Exploring the Value of Used Equipment Warranties in Resale
9/25/2025Used equipment markets are getting tighter, buyer sentiment is cautious, and risk management is top-of-mind for both dealers and lenders. But one factor that often flies under the radar yet plays an increasingly important role is equipment warranty coverage.
In a recent conversation, Tractor Zoom's Director of Insights Andy Campbell and Jake Bryce of Machinery Scope explore how extended warranties impact equipment value, speed of sale, and buyer confidence. Backed by real Tractor Zoom Pro data and grounded in Jake’s experience as a farmer, dealer, and warranty provider, the discussion reveals powerful insights for today’s ag equipment ecosystem.
What you’ll learn in this article
- How used equipment warranties influence resale value and buyer confidence
- The real price premium attached to tractor warranty coverage, based on auction and listing data
- Why dealers should proactively offer and list warranties to move used inventory
- What warranty-related trends mean for equipment risk management
- Actionable takeaways for both equipment dealers and ag lenders
Watch or listen to the full Jake Bryce interview on our Beyond the Hood podcast page.
Equipment warranties as a value lever and risk mitigator
Extended warranties aren't just a buyer perk. They can serve as a powerful tool to boost resale value, accelerate time to sale, and de-risk ownership for the next buyer. Jake Bryce refers to them as “an incredibly powerful tool” when used well.
Tractor Zoom Pro’s auction data confirms this relationship between warranties and resale value:
- Row crop tractors with warranties sold for up to 5 – 6% more at auction compared to similar models without warranties.
- This premium peaked around zero to 1,000 hours, and tapered off around 2,000 hours, when warranty coverage typically ends or loses value.
- Dealer listing data showed a similar trend: Listings with warranties were priced higher, though not always with as clear a premium as in auctions.
Jake emphasizes that warranties act as an efficient mechanism to transfer risk, reducing uncertainty for both the seller and buyer. “In a market where farmers might be taking $100/acre losses,” he explains, “a $40K repair bill could break them. Warranties help protect against that.”
The data underlying the value
Andy shared multiple layers of Tractor Zoom Pro analysis from 2024/2025 listings and auction data:
- John Deere 8R 370s with warranties showed an estimated $25,000 price premium at zero hours.
- However, variance in pricing was higher for warranty-backed units—suggesting that while dealers know there's added value, they're less precise in pricing it.
- Non-warranty units followed a tighter price/hour depreciation curve, with an R² of 0.8 vs. 0.55 for units with warranties. Translation: warranty units have more “gray area” in perceived value.
8R 370s with warranties start with a $25K premium and slowly diminish until their value equals those without a warranty somewhere around 2,000 hours.
Despite that ambiguity, one fact stands out: Buyers do place real value on extended warranties, even if they don’t always say it aloud. “If you polled most farmers, they might say, ‘No, I don’t need a warranty,’” Jake noted. “But when it’s time to pull the trigger, they gravitate toward those units that reduce risk.”
Are warranties a sales accelerator or not?
The data was nuanced on whether warranties actually speed up a sale:
Tractor Zoom’s initial analysis showed some indication that warranty-backed equipment moves faster, but not conclusively at a 95% confidence level. However, one key note is that warranty-backed units are often priced higher, which could explain why they don’t always sell faster in raw timelines. Also, this data is comprised of four years of sales, from 2021 to present, which spans very different periods of buyer sentiment and different types of machines.
When tightening up the scope of data to include just John Deere 8R series tractors sold in 2024 and 2025, their is an interesting shift in the days advertised.
The average days advertised for the 8Rs with warranty was 154 days, compared to those without warranty, which sold in 207 days.
Regardless, the value of preparedness can’t be overstated. As Jake puts it, “Just having the warranty as an option (even if it’s not added yet) is powerful. It’s like recon. You don’t have to do it, but being ready to do it gives you flexibility and confidence at the point of sale.”
What this means for equipment dealerships
Use warranties as a strategic tool
Warranties are especially powerful for aged inventory (machines that have been sitting for too long). As Andy Campbell notes, aged inventory in summer 2025 is increasing across several categories. Adding a warranty could make these units more attractive without immediately dropping the price.
List warranty coverage clearly
According to Jake Bryce, many dealers fail to mention warranties in their listings, even when coverage exists. Omitting this detail can lead to missed opportunities, both in value perception and buyer visibility. “Make sure it’s in the listing. Make sure it's searchable. Don’t leave money on the table.”
Understand the Cost vs. Value spread
Jake pointed out that adding a warranty might only cost 1 – 2% of equipment value, yet result in a 5 – 6% premium at sale. Dealers should evaluate this spread as part of their margin and inventory strategy.
Position warranties as part of the sales conversation
Jake recommends offering coverage options proactively, especially if the unit was recently inspected. This removes buyer objections and keeps the deal moving—particularly valuable when speed of sale affects carrying cost and cash flow.
What this means for ag lenders
Understand the role of warranties in determining collateral value
Ag lenders who assess collateral should account for warranties when evaluating risk. If a unit includes active coverage, it may indicate lower maintenance risk and stronger market appeal, which is a valuable consideration in the underwriting stage.
Expect more requests for warranty-backed units
As buyers get savvier, they may prefer machines with warranties, even if they don’t explicitly request them in conversations. Lenders should be prepared to support financing for these units and understand what the added cost buys in terms of reduced exposure.
Watch the warranty-provider landscape closely
Bryce mentions that OEMs are cutting back on goodwill repairs, meaning more responsibility could fall on the owner or the lender if failure occurs. Third-party warranty programs like Machinery Scope, when reputable and transparent, can be a reliable alternative to shifting OEM policies.
The bottom line: Warranties = flexibility + confidence
In a slower market, every tool that increases profitability counts. Extended warranties might not always make or break a deal, but they can often tip the scale in your favor.
For dealers, this means more tools to move inventory faster and more profitably. For lenders, it’s a layer of protection against repair risk and a sign of unit quality. And for buyers? It’s confidence—knowing their investment won’t surprise them with unexpected costs just when margins are tight.
Jake Bryce sums this up well: “We’re not trying to hit home runs. We’re just trying to hit singles, over and over. And warranties can help us get on base.”
For more data-driven insights, thought leadership content, and in-depth conversations like these, subscribe to the Tractor Zoom newsletter or book a demo of Tractor Zoom Pro to explore how our equipment comps, market trends, and real-time valuation tools can support more informed sales and lending decisions.