As-is shows up on liquidation listings next to grades and condition names, so it gets read as one more grade. It isn't. A grade describes the goods. As-is describes the deal.
Blueprint explains the concept. What a specific contract means for you depends on its actual wording, so read the terms closely, and talk to an attorney when the purchase is big enough to matter.
- As-is is a term of the sale, not a condition grade.
- It generally means you accept the goods as they are and the seller limits what it stands behind.
- The actual terms of the sale decide what it means for you.
- Read the terms before you bid, not after the truck arrives.
As-is describes the deal, not the goods
New goods can be sold as-is. A manufacturer can run one program that describes a 12-month functional warranty on its best scratch and dent tier, and another that sells every grade as-is with no warranty and no claims, new product included. The condition and the sale terms are separate things, and you need to read both.
What to read before you buy
Find each of these in the actual transaction terms, in writing:
- The terms of sale: what as-is covers in this transaction, and what, if anything, it leaves out.
- The condition disclosure: how condition is defined and described for this load.
- Inspection rights, if any: whether you can inspect before you buy or on delivery, and what happens if you find a problem.
- The claims policy: what you can claim, how, with what evidence and inside what window.
- Any variance policy: what happens if the load differs from its description or manifest, in count, model or condition.
- Any warranty: whether one exists, what it covers, for how long and who honors it.
If a listing says as-is and you can't find answers to these, ask before you bid. "I assumed" is not a claims process.
Where timing decides it
Most as-is problems are about timing. Buyers read the terms after delivery, find that a short claims window has closed, or find that as-is applied to the very issue they wanted to raise. Read the terms first and know your claims window before the truck arrives.
See also: Manifested vs unmanifested liquidation and Understand the program, not just the headline.
As-is generally moves risk to the buyer, and risk belongs in your price. Build in the units that won't be sellable and what it costs to deal with them, since you may have no claim to recover either. Then set your maximum the same way as for any load, from landed costLanded cost Landed cost is what a unit really costs you once it is in your building and ready to sell, purchase price plus freight, handling, parts and the cost of what could not be sold. per sellable unit.
- Treating as-is as a condition grade.
- Assuming as-is means broken, or assuming it means fine.
- Reading the terms after the load arrives.
- Missing the claims window.
- Assuming a warranty exists because the goods are new.
- Relying on someone's summary of the terms instead of the terms.
Terms in this guide
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