Extended Warranties

Jack3489 · Mar 17, 2015

Have a L3800 coming up on two years old and Kubota recently sent me information on an extended warranty for both the basic and powertrain. I've read an old thread (about 3 years old) which most owners said they declined the extended warranty.

Wondering if anyone has recent experience with extended warranties from Kubota and if they have found them to be cost effective?

Also interested in the views of those who have declined the warranty? Was it due to cost or just didn't feel it was needed.

Thanks for an inputs.
Jack

Fallon · Mar 17, 2015

Statistically on average an extended is not worth it. They have to make money & cover all the cost of all the repairs (averaged out across all consumers). If you can afford the risk, on average you will better off on the long run.

timswi · Mar 17, 2015

Fallon said:
Statistically on average an extended is not worth it. They have to make money & cover all the cost of all the repairs (averaged out across all consumers). If you can afford the risk, on average you will better off on the long run.

I agree on the warranty although I'd give some thought to the Kubota insurance, not a bad deal and covers against many calamities. I have it mainly because I never know whether I'm going to be on my property or not.

AStanton · Mar 17, 2015

I didn't buy the extended warranties for my Kubotas. I went under the assumption that if it's going to be a lemon, I will have problems right away. Having wrote this, I think the best advice I heard regarding extended warranties came from a radio talk show host. He didn't believe in them either. However, he did say, "If you are buying a washing machine and you have 5 kids and plan on doing 3 loads of wash a day: buy the extended warranty."

the old grind · Mar 17, 2015

Extended warranties are a luxury, not an investment. Consider them like a trip to the casino or buying a lottery ticket. Common sense says you'll pay and likely not get anything back at all. (Feels great if you guess wrong on that tho' ...)

Life underwriters are funded by long term cash flow and investment. Warranties are in effect 'term policies' that expire before being paid out. Quick profits means even HFT salespeople get commission to 'sell' them on cheap 'disposable' power tools.

I've yet to regret passing up the opportunity on one anywhere since they've been around. (decades)

EWs are bets that something will break. How they compare to gambling in general is how often you'd 'win'. (.. with statistics to back that up) For that I have no experience of what 'lucky' feels like.

sandyc · Mar 18, 2015

I like the feeling of being "covered" but at the cost of an extended warranty I can buy another attachment and or take my wife to a few great dinners. Most of the financial folks say to stay away from the extended warranty.

Fallon · Mar 18, 2015

You are just gambling, as is the warranty provider. However the provider stacks the deck in their favor, no different than Las Vegas. The house can & does loose. But in the long run they win more.

Capricious · Mar 18, 2015

Taking an "aggregate" approach, I have never bought extended warranties on anything.

Considering the amount of money that I COULD have spent on extended warranties over the years, I could take one heck of a hit on repairs at this point, and still be ahead.

"They" wouldn't sell 'em if they weren't making money on 'em, so I don't buy 'em.

teg · Mar 18, 2015

If I were putting lots of hours per week on it, I would see how much it was...

When I got my tractor at first, I tried really hard to get a friend to use it as much as he could... He wouldn't, worried that it might break. THAT'S why I wanted him to run it. I think I had less then 100 hours when the warranty ran out

KTAC · Mar 18, 2015

timswi said:
I agree on the warranty although I'd give some thought to the Kubota insurance, not a bad deal and covers against many calamities. I have it mainly because I never know whether I'm going to be on my property or not.

Thank you for the positive post on KTAC (Kubota Insurance)! What makes KTAC different than other insurance providers is the fact we care if you go back and buy Kubota. If Kubota doesn't sell equipment, we have nothing to finance or insure so we tend to hear "you'll cover that?" more than others. Basically, KCC and KTAC wouldn't need a Director of Operations and that would not be good for my family. :laughing:

Brian