So many purchases these days offer extended warranties. It’s even standard for box store cashiers to offer them at checkout.
If you’re skeptical about the value of covering a $50 blender, we understand. But don’t let that discourage you from strongly considering an extended warranty on your next equipment purchase.
Why? Because running your business is easier when you can reliably forecast your monthly equipment spending. Consider these three reasons to purchase a construction equipment extended warranty from your manufacturer.
1. Construction equipment extended warranties reduce risk exposure.
Additional construction equipment warranty coverage minimizes repair costs. If machine issues do occur, you know in advance that they’re covered, which allows you to avoid unplanned expenses. It not only gives you an extended sense of security and peace of mind, but it also makes good business sense.
For example, out-of-pocket repair costs on a hydraulic pump can be more than $6,000 plus labor. Without warranty coverage, an unexpected failure could significantly dent your business’s cash reserves.
2. Construction equipment warranties may increase the resale value of your machine.
Some manufacturers offer transferable warranties. With a transferable warranty, if you sell your machine during the warranty period the warranty coverage transfers to the new owner. This makes your machine more valuable on the market.
3. Original equipment manufacturer warranties rarely have payout caps.
You may be tempted to purchase an extended warranty from a third-party company rather than the manufacturer of your equipment.
Before you do, check to see if the third-party offering includes a payout cap. With a payout cap, the third-party warranty company will assign your machine a depreciated value and cap the amount they will pay for repairs at the depreciated value of the machine. This could mean that you may unexpectedly end up paying for a repair partially out of pocket.
Payout caps are not common in construction equipment warranties from original equipment manufacturers, however.
Learn more about warranties
Interested in learning more about how to compare construction equipment warranties? Check out these construction equipment warranty buying tips.