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Discussion in 'Heavy Equipment & Pavement' started by QwikDraw, Dec 6, 2009.
So it is voluntary?
Deere sucks it up and pays out. What the hell else would they do? That's part of the risk they take. They also adjust their statistical model to reflect the problems they've encountered, changing the pricing structure just like an insurance policy (which as Digdeep already explained this is). They pay people with PhDs in mathematics to figure this out for them, and they are rarely wrong. The reason for the severe duty warranty is to cover people who would not be covered by the normal warranty. The higher cost allows Deere to make up for the higher claim rate.
No, it's not voluntary. What I meant was they more often cover items that aren't warrantied (according to the text of the purchase order which the customer signs) than they reject claims. There are a lot of claims that should be rejected, but aren't. You know how every once in a while someone gets on here and bitches because their machine broke down 2 weeks out of warranty and the dealer/manufacturer wouldn't do anything about it? That's rare, even though in principle it shouldn't be covered. Would your insurance provider cover an accident that happened 2 weeks after your coverage lapses, ya know, because you're a good customer and all? Hell no - but that is effectively what you are asking the manufacturer to do, and they usually do it. Then you wonder why the warranty keeps getting more expensive.
Excellent points. The OEM steps up to the plate 99% of the time, even though the machine may technically be out of warranty, even though the failure isn't due to a "defect in material or workmanship" (what warranty is supposed to cover), etc.
I have had customers get ahold of the Bobcat regional Manager complaining about how our dealership "stiffed him", "left him high and dry", "lied to me", etc. There is usually more to the story (definitely two sides) when the Rep ends up looking into it.
The rates would go up the next year if there were an unusual amount of failures, but like DeereMan85 states the OEM and the insurance company pay it our as long as it is covered under the standard terms of the extended coverage.
Doing something that is explicitly against the operating instructions, altering the mechanics of the machine, having the owrk done by an unauthorized mechanic would all be things that could/would void warranty.
I have never heard of an OEM not covering something because a "customer cost them too much money". Warranty clearly covers "defects in material and workmanship", regardless of cost.
My neighbor had an injector go out in his 332 and it was out of warranty in years but in hours it was still way under so the dealer stepped up and took care of everything and even replaced all 5 injectors not just the one bad one.
They are all 4.4L engines. Where are those other 4.4L engines made if Perkins isn't making them? How can CAT "discontinue" their deal with Perkins if they own 100% of Perkins?
That is a good outcome. As I stated earlier, the goal for all OEMs, regardless of brand is to make sure the customer "receives fair value" for his purchase.
Bobcat screwed me back in 02, and Deere tried to screw a friend in 04. They must have had a change of heart since then. I will say one thing if you plan on running tracks or VTS with your warranty, get it in writing!