Insurance Extended Warranty

[dennis5150]

Has anyone had any experience with the Kubota extended warranty? I am buying an L3901 and wondering if the extra $750 for one year (750hrs) is worth it.

 

[ericm979]

On average you'll spend more on extended warranties than you'll get from them. The warranties are priced using actuarial data so the warranty company knows how much they will be paying out in claims. They then add profit for themselves and for the salesman. If you self-insure by setting money aside you can avoid paying that profit. Some extended warranty companies will use the fine print to weasel out of paying claims.

I never buy extended warranties. I've made warranty claims on only a couple of the various new vehicles I've bought over the years, and they were small.

 

[super55]

If I was using my tractor commercially or for ag use I might consider the extended warranty. Big question is are you going to get 750 hrs on the tractor or 50 hrs in that year.? Plus if your a business or filing as 1040 F you can probably deduct the warranty work on taxes as hired work expense even if you do not use it because you are paying for a service in relation to your business.

 

[dennis5150]

Good advise, Thanks guys