The peace of mind that comes with an extended heavy equipment warranty can be invaluable. But, before you commit to the extra expense, let’s explore whether having extra time on your warranty is truly worth it.
Understanding Warranty Basics
Before we delve into the nitty-gritty, let’s cover the essentials of warranties. The original equipment manufacturer (OEM) is responsible for the basic warranty, typically 12 months after delivery. However, extended warranties, available for an additional cost, come with stricter terms, including time and meter hour restrictions.
Three Heavy Equipment Warranty Terms to Know
Before you make a decision, it’s crucial to know the three main types of warranties:
- Standard. These warranties offer basic coverage, often excluding routine maintenance like oil changes. While some cover transportation to the maintenance facility, others do not.
- Extended. More comprehensive and pricier, an extended heavy equipment warranty covers additional components like powertrains and hydraulics. However, you’ll need to specify what you want to be covered.
- Specialized. These warranties focus on specific machinery systems and components of those systems rather than the entire machine. For instance, a powertrain warranty won’t cover the equipment frame, leaving you responsible for certain repairs.
There are several factors to consider when deciding which warranty best suits your business needs. Here are our top 5.
5 Factors to Consider When Purchasing Extended Warranties
Warranties need to be selected based on your business resources, essential functions, and capabilities:
- Repair practices. Does your company handle equipment repairs internally or rely on external help?
- Shop capability. Assess your shop’s ability to handle repairs. Remember to account for newer, more complex equipment models.
- Emission control systems. With advancements in technology come more complex powertrains. Consider who will cover these systems after the initial warranty period.
- Equipment downtime. Downtime can be costly. Negotiating an extended warranty with provisions for loaner equipment during downtime can be beneficial.
- Cost comparison. Compare extended warranty prices against current running expenditures and preventative maintenance costs.
Now that you know about the various warranty options and the factors to unpack while selecting one, let’s explore the advantages of having an extended warranty.
Benefits of Heavy Equipment Extended Warranties
Are extended warranties worth it? Here are three compelling benefits:
- Lower expenses. Warranties provide peace of mind and can significantly reduce repair costs, safeguarding your bottom line against unexpected expenses.
- Enhanced resale value. Equipment that’s well maintained and carries transferable warranty coverage tends to fetch a higher resale value, making it quite appealing to potential buyers.
- Reliable support. OEM warranties often offer high-quality parts and services, ensuring prompt and efficient repairs by factory-trained specialists.
To make the most out of your warranty, prioritize proper equipment care and maintenance. Misuse and unapproved modifications can void your warranty, so make sure you pay close attention to your warranty requirements when completing regular maintenance.
Find the Warranty That’s Worth It
While an extended or specialized heavy equipment warranty may not be for everyone, it can offer substantial benefits for those who value peace of mind and resale value. If you’re in the market for heavy equipment, Equify Financial is here to support you with tailored financing solutions, including discussing the fine details of warranty options for your entire heavy machinery fleet. Let’s talk about what your business needs.
