Heavy Equipment Protection Choices – Warranty Or No Warranty

Are heavy equipment warranties an expenditure or a smart investment? 

In the world of heavy construction equipment, buyers often find it confusing to differentiate whether warranties serve as a financially savvy option or not.

To find out if warranties are a liability or not, let’s analyze their advantages and drawbacks along with their significance for heavy equipment protection.

Understanding The Evolving Heavy Equipment Management Landscape

Originally, warranties served as a game-changer option for heavy equipment suppliers more than the buyers, and the manufacturers.

However, with the changing landscape of heavy equipment and increased equipment demand, the narrative is changing too.

It feels like using a smartphone when it’s software lifetimes out. Heavy equipment buyers, including those who have invested in automated equipment, feel a similar experience.

Does Warranty Measure Heavy Equipment’s Longevity?

The days when heavy equipment warranties were restricted to repair rates only are gone.

Nowadays, sellers provide warranties that guarantee the productivity of heavy equipment beyond repairs, as well as software updates. It enables a lasting future of heavy equipment with the production of innovative models.

But is it true that opting for an extended heavy equipment warranty unlocks a brighter equipment-buyer future?

• What are the consideration parameters before selecting the extended equipment warranty? 
• Evaluation of current repair and maintenance budget. Is it high enough to keep your company running? 
• Find out if your company is following a strategic risk management approach. Note down the steps and evaluate the impact/outcome graph.
• Most importantly find out the risk appetite as well as the economic resilience of your company. Check if you can afford an extended heavy equipment warranty. 
• Determine who can back the warranty plan. Who can serve you well in needy times?

Clear and fact-based answers to all these questions will help you find out the profitability ratio of buying with an extended warranty for heavy equipment.

Does An Extended Warranty Offer More Than Affordability?

Fortunately, the competitive advantage of an extended warranty on your heavy equipment is much greater than just cost savings. The benefits of having a heavy equipment warranty include the;

• Insightful data to analyze heavy equipment’s reliability
• Accomplishment of efficient equipment repairs
• Increasing heavy equipment’s resale value due to the complete record of maintenance history
• Better opportunity leading towards asset management
• If planned and managed smartly it can serve as a valuable part of the equipment management strategy that makes it much more beneficial than being an expense

What Are The Consequences Of Opting Warranty-Free Road?

Let’s discuss the other side of the coin which is opting for a non-warranty route. Certain heavy equipment companies don’t require the integration of extended warranties especially if most of their inventory holds a vintage collection.

If the companies are good at managing the repair and replacement records and maintaining equipment’s condition for better sales they don’t need to extend.

But for that, they must have a strategic heavy equipment management practice that does not require any additional assistance.

With that being said, if you opt for extended warranties make sure your insurance coverage embarks as an adequate one!

The Final Call Is Yours

The fast-paced heavy equipment company is facing a roller coaster in terms of managing the supply/demand cycle. What awakens the heavy equipment holders is the need to invest in warranties. They still question if investing warrants a profitable investment or long-term liability.

However, concerning the extended warranty landscape, if your heavy equipment is licensed by Original Equipment Manufacturers (OEMs), you should know that they can efficiently handle the machinery.

On the contrary, if you are hooked to a third-party warranty service, conducting a thorough background check is a must.

Since it’s their business to sell warranties, they can deny claims or through hidden charges in your face.

Nonetheless, if you think your business holds a higher level of financial resilience and risk tolerance level then jumping into the market without a warranty can also work fine for you.

Anyhow, selecting a heavy equipment warranty program purely depends on your business model, inventory strength, and overall financial stability.

We do suggest conducting market surveys, comparing warranty providers, and analyzing your business module before finalizing the decision.