New Holland Extended Service Plan - Question

[Duckhunter]

Has anyone purchased the New Holland ESP just before their warranty expired? I received a notice it was available from my dealer for my TC45D. I have a couple questions:
1. How much did it cost?
2. Can you choose the dealer you buy it from just like you can on autos and are they competitive.
3. Anyone know a dealer who discounts the plans?

Thanks....

 

[jcollins]

NH structures the ESP pricing in a manner that it is best to buy at the time of purchase. You have the option of purchasing an extended service plan up to 2 years from the date of purchase on some of thier tractors but the further it gets from the date of purchase the more expensive it is.

 

[1bush2hog]

Jason,

Thanks for the info, but I have always wondered and have never received a satisfactory answer: Why is the extended warranty more expensive if you wait and purchase after you buy the vehicle? It really should make no difference, especially now since interest rates are so low.

Just curious, since pretty much all vehicle and goods sales that offer ext warranty work this way. /forums/images/graemlins/blush.gif

Thanks,


BP

 

[MikePA]

<font color="blue">Why is the extended warranty more expensive if you wait and purchase after you buy the vehicle?</font>
I'd imagine that it's because the earlier you purchase it, the longer they have your money. Also, it's kind of like buying insurance, the older you are, the more you pay.

 

[jcollins]

I am afraid I won't be able to give you an good answer either! It is just the way NH has structured it. Intrest rates have never had a bearing on the ESP. But to give you an example of the rates and how much they go up see below.

Purchase Date to 60 Days $690
61 Days - 365 Days $870
366 Days - Base Warranty Expiration $1050.00

This would give you an additional 24 months (total of 60 months) of warranty coverage on your power train or 5000 hours; plus a few other items. So at purchase date it would run $28.75 per month for the 24 months after your 3 year powertrain expired. I know this does not answer why it is more expensive and I have never been able to get an answer on that as well. /forums/images/graemlins/crazy.gif

 

[Wolfman]

I would imagine that the reason it gets more expensive is this:

Say you had the tractor for a year and you had no problems with it - you probably won't end up getting the extended service plan.

But on the other hand, if the tractor is being worked hard or is having lots of problems, you are more inclined to buy the service plan after the fact. For this reason they charge more for it calculating in that there might be some upcoming warranty work that might need to be done.

It seems to make sense to me, since even with service plans, they are trying to make a profit.

Just my opinion

 

[OkeeDon]

The question for me is, is it worth it? If my tractor has gone for 250 hours without any problems, what are the chances that I'll need a major repair that would cost more than $870 in years 3 and 4? My own natural tendency has always been to take a chance. It could cost me more if I have a major breakdown, but it could save me $870 if I take care of the machine.

The exception is my cell phone - I pay the $5 a month insurance on 2 phones to get free repairs; I'm already way ahead of them after two $55 repairs made for free. The last extended warranty I bought was for a laptop computer; the warranty company went broke just before I needed a major repair, and I ended up junking a computer that cost me $2,200 (but could be replaced today for less than the cost of the repair).

 

[Bird]

</font><font color="blue" class="small">( The question for me is, is it worth it? )</font>

And the answer is "Nobody knows." /forums/images/graemlins/wink.gif /forums/images/graemlins/laugh.gif As with any insurance, if you never use it, it's money down the drain, but if you need it, sure is nice to have. I almost never buy extended warranties, and can't think of a time that I would have needed it and didn't have it. However, I said almost never because I did buy the extended warranty when I bought a new '82 Isuzu diesel because they were new enough and I knew little enough about them that I decided I wanted the insurance. Turned out it was never needed. And then last December I bought a 2001 Windstar with 27k miles on it and decided to get the extended warranty as well; second time in my life to do that, but when I said "money down the drain", well . . . almost maybe. Perhaps the peace of mind is worth something. /forums/images/graemlins/laugh.gif

 

[OkeeDon]

My '99 Windstar is just going past 50K, because I mostly use the '95 Dakota except when I feel like "dressing up" a bit, or am going on a trip. In fact, the entire family borrows the Windstar when they need comfortable cruising, even the kids who say they'd never be caught dead in a mini-van. They park the Explorer or Expedition and use the Windstar /forums/images/graemlins/grin.gif

But, the point is, it has been one trouble-free car, and I'm glad I didn't buy the extended warranty. We still think of it as the "new" car, even though it's 4-1/2years old and everyone in the family has something newer!

I figure by the time we have finally groomed the 5 acres, built the pond (not with the little tractor, but doing most of the final grading), done the drainage work, and built the barn and house, I will have saved enough money to more than pay for the tractor, anyway, so it almost becomes a disposable item. I saved almost $1,000 a few weeks ago by doing my own driveway culvert, etc. as just one example.

 

[jcollins]

I can tell you that out of 4 stores we sell maybe one or two ESP plans a year. We just do not sell that many. Are they worth it? Well I just don't know. I think if I was going to purchase a tractor myself I would not purchase the ESP. Just my two cents. Now if I had for a year or so and were having lots of warranty repairs I would have to think real hard about it. I just would not purchase it right out of the box.