Purchasing Warranty For 80's Vintage Boat

Well, my point is that most (not all) people will come out far ahead investing their money in bonds rather than buying life insurance too. There are items where the right extended warrantee is a decent deal (such as the grill mentioned, or the one we had on a riding mower). Laptop computers are another. The key is to use the maintenance provisions many of those warranties offer, and/or the additional technical support. Yes, there is often about an overall 50% gross margin on those, which you pay all day long and much more on any number of things. On non-portable stuff without moving parts, margins in retail stores are around 75%+.

BTW, there is a newer company on the web, SquareTrade, which has a different business model on product insurance/waranties for consumer electronics. I met with them at CES, and a client of mine is doing some repair work for them. They are worth checking out especially for cell phones and the like. A lot of the sales and administrative cost is stripped out, so their prices are very good.

George
Hatteras 56MY
Boston Whaler 130 Sport
 
--- and my point is, if you read the unending list of complaints about this specific company you must conclude it is a good time to take a walk.
 
Well for sure buying a boat that age is a crapshoot on top of the issues with the warrrantee...if it surveyed well and you also had an engine inspection and that went well....I'd advise the buyer to take about 10 grand and leave it in an 'emergency boat bucks fund' for the repairs that will inevitably come up...for those who do not want that level of risk...then it's better to buy a lightly used 2-3 year old boat that has taken a big chunk of depreciation and still has a lot of years left in its basic systems....

the biggest worry on older boats is wood rot and that alone will make me go for the 2-3 year old one next time....
 
People think these warranties are insurance. They are not. They are service contracts and goverened as such.
They are not subject to the stricht laws that an insurance company is.
 
$3K would go a long way toward zeroing out the exhaust risers, heat exchangers, water pumps and hoses. THAT would just about ensure another 3 years on the water, especially if the survey did a good job of uncovering any water intrusion to the hull.

For this kind of money, even if the policy was not a complete throw away, your friends money would be better spent on maintaining the boat.
 
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