rebate or extended warranty?

[hipster dufus]

looking to put a yamaha on my new boat. would the 400$ rebate or the extra 2 yr warranty be the better deal? opinions welcome

 

[-CN-]

You don't need no stinkin warranty on a Yamaha!

 

[bcbouy]

yeah,right. get the warranty extended.400 bucks is only a couple hours worth of shop time.

 

[Scott F]

DO NOT TAKE THE EXTENDED WARRANTY!!! All extended warranties are pure profit for dealers. Put the money in your pocket, don’t give it back to the dealer.

 

[WALI4VR]

DO NOT TAKE THE EXTENDED WARRANTY!!! All extended warranties are pure profit for dealers. Put the money in your pocket, don’t give it back to the dealer.

So instead of a one year warranty you would get a three year warranty by the manufacturer not a separate insurance company. One repair of almost anything puts you over the four hundred cash. And anything mechanical can have a part fail causing more damage than just the failed part plus the labor. Average shop rate for outboards say $75 conservatively. Average repair 8 to 12 hours. Take the Warranty!

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[LDUBS]

I can tell this is going to get good. I'm getting some popcorn! LOL

Seriously, I don't know which way I would go. Maybe spend the $400 on doing tiptop preventative maintenance, or parts if you do the maintenance yourself.

 

[Scott F]

DO NOT TAKE THE EXTENDED WARRANTY!!! All extended warranties are pure profit for dealers. Put the money in your pocket, don’t give it back to the dealer.

So instead of a one year warranty you would get a three year warranty by the manufacturer not a separate insurance company. One repair of almost anything puts you over the four hundred cash. And anything mechanical can have a part fail causing more damage than just the failed part plus the labor. Average shop rate for outboards say $75 conservatively. Average repair 8 to 12 hours. Take the Warranty!

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I was a service technician for 36 years. We were required to sell our customers maintenance contracts because while the service work returned $30 out of every $100 brought in to the bank, extended warranties put $80 out of every $100 in the bank. Your argument for buying the contract was exactly what my bosses wanted me to tell my customers to help me sell contracts. Scare tactics. The reality is that so few new products need service during the first 5 years that the odds greatly favor the manufacturer. They really make out getting you to pay $400 up front for service that you will likely never use. You should notice that EVERYBODY including WalMart tries to sell extended warranties on everything because that are such a huge moneymaker. It's a gamble but the odds are that your new motor will not need warranty service during the extended warranty period.

 

[WALI4VR]

DO NOT TAKE THE EXTENDED WARRANTY!!! All extended warranties are pure profit for dealers. Put the money in your pocket, don’t give it back to the dealer.

So instead of a one year warranty you would get a three year warranty by the manufacturer not a separate insurance company. One repair of almost anything puts you over the four hundred cash. And anything mechanical can have a part fail causing more damage than just the failed part plus the labor. Average shop rate for outboards say $75 conservatively. Average repair 8 to 12 hours. Take the Warranty!

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I was a service technician for 36 years. We were required to sell our customers maintenance contracts because while the service work returned $30 out of every $100 brought in to the bank, extended warranties put $80 out of every $100 in the bank. Your argument for buying the contract was exactly what my bosses wanted me to tell my customers to help me sell contracts. Scare tactics. The reality is that so few new products need service during the first 5 years that the odds greatly favor the manufacturer. They really make out getting you to pay $400 up front for service that you will likely never use. You should notice that EVERYBODY including WalMart tries to sell extended warranties on everything because that are such a huge moneymaker. It's a gamble but the odds are that your new motor will not need warranty service during the extended warranty period.

Using that mentality a person should NOT insure the boat, trailer, motor, tow vehicle, wife's vehicle, to work beater, pwc, house, apartment content, life etc...$400 over 36 months is just over $11 a month. $25,000 boat and trailer costs in the neighborhood of say two to three HUNDRED a month and say you DON'T insure it Nov to March that's $1400 per YEAR.
These are INSURANCE polices that cost money even if you NEVER (hopefully) never have to use them. $400 up front on a small mid size motor iz CHEEEEP nshrinch!!!!!![emoji851]

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[LDUBS]

I thought the $400 was for a 2 year extension. Compared to a boat insurance policy $200/year is pretty expensive. Keep in mind that your boat's insurance policy is providing protection for loss of your property (boat) and against 3rd party liability claims in amounts that far exceed the value of the boat/motor. You are talking about potentially losing hundreds of thousands of dollars should you be negligent in a bodily injury accident. That to me is an entirely different exposure than what an extended warranty covers. If you were just insuring the boat without liability coverage the annual premium would likely not be over $50 for a typical 12'-14'' tin boat and small motor. And that still includes coverage for multiple perils. So, in my view we should not make an apples to apples comparison between a comprehensive boat, homeowners, or auto policy and an extended warranty. Even if you do compare them, a $400 premium for a 24 month extended warranty may not be such a good deal. Consider Scott F's earlier comments that little service is needed during the first 5 years. And, the preventative maintenance (100 & 300 hour service) that is required to keep the warranty in place would not be covered by the extended warranty -- at least I don't think it would.

So, I think I would take the cash.

I guess I've had an evolution of thought on this subject. :shock:

Edit - typos, etc

 

[WALI4VR]

I thought the $400 was for a 2 year extension. Compared to a boat insurance policy $200/year is pretty expensive. Keep in mind that your boat's insurance policy is providing protection for loss of your property (boat) and against 3rd party liability claims in amounts that far exceed the value of the boat/motor. You are talking about potentially losing hundreds of thousands of dollars should you be negligent in a bodily injury accident. That to me is an entirely different exposure than what an extended warranty covers. If you were just insuring the boat without liability coverage the annual premium would likely not be over $50 for a typical 12'-14'' tin boat and small motor. And that still includes coverage for multiple perils. So, in my view we should not make an apples to apples comparison between a comprehensive boat, homeowners, or auto policy and an extended warranty. Even if you do compare them, a $400 premium for a 24 month extended warranty may not be such a good deal. Consider Scott F's earlier comments that little service is needed during the first 5 years. And, the preventative maintenance (100 & 300 hour service) that is required to keep the warranty in place would not be covered by the extended warranty -- at least I don't think it would.

So, I think I would take the cash.

I guess I've had an evolution of thought on this subject. :shock:

Edit - typos, etc

Uncle

We agree to disagree!


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[hipster dufus]

yeah i should have gave more info. engine has standard 3 yr warranty. i can get an extra 2 yrs or a 400$ rebate at purchase. which way to go?

 

[FishinLite]

How long are your payments? If $400 will negate any risk during the time you are paying for the boat, motor, and trailer, them it might be a fair deal.

But you have to remember that if they are including that $400 into the sale price, you are paying interest on that $400 for "x" years.

So $400 is not $400, at today's interest rates, it is probably greater than $500 over 5 years.

In my financial position would probably pass it by, it is all about personal comfort.

 

[TheLastCall]

I’ll give my 2 cents.

A motor should last 3 years easy with regular maintenance. If there is a defect with the motor it would most likely be in the first year.

Now on the opposite side of things. If it breaks out of the 1 year standard warranty and you bring it to a shop for repair, it will probably cost you over 400$. If your mechanically inclined a lot of repairs can be done for under 400$.

Now from personal experience (not Yamaha) my mercury 15hp 4 stroke is 11 years old, I’ve done all the maintenance myself and (knock on wood) never had to do any repairs. So I would save my money, take the 400$ buy the shop manual for the motor and any specialty tools for the motor.

But if your no good with a wrench or have any experience, get the warranty.



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[-CN-]

If you've ever made a living by selling anything, you would understand that any "extended warranty" is a bonus to the salesperson and extra profit to the company. Therefore that bonus to the salesperson and that profit for the company is paid for by the consumer. If odds are that the consumer will save money by buying the warranty (have to spend less for service), the company would not be pushing the consumer to buy it.
Always say no to any extended warranty. While an exception probably exists, I cannot think of one right now.

 

[Daedalus]

It all depends on circumstances. If a thousand dollar repair a year and a half is going to cause financial issues but is OK now, spend the money to extend the warranty. That assumes it is from the manufacturer, not a third party provider.

I retired a couple of years ago, bought a low mileage (1 yr old) used car. The manufacturer offered, through the dealer, a bumper-to-bumper extended warranty with no time or mileage limits. As I recall it cost somewhere around $1,400 for the warranty extension. My reasoning was I could afford to do it then but could't afford a replacement engine or transmission later. A few moths ago the dealer replaced the rear taillight (racetrack for you Dodge guys) and both rear shocks. The part alone for the light is $1,200! The warranty covered about $1,600 worth of parts plus whatever the labor rate is. I am ahead of the game.

Lottery tickets are not something I habitually buy but I just bought some Mega-Millions and Powerball tickets today. Different circumstances!

 

[GTS225]

Lottery tickets are not something I habitually buy but I just bought some Mega-Millions and Powerball tickets today. Different circumstances!

********************************************************************************

And I thank you for that, as I truly hope that you helped finance MY early retirement.

Roger

 

[LDUBS]

It all depends on circumstances. If a thousand dollar repair a year and a half is going to cause financial issues but is OK now, spend the money to extend the warranty. That assumes it is from the manufacturer, not a third party provider.

I retired a couple of years ago, bought a low mileage (1 yr old) used car. The manufacturer offered, through the dealer, a bumper-to-bumper extended warranty with no time or mileage limits. As I recall it cost somewhere around $1,400 for the warranty extension. My reasoning was I could afford to do it then but could't afford a replacement engine or transmission later. A few moths ago the dealer replaced the rear taillight (racetrack for you Dodge guys) and both rear shocks. The part alone for the light is $1,200! The warranty covered about $1,600 worth of parts plus whatever the labor rate is. I am ahead of the game.

Lottery tickets are not something I habitually buy but I just bought some Mega-Millions and Powerball tickets today. Different circumstances!

Good luck -- I normally don't lottery tickets either but was going to today. I forgot, so guess I'm not going to be a half billionaire anytime soon.

 

[bcbouy]

If you've ever made a living by selling anything, you would understand that any "extended warranty" is a bonus to the salesperson and extra profit to the company. Therefore that bonus to the salesperson and that profit for the company is paid for by the consumer. If odds are that the consumer will save money by buying the warranty (have to spend less for service), the company would not be pushing the consumer to buy it.
Always say no to any extended warranty. While an exception probably exists, I cannot think of one right now.

when i bought my lease return truck i also got the extended warranty.it paid for itself twice over now.it expires next month.don't tell me extended warranties are a waste of money.

 

[water bouy]

For people who can afford new cars or boats warranties must be tempting. But as mentioned already, they're not for the benefit of the buyer as much as the seller. Like undercoating.

 

[WV1951]

Did you buy an extended warranty on your last car or major appliance? If you did, then you believe in them and should take the extended warranty. If you did not, then take the $400 rebate.