Extended warranty coverage options
Komatsu Care programs help you efficiently determine total cost of ownership during your machinery’s lifetime
Machinery comes with a standard warranty that covers a certain number of hours or years. Once the machine hits those marks, the owner covers any other, and often unpredictable, expenses. Extended warranties offer the advantage of, for a relatively nominal monthly charge, the peace of mind that when service or repairs are needed, they will be covered, mitigating against being hit with a potentially big bill.
Komatsu offers several options, including Komatsu Care Plus for extended maintenance for up to 10,000 hours, Komatsu Care Plus II for extended maintenance and repair for up to 12,000 hours, and Komatsu Care Advantage for extended repair coverage. Three options are available with Komatsu Care Advantage: Powertrain, Powertrain Plus and Premier. Services are performed by Komatsu-certified technicians using Komatsu Genuine Parts and fluids.
“Most Komatsu construction machines have Komatsu Care Complimentary that covers scheduled services for the first 2,000 hours or three years, as well as two diesel particulate filter exchanges,” said Ryan Boekeloo, Manager, Aftermarket Contract Business, Komatsu. “Komatsu Care Plus extends that coverage after the complimentary period. Komatsu Care Plus II provides the same with the addition of repairs for further certainty, and it is currently our most utilized option. It’s geared toward those that want maintenance and repairs covered but will handle taking care of consumable items themselves.”
Komatsu Care Plus III is an option for larger wheel loaders, rigid frame trucks and dozers. This program is designed for businesses such as quarries and mines that keep equipment for 30,000 hours before rebuilding or taking it out of service. Like the other Komatsu Care programs, it covers scheduled maintenance and repairs. Komatsu Care Plus III is designed to be even more comprehensive because it includes brakes, hoses, pins and bushings, and the cost is based on utilization.
Making variable costs associated with total cost of ownership (TCO) — repair and maintenance, fuel, hourly wages — predictable can help you budget and avoid large, unplanned expenses. It also contributes to efficiency in estimating, bidding and determining operating expenses. One way to support effective cost management is to purchase an extended warranty and extended periodic maintenance with fixed costs for maintenance and repairs.
Komatsu Care Plus cost per hour
The Komatsu Care Plus cost-per-hour billing plan is another option that can help you take control of your ownership and operating costs as machines age. The plan provides unlimited scheduled maintenance services at a fixed rate for 60 months.
This subscription-style billing plan gives customers a cash-flow-friendly alternative and lets them extend coverage beyond a warranty period. There is a nominal upfront opt-in charge. Customers then set their cost per hour for 60 months and are billed based on the machine’s monthly usage. Price protection is built in as the rate doesn’t change.
Benefits of Komatsu Care Plus cost-per-hour billing include:
- Unlimited hours
- Up to 60 months of coverage
- Price protection
- Total periodic maintenance (oils, filters, labor, travel and oil sampling)
- Monthly payments based on machine utilization reported in Komtrax
- National coverage
Usage is tracked with Komatsu’s Komtrax telematics system. Added peace of mind comes in knowing that, as with other Komatsu Care offerings, the services performed with Komatsu Care Plus under the cost-per-hour billing arrangement are done by certified technicians.
This billing arrangement is restricted to current production models such as -11 excavators. Hourly rates vary depending on the machine. Once the initial 60-month period ends, customers may opt in again at the current rate. Customers can cancel their subscriptions any time after 1,000 hours and two completed services without penalties or fees.
“Customers often add coverage with the initial machine purchase, making the transition from initial Komatsu Care to their extended program part of the purchase price and seamless,” said Boekeloo. “They can add on later, too. The coverage they choose will depend on a few factors, so we recommend consulting with their distributor representatives to get the right one for them.”
