you have a 30K + limit on your credit card, the dealer is highly unlikely to take a credit card for a purchase that large due to the percentage the CC company charges the dealer (this in the unlikely even they even take CC in the first place)
 
I recently had a ebay sale where I sold two of what I thought were identical units, but the second did not have a tag [short version] the buyer called and said the first was as described but the second was something else adn sent me a pic explaining that, I saw immediatly that I made a mistake and sent him a refund for half the purchase, no problem.
A few years ago I sold a guy a like new magazine bar feeder, he inspected it carefully and purchased it [15,000 bucks] he called a few weeks later saying it did not work with his so and so turning center and he wanted his money back, sorry! he huffed and puffed and his lawyer sent nasty letters but that was his mistake, not mine. Ironically I know he could had made it work and a few years later he sold out to a customer of mine who sold it back to me, I sold it again to someone who used it on the same turning center the original purchaser had.
 
Thanks fort the replys. This is a new machine I'm looking at. The last time i fell for somthing I didn't check it out real close. A lot of people got caught in this scam. One of the people caught in this scam did however do a lot of researce however, including airfare ,inspections , along with several other things. It made me feel stuiped for not checking it out closer but realise this guy did, and still got taken. So I could go look at this machine, and yes it's there and what I want. I write out the check go home and the machine never shows? I don't keep that high a limit on my credit card. They don't have any machines in MI as I have already asked to look at used machines in the area.
 
Your money could be held in escrow pending delivery of the machine. That way they know they'll get their money as soon as you get the machine, so its not like a COD shipment which can always be subject to "changed my mind". Possibly Don or John have been involved in escrowed deals in the past and could tell you more about how it works and what the cost might be.

Personally, I'd say its much more likely to purchase a misrepresented used machine than it would be to have a dealer take your money with no intention of delivering the machine. Misrepresentation could result in a civil court case where there's a lot of wiggle room for deciding what was actually disclosed. OTOH, taking payment across state lines with no intent to deliver would constitute interstate fraud, which is a felony that brings the FBI knocking on one's door. One of the most prevalent characteristics of people who intentionally engage in fraud is a lack of any fixed location of operation. Another trait is offering deals that look too good to be true, in an attempt to generate impulse sales "before the deal gets away". I really doubt you'd run into a problem like that in dealing with a company whose location is fixed and well publicized via ads in the trade magazines.
 
Dynamic has been in business at least a few years - I had inquired about 3 years ago. they are a group of SNK/Prodigy ex-pats. Don't think they have a distributor org - deal directly. Service could be an issue; they contract service out to "local" companies. At least they did a few years ago. President of the company is Brad Haugen - nice guy.
 








 
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