Warranties on Used Construction Machinery
In today’s economy, warranties and extended warranties are common add-ons for the things we buy. At the electronic store, you’ll often ask at checkout if you want to extend the manufacturer’s warranty for a small fee. When you purchase a new or used car, the financing person will often offer to finance an additional warranty with your purchase, which is usually accompanied by a list of things that could go wrong with your car and how much it will cost you out of pocket…it’s a bit of a scare tactic.
Now, new warranty options have made their way into the construction equipment market, which may leave you with a few questions about your options and whether or not they worth the expense?
Every piece of new equipment comes with some type of warranty. It’s common to see 3- 5 years or 3,000- 5,000 on new machines. Manufacturers do this to give you peace-of-mind that if something goes wrong with that machine, they will “likely” cover the repair.
Keep in mind, this coverage only applies to defective components that fail during normal everyday use. And, warranties are only valid on major components if all service history and oil sample trends are provided. So, depending on the type work you do, how hard you work that machine and how thoroughly you stick the manufacturer’s required maintenance schedule, you may be covered.
That’s a lot of hoops to jump through, and for good reason. Warranties aren’t supposed to be how you plan on paying for service and repair. Warranties are supposed to ensure the manufacturer built a quality machine for a set period of time.
Extended warranties add additional years to the coverage manufacturers offer, but there are extra fees attached to it. Most OEMs now offer some type of extended warranty and a few these may be transferable. So, if you sell that machine before the extended warranty is up, it will transfer to the new owner if the new owner lives and operates inside the same country the machine was originally purchased.
Typically, an extended warranty must be purchased while the machine is still covered under the OEM warranty so the provider has the assurance that you’re not trying purchase one due to something being wrong with the machine. However, there are a few companies that offer the option of purchasing an extended warranty for machines that are out warranty after a close inspection and testing the machine’s oil.
Getting a Warranty on Used Equipment
You don’t have to buy new machinery to still be covered by a warranty. In fact, buying a slightly used machine can save you thousands, and you are still covered by the manufacturer’s initial warranty or a transferrable extended warranty. You also have the option of purchasing an extended warranty, which will be more affordable since you saved by buying used.
You could also look for a refurbished machine. Many manufacturers and after-market companies have introduced machines that have been rebuilt, painted and calibrated back to manufacturer specifications. After that process, those machines will typically come with a 1-2-year warranty.
Buying a used machine out-of-warranty and seeking out an extended warranty provider is another option. The best way to start this process is by talking with the used equipment dealer where you bought the machine. They will be able to explain your options and help you evaluate whether this option is worth it.
Are Warranties Worth It?
Anytime you can purchase a used machine at a fair price that is currently covered by a warranty, it’s worth it. However, other considerations should come first. Brand, the condition of the machine and who you buy it from are all better indicators of the longevity and quality of used equipment. Top equipment brands typically don’t take shortcuts in manufacturing, which means you’ll get a quality late model machine that is built to last. However, the brand of a machine doesn’t tell you anything about how it was serviced or used by the previous owner, which is why an inspection is important. Also, the reputation and assurances that the seller provides you is peace-of-mind that doesn’t cost extra.
Whether you’re looking for used machinery with a warranty, want to look at your options of adding an extended warranty or just want to buy a quality used piece of equipment, IEDA members can help. Whether they have the model you’re looking for or not, they will go to work for you and find what you need.