Extended Warranties - Worth It?

Stoo · 30 August 2010, 03:25

Hello Wise Boaties...

Last fall I took delivery of a gently used demo Yamaha F150. I have been impressed with the engine to date, and had no problems.

Last week I received a letter from Yamaha inviting me to purchase an extended warranty for "peace of mind". It suggested I should contact my local dealer to discuss options, so I did just that.

The dealer, after a short discussion, basically said that I have a bomb-proof engine; that they had sold lots of them; had had no problems of any significance... and that the warranty was $700+ for a year up to $1200+ for three years. His suggestion was to pass, which I thought was interesting.

Here's my dilemma... My previous Yamaha 150 (2 stroke) blew not one, but two heads, for no particular reason... and each one cost me about $6000 to replace. My experience with Yamaha at the time wasn't especially pleasant and my concern is that even with an extended warranty, there would always be some loop-hole for them to duck responsibility.

Anyway, I would be interested in knowing if you folks shell out for these (expensive) warranties. I like the idea of knowing that a huge repair is somewhat less likely, but I could by a lot of go-go juice for $1200!

Thoughts?

bedajim · 30 August 2010, 15:39

If you don't buy the warranty it'll go bang for sure

If you buy it'll last forever

$400 a year I'd ask for a list of whats not covered

and probably buy it if most items are covered

Jim

Nos4r2 · 30 August 2010, 15:48

I'd pick the dealer's brains a bit more. I suspect he's got an agenda-like, for example he's sick of warranty claims being refused and people having to cough up for expensive work themselves and blaming him...

Stoo · 30 August 2010, 23:17

We did talk about what was covered, but essentially it was "major components" and obviously not the wear and tear items. If I blow the head on this baby (and in spite of how it probably sounds, I DO look after my engines...) I can't help but think that the onus will be on me to prove that it wasn't something I did.

I guess on the other hand, one thing is certain, if I don't buy it, then any problems definitely won't be covered!

So do you guys buy them?

C2 RIBS · 31 August 2010, 07:58

Stoo, how old is the engine and what hours was it used before you bought it, I have used these engines before and touch wood have never let me down, I see them all the time on other RIBS and engineer rates them.

Yam do a five year warranty as standard now so what they offering as extra?

Stoo · 01 September 2010, 01:02

C2, I bought the engine two years ago this fall. It only had 23 hours on it, used at a Hurricane dealer I know well. I put 85 hours on it last season but will likely do less this year, although not a lot.

I am not aware of a 5 year warranty over here... As far as I know it was just 2 years, but I guess I'd best have a look to confirm the details. As has been mentioned, no matter what I decide, it will likely be the wrong decision, but at least one way, I will be out of pocket for less!

captnjack · 01 September 2010, 03:34

Extended warranties are, in general & actuarially, very expensive insurance. The manufacturer's don't hype them for cars & computers and everything else out of the goodness of their hearts because on average they pay out more than they charge you and lose money on them.

HUMBER P4VWL · 01 September 2010, 10:18

Quote:

Originally Posted by captnjack

Extended warranties are, in general & actuarially, very expensive insurance. The manufacturer's don't hype them for cars & computers and everything else out of the goodness of their hearts because on average they pay out more than they charge you and lose money on them.

So you're saying for the customer it's worth it statistically in that the manufacturers run at a loss??? They don't run the schemes at a loss as far as I know, why would they?

IMHO, it is just insurance. Which by definition is their calculated risk. They will try to ensure the total premiums collected outweigh their total costs of admin and claims. For the individual it is peace of mind, if you can afford the premiums but can't afford to replace an engine, it is for you if you want to continue boating in the event of engine failure. If the cost of an engine is a small percentage of your savings or disposable income you have the luxury of choice to gamble. If you can't afford the premium or engine, unlucky.

Mollers · 01 September 2010, 11:09

If I were running a big Yam, I'd want all the insurance I could get.

Downhilldai · 01 September 2010, 11:42

Quote:

Originally Posted by Mollers

If I were running a big Yam, I'd want all the insurance I could get.

Do you have bitter experience of breaking big Yams in the past?

HUMBER P4VWL · 01 September 2010, 12:42

I've got experience of opti claims though. Warranty has been worth it!

Mollers · 01 September 2010, 13:52

Quote:

Originally Posted by Downhilldai

Do you have bitter experience of breaking big Yams in the past?

No, you know I haven't.

The information came directly from a very good source. I'll leave it at that, but please save your sarccy comments for those that deserve them.

Downhilldai · 01 September 2010, 14:31

Quote:

Originally Posted by Mollers

No, you know I haven't.

The information came directly from a very good source. I'll leave it at that, but please save your sarccy comments for those that deserve them.

I didn't know that you hadn't and wasn't being 'sarccy'.

Anyway, why do you consider yourself undeserving?

willk · 01 September 2010, 19:32

Quote:

Originally Posted by Mollers

No, you know I haven't.

Quote:

Originally Posted by Downhilldai

I didn't know that you hadn't and wasn't being 'sarccy'.

I was enjoying a good larf trying to remember who you pair remind me of. Remembered: mrs willk and meself. Stopped larfin'

Poly · 01 September 2010, 19:57

Quote:

Originally Posted by HUMBER P4VWL

So you're saying for the customer it's worth it statistically in that the manufacturers run at a loss??? They don't run the schemes at a loss as far as I know, why would they?

IMHO, it is just insurance. Which by definition is their calculated risk. They will try to ensure the total premiums collected outweigh their total costs of admin and claims. For the individual it is peace of mind, if you can afford the premiums but can't afford to replace an engine, it is for you if you want to continue boating in the event of engine failure. If the cost of an engine is a small percentage of your savings or disposable income you have the luxury of choice to gamble. If you can't afford the premium or engine, unlucky.

I think you may have misinterpreted the tone of the original message. However clearly some insurance is relatively cheap because it covers a very low probability event (usually with a high cost outcome) whilst others are more expensive because the probability of the event is higher. With warranties the actual cost to the manufacturer of a payout is actually not that high in the grand scheme of things - but the cost of the insurance is - i.e. their margins may be much higher than say life, home, car insurance.

willk · 01 September 2010, 20:15

Quote:

Originally Posted by Stoo

So do you guys buy them?

"You've got to ask yourself one question, do I feel lucky? Well do you, Punk?"

I never buy warranties or run service contracts, unless I have to. I think Paul is probably right, if you can't afford to replace the engine, then the warranty is a must. But of course they'll argue the bit to get out of paying up.

Remember that Etec....

Downhilldai · 01 September 2010, 20:27

Quote:

Originally Posted by willk

I was enjoying a good larf trying to remember who you pair remind me of. Remembered: mrs willk and meself. Stopped larfin'

captnjack · 01 September 2010, 21:00

Quote:

Originally Posted by HUMBER P4VWL

So you're saying for the customer it's worth it statistically in that the manufacturers run at a loss??? They don't run the schemes at a loss as far as I know, why would they?

IMHO, it is just insurance. Which by definition is their calculated risk. They will try to ensure the total premiums collected outweigh their total costs of admin and claims. For the individual it is peace of mind, if you can afford the premiums but can't afford to replace an engine, it is for you if you want to continue boating in the event of engine failure. If the cost of an engine is a small percentage of your savings or disposable income you have the luxury of choice to gamble. If you can't afford the premium or engine, unlucky.

Yamaha wouldn't offer the product for very long if the cost to them exceeded the money consumers put in. Personally I have no problem taking a calculated risk that my engine will last.

Nos4r2 · 01 September 2010, 21:25

Quote:

Originally Posted by willk

I was enjoying a good larf trying to remember who you pair remind me of. Remembered: mrs willk and meself. Stopped larfin'

[YOUTUBE]lhmjnYKlVnM[/YOUTUBE]

willk · 01 September 2010, 22:15

Yeah...