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-   -   Extended Warranty on a Used Bike? (http://www.motorcycle.com/forum/help/2920-extended-warranty-used-bike.html)

Gabe 07-12-2005 08:41 PM

Yes, they are worth it...
 
IF:



-You are planning on riding your bike 10k or more miles in the next two years.

-It's a reliable, nationally-recognized service plan company that's transferrable and good anywhere.

-The coverage isn't so restricted as to make it worthless (ie, high deductible, no coverage for commonly failing parts, no tow coverge).

-The rate is competitive...you don't have to buy it at that dealer! Make sure the F&I guy knows you know that. They will hit you with a very fat markup if they think you'll pay it with no resistance.

cptaebphd 07-13-2005 01:01 AM

Re: Extended Warranty on a Used Bike?
 
It's an $800 bet: the warranty company is betting the bike won't need that much work and you're betting it will. Flushing the money down the toilet will at least provide a minute or two of entertainment which is more payback than most get on extended warranties.

bikervince 07-13-2005 02:11 AM

Re: Extended Warranty on a Used Bike?
 
Well, of course the dealer thinks you should buy it, it means more $$$ for him! Personally I don't think it's worth it. A 2 year old Japanese cruiser that was well cared for should be very reliable over the next 2 years, I wouldn't expect anything to go wrong. That doesn't mean it can't, but it's rather unlikely. Put the $800 in the bank and that will be your repair money, if needed.
Disclaimer: I never buy extended warrantees on any of my purchases. Every time I make a purchase from one of those consumer electronics stores, they try to sell you the extended warrantee. I turn them down flat. "But what if something goes wrong?" they say. I tell them I can pay for repair/replacement with the money I saved from all of the other extended warrantees that I didn't buy! Seriously, those warrantee costs are set by highly paid people called Actuaries, and they know the probability and average cost of a claim, so the rates are set accordingly to be to their advantage.



BikerVince

bbtowns 07-13-2005 04:21 AM

Re: Extended Warranty on a Used Bike?
 
I don't specifically know this to be true for the motorcycle industry, but extended warranties for other products are among the highest profit products as a percentage of price. I'm with most of the other MOrons, put the $800 in the bank and you'll likely have most of it left after two years of non-maintenance repairs.

acecycleins 07-13-2005 04:38 AM

Re: Extended Warranty on a Used Bike?
 
If it has modestly low mileage. DON'T DO IT.

Have you ever heard of a VS engine breaking? They may not be the most powerful but the design is near bullet proof. Like the other MOrons, save your money.

bod 07-13-2005 04:45 AM

Re: Extended Warranty on a Used Bike?
 
As former owner of a 1400 intruder I would agree about bullet proof I bought a 1993 model several years back put about 20,000 miles on it. I did nothing but regular matenaince such as oil brakes and well thats about it. Damn thing ran like a swiss watch and the best part is I sold it for 200 bucks less than I paid a good deal. Verdict No warranty neccesary

seruzawa 07-13-2005 04:58 AM

Re: Extended Warranty on a Used Bike?
 
If you read the warranty you will find that they don't cover "pre-existing conditions". None of them do. You better make sure that you have written evidence that the previous owner got all the required maintenance on the bike done properly or the insurance company is going to refuse to cover any problems based on "pre-existing condition". They'll be happy to sell you the warrenty though, anyhow.



You also didn't mention whether the warranty was prorated. My mother-in-law got suckered on one of those. She bought a 7 year warranty for her new GM Cutlass. When she had a major tranny problem after 4 years the company would only cover 3/7ths of the replacement cost.



Be very careful! Read the warranty in full. Believe nothing the dealer tells you.



The funniest extended waranty I was ever offered was a 2 year extender on my dishwasher. The cost of this 2 year wonder was about the same as the cost of a new dishwasher.

longride 07-13-2005 05:45 AM

Re: Extended Warranty on a Used Bike?
 
Don't bother. Most aftermarket warranties are certified ripoffs. If they have to fix anything that is expensive, they just refuse and make you sue them to get it paid. Four years later, you MAY get satisfaction. Just ride it.

Fenton 07-13-2005 05:50 AM

Re: Extended Warranty on a Used Bike?
 
Don't do it. Save your $800.



I would insist the dealer back the bike for a short period of time, ie..30 days, 200 miles.



I did buy a 3 year extended warranty on a bike with 14 miles. The warranty cost me $600. But the bike was a Bimota and I really was buying peace of mind given the brand.

SRMark 07-13-2005 07:02 AM

Re: Extended Warranty on a Used Bike?
 
The insurance companies have taken a quick look at the actuarial tables and decided they can make money at the $800 level. Therefore, odds are that you will loose money on the deal.


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