One Solid Reason Why You Should Purchase An Extended Warranty for Used Machines at Equipment Auctions
Purchasing used construction equipment at an auction can save you money. That’s good if you’re just starting your business and need to stretch every dollar as far as possible. And it’s good for veteran contractors who know that keeping expenses low helps increase profitability. But if you’re going to buy used machines at equipment auctions, you’ll want to invest in extended warranties, too.
Why? One indisputable reason . . .
Used machines are just that – used.
The older any piece of construction equipment gets, the greater the likelihood that something will go wrong. Wear and tear take their toll. But you may have no way of knowing whether the machine was treated well or poorly. It’s not up to the auction company to inspect the machinery they sell, and you’re buying the equipment “as is” — whatever that is. With so much information available online these days, you may be able to research the machine you’re interested in ahead of time, to learn about its history.
But the truth is, you cannot be entirely sure about the machine’s condition. And once you buy it, it’s yours. Getting a great price on used machines is no bargain if they break down and can’t earn money for your business. If the equipment is nearing the end of its original warranty, or that coverage has already expired, an extended warranty protects you and your investment.
While equipment auctions may not warrant machine fitness in any way, you can at least choose to do business with a company that has a top reputation for quality. Not all auction companies are created equal, and unfortunately some follow less-than-stellar business practices.
Here at ADI, we work closely with Alex Lyon Auction, a trusted name in the construction equipment auction business. We help Lyon buyers instantly protect their “new” used machines with Protect My Iron extended warranty service contracts tailored to their individual needs.
The Protect My Iron program offers multiple levels of coverage, from just the powertrain to the whole machine, and it comes with custom warranty management software you can use to store and manage warranty and claims information for all the machines in your fleet. Customers love it, because they get both convenience and peace of mind. And why not? PMI was developed by our team right here at ADI – people with extensive construction and insurance experience.
Buying from your local dealer may be a smarter decision
There are many peripheral expenses associated with buying at equipment auctions, beyond the cost of the equipment itself. You have to invest time and money in personal travel, transporting the machine back to your location, and making any repairs that are needed immediately so you can put the equipment into service.
In effect, these all drive up the actual cost of the equipment. Is it still a “steal”? Or even fair-market priced? It may be. Or your dealer may be able to give you a better deal.
Whether it’s a piece of equipment from their own rental fleet, a trade-in from a customer, or from some other source, your dealer knows the provenance of used machines they sell. If need be, they can go through the machine in their own shop and analyze its data history, to learn how much and how hard it’s been used. That way, you can get a more accurate picture of its condition and likely future performance. You have a working relationship with your dealer, so you trust them to give you solid advice.
Nonetheless, extended warranties still make sense
No piece of construction equipment is immune to breaking down, regardless how kindly it’s been treated or how much you can uncover about its past. Sometimes things just go wrong. With an extended warranty, you can accomplish repairs without dipping (deeply) into your cash reserves, and get that machine back to work.