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Author Topic:   Extended warranty Break down

John O posted 09-02-2003 10:15 PM ET (US)
Not sure why the previous post posted before i was done.
1 Year-$357.00
2 Year-$609.00
3 Year-$766.50
4 Year-913.50
5 Year-1060.50
Any input on the value of the extened warranty would be helpful. In general I buy extended warranties as a rule.
I paid $3800.00 for a new 2001 Merc 75hp 2 stroke in Feb '03 and the warranty is due to expire 2/1/04
I have a 1988 Newtauk that I may sell in two years. I would think a tranferable warranty on the motor may bring some value to the sale in 2 years by eliminating some of the risk for the new buyer if the motor has 1 or 2 years left on the warranty.
John O posted 09-02-2003 11:00 PM ET (US)
Generally I DO NOT buy extended warranties.
Having a tough time posting tonight
ShrimpBurrito posted 09-03-2003 01:24 AM ET (US)
If I were in your shoes, and were intending on keeping the boat, I wouldn't buy the warranty.
However, since you're intending on selling, that's a different story. If, as a buyer, I was looking at purchasing your boat, having 1 yr left on a manufacturer warranty would be a significant advantage. I think that many buyers would seriously consider paying $350 out-of-pocket for a 1 yr warranty when buying a used 75 HP engine. Having 2 yrs would be nice, but I wouldn't consider it significant over 1 yr. I just want some satisfaction that the thing isn't total garbage, and it doesn't take more than a year to make that determination.
If you're going to sell in 2 yrs, I would consider the 1 yr extended warranty, so your new buyer would have 1 yr remaining. If you're not going to sell until after 2 yrs, I wouldn't buy any.
John O posted 09-03-2003 08:25 AM ET (US)
Thanks SB. I agree with your insight from a buyers view point. I would certainly be more in clined to buy a boat with a motor with a one year warranty over the unknown.
Now I must figure out my intentions with regsrds to upgrading my boat in 1-2 years.
Jay A posted 09-09-2003 01:16 AM ET (US)
John, I'm surprised Merc only has a 1 year warranty! And it seems very expensive to buy an extended one. The Suzuki I have came with a 3 year warranty and so far I have not had to use it. Sounds like an "extended money maker" for Merc! With proper care, you should have no problem for at the very least from 3 to 5 years with that engine.
By the way, My 1970 40hp Merc is still running great. All original parts except the spark plugs!
elaelap posted 09-09-2003 01:13 PM ET (US)
I bought my Yamaha 50 hp four stroke during a boat show promotion, and got the regular Yami 3-year warranty extended to five yrs as a bonus. Nice, since I've put over 200 hours on it since this past March...
Tony
hauptjm posted 09-09-2003 02:59 PM ET (US)
I can only comment from my experience and agree that if you're selling the boat in the near future, a warranty that covers the first 1-2 years of ownership is very valuable. Typically, it only cost something like $50.00 for the purchaser to transfer the warranty. This is nothing, to the buyer.
I bought my current boat in 1999 with 2 years left on the factory warranty. Beside the asking price being what I perceived to be an incredible price, the warranty was a huge attraction on the most expensive part of the package. I used the warranty once for a tilt/trim problem and the itemized bill to OMC was over $450.00. I paid the $25.00 deductible. This was to fix a $5.00 seal on the bleeder. Bench testing is expensive. Additionally, I was able to have the mechanic (whom I trust emphatically) to take the opportunity to go over the entire engine with a fine-tooth comb and check for any potential problems.
I know many folks here disagree with extended warranties for many reasons. I say that it depends on you and your abilities to diagnose and render repair to an ailing motor. If you feel that it is not your inclination to do this, than a warranty can pay for itself many times over.
Lastly, I think there are two important items regarding extended warranties:
1. Are they transferable?
2. They can be negotiated with the selling dealer. As with auto warranties, there are built in margins at MSRP. Personally, I have never paid the asking price for an extended warranty on an automobile. The last one I purchased (through GM) retailed at over $1,500.00. I paid less that $600.00, and the dealer still made a profit. That should illuminate the profit potential in these warranties for the selling entity.

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Author	Topic: Extended warranty Break down
John O	posted 09-02-2003 10:15 PM ET (US) Not sure why the previous post posted before i was done. 1 Year-$357.00 2 Year-$609.00 3 Year-$766.50 4 Year-913.50 5 Year-1060.50 Any input on the value of the extened warranty would be helpful. In general I buy extended warranties as a rule. I paid $3800.00 for a new 2001 Merc 75hp 2 stroke in Feb '03 and the warranty is due to expire 2/1/04 I have a 1988 Newtauk that I may sell in two years. I would think a tranferable warranty on the motor may bring some value to the sale in 2 years by eliminating some of the risk for the new buyer if the motor has 1 or 2 years left on the warranty.
John O	posted 09-02-2003 11:00 PM ET (US) Generally I DO NOT buy extended warranties. Having a tough time posting tonight
ShrimpBurrito	posted 09-03-2003 01:24 AM ET (US) If I were in your shoes, and were intending on keeping the boat, I wouldn't buy the warranty. However, since you're intending on selling, that's a different story. If, as a buyer, I was looking at purchasing your boat, having 1 yr left on a manufacturer warranty would be a significant advantage. I think that many buyers would seriously consider paying $350 out-of-pocket for a 1 yr warranty when buying a used 75 HP engine. Having 2 yrs would be nice, but I wouldn't consider it significant over 1 yr. I just want some satisfaction that the thing isn't total garbage, and it doesn't take more than a year to make that determination. If you're going to sell in 2 yrs, I would consider the 1 yr extended warranty, so your new buyer would have 1 yr remaining. If you're not going to sell until after 2 yrs, I wouldn't buy any.
John O	posted 09-03-2003 08:25 AM ET (US) Thanks SB. I agree with your insight from a buyers view point. I would certainly be more in clined to buy a boat with a motor with a one year warranty over the unknown. Now I must figure out my intentions with regsrds to upgrading my boat in 1-2 years.
Jay A	posted 09-09-2003 01:16 AM ET (US) John, I'm surprised Merc only has a 1 year warranty! And it seems very expensive to buy an extended one. The Suzuki I have came with a 3 year warranty and so far I have not had to use it. Sounds like an "extended money maker" for Merc! With proper care, you should have no problem for at the very least from 3 to 5 years with that engine. By the way, My 1970 40hp Merc is still running great. All original parts except the spark plugs!
elaelap	posted 09-09-2003 01:13 PM ET (US) I bought my Yamaha 50 hp four stroke during a boat show promotion, and got the regular Yami 3-year warranty extended to five yrs as a bonus. Nice, since I've put over 200 hours on it since this past March... Tony
hauptjm	posted 09-09-2003 02:59 PM ET (US) I can only comment from my experience and agree that if you're selling the boat in the near future, a warranty that covers the first 1-2 years of ownership is very valuable. Typically, it only cost something like $50.00 for the purchaser to transfer the warranty. This is nothing, to the buyer. I bought my current boat in 1999 with 2 years left on the factory warranty. Beside the asking price being what I perceived to be an incredible price, the warranty was a huge attraction on the most expensive part of the package. I used the warranty once for a tilt/trim problem and the itemized bill to OMC was over $450.00. I paid the $25.00 deductible. This was to fix a $5.00 seal on the bleeder. Bench testing is expensive. Additionally, I was able to have the mechanic (whom I trust emphatically) to take the opportunity to go over the entire engine with a fine-tooth comb and check for any potential problems. I know many folks here disagree with extended warranties for many reasons. I say that it depends on you and your abilities to diagnose and render repair to an ailing motor. If you feel that it is not your inclination to do this, than a warranty can pay for itself many times over. Lastly, I think there are two important items regarding extended warranties: 1. Are they transferable? 2. They can be negotiated with the selling dealer. As with auto warranties, there are built in margins at MSRP. Personally, I have never paid the asking price for an extended warranty on an automobile. The last one I purchased (through GM) retailed at over $1,500.00. I paid less that $600.00, and the dealer still made a profit. That should illuminate the profit potential in these warranties for the selling entity.