As manufacturers tighten their belts on discretionary spending for out-of-warranty failures, equipment dealers are facing a new challenge. Many ag and construction equipment dealers have shared with us that manufacturers are becoming less likely to cover failures that occur outside of the base warranty period. This leaves both dealers, and their customers exposed to significant financial risks when unexpected mechanical failures occur.
Now, more than ever, offering extended warranty protection plans is essential for your dealership and your customers. Here’s why:
- Protect Your Customers – Extended warranty plans provide a safety net for your customers, shielding them from the high costs of major mechanical failures. With repair costs for engines, transmissions, and hydraulic systems continuing to rise, extended coverage gives customers peace of mind and helps them maintain their operations without financial disruption.
- Boost Customer Loyalty – Offering extended warranty options demonstrates your commitment to your customers’ long-term success. By proactively addressing their risk management needs, you position your dealership as a trusted partner and differentiate yourself from competitors.
- Increase Service Department Revenue – When customers bring their equipment in for inspection and enroll in an extended warranty plan, it often results in additional service opportunities. From routine maintenance to pre-qualification repairs, this drives revenue while ensuring equipment is in peak condition.
- Enhance Equipment Resale Value – Equipment with extended warranty coverage is more attractive to buyers. This increases trade-in value and helps your dealership close sales more effectively, whether for used inventory or trade-ins.
- Mitigate Financial Risk for Your Dealership – When equipment failures occur outside of warranty and without extended coverage, the financial burden can shift to the dealership. Extended warranty solutions eliminate the guesswork and protect your dealership from taking on unnecessary risk.
Act Now to Protect Your Dealership and Your Customers
Machinery Scope offers extended warranty solutions tailored to the unique needs of your customers and dealership operations. By enrolling equipment in a warranty program, you not only safeguard your customers’ investments but also strengthen your dealership’s bottom line. Don’t let reduced manufacturer support catch you or your customers off guard. Contact us today to learn how our extended warranty solutions can help protect against costly surprises and ensure peace of mind for everyone involved. We are here to help build a stronger, more resilient dealership.
