Thoughts on extended warranty

[williamcookiii]

I am new to the forum and looking for some advise from Cobalt owners. I am purchasing a 2014 R5 that has one year remaining on the factory warranty. The Cobalt dealer gave me an offer to buy an extended warranty($1399.) for three additional years. The warranty starts at date of purchase so realistically I will have a factory and extended warranty in place for the first year then two additional years on the extended warranty.
The R5 I am buying has the mercruiser 300 hp 5.7 motor with 46.7 hours. The boat has been serviced by the dealer annually since original purchase.

Being that Cobalt is known for their superior workmanship and quality, do you think or recommend an extended warranty? Thanks.

[NautiGirl]

Very rarely do extended warranties benefit the consumer. The companies offering them are in the business to make money and the warranties are priced to reflect that. What's the old saying - only insure what you cant afford to replace?

I would put the $1400 you were going to spend on the warranty in a nice safe place and know if something happens to the boat you have some money stashed away to handle it.

[Big Block Power]

Matt and I work in a business that sells and services vehicles everyday. I can tell you if it's up to me I would buy it in a heart beat. Unless your handy and can fix a drive and a engine. You may never use it, but if you do its paid for itself on the first time. Cobalt doesn't make the engine or the drive so it has nothing to do with cobalt quality. Both merc and Volvo are very reliable but that one time. Replace a cat converter manifold one time.

[Bfun220]

Very rarely do extended warranties benefit the consumer. The companies offering them are in the business to make money and the warranties are priced to reflect that. What's the old saying - only insure what you cant afford to replace?

I would put the $1400 you were going to spend on the warranty in a nice safe place and know if something happens to the boat you have some money stashed away to handle it.

Yup, everything you said.

[cmattj]

Matt and I work in a business that sells and services vehicles everyday. I can tell you if it's up to me I would buy it in a heart beat. Unless your handy and can fix a drive and a engine. You may never use it, but if you do its paid for itself on the first time. Cobalt doesn't make the engine or the drive so it has nothing to do with cobalt quality. Both merc and Volvo are very reliable but that one time. Replace a cat converter manifold one time.

Let me add that for an additional 2 years thats great price..

As BB said we are in a industry where machines fail and even though we have good success with our boats things happen regardless.

Simple ecm is 1500.

A cooked engine after loosing an impeller and not hearing the alarm is 10k..

Things happen and if you have the opportunity to purchase " peace of mind for 2 years more and only 1,400..

That equals out to $ 58.00 a month? I would in a heartbeat!! That's a great value

[williamcookiii]

I really appreciate everyone's input. Decisions, Decisions...

[AsLan7]

I really appreciate everyone's input. Decisions, Decisions...

Hey, welcome to the CobaltChat forum, williamcookiii. So glad you found us!

Generally, when exploring extended warranties, three main factors come into play.

1. Read the fine print.
What does it NOT cover? Are there deductibles? What voids the warranty? Does it cover labor AND parts? Is it transferable to another owner? (for resale value). Is there a limit to the number of claims?
Nothing can be more frustrating than paying a premium for a warranty that “doesn’t cover that”. This will help you decide if this is a reputable company underwriting this warranty.


2. How handy are you?
Can you repair things yourself and more importantly, do you have the time to do that?


3. How much financial risk are you willing (or able) to assume?
This is really just an insurance policy you are purchasing.
You are insuring your ability to mitigate financial risk. Normally the older the boat, the more risk you are assuming. The selling point of extended warranties is peace of mind. There is a lot to be said for that if the fine print checks out and the premium is reasonable. In this case, which Matt stated, the premium is fair. Since the first year warranty is already covered, you are basically buying two years for $700/year. FWIW, Marine tech labor rates are normally $100 per hour minimum.

Like Nauti said, the odds are in the dealer’s favor, but that one time you have a major expense that you cannot afford, they sure come in handy.

Hope this helps.

And again, welcome aboard mate!

.

[williamcookiii]

The warranty is being offered by ServiceGard Marine

[Tuscany]

Funny how each of us see things..

JMHO,
I’m all about insurances, but never, ever on vehicle extended warranties..
Dealer profit item... like scotch guard seat protectant and paint “sealer”.
Las Vegas wasn’t built on losing odds.

47 hours? That’s a couple weeks of use.
The boat you are buying is basically brand new, and I would gladly place all of my chips on the boat and the top quality drivetrain it’s equipped with, and not worry about issues that will most likely only happen from abuse and negligence.
Consistent maintenance mitigates breakdown issues...

[Table Rockin]

Funny how each of us see things..

JMHO,
I’m all about insurances, but never, ever on vehicle extended warranties..
Dealer profit item... like scotch guard seat protectant and paint “sealer”.
Las Vegas wasn’t built on losing odds.

47 hours? That’s a couple weeks of use.
The boat you are buying is basically brand new, and I would gladly place all of my chips on the boat and the top quality drivetrain it’s equipped with, and not worry about issues that will most likely only happen from abuse and negligence.
Consistent maintenance mitigates breakdown issues...

This. That engine probably wont have issues until after that extended warranty runs out. This coming from a guy who blew an oil hose on a boat with 85 hrs.....so yea.....not sure how much something like that would normally cost (mine is still under warranty) but shit does happen. That said i still wouldn't do it.

[Dropped Anchor]

Good thread... Same situation, about to take possession of this beautiful new Cobalt and am now presented with an extended warranty. ServiceGuard. Looks like it takes the warranty from 5 to 8 years.. But is expensive. $3,000 plus. I am trading in a 1996 4.3 Mercruiser that I never had a single issue with. Scratch that, on the outdrive I had to replace a seal, that was about $700. That came in year 22.. HA! I do want to protect this boat, but this won't even take effect until 5 years from now.

[Big Block Power]

Your paying a grand a year. Up to you. We see it everyday. Can you set aside the 3k fur the just in case moment on a 10k engine or 10k drive? All of the electronics. You have to have the EVC dock mode like Bob is getting.
Boats are getting more complicated and will break. If you can save it and don't use it your 3k ahead. I see you with 300hp in a year anyways so why bother.

[tgrace98]

I can tell you the dealer I bought my R7 from moves and services a lot of Cobalts. And I was never even offered an extended warranty. I’ve built a good relationship with the dealer and I finally asked them if they do extended warranties. Their answer was.. Cobalt offers a great warranty and stand behind their product. He then said the warranties after the cobalt one expires are expensive and just save your money for that rainy day. If it comes.

[CaptainTom]

I declined extended "warranties" on my 2 cobalt purchases. Technically they are not warranties, they are service contracts. They are not issued by Cobalt or your engine manufacturer. Your dealer and some insurance company are each making money on these service contracts. Also, I read the fine print (i.e., the contract, not the brochure) and there are a lot of ways for claims to be denied. Granted, there are similar exclusions on the Cobalt factory warranty (i.e., failure to maintain). The tipping point for me was that the extended service contracts I was looking at had caps of around $10k. So, I look at it like this. If I pay $3k for this extended service contract, I don't come out ahead until I have more than $3k in claims. Then, let's say I have a $10k claim. I will get $10k and have paid $3k in the past. That's only a net $7k. To me, it's kind of like owning a $100,000 home and buying an insurance policy that costs $30,000/year for 3 years (i.e., $10,000/year). I wouldn't take that deal.

I would have been interested in a maintenance contract... so that I could just cry once.

[jma2@fuse.net]

If you the need to purchase the extended warranty, then my mantra is you shouldn't purchase the boat. Extended warranties are pure profit for the dealer. I've only purchased one extended warranty (car) in my lifetime, and that was the last time. In short, there are so many loopholes in the x-warranty contract, that you most likely won't come out ahead--so ditto CaptainTom's and AsLan7's posts. Sure, some members on this forum will attest to having purchased an extended warranty where it paid off, so you'll have to consider those testimonials. In my view, for your situation, purchasing an extended warranty makes no sense. This is because you still have a year left on the Cobalt factory warranty--if something is seriously wrong with your boat--you're protected by Cobalt.

SIDE TRACK: HOW TO TRANSFER THE COBALT AND VOLVO PENTA WARRANTY AS A NEW OWNER

I purchased my Cobalt (2d owner) which was still under the Factory warranty. The broker provided me a warranty transfer document, which required a $100 fee. The warranty transfer document was actually through Brunswick. I was perplexed because I purchased a Cobalt and wondered what the relationship was between Cobalt and Brunswick. Upon further research and emailing Cobalt, I learned that there was no affiliation with Brunswick. I also learned that VP's 5-year warranty (3+2) is separate from Cobalt's; and that there is no affiliation between VP and Brunswick either. Ironically, VP does not market the fact that it's 5-year warranty is transferable; and I had to do a lot of digging to figure out how to transfer it. I found the transfer document buried on the VP CD ROM documentation, and it's called a "Product Update Registration Form."

If your Cobalt is still under factory warranty when purchased you should do the following:

1. Fill out the warranty transfer document that is in the owner's manual and email it to Cobalt;
2. Fill out the VP Product Update Registration Form and mail it to VP (I sent mine certified);
3. Throw away the Brunswick warranty transfer paperwork and save $100.

Also, I would not rely on my dealer to do this for you, or otherwise assume that it has been done. I believe there is a time limit on the VP warranty transfer, so you should do it immediately after title passes.