Hi all been so busy riding this summer haven't visited in

[wawctw]

well between the motorcycle and the PCX I have been riding a lot. I managed to put 600 miles on the PCX this summer. Fun but now I have to look into the 600 mile service the dealer says $ 135.00 US

Not looking forward to that but my warranty doesn't run out until May so I guess I have to. I have been looking into buying a Honda extended warranty. Pricy but I can extend it to four years unlimited mileage. A
Has anyone purchased the extended warranty? I did for my motorcycle went 10,000 miles and never had a problem I never even had the first service done did all of it myself. What do you think buy the warranty or not?

[kramnala58]

I can't recall what thread it was on in the last week or so, but someone else listed prices that they were offered an extended warranty for. The prices didn't seem that bad, and to each his own, but I would take the security over the cost because it seems that even just one claim would pay for itself.

[Mel46]

We bought an extended warranty only to find that the exclusion sections were not given to us at the time. Then guess what...the parts that broke were the parts excluded. Good luck with that extended warranty.

[you you]

well between the motorcycle and the PCX I have been riding a lot. I managed to put 600 miles on the PCX this summer. Fun but now I have to look into the 600 mile service the dealer says $ 135.00 US

Not looking forward to that but my warranty doesn't run out until May so I guess I have to. I have been looking into buying a Honda extended warranty. Pricy but I can extend it to four years unlimited mileage. A
Has anyone purchased the extended warranty? I did for my motorcycle went 10,000 miles and never had a problem I never even had the first service done did all of it myself. What do you think buy the warranty or not?

Not

[WhiteNoise]

Read the fine print. Lots of things "excluded." Still up to you. If you feel better knowing Honda warranty folks have your back (rather, parts of your back), then go for it! It's Not that expensive to buy some restful sleep. Worrying is such a time stealer.

[wawctw]

Thanks everyone I think maybe I will not purchase one. Do meticulous maintenance and take my chances.

[kcpcx]

Two people:


Person one buys extended warranties on all vehicles and big ticket items over the span of their life.

Person two never does this, and puts the money they would have spent on said warranties in an escrow account.


50 years later, person #2 will almost always come out ahead, statistically.

Companies peddling extended service contracts play on fear. Not logic.

There are two distinct phases to an extended service contract or warranty. Phase One: Person selling you the contract plays on gloom and doom to convince you to buy. They spend a huge amount of time going over all the minutia that the warranty DOES cover. Sounds good...

Phase Two: Warranty company tries to find any possible loophole to get out of paying a claim. Every dollar paid out from this point on is a dollar of lost profit. They already have your money...why give it back to you?


Example warranty:

Dealer sells for $500 to customer. Dealer pays $300 of this to warranty underwriting company, and keeps $200 profit. Underwriting company pays out $150 in claims and makes $150 profit.

Net result: $500 paid by customer for $150 in value.


Of course, a few people beat the odds. They pay $500 and get $1000 in repairs. But for every person like that, there are 5 or 10 or 15 who receive far less in service than they paid in premiums.

Warranty providers have large and highly educated staffs of experts to analyze repair data and claim histories. These very smart people then craft contracts which expose the provider to minimum loss per dollar taken in, in revenue.

In other words, they know what will break on average, what it will cost to fix it, and when it will break. They know what the average PCX150 scooter policy will probably cost them in claims. They then price the warranty accordingly, so that on average, they make a healthy profit at the end of the day.

Ask yourself: why are finance people at dealerships so eager to sell me a policy? Answer a) they love me and are staying awake at night worrying that I might suffer a financial loss due to an unexpected repair OR b) they make a fat profit from said sale...

[you you]

Two people:


Person one buys extended warranties on all vehicles and big ticket items over the span of their life.

Person two never does this, and puts the money they would have spent on said warranties in an escrow account.


50 years later, person #2 will almost always come out ahead, statistically.

Companies peddling extended service contracts play on fear. Not logic.


Example warranty:

Dealer sells for $500 to customer. Dealer pays $300 of this to warranty underwriting company, and keeps $200 profit. Underwriting company pays out $150 in claims and makes $150 profit.

Net result: $500 paid by customer for $150 in value.


Of course, a few people beat the odds. They pay $500 and get $1000 in repairs. But for every person like that, there are 5 or 10 or 15 who receive far less in service than they paid in premiums.

Warranty providers have large and highly educated staffs of experts to analyze repair data and claim histories. These very smart people then craft contracts which expose the provider to minimum loss per dollar taken in, in revenue.

In other words, they know what will break on average, what it will cost to fix it, and when it will break. They know what the average PCX150 scooter policy will probably cost them in claims. They then price the warranty accordingly, so that on average, they make a healthy profit at the end of the day.

Ask yourself: why are finance people at dealerships so eager to sell me a policy? Answer a) they love me and are staying awake at night worrying that I might suffer a financial loss due to an unexpected repair OR b) they make a fat profit from said sale...

What was the middle one again?

[wawctw]

Great points everyone