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Author Topic:   Mercury 225 Extended Warranty
petescoffee posted 08-12-2003 03:21 PM ET (US)   Profile for petescoffee   Send Email to petescoffee  
Mercury want $2500 per motor for the extended warranty for the 225 4 stroke. This would give a total of 5 years warranty on the motor. Is this worth it?
kglinz posted 08-12-2003 07:32 PM ET (US)     Profile for kglinz  Send Email to kglinz     
I'm sure not going to extend mine, but that must be a personal choice. Yamaha wants $1815.00 for 3 years on there Y.E.S. warranty
jimh posted 08-12-2003 09:48 PM ET (US)     Profile for jimh  Send Email to jimh     
Pete,

It is not clear how many years of extra warranty you are buying--you don't mention that the original warranty period is.

In fact, I have read the 2003 Mercury outboard catalogue carefully trying to figure out what is their warranty, but they just refer to it as "2+1" coverage, whatever that may be.

Thus, the cost you mention, $2500, is not clear to me if it adds two years or three years to the coverage period.

Also, I would be curious to know if the policy is actually written and provided by Mercury, the engine manufacturer, or it is actually a third party insurance firm with some carefully defined terms and coverage?

I have heard it said that such extended warranty policies are a source of high profit for the person who sells them, and often a sales agent pushes hard to get the merchandise buyer to buy the coverage.

This whole witch's brew of warranty coverage is being stirred by Suzuki and their unprecedented 6-year factory offer. This has made the coverage provided by other makers seem suspect. Suzuki usually throws this into the boat show market in the spring to stimulate sales. If their engines are well made it does not cost them much. Many outboards are used only 50 hours a season--and there are probably qualifiers about required maintenance having to be performed (typically by an authorized dealer).

You see this in the automobile business. A new charging brand offers 100,000 warranty/six year coverage. All of a sudden that 35,000/3-year deal does not seem as good.

petescoffee posted 08-13-2003 12:20 PM ET (US)     Profile for petescoffee  Send Email to petescoffee     
The motor came with a 3 year warranty. So the $2500 per motor buys 3 more years of coverage.
The offer comes from "Mercury Product Protection" and does not indicate whether or not it is an outside vendor.
After reading Jim's comments and further review of the policy there is a "limit of liability" of coverage and the policy cancels after reaching that limit. Problem is they do not give the limit of liability. I called Mecury Product Protection and the person was actually quite helpful. Apparently their limit of liability is the reatil cost of the motor when you purchase it. In my case $16,775. per motor.
I asked them about repair history on the motor and she did not know but gave me a number , 405-743-6566, for Mercruiser to call. I will call later today.
An item not covered by the coverage is the water pump which is considered a "consumable".
The gal on the phone also said that they are a division of Mercury and Mercury backed.
petescoffee posted 08-13-2003 12:58 PM ET (US)     Profile for petescoffee  Send Email to petescoffee     
I called Mercruiser and they do not give out repair history, not a big surprise. They did suggest that Mercury Quick clean be used as an additive to keep the injectors clean.
kglinz posted 08-13-2003 02:11 PM ET (US)     Profile for kglinz  Send Email to kglinz     
If you buy a "extended warranty" the factory one is certainly the way to go. All of them are simply insurance policies. They are priced to but money in someone's pocket and that someone sure "ain't" you.
Dick posted 08-13-2003 09:26 PM ET (US)     Profile for Dick  Send Email to Dick     
The Mercury Q Care extended warranty is probably one of the best out there. I have never had a problem with legitimate claims for my customers and have had a few covered that were past the expiration date.

The finance person at the dealership normally sells the contracts and they make a bundle. Negotiate the price, it is flexible.

Dick

jimh posted 08-14-2003 12:05 AM ET (US)     Profile for jimh  Send Email to jimh     
Some long stories to make a point:

About ten years (or more) ago, I used to be involved with EDS and GM in making instructional audio/video presentations for the dealerships.

One thing EDS did as a GM subsidiary was to produce software for the retail car dealer. It was tightly integrated with GM databases, and helped the sales agent make a sale.

I remember one (boring) afternoon shooting segments which showed how the salesman should use the software. The demonstrator was describing the normal operation of the software. Then he showed an unusual escape-key-sequence, and all the figures on the screen changed to costs instead of price, and the totals showed profit instead of price. On the typical retail car deal there was not much money in the actual purchase (the car), but significant money in the financing and insurance.

The "finance" guy at an (auto) dealership typically makes major-league money, six figures.

As Dick suggests, negotiate the insurance price like you did the boat price.

Another anecdote: A finance guy at a dealership was checking on a luxury car lease to be sure the young customer could handle the payments. He called (someone) and asked about the guy's income. The answer was $14,000/month! The finance guy was stunned--how could a young guy be making that kind of money? To make a long story short, the finance guy ended up going to work for the same company as his customer, a loan refinancing operation. After he learned the business he started his own similar company. He is now one of the largest in the state.

mmcfd64 posted 06-29-2004 07:12 AM ET (US)     Profile for mmcfd64  Send Email to mmcfd64     
I have a 21 Ventura I am waiting to pick up. It has the 225 4 stroke on it.

For those of you with that motor, are you happy? What can I expect?

Thanks
Dick

15ftlover posted 06-29-2004 02:00 PM ET (US)     Profile for 15ftlover  Send Email to 15ftlover     
$2500 per motor X 2motors (5000.00) Lets generously assume say 7% per year invested in a no load mutual fund x 3 years (warranty length)which comes out at over $6120.00. Assuming good maintenance and a reasonable engine lifespan of say 10 years it seems to me you would be better off investing for yourself and not the dealer. That is one reason finance guys can make 14K/month. Einstein said it best "the most powerful force in the world is compounded interest".
Hen
rtk posted 06-29-2004 05:52 PM ET (US)     Profile for rtk  Send Email to rtk     
If you can wait until January through April to repower, as Jim mentioned, most or all of the manufacturers offered extended warranties the past few years. Every year this incentive seems to expand.

The motors I shopped in the 225-250 horsepower range this year all offered extended warranties. Duration of the warranty varied by manufacturer and engine model. My Mercury 250 EFI qualified for 2 years extended which brought it to 4 years total. The Optimax was also 2 years extended which brought it to 5 years total. I also received a $600.00 rigging credit directly from Mercury.

If you can wait until winter there are a lot of good deals on left over or non-current models that still qualify for the incentives.

If you are selling a boat with an engine under warranty I would think it would be worth a few bucks more or help to expedite the sale.

Purchasing extended warranties is very similar to spending money on insurance. When you do not need the coverage it is easy to curse the price but in the event there is a problem it can be the best money you have ever spent.

Blow a powerhead the day after the regular warranty expires and you will be kicking yourself for a while for not purchasing the extended warranty. Buy the warranty and you are lucky enough to have a motor that never has a problem you will probably feel as if you should not have spent the money. Are you a gambling man?

Rich

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