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I have a guy that works with me that had a new nano impact that he bought off of ebay, broke a bit off inside of the 1/4 chuck (where there was nothing to grab), took it to a repair shop and they wanted $100 because they said they would have to replace the chuck. So he just bought another one for $109.
 
After reading this I had to double check my Milwaukee M18 impact and it is set up with a detent coller that slides toward the bit to release. Which would make it hard to use the method illustrated by Mickeyco. Had I thought of this it would have been a consideration when choosing an impact. How about starting a list of which impacts are setup with detent collers that pull BACK so you could vice up the bit and pry against the sleave holding the bit?
 
I've gotten plenty of bits stuck in my impact...the secrete is don't use crap bits. I clamp the bit in the vice and then put the impact in reverse, let it anvil a few times while you pull the collar forward and pull the impact back using your body weight. Be caseful not to fly backwards when the bit comes out.

The worst culprits are the Black and Deckar get a million bits that fit nothing for 5 bucks....they begin to strip in the chuck and really get fudged in there. I bought a Hilti bit holder and bit set and never had a problem again....until I need a longer bit and have to use a Rona Industrial POS.
 
I think those bits are hardened.
judging by the way the bits usually wear out over time (instead of snapping large chunks off), I would bet that they aren't too hard to drill.
Actually they are to some degree, we had a Bahco bit shoot half of it's tip off recently... luckily no eye injuries ;)
Edit: with an ordinary drill, not impactor.
 
Actually they are to some degree, we had a Bahco bit shoot half of it's tip off recently... luckily no eye injuries ;)
Edit: with an ordinary drill, not impactor.
I've seen many bits snap. however, if they were very hard, they would tend to always snap rather than flake off over time and wear out. While they are hardened, they aren't the hardest things around, and could probably be drilled and tapped with a good bit and tap that costs less than a new impact.

You can also buy really really hard bits that this probably wouldn't work on, but they aren't the norm.
 
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