Is the extended Warranty worth it for 2014 Ski Nautique 230

[tiger8888]

Hi everyone,

I just purchased a 2014 Ski Nautique 230. I am super excited to get it and am looking forward to years of good times with the family. The dealer offered me a extended warranty on the engine for 3 additional years for a total of 8 for $2000. Should I do buy the extended warranty? Are their other options?

Thanks. Appreciate the advice.

[jrz1]

Chances of anything substantial happening to motor over that period are pretty slim. Extended warranties, like Vegas, are a losing proposition over the long haul but if you're risk averse and gain comfort knowing that the $2K + deductible is your downside, then that's fine. I think you'd be better off putting the $2K in some form of interest bearing account for the 4 years (you can get almost 4% currently in Oppenheimer's floating rate mutual fund and if nothing happens, you get the $2K + back after that period whereas with the warranty you know you've spent the $2K regardless.

If something does go wrong without the warranty, maybe you're out a few extra hundred or another thousand or two above the $2K you've set aside. Probability weight those outcomes and I think you'll skip the warranty.

Extended warranty businesses are highly profitable for the underwriters generally speaking.

[scottb7]

I would skip it.

[jmo]

If you are on the fence, try negotiating the price of the extended warranty down. When I bought my wife a new Honda Pilot I bought the extended warranty after talking the sales guys down to $900 from $2,000. I drive cars into the ground and with Hondas having various issues (transmission for example) it was worth it. It has already covered $300 worth of sway bar links in the front that needed to be replaced.

Granted, a car has many more moving parts than a boat, so if it was me I would probably pass. Also keep in mind if trade it in you don't get the money back. That's part of tactic dealers employ - they are banking on you trading in before you actually get to use it.