Deere sent me the "It's time for peace of Mind / PowerGuard" pitch. Hmmmm
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Thread: Deere sent me the "It's time for peace of Mind / PowerGuard" pitch. Hmmmm

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    SulleyBear's Avatar
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    Deere sent me the "It's time for peace of Mind / PowerGuard" pitch. Hmmmm

    Generally, I am not a fan of extended warranties. I will say hearing some of the issues which some GTT members have had, has caused me to pause and actually consider this more than I would have in the past.

    I use my tractor differently than many. I don't have a MMM, so I don't put hours on it mowing with the belly mower. I do mow with the RC2048 rear mower, in fact, I am mowing the common area walking path of our HOA and that is going to be 6 to 8 hours a month all season. I also have my 10 acres, etc. that I mow parts of.

    My machine was delivered 10/2017. It now has 335 hours on it. So, in 19 months, I have put an average of about 18 hours a month. In the winter, depending upon the snowfall, I can really rack up the hours. In fact, the first winter, I put 165 hours on the tractor between delivery in October and March 1st of the following year. In that 6 month time frame, I put about 28 hours a month on it as an average.

    I have a couple of box blade projects in the works ( if it ever stops raining long enough to permit me to resume the work). I don't abuse my machine by any means, but compared to many, it does get some hours put on it.

    Here is the offer from Deere for the applicable PowerGard coverage.

    Add one year of coverage and up to 600 total hours for $778.

    Add two years of coverage and up to 800 total hours for $874 (really squashes the attractiveness of the one year offer....)

    Add three years of coverage and up to 1,000 total hours for $1,284

    Add four years of coverage and up to 1,000 total hours for $1,686.

    Of course, Deere offers their "Flex Pay", which permits you to break the amount spent into 4 equal installments, paid in successive months after the purchase. Interestingly, they insist I need to "Add the coverage by May 9th, 2019 to make sure there is no lapse in my valuable coverage". If the delivery date is in October of 2017 and assuming my hours still permit me to qualify for the factory warranty (which they do), why would I need to have purchased the coverage my May 9th, a full 5 months before the delivery date to avoid any lapse in coverage? I don't, it's just an imposed deadline to prompt customers to take action and respond.

    My Analysis of the Coverage Offers
    Basically, the one year deal makes no economic sense when compared to the 2 year extension, but it is priced assuming that someone would be at the 600 hours by the end of year 3 of their total ownership, which is interesting. It's important to keep in mind that the warranty for the Power train is 6 years and 2,000 hours, which ever comes first.

    Here is what the Deere warranty statement says is covered under the factory warranty and the 6 year / 2,000 hour Powertrain Warranty.

    WHAT IS WARRANTED All parts of any new John Deere Equipment,except tiresand batteries (which are warranted under separate documents provided with each product), are warranted for the number of months or operating hours specified below. Warranty statements required by law covering engine emission-related parts and components, which shall not be less than the engine warranty,are found in the Operator’s Manual delivered with theEquipment.Included In Compact Utility Tractor Powertrain Warranty -Engine:cylinder block, cylinder head, valve covers, oil pan, timing gear covers, flywheel housing, emissions control components and all parts contained therein. Powertrain:transmission, transmission case, differential and axle housings, clutch housings, MFWD front axle assembly, and all parts contained therein (does not include external drivelines, dry clutch parts, or steering cylinders)

    (Please note, the typos shown above, which I highlighted in
    red, are contained in the actual Deere warranty statement on the internet and provided with the equipment. Isn't it amazing no one at Corporate has noticed this and edited the errors as widely distributed and used as this information actually is?)

    Since the Powertrain Warranty covers the engine and transmission assemblies and "all parts contained within", the extra PowerGuard Warranty would cover "the rest of the tractor" such as electrical systems, hydraulic systems other than in the Power Train. Excluded are normal wear and maintenance items such as the battery, belts, hoses, light bulbs, etc.

    The Transportation of the Machine is Covered
    The PowerGard Warranty does cover the transportation to the dealership which is helpful as I don't have a trailer to transport the tractor. From my location, transportation of the tractor is about $150 for the pick and delivery per machine visit.

    Actual Hours of Use verses Offered Months of Coverage
    At my current use rate of the tractor, its likely that in 3 years from this October (October 2022) which is actually 41 months from today, that I will have added another 738 hours to my existing 335 hours, which will put the likely expiration of my warranty, based upon historical average use at about the 18 hours per month, at 37 months from today, or at 32 months after the anniversary of my 2019 delivery date anniversary. So, I am likely to reach the limits of the PowerGard coverage limits of 1,000 hours by June of 2022. The good news is the 2,000 hour and 6 year Powertrain warranty is likely to remain in effect until October 2023 without me exceeding the hour limits.

    Based upon the actual use of the machine, an election of the 4 years of Powergard coverage would expire by reaching the hour limit of 1,000 hours well before reaching the 48th month following the extension of the coverage from the actual delivery date.

    If the PowerGard Protection plan was to be purchased, buying the 4 years of coverage would be a waste of money as the 1,000 hour limit would be reached before the 48 months would pass. The one year plan would be close in reaching the limit of that plan of the 600 hour limit as the tractor will likely be near 443 hours on the 2nd anniversary of the tractor delivery this coming October 2019 (335 current hours plus 18 hours per month for May, June, July, August, September and October since the delivery date is the end of October).

    A purchase of the one year extension of PowerGard coverage with the 600 hour time limit would find me likely reaching the 600 hour point at about the 9th month following the inception of the coverage in October 2019 (443 hours in October 2019 and 18 hours per month means in 8.7 months, the 600 hour limit would be reached. Effectively, it would be spending $778 for 9 months of warranty extension or an average monthly cost of $86.44 per month for the coverage. Ouch......

    Assuming the 2 year extension of PowerGard coverage with the 800 hour time limit at a cost of $874 would mean the 24 months starting in October of 2019 would find me achieving the 800 hour limit in just under 20 months from October 2019, or roughly in June or July of 2021 (800 total less estimated 443 hours on October 2019 and accumulating an average of 18 hours per month = 19.83 months). This means I am likely to not get the 2 years of extension and more likely just 20 months, making the cost per month for coverage even higher at $874 / 20 months = $43.70 per month for each month of actual coverage extension.

    Assuming the 3 year extension of PowerGard coverge with the 1,000 hour time limit at a cost of $1,284 would likely fine me running out of coverage due to reaching the hour limit in approximately May or June of 2022 . (1,000 total hours less the starting hours of 443 leaves 557 hours of PowerGard coverage which would be consumed at 18 hours per month in 31 months) This means I am likely to reach the hour limit, before the 3 year time limit. This would make the average cost per month of $41.42 per month of actual coverage extension.

    Based upon the current hours on the tractor, the average use of the machine and the limits of the months and hours offered under the PowerGard contracts, the only one which would even be worth considering would be the 3 year contract, which costs $1,284. Using Deere's "FlexPay Option", this would mean "4 easy installments of only $321 per month" to secure this coverage.

    It's anyone's guess whats going to happen with these machines. Personally, I think I am better off to bank the $1,284 (not spend it) and use that to pay for any repairs which may arise. In the meantime, I have the Powertrain warranty of 6 years or 2,000 hours, which takes me out to October 2023, which would deal with the engine or transmission issues.

    As tempting as it is to send mother Deere $1,284 to provide me with "Peace of Mind" knowing coverage would be available to pay for repairs should they arise, I am going to pass on the PowerGard offer.

    It's interesting because my use of the machine is more than many who own these SCUTS and with the use and accumulation of hours, increases the potential for needing possible repairs, etc. But in my case, several of the warranty options would have been terrible choices, specifically the 1 year and 4 year warranties as I would be very unlikely to reach the end of the coverage extension period before having reached the hours of use limitation. The 2 year option isn't much better as the same issues arise. The 3 year extension is the only one which provides an extension of both the months and hours of coverage which I would approach achieving, and even that turns out also is unlikely to provide the benefits it appears by me still reaching the hour limitation before the months of coverage would be completed.

    For someone who would use their machine much less and not reach the hour limits, as I am likely to on this machine, then you need to ask yourself are you putting enough time on the machine to need to be concerned about even needing such coverage.

    I wanted to share my analysis of these options as an example for others considering the coverage. I know we have GTT members who have elected to purchase the PowerGard coverage. I am making no judgements of anyone, whether they purchase the coverage or pass on it. It's as much one's personal risk tolerance as it is an outright economic matter. In my case, since some of my usage of the machine provides income which could easily pay for the PowerGard coverage, I thought I would take a closer look at the viability of the offer from Deere.

    For my situation, I don't feel spending the money for the PowerGard would be a prudent use of financial resources. Others situations and risk tolerances may find that electing the PowerGard coverage is a prudent move for them. I do think each person should consider their use of the machine and whether you would be reaching coverage limits before the expiration of the coverage months due to your use of the machine.
    MDrew, mark02tj, Old Cajun and 3 others like this.

    1025R with Mauser Cab
    (10/2017)/ 120R FEL / RC2048 Mower / All of Ken's Bolt on Products / 60" HD Front Broom / 3 pt 45 Gallon Boom less Sprayer / CA2068 Core Aerator / I-Match / 54" Snow Plow w/ angling Quick Attach / Frontier 3 Pt Sprayer / Pallet Forks / 8 -42# Weights

    John Deere 455 (New in 9/1996) / MC519 Cart /60" MMM /47" Snow Thrower / 7'3" snow plow / Quick Hitch /
    4 -42# Weights / JD#10 Cart

    ExMark Lazer Z w/60" Deck , Billy Goat Blower , Full Stable of Echo Products





  2. The Following 2 Users Say Thank You to SulleyBear For This Useful Post:

    mark02tj (05-02-2019), Old Cajun (05-03-2019)

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    Zebrafive's Avatar
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    You certainly know how to annalize the cost for the benefit.

    My first worry would the electronics. I am not sure what that entails on your tractor. Dash for sure, any other controllers/black boxes?

    My second worry would be the engine and powertrain, but the standard warranty looks like you are covered.

    I would also pass on the extended warranty.

    A trailer might be a good investment too. I friend needed to move a forklift. It was too hard to load on his trailer, so he had a rollback wrecker move it. He was charged $1/mile plus $25 to move it.
    MDrew, Old Cajun and SulleyBear like this.
    J
    John Deere 2030 w/245SL Loader
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    John Deere 285 50" deck Stolen May 2017
    John Deere x485 62" deck AWS
    Kawasaki Mule 2510 4x4 bought new 1996
    Ford F250 4x4 bought new 1978

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    SulleyBear's Avatar
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    Quote Originally Posted by Zebrafive View Post
    You certainly know how to annalize the cost for the benefit.

    My first worry would the electronics. I am not sure what that entails on your tractor. Dash for sure, any other controllers/black boxes?

    My second worry would be the engine and powertrain, but the standard warranty looks like you are covered.

    I would also pass on the extended warranty.

    A trailer might be a good investment too. I friend needed to move a forklift. It was too hard to load on his trailer, so he had a rollback wrecker move it. He was charged $1/mile plus $25 to move it.
    Luckily, my neighbor to the west has a very nice aluminum deck car trailer which he bought with his 2320 a couple of years ago. I can borrow his trailer when needed as we trade back and forth and help one another. I have plenty of the correct tie down straps, chain binders, axle straps, etc. from my trailer dealer days. Plus, I can't park a trailer outside on my property, and the township doesn't allow any vehicles to be parked on "vacant land" such as my 10 acres to the west, between me and the neighbor with the trailer.

    I thought about the Dash Unit as well, as it seems to be as much a "control center" for the codes and diagnostics of the machine as it does serve as just a "set of gauges". It's John Deere part number LVA23368 and it retails for $466.25, which is actually less than I thought it would cost.

    I expect to replace a battery or two in the meantime and other wear items. I know if this 1025r is as reliable and well built as my 455 has been, I will be very, very happy. Other than a couple of alternators, a battery every 4 or 5 years, a couple of fuel shut off switches, the largest single part expense on my 455 was replacing the steering cylinder and I want to say that was just over $425.

    I did rebuild the rear end assembly with all seals and gaskets for the differential, axles, hydro pump, transmission, etc. and I think the total parts came to about $650 and more than half of the total was the PTO clutch, which I replaced while I had it apart and it was definitely time.......

    It took me 10 months to get the part as Deere was changing suppliers and my old cylinder could not be rebuilt. I could have bought a used one, but once Deere announced the new supplier on the steering cylinders and the OEM parts were exhausted until the new units were in the supply chain, used cylinders were selling for $200 to $300 on Ebay.

    When my first alternator on the 455 bit the dust, at about 1,500 hours or so of time, I bought a new one from Deere and it was around $280. When that one bit the dust at about 2,400 hours, I ordered an alternator from Amazon and it was less than $50. Here is a photo of the old OEM part from Deere and the new $50 unit from Amazon. They were identical in every respect, casting num bers, you name it. The $50 alternator is still running and its now at about 3,000 hours of total time.

    So if anyone needs a alternator for their Deere with the Yanmar, they should check this source as they have many which fit a wide range of Deere models. Please note, check your application carefully as I provided this link to reach the company, not as a direct replacement for the 455 alternator. Even this unit new is under $60............It's $326.64 at the Green Farm Parts....... (5.5 times as much????)

    Amazon.com: NEW PERMANENT MAGNET ALTERNATOR John Deere Mower 2500 2500A 2500B 2653A 10939: Gateway

    So, I am going to "self insure" the 1025r beyond the factory warranty, unless something dramatic happens between now and my delivery date anniversary in October of this year............

    Below are the 1st replacement OEM Deere Alternator which replaced the original alternator and this one lasted about another 900 hours or so and it failed. The new alternator shown in the photo is from the link on Amazon, and it was much less expensive and continues to work to this day.......
    Attached Thumbnails Attached Thumbnails IMG_20170422_151040480_HDR.jpg  
    Zebrafive and Old Cajun like this.

    1025R with Mauser Cab
    (10/2017)/ 120R FEL / RC2048 Mower / All of Ken's Bolt on Products / 60" HD Front Broom / 3 pt 45 Gallon Boom less Sprayer / CA2068 Core Aerator / I-Match / 54" Snow Plow w/ angling Quick Attach / Frontier 3 Pt Sprayer / Pallet Forks / 8 -42# Weights

    John Deere 455 (New in 9/1996) / MC519 Cart /60" MMM /47" Snow Thrower / 7'3" snow plow / Quick Hitch /
    4 -42# Weights / JD#10 Cart

    ExMark Lazer Z w/60" Deck , Billy Goat Blower , Full Stable of Echo Products





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