Extended warranty is it worth it?

[jlsmith]

+1

Companies that offer an extended warranty or insurance basically try to cash in on fear. "what will happen if ...." Nobody knows, so why worry about it.
I use my common sense and try not to abuse whatever you use. If it breaks after my basic warranty, I just pay out of my own pocket and carry on.

I dont agree with that. Yes some companies do try that aproach but I for one dont. I do offer it to the customer and leave it at that. If they decide they want it or want to know more about it then we go into details. I for one get the warranty on all new tractors i get BUT i also use my tractors for income. I put anywhere from 2200 to 3500 hrs a year on my tractors so the warranty has paid off for me in the past. Now someone who doesnt put that many hrs on a tractor prob doesnt need it. It boils down to what your doing with the tractor and what kind of hrs your putting on it.

 

[mjarrels]

No, I never buy it. My homeowner insurance tried to sell me coverage for items, stove, refer, hot water heater, heat pump, etc. Read the fine print... nothing was covered. Addition profit is what it is.

mark

 

[jlsmith]

No, I never buy it. My homeowner insurance tried to sell me coverage for items, stove, refer, hot water heater, heat pump, etc. Read the fine print... nothing was covered. Addition profit is what it is.

mark

Yes the insurance company has to make a profit why else would they do it. I have had several customers in the past that have gotten the warranty and glad they had it when something went wrong. coverage paid the bill and they were out $0. I even had one customer completely destroy a rotory mower and the insurance company covered it and bought him a new one, he was back in the field the next day mowing again.

 

[JOHNTHOMAS]

Never on a tractor or car myself but I'm not a 2000 hours a year user. That would make a difference to me or if I was like my brother that can break a steel ball.

 

[Jay4200]

Extended warranty is it worth it?

No, if it was, they wouldn't sell them.

Things generally fail early if defective, then don't fail for a long time until they get worn out (known as the "rate of failure bathtub curve"). Extended warranties cover you during that middle period when failures are rare.

JayC

 

[jlsmith]

No, if it was, they wouldn't sell them.

Things generally fail early if defective, then don't fail for a long time until they get worn out (known as the "rate of failure bathtub curve"). Extended warranties cover you during that middle period when failures are rare.

JayC

Thats not true. The coverage we carry is bumper to bumper for the full length of the warranty. I just replaced a hydo pump on a tractor that was at 4500 hrs and the coverage paid for everything even the pick up and delivery.

 

[Travelover]

Thats not true. The coverage we carry is bumper to bumper for the full length of the warranty. I just replaced a hydo pump on a tractor that was at 4500 hrs and the coverage paid for everything even the pick up and delivery.

Yes, it is true, statistically. You are confusing anecdotes with statistical data.

Anecdotally, some people come out ahead with an extended warranty. Statistically, most people lose or it would not be profitable for the insurer. Think about it.

 

[jlsmith]

Yes, it is true, statistically. You are confusing anecdotes with statistical data.

Anecdotally, some people come out ahead with an extended warranty. Statistically, most people lose or it would not be profitable for the insurer. Think about it.

True insurance companies do come out ahead or they wouldnt sell it. I was refering to the comment about the coverage only covering you threw the middel of your coverage. That part isnt true, Ive sold the coverage for the past 5 years and not once had the ins company not fix something that was under warranty. Yes most people will never get a chance to use the ext. warranty and thats what the ins company wants, some will buy the warranty like myself and find it verry usefull. As an example i bought the warranty on one of my tractors a few years back for $1800 and got to use the warranty twice now. The cost to fix the tractor both times included was around $4800 so i saved $3000 by doing so. Its not in everybodys best intreast to purchase the warranty but in my case where my tractors are used everyday 8 to 10 hrs a day it was in my best intreast to do so.

 

[funwithahoe]

Thats not true. The coverage we carry is bumper to bumper for the full length of the warranty. I just replaced a hydo pump on a tractor that was at 4500 hrs and the coverage paid for everything even the pick up and delivery.

I know lots of types of people and this is the final deciding factor for me.

The wealthy people I know buy catastophic insurance (someone sues you for 1 million or your uber expensive barn burns down). The poorer people I know (and love just as much) buy extended warranties out of fear that they might have a $500 repair bill. Mind you they will pay $1500 (on monthly payments) to ensure they don't have this bill.

To the previous poster saying that someone broke something and it was covered by their warranty - No one is saying they won't cover a problem just does it make good business sense to buy coverage like this. If your finances are so tight you can't afford a repair take the warranty money and stick it in a bank!! Pay for the repair yourself - You will be WAY ahead!

 

[leonz]

Yes, it is true, statistically. You are confusing anecdotes with statistical data.

Anecdotally, some people come out ahead with an extended warranty. Statistically, most people lose or it would not be profitable for the insurer. Think about it.

Unfortunately for the end user who may be a homeowner or a man or woman of the soil (I bet you thought I would forget the FHOHH, HCFO, COO) etc. its an algebra problem in its smallest form used in finance.

An example:


The payment period of 6 years maximum for a BX or other beast of burden plus sales taxes set up and delivery charges in the final quote plus the cost if the bumper to bumper warranty is the total purchase cost (zero interest is excluded for the obvious reasons).



If the bumper to bumper warranty is purchased for the seven year life of the loan the time period is 2,190 days over seven years.


The cost is $1,000.00 for the extended bumper to bumper warranty as an example; over the life of the loan being 2,555 days for 6 years/72 months being $1000.00 U.S.D. divided into 72 months-2190 days which gives you the cost per day of 46 cents per day (rounded) not including interest expense on the extended warranty if known or discussed by the machinery seller.


The commercial use of some machinery prevents the use of an extended warranty or shortens it in some cases.

 

[jlsmith]

It all boils down to what your doing with the tractor. For me it is worth paying for the ext warranty, it saves me money in the long run. For the average person who uses it around the house and land it prob isnt worth it. If i ever get to the point i only use the tractor on my farm just doing my own hay and mowing ect i prob wont get the ext warranty (if i buy another new tractor).

 

[Travelover]

.......... I was refering to the comment about the coverage only covering you threw the middel of your coverage. That part isnt true,

I don't think you understood what he said. Statistically most quality failures happen fairly soon, while under warranty, or as much time goes on, things wear out and fail. That is the bathtub curve referred to. The extended warranty tends to protect you in the flat portion of the curve - the bottom of the bathtub.

Bathtub curve - Wikipedia, the free encyclopedia

............ As an example i bought the warranty on one of my tractors a few years back for $1800 and got to use the warranty twice now. The cost to fix the tractor both times included was around $4800 so i saved $3000 by doing so. Its not in everybodys best intreast to purchase the warranty but in my case where my tractors are used everyday 8 to 10 hrs a day it was in my best intreast to do so.

Yes, more anecdotal evidence, but if you came out ahead you are the exception, not the rule. It can't be otherwise or they would lose their shirts.

 

[Travelover]

Unfortunately for the end usier who may be a homeowner or a man or woman of the soil ................
The commercial use of some machinery prevents the use of an extended warranty or shortens it in some cases.

I'm sorry, I don't get your point.

 

[jlsmith]

Travelover i agree with what you are saying. that why i said earlyer it depends on what type of work you are doing. In my case as many hrs as i put on my tractors it is worth it to me. In many other cases where a person is not using a tractor as much it prob isnt worth it to him. As much as i use mine i know something is going to wear out so i am willing to pay up front to have someone else pay the bill later. Like it was said most who take the ext warranty will never use it. But its like getting full coverage insurance on your car, people get it and never have to use it. Its only good if something goes wrong.

 

[Ford tractor]

Extended warranty is it worth it? I'm interested in your opinions. I own a B7800 with almost 300 hr, I use the tractor on my 10 ac of land. She gets a good workout but is not abused.
The extended warranty gives the same coverage as the basic warranty.

Thanks For your opinions.


Stephen

Extended warrantee is the highest profit margin thing sold.


do the math.

 

[Travelover]

Travelover i agree with what you are saying. that why i said earlyer it depends on what type of work you are doing. In my case as many hrs as i put on my tractors it is worth it to me. In many other cases where a person is not using a tractor as much it prob isnt worth it to him. As much as i use mine i know something is going to wear out so i am willing to pay up front to have someone else pay the bill later. Like it was said most who take the ext warranty will never use it. But its like getting full coverage insurance on your car, people get it and never have to use it. Its only good if something goes wrong.

I didn't realize that tractor extended warranties didn't take into account the hours that you use the tractor. With cars, of course, it is so many years or so many miles in the extension. If you can use up a tractor while still under the extended warranty, I sure see your point.

 

[jlsmith]

I didn't realize that tractor extended warranties didn't take into account the hours that you use the tractor. With cars, of course, it is so many years or so many miles in the extension. If you can use up a tractor while still under the extended warranty, I sure see your point.

The warranty i get is add. 5 years and 7500 hrs.:thumbsup:

 

[ETJ]

Kubotas are reliable, but they are also expensive to fix. Like a BMW or Benz. The warranty is insurance you get to be around to collect on. I think they are good on tractors and flat panel TVs if you buy from the Manufacturer. Too much trouble and poor reputation for third parties selling warranties.

 

[helvit]

Never say never. I said no to the Toyota salesman, then out of curiosity asked for the parts cost of the master cylinder which controls much of the vehicle stability control system. $2500 at that time. So for $900 I bought a bumper to bumper 100,000 mile extended warranty on a new 2004 4-Runner. Standard warranty was 50,000 miles. At 60,000 the front differential was replaced for the $50 deductible. Then the transmission. Then a couple of wheel bearings and a broken plastic cowling. Then a brake cylinder and a shorted $3500 computer. Then an air conditioner repair on the other side of the continent. Then struts and shocks. Then I traded it at 101,000 on a new SUV from a different manufacturer, and needless to say bought the warranty. Not quite as dramatic for my wife's last two cars, but any modern vehicle with their very expensive electronics parts seems ripe for a multi-thousand dollar hit. You have to bargain for a decent price on those warranties among competing dealers. These expenses may not be life threatening but they can cut pretty deep. I'd rather be hit for the cost of unused insurance bought with the expensive tractor or car than be hit with the same cost for a repair that shouldn't have happened.

 

[Travelover]

All I can say is that the plural of anecdote is not data.