Are Outboard Warranties Worth the Cost?
Owning a boat is all about enjoying the open waters and creating unforgettable memories. But what happens when your boat engine encounters unexpected problems? That's where engine warranties come in, offering you worry-free ownership and protecting your hard-earned cash when breakdowns occur.
Imagine this: You're out on the water, cruising along, and suddenly, your engine grinds to a halt. You're faced with the daunting prospect of expensive repairs. The cost of replacing a faulty engine component or fixing electrical issues can quickly add up, leaving you financially drained. However, with a comprehensive engine warranty in place, you can breathe a sigh of relief.
But it's not just about saving money in the moment. Engine warranties also offer peace of mind throughout your ownership journey. Knowing that you're protected against unforeseen repair costs allows you to fully embrace the boating experience without worry. You can navigate the waters with confidence, knowing that if a repair is needed, you won't be left with an empty wallet.
When you purchase a new engine, it will likely come with a manufacturer limited warranty. For reference, Yamaha and Mercury each have a 3 year limited warranty that are comprehensive in their coverage. You’ll be protected against manufacturer defects until the warranty expires. But beyond that - are extended warranties worth the cost? Let’s dive into the reasons why they’re worth it:
Higher Resell/Trade Value
When it comes time to upgrade your boat or sell it to someone else, one factor that significantly impacts its value is the remaining warranty on the engine. An engine warranty adds a significant advantage by increasing the trade-in or resale value of your boat, making it a wise investment that pays off in the long run.
Consider this scenario: You're ready to part ways with your beloved boat and look for a newer model or a different style. Potential buyers are evaluating various options, and your boat stands out because it still has a substantial warranty period left on the engine. This becomes a significant selling point, allowing you to negotiate a higher price or attract more potential buyers who value the security and peace of mind that comes with a warranty.
As an example, let's take a Yamaha 150 with a full coverage warranty and no deductible. The cost of this warranty at the time of boat purchase is $1500. Fast forward four years after the original purchase, and your boat still has two years of warranty remaining. The increased value of your boat, with the warranty intact, far exceeds the initial cost of the warranty. Essentially, by investing $1500 upfront, you stand to potentially make $2000+ later when selling or trading your boat. The warranty coverage becomes an ancillary benefit, as you not only avoid paying for warranty repairs but also come out with more money in your pocket than the cost of the warranty itself.
Warranty Expenses
Now, let's take a closer look at some common warranty issues and their associated parts and labor costs. By considering these potential expenses, it becomes evident that even if just one of these issues arises during the warranty period (and there's a good chance they will), you will come out ahead. And if you happen to experience more than one of these issues, the benefits of the warranty increase significantly, putting more money in your pocket. Take a look at these examples:
Powerhead replacement - $10,500.00
Power Tilt and Trim replacement - $2,500.00
Lower Unit/Gearcase replacement -$4,000.00
Stainless Prop replacement - $1,000.00
Starter replacement - $1,050.00
By being aware of these potential expenses and factoring them into your decision, you can see the true value of investing in a comprehensive engine warranty. With just one of these issues, the cost savings and financial protection provided by the warranty are evident. Now imagine the benefits if you encounter multiple issues. The warranty becomes not only a safeguard but also a smart financial choice.
By investing in an extended engine warranty, you're not only protecting your own interests but also enhancing the attractiveness and value of your boat for future buyers. It's a win-win situation where you can enjoy the peace of mind during your ownership while reaping the rewards of increased trade-in or presale value when the time comes to move on to a new boating adventure.
Cost Savings on Extended Warranty
Purchasing extended warranties at the time of the original engine purchase can lead to significant cost savings. When you opt for an extended warranty upfront, you can avoid additional surcharges and taxes that may be applied if you choose to extend the warranty later. By taking advantage of the initial purchase opportunity, you can lock in the warranty coverage at a lower overall cost. This means you get the benefit of extended protection without incurring additional expenses down the line. So, if you're considering an extended warranty for your boat engine, it's worth exploring the options and making the decision at the time of purchase to maximize your cost savings.
Just a side note - proper maintenance and following manufacturer guidelines are vital for maintaining warranty eligibility. Neglecting routine maintenance or using non-approved parts/fluids can potentially void your warranty. Stay proactive, conduct regular maintenance, and adhere to guidelines to ensure optimal performance and preserve your warranty coverage.
Choosing Not to Have A Warranty
While boat warranties offer numerous benefits, it's important to acknowledge that some individuals may have concerns or reasons for not purchasing them. Let's explore a few common points of consideration:
Upfront Cost: One of the main concerns is the upfront cost of purchasing a boat warranty. It's true that warranties come with a price tag, and some boat owners may hesitate due to budget constraints or the perception that the cost outweighs the potential benefits. However, it's essential to evaluate the long-term value and potential savings that a warranty can provide. By factoring in potential repair costs and the peace of mind that comes with warranty coverage, the upfront investment can be seen as a wise financial decision.
Reliability of the Engine: Some boat owners may have faith in the reliability of their boat engine and believe that it won't require major repairs during the warranty period. While this optimism is understandable, it's important to remember that even the most well-built engines can experience unexpected issues. Having a warranty in place acts as a safety net, protecting you from unforeseen repair expenses that can be financially burdensome.
Limited Usage: Another consideration is the frequency and intensity of boat usage. If your boat sees minimal usage or operates in relatively calm waters, you might believe that the likelihood of engine problems is low. While reduced usage may indeed lower the risk, it's important to recognize that factors like age, environmental conditions, and even manufacturing defects can contribute to engine issues. Limited usage might even be a BETTER reason to have a warranty. An outboard that sees mid range RPM use, proper maintenance, and gets used every day will likely outlive one that just sits around and gets run 10 times a year! A warranty can provide valuable coverage even for sporadic or less demanding boating activities.
It’s really important to fully understand the warranty you are purchasing. The only warranties WE sell are Mercury (Mercury Product Protection) and Yamaha (Yamaha Extended Service). Both brands are non-declining and have 0 deductibles, with no prorated hours on the engine. Non-declining coverage means that the warranty does not decrease or diminish over time. You get the same protection in year 6 as you do in year 1. In the same vein, the engine hours NOT being prorated means that you get the same coverage regardless of how many engine hours you have.
Aftermarket warranties also exist and are fairly common. They’re usually offered at a lower cost, but as you could guess, they almost always come with a few big catches. After numerous deductibles and exclusions, you’ll be left holding the bag on expensive repairs. You also might find out that dealerships might not even accept warranty work from the aftermarket company! With factory warranties, you look for the Mercury or Yamaha sign and you are covered by all the dealers that sell and/or service the brand of engine you have.
If you want to learn a bit more about Yamaha and Mercury warranty coverages, we’ll leave some below:
Learn more about Yamaha Y.E.S: https://www.yamaha-motor-yes.com/benefits-page/
View the Mercury Gold and Platinum Coverages: https://www.mercurymarine.com/en/us/mpp/product-protection/mercury-product-protection/
Watch our video on Yamaha vs. Mercury: https://youtu.be/tvftzKq-EI8
Outro
By offering worry-free ownership, increased trade/resell value, and cost savings on extended warranties, boat warranties serve as a wise investment to safeguard your boating experience. Remember, unexpected repairs can be costly, and having a warranty in place ensures that you won't face financial burdens or interruptions to your enjoyment on the water.
Thanks for reading and we will see you soon in the Learning Hub!