extended warranties

[rhartjr]

Here's an idea for a discussion that I'm supprised I haven't seen on here; third party extended motor warranties. Has anyone had to use theirs and was there any problem using it. Was there any problem transferring when you sold your boat with a tranferable warranty. Lets name them, if there are some to avoid and some that are great I think it would be a big help to someone thinking about buying one. Mine is with Pinacle (I think thats it) haven't had to use it (knock on wood).

[ABoater]

I'm surprised that you haven't seen the topic here before as well. It's one of THT's (seems to be) never ending threads...

Avoid aftermarket (third party) extended warranties and stick with the MFG's extended warranty.

Too many of these fly-by-night companies start up, convince the dealers' F&I guy that they are a huge profit center (which they are), sell a bunch in a short amount of time, and then when the claims start coming in, file BK or disappear to Nigeria or some other third world country with your money and you left holding the bag. Some force you to pay in advance for the repair and then try to file a claim for a refund. If you manage to jump through all of their hoops, you MIGHT get your money six months later. Usually, only the dealer that sold you "brand X" warranty will honor it. If you break down out of the area, the local wrench might look at your paperwork (assuming that you have it with you) and state that he never heard of the company and won't touch your boat with a ten foot pole. Unless, of course you pay for it up front. Most third party plans require pre-approval before the work begins and some even require an inspection from one of their field workers, which might be 2,000 miles and three days away. So much for you getting back on the water during the holiday weekend.

Avoid all of these nightmare scenario's (and more) and stick with the MFG plans. On the last three new boats that I have purchased, I made the dealer throw the extended warranty in after I got their final price, as a deal clincher. They are high mark-up items for the dealers, so it's not like they are giving you a true item that "costs" $2,000. Also, there are plenty of incentives that give you your choice of extended warranties or a cash rebate lately, so look into those when buying new.

The MFG warranties are honored at any authorized dealer or service center in the US. No payment up front is required, and hopefully you can be back on the water in a short time.

Good luck!

[cmoore74]

What do you do when the extended warranty runs out?

I just bought a used boat last year and the extended warranty from Mercury ran out. Once the extended warranty is up, Mercury will not offer another extended warranty. Now what?

If I want a warranty I have to go with an aftermarket warranty.

Any recommendations for reputable aftermarket warranty companies? Are they woth it?

The motor is a 2002 Mercury 150 HP Optimax with about 90 hours on it.

[ABoater]

Most (yes, MOST) aftermarket warranty's are fly-by-night companies that flood the market for a short time, sell a bunch, then go out of business and run to the Bahamas with your money.

If you are lucky enough to get one in which the company is still in business, good luck in completing the claim process. Many hoops to jump through. Plus, you'll probably end up having to pay the shop for their services up front and then fight the company for your money back. If you're lucky, you MIGHT get it back 6-18 months later.

If you MUST go with a 3rd party service contract, I would INSIST that the selling dealer put his money where his mouth is and offer you a (written) guarantee that if the contract company that he sells you disappears in the middle of the night after they have your money, or pulls any other nonsense in which they won't pay your claim, the dealership is responsible for returning 100% of your funds.

If your dealership is so impressed with the 3rd party company that they are willing to offer it up to their customers (you), they should have NO PROBLEM making you that guarantee.

If they won't, then that proves that even they are leary about the company and that they are just trying to make a home run off of the sale of it and you end up taking it in the shorts. There is bookoo mark-up in those warranties. The F&I persons income is based off of a percentage of the sale of those things. A BIG percentage.

Make them put THEIR money where THEIR mouth is. Anything less is just BS.

Good luck!