Who is Buying Warranties ?
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    Who is Buying Warranties ?

    My 4110 is a 2004 model. No extended warranty and fourteen years later not a hint of a problem. I thought the reason why many purchased Deere equipment because it was built to last many trouble free years. I bought a used NH TC45 DA with an extended warrantee. Shortly after taking delivery the tilt / telescope steering wheel would not extend. The instrument panel fogged up with condensation making reading difficult.There was one additional problem that escapes me but I have warranty, .... right ? The dealer states they will repair the listed items at my expense only. The warranty only covers the drive train. Moving on to a NH TC 55 DA HSS , I did not buy any additional warranty due to limited coverage. Eleven years with no problems.
    I have little belief in extended protection if the unit is operated properly and has proper maintenance. I never purchased one on a new motor vehicle for the same reason.

    * Every two weeks without fail I get a call from a warranty company telling me our cars are out of factory service . For minimal cost they will replace five thousand dollar transmissions and six thousand dollar engines free of charge with this service. They do not understand blocked calls either.

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    jgayman's Avatar
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    The deal with any extended warranty is... DO YOU FEEL LUCKY? :-) Any piece of equipment can have issue regardless of brand or how it has been treated. Sometimes things just break.

    In most cases you are able to purchase an extended warranty any time during the original warranty period. I've never been a big believer in extended warranties but I do feel that if you have a piece of equipment that has been problematic during the original warranty period then perhaps an extended warranty would be worthwhile - IF the warranty will cover the types of problems you've been having.

    In almost all cases extended warranties are a big profit generator for manufacturers. They are betting that you won't ever have a problem and you are hoping that somehow that the extended warranty will pay off.
    2012 2720 -- 200CX Loader -- 54" Quick Attach Snow Blower -- Frontier LR5060 Rake -- Land Pride RB1660 Blade (Hydraulic Angle) -- Artillian 42" Forks -- Ken's Bolt on Grab Hooks -- Fit Rite Hydraulic top-link -- 2013 X500 for mowing duties

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    Carvel Loafer's Avatar
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    I never bought it on my 2012 1026R and it has paid off. All my major concerns were within the standard warranty period and nothing since so I saved on this one.

    I generally never buy extended warranties, and I have to say that over the years I am way ahead of that game. However, just yesterday Mrs. C and I bought two real nice La-Z-Boy chairs for ourselves and I went for the 7 year "platinum" warranties for $150 for both chairs. Mostly because it also covers damage from neglect such as cut or torn leather, I figured with grand kids running around that it might be a good thing to have. (anxious for the chairs to be delivered next week so I can do some serious loafing )
    pappa, BigJim55, mark02tj and 4 others like this.
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    Tractor wise I have never bought any extended warranties and have never had an issue.

    One way to look at it is to “self insure”. If you put back the money you would pay for the warranty then use that money for any repairs.

    I had never bought one for my vehicles until recently. For my previous truck I had for 9 years I kept perfect records. I added up my out of warranty repairs not including regular maintenance items. It came to $2350.

    So when I bought a 3 year old used truck this past spring it was still eligible to buy Ford’s extended warranty which I did. I am not used to buying used vehicles. The cost was $1100 for 5 more years and 30k miles with a $100 deductible. Comparing that to the $2300 I spent on the last truck I figured I would be ahead of the game.

    Also I added in the fact that the extended warranty includes roadside service and towing. If I deduct the $85 per year for AAA it comes to $425. Deducting that $425 from the $1100 I essentially am paying $675 for 5 years of warranty. For the price the peace of mind is well worth it especially with all the electronics in vehicles these days.

    That said - I would never buy into a 3rd party extended warranty - I can just see a lot of issues with what will be covered and which shops you can use.
    ~Stan~
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    John R's Avatar
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    I used to get calls from warranty company's for my truck, and the wife's car, I tell them not to call anymore and that doesn't work.

    The last call I got from them, I told them I was interested, so they started asking all the questions, when they got around to asking about the millage on my truck I told them it had 650,000, he hung up and has never called again.

    Play their game.
    John

    2016 JD 3046 R Cab, With 165 Loader / Power Angle Rear Blade / Brush Hog / Forks / Box Blade / and Tiller.

    Previous tractors: 2002 JD 4310 E Hydro, 2006 Kubota 2350, Both gone to new homes.

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    Quote Originally Posted by John R View Post
    Play their game.
    A couple of times after working my way to the front of the checkout line, I'd get asked if I wanted the warranty for the item. I'd ask if it was really necessary. If I was told yes, then I'd say, "I guess I really don't want this piece of crap," and walk away. Didn't get what I came for, but it seemed worth it.
    2032R classic, H130 Loader, 46 Backhoe, 54" Snowblower,
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    jgayman's Avatar
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    Quote Originally Posted by Roger47 View Post
    A couple of times after working my way to the front of the checkout line, I'd get asked if I wanted the warranty for the item. I'd ask if it was really necessary. If I was told yes, then I'd say, "I guess I really don't want this piece of crap," and walk away. Didn't get what I came for, but it seemed worth it.
    Had an experience like that with a window air conditioner. Salesman asked if I wanted the extended warranty, which I declined. He then went on a high pressure sales tirade about how I was taking a big risk and how the compressor could fail and how expensive it would be.

    I looked at him and said that if purchasing the unit was going to be THAT risky then perhaps it would be in my best interest to look for something else - and left the store.
    2012 2720 -- 200CX Loader -- 54" Quick Attach Snow Blower -- Frontier LR5060 Rake -- Land Pride RB1660 Blade (Hydraulic Angle) -- Artillian 42" Forks -- Ken's Bolt on Grab Hooks -- Fit Rite Hydraulic top-link -- 2013 X500 for mowing duties

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    Quote Originally Posted by jgayman View Post
    but I do feel that if you have a piece of equipment that has been problematic during the original warranty period then perhaps an extended warranty would be worthwhile.
    But at the same time, if I was having such problems during the initial warranty then, chances are Id get rid of the item and go for something that may last a little longer without all the problems.

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    Quote Originally Posted by Toughsox View Post
    But at the same time, if I was having such problems during the initial warranty then, chances are Id get rid of the item and go for something that may last a little longer without all the problems.
    That can be difficult with something like a car or a tractor where dumping it early can lead to massive losses.
    2012 2720 -- 200CX Loader -- 54" Quick Attach Snow Blower -- Frontier LR5060 Rake -- Land Pride RB1660 Blade (Hydraulic Angle) -- Artillian 42" Forks -- Ken's Bolt on Grab Hooks -- Fit Rite Hydraulic top-link -- 2013 X500 for mowing duties

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    Short answer:
    I dont buy them.

    Long answer:
    Extended warranties are not sold to help you out, they are sold to make the seller money, period.
    While they do sometimes pay to have, that is not the norm. If it were, nobody would be selling them.
    The companies selling them do cost analysis on them like anyone selling anything. They know that some people will get good value for them, but for the most part, no one else will. They are hoping you are a "have it and not need it" kind of person with regard to warranties, and they know from their own research that worst case, MOST of their customers end up being just that.

    A company I worked for years ago used to sell extended warranties on everything they sold. They had their own service center, so it was kind of a no-brainer for them. If we sold one, we were paid 50% of the cost of said warranty. As I understand from some friends who worked in the auto sales industry, the practice is similar, with different percentages paid. I would imagine the tractor warranties are similar.
    Most of these are easy to sell, as most things they are sold on are financed, so an extra $5/mo for an extra X years coverage? Why not, right? Well, thats their hope anyway.
    Back then, we were kept in the loop about lots of things with that company. We were told how many were sold vs how many used, etc. They wanted us to know exactly what we were selling, which really doesnt exist today. Shame that company went out of business a few years back, but they started doing strange things business wise about 10-15 years before that, so some of us knew the writing was already on the wall. Anyway, I vaguely recall that less than 10% of them were ever actually used, and of those used, it only took about 2-3 sold to cover their repairs. Thats a darn good profit margin.

    This is kinda like the discussion about Deeres own extended warranty, as long as you have them perform all the services, at a much higher rate than you might otherwise pay. Im pretty sure that one ended up with the general consensus of "not a good value" due to the actual cost vs expected repair costs over that time frame.

    Now, there are guys who want nothing to do with working on their own tractors. For them it may make sense, just for the peace of mind, because thats a lot of what you are buying.
    My Mom bought one on a used vehicle she bought a couple years ago. When she had a problem, guess what? The warranty didnt cover that particular issue. Luckily, the dealer did cover it anyway at their expense. Had it happened a year after she bought it instead of a couple weeks, they likely wouldnt have. It makes her feel somewhat better to have it, so fine.
    I personally wont buy them.
    I do all my own maintenance and repair work anyway, as I like doing my own work on things. There is zero incentive for me to pay someone else to do work I can do, at least as good, and likely better than they can. Being that I care that my machine will be around for a long time, Im not likely to take some shortcuts Ive seen taken with regard to mechanical repair work. I guess you can say that more often than not, I dont trust others working on my stuff.
    That and my repairs get done MUCH faster than waiting 2-3-4 weeks (or more) for the dealers to get around to it.
    I also do quite a bit of research before I buy something that requires maintenance. With vehicles, I find out what, in general, lasts the longest with the least amount of repairs. Then I find something in there that I like. This kind of "shopping" limits a lot of the issues before they become issues. Its why I drive an 02 VW Jetta GLS Wagon TDI 5-speed with 341000 miles on it. They are known for not having issues. Its the same thing that goes into every vehicle or equipment purchase, or really, any purchase I make.
    Theres no magic to it, but some of my friends seem to think there is because I get great value from purchases I make.
    Sure theres the oddball issue here or there, but I believe this keeps them to a minimum.
    BigJim55, mark02tj, keane and 4 others like this.
    Jim B.

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