Why a Warranty?

Dealers and Manufacturers of heavy equipment have found that the utilization of an extended warranty program is an indication of the superior quality of their products and services.

Providing an extended warranty guarantees the powertrain will be protected from early failures due to a defect in material and workmanship long after the standard warranty expires.

• Increase Sales
  Use of an extended warranty program can increase machine sales as well as parts and services sales.
  
  
• Gain Competitive Advantage
  Extended warranty can provide a competitive advantage in bid situations.
  
  
• Increase Margins
  Parts and Service margins are increased in that the warranty reimburses full retail parts and labor cost.
  
  
• Retain Account Control
  Parts and Service volumes are increased in that warranty work is done by the Dealer/Manufacturer who sold the piece of equipment unless the machine has left their service territory.
  
  
• Increase Resale Value
  Warranting the entire lease/rental fleet allows this equipment to be sold as used, with the warranty included.
  
  The rebuilt, used and component terms can also be used for this purpose, however, these terms require Dealer/Manufacturer participation.
  
  
• Reduce Inventory
  Dealers/Manufacturers have utilized warranty along with targeted advertising to reduce inventories in selected product areas.