64% of Dealers Report Encountering ‘Chipped’ Equipment

Almost two-thirds of dealers report altered emission systems come through  their shops at least occasionally, according to the 2024 Farm Equipment Dealer Business Outlook & Trends report. 

Just over 10% of dealers say they’re seeing these “chipped” machines regularly. While 54% say they’re seeing them occasionally. Just over one-third of dealers said they do not? receive machines with altered emissions systems in their shops.

About 46% of dealers say they have policies in place for how to handle altered emissions systems when they encounter them in customers’ machines.

When it comes to what those policies were, many dealers say they simply refuse to work on the machine at all. Some also say they will attempt to educate the customer on the issues the alterations can create, such as warranty consequences and the potential EPA issues.

Some dealers say they unhook or deactivate the device when they find it. One dealer says, “If possible, we unplug any ‘chip.’ We also try to explain the issues that these things can cause — it generally falls on deaf ears.”

Many dealers also note they will return the machine to its factory settings after removing the chip. One dealer says, “We alert management and then estimate the reconditioning needed to put equipment back to spec. Then we take it to a salesman and charge it back to him if a fault is discovered or back to the customer.”

A few dealers say they will work on the machine, though most said it was only under certain circumstances. As one dealer said, “If alteration is causing the problem, we will put it back to stock settings, or we won't work on it. If the alteration is unrelated to the problem, we will overlook it. For trade-in, we will have to be able to put it back to stock settings, or we won’t take it on trade.” 

Another dealer says they have liability agreements customers must sign before the work begins.

For more info from the 2024 Farm Equipment Dealer Business Outlook & Trends report, click here.