New Boater ? Ext. Warranty Worth it?

[texmex]

I am new to boating.About to purchase a '08 Tahoe 216 Deck Boat with a 5.0 L mercruiser I/O 260 Hp.

A third party is offering a 4 year warranty for $1700 on the hull, trailer, and engine. This is in addition to the 2 year warranty that comes with the boat. So the coverage would be for 6 years total.

Just looking for some opinions on this....Is it worth it?

Has anyone had problems in the past with this particular engine?

ANY feedback would be greatly appreciated before I pull the trigger on this.

Thanks!

 

[dingbat]

Re: New Boater ? Ext. Warranty Worth it?

I never buy extended warranties on anything. I look at extended warranties as I look at gambling. The seller of the warranty is the house you?re the gambler. You know darn well that they wouldn?t be in the business of selling these policies with the odds where not stacked in their favor.

Call me lucky but I've come out ahead everytime playing this game.

 

[eaglejim]

Re: New Boater ? Ext. Warranty Worth it?

I have never bought an ext.warranty on anything I must have saved thousands of dollars,and when something goes wrong I can afford to get it fixed or buy new again

 

[ondarvr]

Re: New Boater ? Ext. Warranty Worth it?

Put the $1,700.00 in the bank. Most warranties don't cover much and when they do, it's only a percentage of the bill. You're starting $1,700 in the hole and hoping to clime out by having things go wrong. You have 2 years on the factory warranty and you can buy an extended warranty at any time, so there's no reason to buy one now, in fact you may not even keep the boat that long.

 

[ezmobee]

Re: New Boater ? Ext. Warranty Worth it?

Here's an eye-opener http://forums.iboats.com/showthread.php?t=235489

 

[Kev144]

Re: New Boater ? Ext. Warranty Worth it?

Well i have some opinion from the other side.

we bought a 2006 Baja boat. And got the extended warranty til 2011. It has not necessary paid for itself but we have had things come up and were fixed no problem under warranty. Now Snowmobile wise, usually when you spring order, you have option between money back, accessories or ext warr. We got the warranty and glad we did. Both sleds me and my ol man bought were lemons and problem after problem which of course covered under warranty. As said, it's really a gamble as you can go the whole time with zero problems or like me, have a heck of alot of problems where it pays itself.

 

[NSBCraig]

Re: New Boater ? Ext. Warranty Worth it?

Hey texmex that's a real nice package your looking to get and no I don't think you'll have any problems at all with that motor package.

You might want to post a thread just asking for issues with the motor and drive but I doubt you'll have any negative responses.

As for the warranty no I'd save my money-

a trailer is a trailer and your not gonna see much if any back on it. Anything that needs replacing on it will be from you using it / abusing it and I doubt will be covered.

Mercury has not only make great products but back them up. If you break it it's probably your fault / abuse.

That just leaves you with the hull warranty and I doubt a defect in manufacturing will out last your warranty.

I'm not sure what the point of ezmobee putting that link up was execpt that they had a bad hull come through production and it was replaced.

It's always a possibility with mass produced boats the only way around it is buy a lot more expensive boat.

Good luck.

 

[Campylobacter]

Re: New Boater ? Ext. Warranty Worth it?

A few years back Suzuki was offering a 6 year warranty on their OB motors, and the salesman was really pushing it. When I talked to the business manager, he asked if I ever planned on using the boat in salt water, and if so, read the fine print. Salt pretty much voided the warranty if they found any corrosion in the motor.

His point was, if the motor was a "lemon", anything would probably go wrong in the first 3 years (the regular warranty period). After that, they pretty much denied claims saying that you had abused the motor (such as normal use like running in salt).

Read the fine print, some of these extended warranties only cover problems that would have popped up in the original warranty period anyway.

 

[ezmobee]

Re: New Boater ? Ext. Warranty Worth it?

I'm not sure what the point of ezmobee putting that link up was except that they had a bad hull come through production and it was replaced.

I wasn't trying to start fires or anything and I'm generally not a brand basher. However, the experience bainyg had with his Tahoe shows that getting them to stand behind their product is difficult at best, their customer service was horrible, and when he finally did get his boat back, their repair work was shoddy. This would keep Tahoe off my own personal short list of manufacturers to consider if I was buying a new boat. I know all manufacturers have issues from time to time. That is understandable, but it's how they deal with them that sets them apart.

 

[haskindm]

Re: New Boater ? Ext. Warranty Worth it?

As others have said, extended warranties are a gamble. You are betting that your boat will have major problems, the warranty company is betting that it won't. If your boat has major problems - you win (if you can call that winning). It is estimated that less than 15% of the premiums paid for extended warranties go toward repairs, they are 85% PROFIT and commissions at least. If you absolutely must have the "peace of mind" that an extended warranty provides, please buy a warranty directly from the manufacturer. The majority of the third-party warranty companies go out of business very quickly (it is part of their business model). You are then left with a "warranty" from a company that no longer exists. Also read the exclusions very carefully. If there is a part or system that often fails, it will very often be excluded from the extended warranty. There will also be exclusions on the use of the boat, perhaps exclusions on the number of hours that the boat may be operated, or the area in which the boat may be operated. One of the slickest tricks is to require that the boat be "inspected" at a certain time interval in order to keep the warranty in force. Of course you must pay for this "inspection". No inspection - no warranty. Of course don't expect the warranty company to remind you to perform the inspection or to refund your premium if the warranty expires due to no inspection. If you take the money that you would spend for an extended warranty and save it for your repairs you will come out ahead about 90% of the time. The other 10%, the warranty will turn out to be a "good investment". Personally, I do not like those odds.

 

[Imback31]

Re: New Boater ? Ext. Warranty Worth it?

at the end of the day what is peace of mind worth to you? I bought a new 30k boat, I felt the $1500 more to triple the warrenty that covers every part of the boat and is $0 deductable was a good choice just to make me know that i will not have to shell out one cent for repairs on my boat for the next 6 years. The question is would you pay $21 a month for six years to make sure your 30k boat is running and not costing you anything in repairs, I did.

 

[Imback31]

Re: New Boater ? Ext. Warranty Worth it?

As others have said, extended warranties are a gamble. You are betting that your boat will have major problems, the warranty company is betting that it won't. If your boat has major problems - you win (if you can call that winning). It is estimated that less than 15% of the premiums paid for extended warranties go toward repairs, they are 85% PROFIT and commissions at least. If you absolutely must have the "peace of mind" that an extended warranty provides, please buy a warranty directly from the manufacturer. The majority of the third-party warranty companies go out of business very quickly (it is part of their business model). You are then left with a "warranty" from a company that no longer exists. Also read the exclusions very carefully. If there is a part or system that often fails, it will very often be excluded from the extended warranty. There will also be exclusions on the use of the boat, perhaps exclusions on the number of hours that the boat may be operated, or the area in which the boat may be operated. One of the slickest tricks is to require that the boat be "inspected" at a certain time interval in order to keep the warranty in force. Of course you must pay for this "inspection". No inspection - no warranty. Of course don't expect the warranty company to remind you to perform the inspection or to refund your premium if the warranty expires due to no inspection. If you take the money that you would spend for an extended warranty and save it for your repairs you will come out ahead about 90% of the time. The other 10%, the warranty will turn out to be a "good investment". Personally, I do not like those odds.

I was unaware that only 15% of boats have issues in their first 6 years, where did you get that stat? Last weekend I would have argued the number was much higher from what I saw.

 

[Jack Daniels]

Re: New Boater ? Ext. Warranty Worth it?

Your buying a Tahoe, i would get all the protection you could. Read the stringer issue, if something happens at least you know your covered and you have someone else to deal with other than Tahoe.

 

[haskindm]

Re: New Boater ? Ext. Warranty Worth it?

I was unaware that only 15% of boats have issues in their first 6 years, where did you get that stat? Last weekend I would have argued the number was much higher from what I saw.

That is a figure that I heard regarding extended warranties in general some figures I have quoted say it is less than that. Most boats have some warranty from the factory, the extended warranty only extends that protection ON COVERED ITEMS. Very few extended warranties cover "everything" and many require some action from the owner to keep them in force. What I was trying to say is NOT that only 15% of boats will need repair under warranty, but that 85% of what you pay for an extended warranty is profit and commission, only 15% of the premium will go toward repairs - on average. Extended warranties are NOT a customer service that dealers/manufacturers/insurance companies offer to make sure that you are happy with your purchase, they are a major profit center. The 15% figure may have been very generous. Here is the link to a Forbes Article on extended warranties .http://www.investopedia.com/articles/pf/07/warranties.asp. This states that in general 70% of the premium goes to the person/dealership selling the warranty, the remaining 30% goes to the insurance company to cover their overhead, profit, and finally any repairs that they actually pay for. I'm not criticizing anyone for buying them, just realize that you are paying dearly for peace of mind. The last three vehicles I have bought have not needed any repairs that would have been covered by an extended warranty. The last boat I bought (3 years ago) has not needed anything other than normal maintenance. It has not been back to the dealer for anything. My "peace of mind" is the extended warranty money that I have stuffed in my pillow case.

 

[texmex]

Re: New Boater ? Ext. Warranty Worth it?

Thanks for all the input folks.

 

[jay_merrill]

Re: New Boater ? Ext. Warranty Worth it?

It's a Tahoe? IMO, buy ten warranties and another boat so you'll have something to go out in when it is sitting for months waiting for Tahoe to address some problem with it!

Now that I've had my fun, seriously - consider the post that was linked and then go surf the net on problems with Tahoe boats. You may find that exercise to be a bit of an eye opener.

 

[Imback31]

Re: New Boater ? Ext. Warranty Worth it?

I'm not criticizing anyone for buying them, just realize that you are paying dearly for peace of mind.

Again, $30,000 for my boat, $2000 in gas a season, $500 in insurance, so total investment over 6 years $45,000 to go boating, $1500 for my peace of mind which does cover the entire boat, or $21 a month during the same 6 years that I spent $45,000, doesn't seem like I'm paying dearly for this.

 

[199675hpforce]

Warranties are for idiots statement is being kind

Warranties are for idiots statement is being kind

Ever had a warranty you could use on a car or boat i sure havent o no your new malibu rotors and brake pads not covered under 3 year 36k warranty. Who needs it and you would have to fight to get them to pay. Warranties only make other people money no you!

 

[Imback31]

Re: Warranties are for idiots statement is being kind

Re: Warranties are for idiots statement is being kind

Ever had a warranty you could use on a car or boat i sure havent o no your new malibu rotors and brake pads not covered under 3 year 36k warranty. Who needs it and you would have to fight to get them to pay. Warranties only make other people money no you!

yes i have, 96 jimmy warrenty was $800, replaced the rear drive shaft, $1800 parts and labour, saved $1000, no fight no nothing. Question you ever buy a brand new boat?

 

[Imback31]

Re: New Boater ? Ext. Warranty Worth it?

.http://www.investopedia.com/articles/pf/07/warranties.asp. This states that in general 70% of the premium goes to the person/dealership selling the warranty, the remaining 30% goes to the insurance company to cover their overhead, profit, and finally any repairs that they actually pay for.

Do you have a link that talks about car and boat warranties and not consumer electronics, since the entire consumer electronic business has shifted from high margin product sales to low margin with backend programs and high margin on the cables and warranties. Just a quick fact, my dealer made no money on my warranty, my finacnce company did, about 25%.