• 5/13/2020
  • By Doosan Infracore North America LLC
A Doosan® wheel excavator demolishes a concrete highway.
How do you compare construction equipment warranties between manufacturers? What are common types of construction equipment warranties? Our construction equipment warranty buying guide has the answers.

Comparing warranties across manufacturers and picking a construction equipment warranty requires some research.

While virtually all manufacturers promote warranties that provide coverage for a designated number of months or hours, those numbers don't tell the full story.

It’s necessary to clarify what the warranty includes because this can vary between manufacturers and types of warranties.

Some equipment manufacturers offer warranties that you can transfer to another buyer. If you choose to sell the equipment before the warranty expires, this option can add significant value to your equipment in a transaction.

Use this guide to help you shop warranty offerings. Learn about the four types of warranties: standard, extended, promotional and replacement parts, and warranty payout caps.

Standard Construction Equipment Warranties

Most standard construction equipment warranties are similar to an automotive warranty: they offer front-back protection.

Some standard warranties will cover the cost of transporting your equipment to and from the dealership, but other warranties do not cover this cost.

Most manufacturers do not include scheduled maintenance items, such as fluids and filters, in their standard warranties.

Consider these two points when comparing standard warranties to get an accurate assessment of the warranty’s value.

Extended Warranties

Extended warranties come in many varieties. Some extended warranties offer full protection similar to a standard warranty. Other manufacturers offer extended warranties that only cover the powertrain, powertrain & hydraulics.

If these “off-the-shelf” options don’t fit your needs, your dealer or manufacturer may be able to create a customized warranty plan to meet your needs. For example, it’s not unheard of for customers to purchase customized 5-year/7,500-hour warranties.

Promotional Warranties

Construction equipment manufacturers offer promotional warranties as a special sales incentive. These offers are typically one of the extended warranty coverage options the manufacturer normally provides for purchase.

Parts Warranties

Even if your machine is out of warranty or has never been covered, you may be able to secure warranty coverage for individual replacement parts.

Here’s a typical example: Some new parts purchased from a manufacturer as “an original OEM replacement part” may be covered with a specific warranty period or hour limit.

Warranty Payout Caps

A warranty payout cap is a practice commonly used by third-party extended warranty companies. It is less common in warranties from original equipment manufacturers.

With a warranty payout cap, the warranty company will perform a depreciated value study on a machine. The warranty company will also establish a payment limit at that depreciated value. If you are not aware of the payout cap, a major, unexpected repair, such as an engine or transmission replacement, can significantly exhaust or even exceed your warranty claim limit. It may cause you to pay at least a portion of the repair out of pocket.


Want to learn more about construction equipment warranties?

Check out these reasons to add an extended warranty to your machine.