How much is a warranty worth?

Brokermike · Sep 11, 2019

Getting down to brass tacks on upgrading to a cab tractor. My dealer has a new NX5510 HST for around $36k and a used one (2014) with 450 hours that I think I can buy for about $25k. The used one has had an injector problem, since replaced, has not had the 500 hour service, and according to the dealer the previous owner traded it in because he was tired of it being "unreliable", though the dealer said it had only been in for service beyond maintenance 2x in 4 years.

I'd be upgrading from a 5035 Mahindra that is a real beast. Since I'm paying cash I just can't justify the extra $ to buy the equivalent Mahindra with a cab (about $42k) and frankly having owned a DK40SE that was flawless with much nicer amenities I'm inclined to go with a Kioti. The dealer is convenient, but not the greatest for on the road service work, this is my trepidation.

Any thoughts on if the warranty and peace of mind is worth the extra $$$. That $11k covers a lot of potential repairs......

Trillium Farm · Sep 11, 2019

Brokermike said:
Getting down to brass tacks on upgrading to a cab tractor. My dealer has a new NX5510 HST for around $36k and a used one (2014) with 450 hours that I think I can buy for about $25k. The used one has had an injector problem, since replaced, has not had the 500 hour service, and according to the dealer the previous owner traded it in because he was tired of it being "unreliable", though the dealer said it had only been in for service beyond maintenance 2x in 4 years.

I'd be upgrading from a 5035 Mahindra that is a real beast. Since I'm paying cash I just can't justify the extra $ to buy the equivalent Mahindra with a cab (about $42k) and frankly having owned a DK40SE that was flawless with much nicer amenities I'm inclined to go with a Kioti. The dealer is convenient, but not the greatest for on the road service work, this is my trepidation.

Any thoughts on if the warranty and peace of mind is worth the extra $$$. That $11k covers a lot of potential repairs......

Well you pay the extra not only for the warranty, but also for a machine that has 450 hrs less and is a newer model. The fact the the previous owner thought it wasn't worth repairing the unit and got rid of it instead, would give me pause. I know that NOW $11K seems like a lot of money, but would still be so after breakdowns? Only you can decide on the amount of risk you are willing to take.

Roadworthy · Sep 11, 2019

The dealer said the tractor had been in twice for service in four years. So he really doesn't know how many times the owner performed repairs himself or had them done elsewhere. Try to determine the former owner and talk directly to him. You'll get a better idea of what's what.

Kioti Dave · Sep 25, 2019

You are trading hours for dollars. How many years would it take you to put 450 hours on a new machine? I grappled with this for a year mulling between used and new. I went with new NX4510. In the first month, rear main seal began to leak, probably due to a faulty seal from factory. Warranty fixed it.... $5000 in labour!!! Otherwise, no issues. Happy to know I have 5 year drivetrain warranty, and 2 year bumper to bumper. Hope the hunt ends well.

CobyRupert · Sep 25, 2019

Was paying last year's house insurance premium worth it?

No! I mean yes!...I mean No it wasn't, etc.....ughh!

...this turns into a philosophical question...

oosik · Sep 25, 2019

Peaceful sleeping every night.

jgedmond · Sep 26, 2019

Either nothing or thousands of dollars, depends on the luck of the draw. As suggested above, contacting the original owner should be part of your due diligence to save that $11,000. If you don't get good answers or can't get any info from him, that would steer me to new.

Kioti started the 6-year drive train in December 2013, so you should have some warranty left on that and any emissions systems. So if the repairs were in the drivetrain, you are still covered and the decision becomes 2-year bumper to bumper / 6-year drivetrain / 5-year emissions new warranty vs ~2-year drivetrain only (with maybe 1-year emissions) transferred warranty.

Warranty | Kioti Tractors

edited to Kioti warranty link in case you have not seen it

Brokermike · Sep 26, 2019

Well things got a bit sidetracked. The dealer offered me $14k for my Mahindra 5035 with 360 hours on it. I'm not gonna give it away!

CobyRupert · Sep 26, 2019

oosik said:
Peaceful sleeping every night.

How can I (or you, etc..) sleep peacefully knowing that over the last 20+ years we've probably thrown 10's if not 100's of thousands of dollars down a hole, spending it for something never used? <--- Rhetorical question. This applies to the warrantees too.

Call it what it is: Gambling.
(Of course if we called things what they really are (e.g. hot dogs, jello, etc..) life as we know it would change

)

....getting off soap box now. :2cents:

Streetcar · Sep 26, 2019

In the early days of lemon laws for cars, dealer did not have to say the used car was a buy back required by lemon law. Most new owners reported no problems with the cars