Should I buy extended warranty?

[RatFish]

Hi all, I bought a new boat in March 2004. It has a 5.0L (220hp) carb Mercruiser with an Alpha 1. My factory warranty is for 2 years and expires in March 2006. I just got an offer in the mail from Mercury/Mercruiser to extend my warranty up to 4 additional years.<br /><br />1-Year, $357<br />2-Years, $630<br />3-Years, $840<br />4-Years, $1155<br /><br />I usually don't buy extended warranties and feel I'm way ahead of the game. But with the high cost of engine/outdrive repairs, I'm not so sure this time. I'm very meticulous about performing maintenance, so neglect should not be an issue. The boat is used in fresh water at least 90% of the time and when used is salt water I flush the engine (MST Guardian) and wash down the boat. Do you think I should buy additional coverage past the initial 2 years?

 

[crazy charlie]

Re: Should I buy extended warranty?

Sounds like a no brainer to me,go for it!!!!I would!! Charlie

 

[phatmanmike]

Re: Should I buy extended warranty?

Should I buy extended warranty?

why wouldnt you!?!?!?!?!

 

[JB]

Re: Should I buy extended warranty?

The reason that extended warranties (service contracts) are the most profitable product in the service industry is because they cost so much more than they are worth.<br /><br />The odds are very much in favor of never needing it.

 

[Johnshan1]

Re: Should I buy extended warranty?

If you take care of your package as you say, odds are you will never need the warranty just like JB said. You can do a lot of repairs for the cost of that 4 year warranty.

 

[crazy charlie]

Re: Should I buy extended warranty?

JB and Johnshan,I totally disagree.You CANT get a lot of repairs done for $1100 let alone all the repairs you may need in 4 years.You DONT buy warrantees for things like vcr,dvd,tv,stoves because the warrantee cost is a large percentage of the cost of the unit you are insuring.You DO buy a warranty for things like boats,cars,trucks where the warranty cost is only a small fraction of the cost of the unit you are insuring.This guy can warrantee his boat for 4 additional years for under $300 per year!! Where is the downside to that????There is none!!As I said before,its a "No Brainer" !!!

 

[roscoe]

Re: Should I buy extended warranty?

Most of these have so much fine print, co-pays, declining coverages, excluded parts or causes of the failures, that not much is covered when you need it.<br /><br />Another factor is whether or not the coverage is actually provided by the manufacturer, or a third party insurance company.<br /><br />I would check it over very very thoroughly before they got any of my money.

 

[phatmanmike]

Re: Should I buy extended warranty?

You CANT get a lot of repairs done for $1100

true, very true. i was just quoted 1400 dollars to rebuild my carbs, replace my thermostats, replace my batt cables and replace my control cables.<br /><br />that warranty will pay for itself the first time you use it.<br /><br />and if you DONT use it, then sign me up, i want one of THOSE motors ....

 

[JB]

Re: Should I buy extended warranty?

Well, we disagree then.<br /><br />Tell me what organization would sell a product that was not profitable for THEM.<br /><br />Profitable for them means that you pay more for it than it costs them.<br /><br />Mike, read an extended warranty and you will find that maybe the thermostats are covered, but probably not. The rest are disposables that are not covered.<br /><br />Few extended warranties cover anything more than catastrophic failures.<br /><br />When I was in the service business at least 70% of my profit came from extended warranties and service contracts that it cost me ZERO to service.

 

[rattana]

Re: Should I buy extended warranty?

I too agree with Roscoe & JB<br />There are almost no problems in the first few years, and most times the fine print says you need to have regular service records to keep warranty valid. Now if you do the maintenance yourself, I am sure the dealer will say that is not good enough. Nothing is for free.

 

[Boomyal]

Re: Should I buy extended warranty?

The only problems, with reasonable maintenance, that you are liable to encounter in years 3-6 would be things that the warranty would not cover, such as physical damage.<br /><br />Further more, 3rd party extended warranties are widely recognized and noriously known as a rip. Even with seamingly legitimate claims they are quick to find the fine print that you did not see and weasel out of paying.<br /><br />I vote, "Keep your money in your pocket"

 

[Johnshan1]

Re: Should I buy extended warranty?

Its obvious everyone has their own thoughts on something like this, but as JB says, why would they sell you a warranty? Its not because they care about you, they care about getting more of your money, period.<br /><br />If you want the peice of mind, great.<br /><br />I would rather spend the $1100 on general upkeep, you dont hear much about failures on a 6 year old unit, when you do its usually from lack of maintenence.<br /><br />myoutboards- $1400 for those items is absurd. I know you do your own work and are very proud of it, your not just making that $1400 figure to push your thoughts upon others are you? Just curious is all.<br /><br />-John

 

[Realgun]

Re: Should I buy extended warranty?

Heres what I do. I put the money in the bank then, if it is needed I use it. If not need then in 4 years you still have the money. <br /><br />Really as JB points out they are there to make a profit. Almost everyone here would buy a 6 year old boat that was maintained without the warrantee.<br /><br />Make a choice and live with it.

 

[Reel Poor]

Re: Should I buy extended warranty?

I bought Volvo Penta 2+4 for twin 5.0s {cant remember exact price,1500 or 1800 dollars per engine and drive package} and so far theyre ahead. They warranted a high press fuel pump {which I replaced on the water}.<br />I still have about two years left on my warranty, expires mar 06. I hope I never need it but if I do....<br />Maybe I shouldnt have bought an extended warranty for a "PROVEN PRODUCT".

 

[markvan]

Re: Should I buy extended warranty?

I have been a sales manager for a manufacturing company for the last 15 years, and without a doubt extended warranties generate the higher profit margin of any product we sell....and no its not just us it is an industry standard.

 

[Smedley]

Re: Should I buy extended warranty?

Like a lot of you, I was a salesman for several years. I sold major appliances for *ears. We were required to sell service contracts, not because *ears cares so much about customers, it's because on the monthly PNL(profit and loss), it's always a positive number for the company. *ears does go a little farther than any other company I've seen in that they provide annual preventative maintenance and break down warranty. <br /><br />Extended warranties, by nature, are not good buys for the consumer. Complete service plans are totally different. If the company is going to provide some preventative maintenance as part of the contract, it's not such a bad buy. But, if it is just a repair/breakdown warranty, it's only good for the company that's trying to sell it.

 

[bossee]

Re: Should I buy extended warranty?

The risk of a breakdown of your inboard is probably low so you would have to use your extended waranty.<br />If You service your inboard as recommended it should be enough. But I would probably go for the 2 year extended warranty just in case...<br />Not that much money after all.<br />But to me 4 year and $1155 - that would be to much for me at least.

 

[tommays]

Re: Should I buy extended warranty?

you really need to read it because it does NOT COVER any wear and tear items like if your bellows should get a leak in 4 years or if your in saltwater and a riser rusts through <br /><br />it might be a good thing for and efi motor because they do cover the ECM which is a big dollar part<br /><br /><br />tommays

 

[RatFish]

Re: Should I buy extended warranty?

Sorry for not getting back sooner. The wife had me doing chores all weekend. <br /><br />Well I read everyone's posts with great interest. Thanks to all that responded. My nature is not to buy extended warranties. I always preach to people not to buy them. I always figured that if you never buy an extended warranty, you will be way ahead of the game. This philosophy has not let me down. On the other hand, boat/engine repairs can cost a small fortune. No doubt, there are some that have benefited from extended warranties. Peace of mind has a plus side.<br /><br />I guess I'll go with my gut feeling and forgo the additional warranty coverage for now. I still have a year left on the original warranty. I'll bet if I don't have any warranty claims, I'll be offered the chance to buy an extended warranty next year, maybe. At that time, I may buy another year or two of additional coverage.<br /><br />Thanks again for everyone's opinions. I considered every reply. This is a tough decision but I guess I'm willing to take the gamble. If a problem outside of warranty occurs, I'll be sure to let everyone know of my wrong decision.

 

[dal929]

Re: Should I buy extended warranty?

I bought the Yamaha Extended Service plan for my 2 F225s going out I think 5yrs. My buddy owns a yamaha motorcycle dealership and I was able to get them through him at cost around 1200 each instead of the 2400 list price. On top of the engines regular coverage I have peace of mind until somewhere around 2009. The other factor was it would assist in reselling the boat. Who wouldn't want a 3-4yr old boat with a few years left on engine coverage.