Extended Warranty

[Tafflad]

Do people normally take out the extended warranty.
I have a 4.3L 280-C-N (Duoprop)
It comes with standard 2 year warranty, and I can 'buy' the extended warranty giving extra 3 yrs so providing me with full 5 yr cover.
I thought choice would be easy .... until the price arrived.
The extended warranty costs 2156 GBP (incl tax) so ~$2,822 or effectively 718 GBP per year (~$940)

Do you guys take out extended warranty ? .....its certainly not cheap.
Add it depreciation and running costs puts annual ownership up a significant amount.

 

[BRICH1260]

I have never been a big fan of purchasing extended warranties. My general thought is that if something is going to break, it will break during the original warranty an if I keep my money in the bank, for you $2822, I will have that money to help cover anything that might occur after the original warranty expires. A good maintenance routine alleviates a lot of future problems.

 

[Scott Danforth]

Here is how warranty works. a manufacturer puts 10-15% of its material and labor cost into an account. this is to cover manufacturing defects during a standard warranty

the extended warranty is just a slightly higher percentage (usually 25%) of the material and labor costs of things that may go awry in years 3, 4, and 5. for example, if a bad seal in the drive leaks all the gear lube out and takes out the drive. that cost would be higher than the warranty cost. or a bad batch of oil pump shafts that fail and take out the motor.

I have mixed feelings as I have skipped an extended warranty only to have a manufacturing defect take out a transmission in a vehicle less than 60 days after the original warranty ran out. I have also had extended warranties that paid for themselves and many that have not.

I would be tempted to put the $2800 in a high interest bearing account

 

[aspeck]

On some things I will take out a warranty and others I will not ... it depends on the cost of the warranty and the item. For instance, I just bought a new dryer for the house (Maytag). It comes with a 2 year warranty and a 10 year warranty on the drive and drum. The 3 years of extended warranty (to make it 5 years all inclusive) cost $120. But if it is not used, you get 30% back at the end of the 5 years. So the effective cost is $84.

But, at $2800 for an extended warranty on your engine, if I have to add that amount to the loan I am paying interest on it plus the amount, and nope, not going to do it. If I have the $2800 laying around to pay for it, I would probably just set it aside in a "Boat Account" and not touch it until after the initial 2 year warranty is up. Then use the "Boat Account" to pay for any non-maintenance repairs. See where you are at the end of the 5 years. My guess is you will be ahead of the game if you take care of your vessel.

 

[Scott06]

Do people normally take out the extended warranty.
I have a 4.3L 280-C-N (Duoprop)
It comes with standard 2 year warranty, and I can 'buy' the extended warranty giving extra 3 yrs so providing me with full 5 yr cover.
I thought choice would be easy .... until the price arrived.
The extended warranty costs 2156 GBP (incl tax) so ~$2,822 or effectively 718 GBP per year (~$940)

Do you guys take out extended warranty ? .....its certainly not cheap.
Add it depreciation and running costs puts annual ownership up a significant amount.

I generally decline them, as I figure the manufacturer wouldn't offer the warranty if they didn't make money on the warranty sale and I am one of the weirdos who actually enjoys working on stuff so I am only looking at potential parts cost.

Now if you are the one out of 100 who has a big issue then it looks like money well spent... especially if you prefer not to turn wrenches .

 

[tpenfield]

I've never been a fan of warranties, unless they are bumper-to-bumper (stem-to-stern) type of warranties, because it seems like the first thing the company does is try to figure out why an issue is your fault and not a defect.

One of the few nice things about buying a used boat where the warranties are expired or don't apply. There is clarity.

 

[dingbat]

Extended warranties......they wouldn't offer "Extended Warranties" unless the odds where not well stacked against the buyer.

As I sale guy I love them.........gold in the bank and money in my pocket.

Only thing more lucrative are Maintenance Contracts...

 

[Tafflad]

Thought this would be advice …. I‘ll set up a bank direct debit to put 50 GBP a month into a savings account … and forget it …. If no claims in 3 years no loss ….

 

[Bondo]

Ayuh,..... If yer the kinda person that pays somebody else to fix yer stuff, it might be worth it,.....
Considerin' most of us here are at a minimum Diyers, or Mechanics,.... No, it ain't worth it,.....

 

[Tafflad]

I do loads of work ..... but while under warranty do get annual services in place - glad I did, as they are now to swap out the transom shield, rams and the whole of the drive - all under warranty.

 

[muc]

A little over 20 years ago I was a claims adjuster for the biggest seller of these in North America. I can’t speak to how it works on the other side of the pond, but here in the U.S.
I recommend them to friends and family when they buy a new boat. The dealer gets 50% of the price, so they will usually be able to offer a better deal on the price of the boat. Then cancel the contract and get back 100% of the price.
If anybody is still thinking about one of these, read the contract very closely. A lot of times they don’t cover what you think they do. A few things I learned.
MerCruiser started using a plastic power steering pump pulley, when they broke. The claim was denied because the while power steering pump was covered the pulley was not. As it was a part that was available separately.
Seals and gaskets aren’t covered So if you have a defective seal go bad there will be no coverage.
The contract will have a limit of liability. Usually the value of the engine and drive package. So let’s say you have a 5.7L with duo-prop drive Value of the package is $10,000. You have a faulty piston pin and need a new $7,000 engine, it’s covered. But now a bearing goes out in the drive. $6,000 but the contract only has $3,000 left to pay. You have to come up with an extra $3,000 and now the “extended warranty” is now over.

 

[Tafflad]

To be fair there is no value limit to extended warranty, it clearly states it is a full extension to original 2 years …. and covers all parts & labour for engine, drive & controls.

However decided too pricey and wont take it out.