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I just purchased an 04 Sportfish with Cat C12's, I was considering buying an extended warranty for the them from Cat? The cost would be aprox. 5,000. per engine for a 2 year and 8,000 per year for a 3 year?
The engines have 350 hours on them. I had oil analysis done on the engines, trans and genset and the numbers were good. I also had Cat do an engine analysis and there were no major problems, just a couple of minor leaks, that the seller corrected.
Do you think it is worth spending the money for the warranty?
Thoughts?
I would think that would depend on the number & type of hours you plan to put on them during the next 2-3 yrs. $16K is a lot of money, but if you plan to run 'em long & hard for the next 2-3 yrs, that would buy a lot of piece of mind & be cheaper than a rebuild... I've always thought insurance was for those losses I really couldn't afford to fund myself...
Very good advise on negotiating. My mechanic, who is really excellent, advises against the warranty, but if I could possibly negotiate the price down, I might go for it??
Here's my somewhat weird take on the cat warranty...first, I would probably take it if I could negotiate it down, but its pretty pricey. Also, I can't really reconcile the warranty in my head for their standard price because
1)Cat is in the business of making money (I have no problem with that)
2)As I understand it, they will only offer the warranty after inspecting the engine.
3)Now the dilemma, cat's got the expertise, have looked over the engines, and is making an educated estimate that the cost the owner pays for the warranty will not exceed the cost to them to honor the warranty over the warranty period. Why would I bet against that?
But, do they calculate this on a case by case basis or what overall basis?
I agree with some of the others. If cat is willing to warranty them, that means they have inspected them, and feel that their risk is very low, which is why they will warranty them. Also you said your personal mech. who you said is excellent, and I assume you trust, told you not to get them. I personally would not get them. I feel with routine maint. and your mech looking after them, your money would be better in the bank for the future. just my thoughts
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Here's my somewhat weird take on the cat warranty...first, I would probably take it if I could negotiate it down, but its pretty pricey. Also, I can't really reconcile the warranty in my head for their standard price because
1)Cat is in the business of making money (I have no problem with that)
2)As I understand it, they will only offer the warranty after inspecting the engine.
3)Now the dilemma, cat's got the expertise, have looked over the engines, and is making an educated estimate that the cost the owner pays for the warranty will not exceed the cost to them to honor the warranty over the warranty period. Why would I bet against that?
But, do they calculate this on a case by case basis or what overall basis?
That said, get them down in price.
It is a set price given before the inspection. You can call your local dealer to get his current price list at any time.
1) I agree with the poster that said insurance should be for something you can't afford
2) However, I also agree that if you will run them a lot, it is worth it.
3) I have extended warranties for my C-18s, and recently had a raw water pump replaced under warranty. The bill would have been about $6000 and it was $200. Still not the cost of the warranties, but there's a long ways to go.
I just purchased an 04 Sportfish with Cat C12's, I was considering buying an extended warranty for the them from Cat? The cost would be aprox. 5,000. per engine for a 2 year and 8,000 per year for a 3 year?
Quote:
Originally Posted by Teddy1
The engines have 350 hours on them. I had oil analysis done on the engines, trans and genset and the numbers were good. I also had Cat do an engine analysis and there were no major problems, just a couple of minor leaks, that the seller corrected.
Do you think it is worth spending the money for the warranty?
Thoughts?
That seems very high. I posted this on another thread, but I believe it applies here also.
"Extended Warranties" are not warranties at all, they are service contracts or "insurance". By buying one, you are betting the cost of repairs over the period of the "warranty" would be higher than the cost of the "warranty". The company promoting and selling the "warranty" is betting that it will not be.
Now think about this - Are these companies writing and calling you trying to get you to sign up or do you have to beg them to let you buy one?
The odds are, you'll do better putting the cost of the "warranty" in the bank and paying for any needed repairs yourself. Unless you're a real klutz!
BTW: Diesel engines in boats normally run thousands of hours without major repairs.
Personally I would buy an extended warranty. I consider it like health insurance, I may have major health issues down the road or I may not, but if I do I have the insurance to cover me. Also some extended warranties will refund a portion of the money (not an advertised fact) if the policy is claim free at the end.
Funny you should ask that, a guy at my dock put out the money, 1 month later he had to use the warranty. I don't know what he paid, but 2 mechanics spent 4 days on the boat. The engines were over 1000hp. Good Luck
Keep your money in your pocket. You did all the correct due-diligence on the motors already. The odds of you needing a fix over 16 grand over the next three years is very very low. Like someone else suggested. Put the 16 thousand in the bank instead and go boating!
As someone mentioned before, any extended warranty is nothing more than a term insurance policy. Companies selling insurance make very astute assignments on whether they will lose money on covering the policies they write. In the real insurance business the people that make these calculations are called actuaries.
Certainly there are stories where a person bought the policy and used it saving a lot of money. However, statically speaking the policy writers come out ahead or they would never offer policies to lose money.
The best thing you could do is take the money and put it in an interest (albeit low) bearing account until you need it. The key discipline here is not to use it for any other purpose other then repair work, not maintenance.
If you planned on financing the policy, you should make you same monthly payment to the account. The gamble is different in that if a repair came before you had the money to cover it you would have to get the cash somewhere, likely by financing. Also, using this method you are also paying yourself the interest on the loan provided you make the same monthly payment as financing.
At the end of the period, in this case 3 years, if you still have the money you bet with the manufacturer and came out ahead. For you craps players out there it is like playing the "don't pass line".
Diesel Warranty??
Are you kidding?
