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How to Maximize Warranties of Backhoe Loader

Backhoe is the backbone equipment for many industries like mining, infrastructure, construction and farming. Being such a versatile machinery catering to so many verticals of business, obviously it is bound to be priced on the higher side. Repairs and spares also cost a lot as original items from company need to be replaced otherwise it can cause permanent damage to backhoe as well to the operators. As the equipment works on rough terrain, there is bound to be need for replacement of part time and again.  

Extended warranty protection

Companies offer warranty, however these are only for a year or two.  Having an extended warranty is like a safety net for your equipment provided relief from financial burden due to equipment failure. It protects your backhoe from issues that can be attributed to faulty materials or workmanship for an agreed period of time like two years or 5 years. Most warranty covers every part of your machine, except for attachments, and inclusions of parts that are not approved by the manufacturer and bulbs and fuses.

The extended warranty is offered by all manufacturer at the time of equipment purchase. These days many of them want to offer better protection to customer so give the option to procure one before the expiry of the original warranty.

Maximize warranties of backhoe loader

Purchasing an extended warranty cover involves additional cost. However, one can prudently get a cover for certain components or for labour or both by doing homework on the costs involved. Here a few considerations:

  • Every Original Equipment Manufacturer would have historical data on the life cycle of the component. Managers can look at the various components ‘life, get an idea of how long they will last, the cost of replacing them and decide on bringing them under warranty cover.
  • Certain applications like demolition, forestry scrap handling are heavy impact applications. These can cause the equipment to wear and tear faster than the simpler ones like digging or landscaping. The terrain of work is also important consideration for selecting warranty cover.
  • Certain modifications carried out on the equipment like welding for increasing bucket capacity, utilizing attachments such a thumbs that are not suited for the size/type of machine, improper installation of certain attachments will not be covered by the warranty cover. If these have been undertaken then, there is no point in going for the cover for those components
  • Maintenance is key for warranty coverage. The manufacturer lays down operating and maintenance instructions. If these are not followed then, they have rights to reject the cover claim. One must remember the warranty providers are similar to insurance company. Unless you have adhered to process and procedures they would not bear the cost of failures. 

Telematics and Warranties

Most manufacturers have telematics installed in the equipment to monitor the working of the equipment. This provides diagnostic reports which can determine the working/usage of the equipment and reason of failure. Equipment owners and users can use the data obtained to track the behaviour of the operator to ensure its operated and maintained as per the manual. Telematics can be used by the manufacturer to deny warranty claims and the equipment owners to prove their right to warranty claims.

Cost of extended warranty

Cost factor will depend on the coverage, length of the agreement and type of equipment.  Every equipment owner must customize the coverage type that best meets their individual needs. Also, check if the warranty can be transferred to the next owners and if the manufacturer authorizes the warranty and are repairs performed by authorized dealers with trained technicians.