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Extended Warranty on a Used Bike?

42046 Views 21 Replies 20 Participants Last post by  rmdower
Yes, they are worth it...


-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 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.
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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.
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.

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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.
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.
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
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.
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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.
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.
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.
If you decide that you want an extended warranty, shop around (eBay, Cycletrader, etc.) to see if you can get a better price. $800 for two years seems very high (I've seen four year factory extended warranties on the big Kawasakis for about $400). Good luck!
Heres another vote for keeping your money.

If you really would sleep better knowing you have an extended warranty, go shopping elsewhere. Dealers are resalers of extended warranties as they are not the underwriters.

They buy it for $X and resale to you for $XYZ.

when will they wheel and deal ?

Gabe - as long as we're tapping your dealership knowledge, here's a related question: what's the best time of year to buy from a dealer ? January/February ?
Does the motor sound good and tranny shift properly? Don't buy the bike if you haven't taken it for a test ride and don't buy the warranty.

Thanks for all the comments! The bike only has 5000 miles on it and so far seems to run smoothly and shifts clean. I have "until this Friday" to make up my mind (per the finance guy at the dealership) or "he can never offer it again" so I'll simply skip it and save my money.
I have only bought an extended warranty on one item in my life, and that was a mistake. What does the extended warranty cover? What does it exclude? 800 smacks for two years seems a little high to me. On a fairly new Japanese moto you should be able to get the dealer to cover it for 1-3 months on his own for no cost, just because you will likely become a very good customer over the years, like shop fees and accessories. That way if there is some previously existing condition, it will probably show up, if you ride enough, in that length of time. Make sure he writes it on the sales contract. If he won't spring for it, tell him to stick the 'zuke where the sun doesn't shine, and shop elsewhere.
I bought the extended warranty at the dealership on my Ninja when it was new (I didn't know anything about bikes still don't :) ) . A month latter Kawasaki sends me a thing in the mailer asking me if I wanted the same warranty this time at half of the price. My wife got on the phone demanded our money back from the dealer when then bought it from Kawi directly. Haven't needed to use it. Have 25,000 miles on my 2001. It did come in handy though when a bad shop tried to convince me I needed a new head gaskat. As soon as I told them "OK it's under warranty" a day latter I get a phone call saying that only a screw was loose i.e. they would have to prove to Kawi the repairs...
maybe this is too obvious to point out, but I always call one or two service managers at decent-sized dealers to find out how a given model holds up—especially bikes that have been around for awhile. Service managers tend to be pretty smart guys who know their stuff and not as motivated to bend the truth as sales types LIKE GABE AND HIS ILK.

If a service manager told me bike x doesn't break, i'd tend to believe him.

One of them even told me if he had a VFR800 with Vtec, he'd never bother to have the valves checked.
You're right, too obvious.

But seriously, I do feel like a tool when I get all the info from the local dealer and then go buy a used bike somewhere else.
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