Buying Tips for Extended Warranties
When one of your dealership’s customers purchases new construction equipment, it automatically comes with a manufacturers warranty. Details vary from one manufacturer or machine type to another, but your customer is covered for a specified number of months or operating hours. Then what? They could wing it without the safety net of an extended warranty, but that can be a risky decision.
As equipment ages and works more hours, parts eventually wear out or break down unexpectedly. Productivity falters, even a replacement machine is available. Extended warranties make good business sense because they give your customers peace of mind, protecting their bottom line and profitability as well as short-term cash flow and work schedules.
Extended warranties add value for dealers as well as customers
ADI Agency’s extended warranties are designed specifically for construction equipment dealers and OEMS to offer directly to your customers. These Protect My Iron® products boost customer convenience and loyalty while adding another revenue stream for your dealership. Customization options enable buyers to get exactly what they need.
These tips will help you discuss the options with customers, so they can make a cost-effective choice for their machine and budget:
- What is covered (or not) — for example, the customer might want to cover only the hydraulics or fully protect the machine by covering powertrain as well as hydraulics
- Term of coverage – total number of months or service hours
- Deductible options
- Optional add-ons, such as travel costs to a repair site or to transport the machine
- Transferability — is the warranty transferable, if the customer decides to sell the equipment?
A well-chosen extended warranty can help your customer save money in the long run, protect their equipment investment, and even help them get a higher price if they decide to sell the machine. For your dealership, Protect My Iron® extended service contracts and other insurance options enable you to serve customers more comprehensively and increase sales, and that’s good for your business.