How exchange works
Exchange combines two movements that must be kept distinct in the agreement: the outward movement of a finished rebuilt unit to the buyer, and the return movement of a used core from the buyer. The finished unit is a unit that has passed the full documented sequence and a full-load dyno inspection, with its test data and quality inspection record retained. The core is a used unit whose condition is unknown until it is inspected on arrival. Because the two movements involve units in different conditions, at different times, and often in different shipments, the agreement should state each movement separately: what finished unit is supplied, what core is expected in return, when each movement occurs, and what happens if the core fails inspection or arrives late. An exchange agreement that states only the finished unit, or only the core, leaves the other half to be disputed later.
The core side of the exchange
The core supplied in exchange is inspected on arrival for housing cracks, structural damage, and severe internal faults. Cores that pass enter full teardown, where parts are classified, registered, and numbered, and core parts are screened, with failed parts scrapped. The buyer should confirm the core acceptance criteria before shipping, because a core that fails inspection cannot be treated as if it had passed. The buyer should also confirm the model codes and quantities of the cores to be returned, the packing for the return shipment, and the destination and timing of the return. Where the exchange involves several cores, each core's model code should be listed, so that a question about one core does not hold up the whole exchange. Please confirm the core acceptance criteria and the core return terms before shipping a core.
The finished unit side of the exchange
The finished unit supplied in exchange should be confirmed on the same points as any rebuilt unit: the transmission model code, the scope of work for that model, the full process sequence, the 100% dyno inspection, the test and inspection record for the unit, the warranty terms, and the packing. The finished unit is checked against model code, appearance, and sealing before packing, and packed in an export fumigated solid wooden crate with shock and moisture protection. The buyer should check the finished unit on delivery in the same way as any rebuilt unit: model code, appearance, sealing, and record, keeping the packing until the check is complete. Exchange does not change the delivery check, and a buyer should not skip it because the arrangement is described as an exchange rather than a purchase.
Timing and commercial terms
Exchange timing should be agreed explicitly: whether the finished unit is supplied before, after, or at the same time as the core return, and what applies if either movement is delayed. Commercial terms should also be agreed explicitly: the minimum order quantity and the lead time, the warranty terms, the packing, the trade terms, and the payment terms, together with any terms that apply specifically to the core side, such as handling of a failed core. This site does not publish exchange figures, and a buyer should confirm all commercial terms for the exchange in writing before the first movement takes place. An exchange that begins on a general understanding and settles its terms afterwards is the most common source of exchange disputes.
Confirm before you exchange
- Please confirm the finished unit model code, the scope, and the test coverage in writing.
- Please confirm the core model codes, quantities, acceptance criteria, and return terms in writing.
- Please confirm the timing of each movement and what applies if a movement is delayed.
- Please confirm the minimum order quantity and the lead time before placing an order.
- Please confirm the warranty terms, the packing, the trade terms, and the payment terms before payment.
Questions buyers ask
Must the core match the finished unit model?
That depends on the agreement. Please confirm in writing which core model codes are accepted for a given finished unit, rather than assuming a match.
What if my core fails inspection?
Please confirm in writing how a failed core is handled before shipping, including any charge, credit, or replacement arrangement that applies.
Can exchange be combined with a wholesale order?
Yes, provided each model, each quantity, and each movement is listed separately in the agreement. Do not combine exchange and wholesale quantities into a single undifferentiated figure.
Related pages
Transmission core explains the core service. Transmission core return gives the return process in detail. Rebuilt transmission describes the finished unit.