Hi, this is Eddie with Powertrain products. I want to talk today about core charges, how they work, and do you have to pay them. Basically a core charge is something that’s used in the industry to insure that we get our old product back. We sell you a re-manufactured engine and we’re a recycler, we need the old product back so that we can re-machine it and sell it to someone else, because of that there’s a core charge to insure that gets done.
One thing that sets us apart from the industry is that we do not require you to pay the core charge up front. We trust all of our customers and we let you float that core for thirty days, so in the event that… Let’s say that your engine cost one thousand dollars and has a three hundred and fifty dollar core charge, the invoice that you get charged would say thirteen hundred and fifty dollars, but we would only collect a thousand dollars from you at the time of sale. There would stay a three hundred fifty dollar charge on your account, basically as long as you call us within thirty days to have that returned, there’s no additional charge billed to you. That simply gets credited on your account and you owe us nothing.
Now let’s talk about shipping. Do we cover the shipping to return the core? The simple answer is yes. When you’re purchasing your engine, there’ll be a shipping charge placed on your invoice. You’ll be advised of what that is up front, and that includes ground trip shipping, so that would include all the services involved in us getting your engine back. Whether it’s a lift gate delivery, residential delivery, whatever it is, whatever services are provided when we deliver it to you will be handled coming back also. We cover the scheduling of this, we will contact you to send over the paperwork, and it simply needs to be made available at the repair shop or at your home, whenever the truck driver comes to pick it up.
Now let’s talk about damage. People often ask, “Well, my engine threw a rod, is there going to be a charge for that? Uh, the engine’s cracked, is there going to be a charge for that?” With damage it’s pretty simple, if the engine spins three hundred and sixty degrees, doesn’t have any visible holes or signs of damage, then you get full credit. If you do believe that there’s damage that may result in a charge back, like it threw a rod, it blew a hole out the side of the block, or it’s cracked or something, it’s best to talk with your salesman at the time of sale. Sometimes we can advise you exactly what the credit or the charge back would be off of it upfront, sometimes it’s best for us to see it first, but in most cases we can give you an idea of what you’re looking at, and as long as we get it back and there’s usable parts in it, we can generally get you at least half of your core credit back.