help need answer soon "motor extended warranties"

[newbie]

Hi folks. I need help. I am purchasing a cd 16 soon. what do you advise on extended warranties? They seem expensive. the boat will have a 2006 honda 40. thank you

[Hunkydory]

Newbie

Welcome aboard!! Used to live about 120 miles north of you in Calif.

As for extended warranties. Personally I think its just another way to increase the profit margin for the seller. Of course there is always exception such as a new product line or known defect you may have to deal with in a product. Don't think that's the case here.

Save the money for some of those needed or wanted accessories.

Jay

[SGIRhino]

Hey Newbie,

Extended Warranties (better known as Service Contracts) are much like life insurance...you don't buy either hoping to use them! Some of the better Service Contract companies not only cover the motor for the term, but also the hull, fittings, Dealer installed electronics and the trailer. Most manufacturer trailer warranties are only for two years.

A Service Contract is simply a way of budgeting in the cost of any possible catastrophic failures in the future at today's parts and labor rates.

Here in Florida the price of Service Contracts (autos, boats and RV's) are fixed but I believe in California you can negotiate the price. In most cases the actual cost to the dealer is only 50% of the price. Divide the price by 2 and add $300 and make the dealer an offer. He'll take the extra profit and you'll both be happier down the road when you pull your boat in to his facility for repairs. It's true that boats are just holes in the water that we love to throw money into. What is also true is that my customers that have Service Contracts are much happier when they need them then the ones that don't!

Charlie

[Wandering Sagebrush]

You didn't say if the motor was an unused (new) 2006, or if it had some hours on the meter. I believe that Honda is offering a 3 year warranty on the new engines, but you should have that information.

If there are hours on the engine, I would probably consider the warranty, but negotiate the daylights out of it. If the engine is zero hours, I personally would go with the base warranty from Honda. I guess i am a bit on the penurious (cheap) side.

Steve

[thataway]

The only time I had a service contract was when the dealer threw it in for free--because we could not take a sea trial (Lake Michigan had frozen up virtually overnight). It was an 8 year Mercruiser warantee--and sounded great. I had some outdrive problems (hit a small stick with a bravo III unit, destroying the gears)--and the warantee didn't do anything. My insurance did pay for the new outdrive. I sold the boat with 4 years on the contract and it was transfered. The next owner had some problems, and although they varified that the transfer was legal, they did not pay, saying that there was a maintance issue which was the cause.

I do not feel that the service contract is worth the money--unless it is free.
Modern outboards are very reliable--some are comming with 6 or more year warantees, and lasting thousands of hours. I would not buy it for a Honda 40--but you have to use your judgement and balance the potential risks of a probelm vs the cost of repairs. The Honda is a great engine, but be sure and wash it out each time if used in salt water.

[Charlie]

I just traded my 1997 Arima and it had a 50hp Honda same motors. That motor never need a service call other than normal maintenance. It had 1500 hours on it and still running like a top. Do your yearly maintenance and keep the contract money for something else.

Charlie

[Doryman]

I got my 3-yr extended warranty for "free" as part of the boat negotiation. But I would not have accepted it if it had not been a Yamaha warranty. I would never accept a 3rd party contract. Too many ways for them to weasel out of paying.

So, (1) manufacturer extended warranty only, and (2) get it for free. Otherwise pass.

Warren

[BoatLine]

If the motor is new, Honda has extended their True 5 year warranty promo until March 31, 2008. This warranty is direct through Honda rather than an insurance company like most "extended warranty" contracts. You need to buy from a participating Honda dealer.

[SGIRhino]

Hey Boatline!

Even the Honda Service Contract is not a TRUE Honda product! It is underwritten by Protective, the same company that does FPC. It's the exact same coverage and they charge more money for it because it says "Honda" on it!

I agree with Bob that they usually try to find a way to blame it on "lack of maintenance". This is why a good maintenance log is essential!

The very best deals on Service Contracts are to be had when the motor manufacturer is offering extended protection (ie "Gimme Six"). This allows an opportunity to "Wrap" the boat, fittings, electronics and trailer at a very low price.

I've done the F&I thing for lots of years, mostly in the auto industry and would be glad to assist any of the "Brats" by answering finance/warranty related questions. As I alluded to yesterday you don't buy any kind of insurance hoping to get a chance to use it!

Great weekend Ya'll!

Charlie
(Why do they always try to give you a sucker at the bank?)

[SGIRhino]

Marc just told me that he signed up for the new "True 5" program last year, (thanks buddy!). We sell so few Honda's that I didn't even know the thing existed.

It's still a great opportunity to "Wrap" the rest of your vessel.

Thanks for the opportunity to embarrass myself!

[mikeporterinmd]

A friend just ran into a problem with a 150 Yamaha. There was incorrect
machining on the crank and eventually the flywheel came loose. I believe
the keyway area fractured.

The dealer tried an easy fix which did not work. The dealer called Yamaha for advice and Yamaha offered a whole new short block + labor for an engine three
years out of warrantee for free.

Buy from a good, service oriented company and a good dealer.

Mike