I know your comments are normally well-researched, but in this case you are wrong. AGCO re-sell their warranty risk to third parties, just as any insurance company does. In this case AGCO recently sold a significant package of risk to Swiss Re and Gen Re. It was well covered in the trade press.
Extending warranty after 12 months
- Thread starter ffbb
- Start date
I know your comments are normally well-researched, but in this case you are wrong. AGCO re-sell their warranty risk to third parties, just as any insurance company does. In this case AGCO recently sold a significant package of risk to Swiss Re and Gen Re. It was well covered in the trade press.
startinghandle
Member
yes the 2 brothers started in the mid 1960's so have a few stories to tell but the business is now run by the next generation but they still assist
Cowabunga
Member
- Location
- Ceredigion,Wales
Nothing surprises me any longer. I have never understood why, for instance, banks and AGCO and others, sell off physical tangible assets such as their bank buildings and AGCO/MF's headquarters to third parties and then pay high rents to use them, while the value of those assets continue to grow. Running their wealth down, it seems to me. Maybe they used the capital released to build more capacity to generate more cash, but that's not true in the case of most institutions and companies that do this, I don't think.
Anyhow that's way off topic. What is on topic is that AGCO sold the risk to others. That is 'News', because otherwise it would not have made the trade press. I do not believe they used to do this, but if they did, are claims still administered by AGCO themselves or by third party contractors?
Claims will still be administered by the normal AGCO representative, that's typical in reinsurance deals.
Almost all insurance companies do the same. If you have an insurance policy with Direct Line they almost certainly don't underwrite it, they merely administer the payments and payouts.
It's the same if you have a mortgage. You might send your payment to AMC, Lloyds, RBS or whoever, but the underlying mortgage belongs to some unnamed fund in the Cayman Islands or Jersey.
Cowabunga
Member
- Location
- Ceredigion,Wales
Warranties cost. They are never 'free'. You either have the cost imposed on you or you have the choice to have a less expensive tractor with the option of paying the extra cost of the warranty.
When comparing the cost of purchase, you should consider not only the net purchase price but the overall cost of running that machine for several different time periods, including things like warranty, the hours it is utilised, fuel consumption and likely resale value verses productivity.
icanshootwell
Member
- Location
- Ross-on-wye
In your case, put 2 quid in, i heard your good for it.
- Location
- Lincolnshire
even if its only 3 years old? what is the max hours for say a 5 year warranty?
Chae1
Member
- Location
- Aberdeenshire
Fendt do, not sure what all it covers though.
Glaws
Member
- Location
- Gloucestershire
Do you have a link to reference this?
- Location
- norfolk
Plenty of Fendts around this area on 10000 hr warranty packages, most will do it in under 5 years, iirc there are no stipulations as long as it’s dealer serviced
Cowabunga
Member
- Location
- Ceredigion,Wales
There was a big Court case between AGCO and a re-insurer and a Lloyds syndicate about the re-insurer and the Lloyds syndicate not honouring warranty payments on some faulty wheel motors on a Challenger sprayer or something. AGCO paid out for the customers but couldn't get the money out of their re-insurers.
https://caselaw.findlaw.com/ga-court-of-appeals/1616862.html
I can't find anything about AGCO selling the risks, as was claimed, but that doesn't mean it didn't happen. Even if it did though, it doesn't necessarily mean that their mainline product risks are treated in the same way as more speciality risks, although they may be for all I know.
I read it on Eikon, it was bundled in an info package relating to some bonds AGCO were trying to sell a few months ago. It's probably on the Reuters site if you search.
Had a similar quote couple of days ago but Rep told me it was only 600 but not got it in writing so I wires could of been crossed.
agco and plenty others doing 8000hr FULL warranties and 10000hr will become the norm.
iv got 4no tractors on 8000hr full warranties
10000hr full warranties offered by some construction manufacturers already
agco warranty system is simply great.... never had an issue with them trying to wriggle out of anything
yes fendt have had recent well documented issues but agco have been faultless at sorting out through the warranty process and dealer has also been faultless at offering stand in tractors when needed and turning the repairs round quickly
iv got 4no tractors on 8000hr full warranties
10000hr full warranties offered by some construction manufacturers already
agco warranty system is simply great.... never had an issue with them trying to wriggle out of anything
yes fendt have had recent well documented issues but agco have been faultless at sorting out through the warranty process and dealer has also been faultless at offering stand in tractors when needed and turning the repairs round quickly
startinghandle
Member
the last time I had anything to do with warranty was 1989 when there was water leaking down into the driver side floor of our Maestro van and it went back 3 times to be fixed and still it leaked, I don't buy from dealers anymore as I don't want to pay for something that I don't want and that is warranty, while on the subject of warranty I remember the postman telling me that the post office have a huge discount on their vans because they buy a big quantity and no warranty