Parts-Only Warranty Explained — What It Really Means for Roll Forming Machine Buyers

One of the most misunderstood warranty structures in the roll forming industry is the “Parts-Only Warranty.”

One of the most misunderstood warranty structures in the roll forming industry is the “Parts-Only Warranty.”

It sounds reassuring.

“12-month parts warranty included.”

But what does that actually mean in practice?

For buyers — especially those purchasing from overseas manufacturers — a parts-only warranty can expose them to:

• High labour costs

• Travel expenses

• Downtime losses

• Freight charges

• Installation risk

• Diagnosis disputes

This page explains:

• What a parts-only warranty actually covers

• What it excludes

• Why overseas suppliers often use it

• When it becomes a problem

• How to structure better protection

If you are buying internationally, understanding this clause is critical.

What Is a Parts-Only Warranty?

A parts-only warranty typically means:

The manufacturer will supply replacement defective components — but will not cover labour, travel, shipping, or downtime.

In simple terms:

• The part is free.

• Everything else is your responsibility.

This is very different from a “full warranty” or “comprehensive warranty.”

What Is Usually Covered Under Parts-Only Warranty?

Typically covered:

• Defective bearings

• Gearbox components

• Servo drives (if manufacturing fault)

• PLC modules

• Hydraulic pumps

• Motors

• Electrical components

But only the replacement component itself — not the cost of replacing it.

What Is NOT Covered?

Common exclusions include:

• Technician labour

• Travel expenses

• Freight charges for replacement parts

• Emergency call-out

• Downtime loss

• Installation costs

• Crane or lifting equipment

• Production loss

For overseas machines, this can become extremely expensive.

Why Overseas Manufacturers Prefer Parts-Only Warranty

There are several reasons:

1. Cost Control

International travel for warranty repairs is expensive.

By limiting coverage to parts only, the supplier avoids:

• Visa arrangements

• Flight costs

• Accommodation

• International insurance

• Local technician coordination

2. Limited Local Presence

Many overseas suppliers have:

• No local technicians

• No service network

• No spare parts warehouse

Parts-only warranty shifts service responsibility to buyer.

3. Risk Limitation

If labour and travel are excluded, supplier exposure is capped at the cost of parts.

This significantly reduces financial risk.

Real-World Example of Parts-Only Warranty Impact

Scenario:

A structural roll forming machine gearbox fails within 8 months.

Warranty states: “12-month parts warranty.”

Supplier agrees to supply new gearbox — free of charge.

But buyer must pay for:

• International freight

• Customs clearance

• Crane rental

• Technician labour

• 3–5 days of downtime

Total cost to buyer may exceed $15,000–$25,000 — even though gearbox itself is “free.”

This surprises many buyers.

Hidden Risks of Parts-Only Warranty

1. Diagnosis Disputes

Supplier may request:

• Photos

• Video evidence

• Technical reports

• Serial numbers

• Return of defective part

If supplier claims misuse or installation error, part may not be approved for replacement.

2. Freight Delays

Replacement part from overseas may take:

• 7–14 days production

• 7–10 days shipping

• Customs clearance time

Downtime cost can exceed part value.

3. Installation Risk

If buyer installs replacement incorrectly:

• Further damage may occur

• Warranty may be voided

Without factory technician, installation responsibility shifts fully to buyer.

4. Secondary Damage Not Covered

If failed component damages:

• Shaft

• Frame

• Tooling

• Electrical cabinet

Only the defective original part may be covered — not collateral damage.

When Parts-Only Warranty Is Acceptable

Parts-only warranty may be reasonable when:

• Machine is simple

• Buyer has experienced in-house maintenance team

• Local technicians available

• Spare parts stocked locally

• Machine downtime cost manageable

For complex high-speed punching lines, parts-only warranty may be risky.

How to Negotiate Better Protection

Before signing contract, consider:

1. Labour-Included Warranty Clause

Negotiate limited labour coverage for:

• Major mechanical failure

• Structural defects

• Servo system issues

Even 1–2 onsite visits included can reduce risk significantly.

2. Remote Support Commitment

Include:

• Guaranteed response time (e.g., 48 hours)

• Video support

• Remote PLC access

This reduces downtime.

3. Local Service Partner Clause

Require supplier to:

• Identify local authorized service partner

• Provide installation supervision

4. Spare Parts Stock Agreement

Negotiate initial spare parts package to reduce delay.

5. Performance Bank Guarantee

Financial leverage encourages supplier cooperation even under parts-only warranty.

Key Contract Clauses to Review Carefully

Look for:

• “Parts only, ex works factory”

• “Freight excluded”

• “Labour not included”

• “Travel expenses excluded”

• “Buyer responsible for installation”

If these clauses appear, calculate true exposure cost before purchase.

Comparison: Parts-Only vs Full Warranty

Feature	Parts-Only	Full Warranty
Replacement component	Yes	Yes
Labour included	No	Yes
Travel included	No	Often yes
Freight covered	Rarely	Sometimes
Downtime compensation	No	Rare
Buyer risk level	High	Moderate

Understanding this difference prevents false expectations.

Frequently Asked Questions

Is parts-only warranty bad?

Not necessarily — but buyers must understand what is excluded.

Who pays labour under parts-only warranty?

Usually the buyer.

Does parts-only warranty include shipping?

Often no — buyer pays freight.

Can I negotiate labour coverage?

Yes — especially before final contract signing.

Is parts-only common in overseas machinery?

Yes, particularly when supplier has no local presence.

What is the biggest mistake buyers make?

Assuming “12-month warranty” means full coverage.

Final Conclusion

A parts-only warranty is not a full protection agreement.

It covers components — not the real cost of failure.

For overseas roll forming machines, this means:

• Labour cost

• Travel cost

• Shipping cost

• Downtime loss

• Installation risk

Often fall entirely on the buyer.

Before signing an international machinery contract, always calculate:

“If this component fails, what will the total real-world cost be?”

Parts-only warranty may still be acceptable — but only if you understand the risk and structure the contract accordingly.