Maybe you should have the motor and encoder looked at a bit more closely, What would 'Take the motor and encoder out', one or both may be able to be repaired or restored, since Renco were taken over by Heidenhain they have reduced the model line and do not stock many exact replacements, but an equivalent should be available.
Any Heidenhain branch will order one for you.
I think the tech is spinning a line just because it may not be original equipment.
Al.
CNC, Mechatronics Integration and Custom Machine Design
“Logic will get you from A to B. Imagination will take you everywhere.”
Albert E.