Extended Warranties: Are they worth it?

[The Grinch]

Just bought a new 2005 Honda 600F4i and the dealer tried to sell me an extended warranty. I told him I'd think about it and let him know when I come back to pick up the bike. Are these worthwhile, or a waste of money?

He's trying to sell me one from a 3rd party company I've never heard of. Is this OK, or if I get one at all, should I get it from Honda?

[scan]

I don't think so myself. It is extra insurance, and if you feel that you need that, maybe it is worth it to you. I'd say put a bit of money aside every month for repairs and stuff in the bank. Add it to your budget and when a problem comes up you'll have your own money to fix an issue. Since it is a new bike, you should be covered for most that would happen, and most defect will uncover themselves in the first year anyway. Plus if you look at an extended warrenty's paperwork there is a lot of ways they can get out of calling a repair "covered". Read your paperwork carefully before signing.

[basshole]

If you ride alot, and are not that good at turning a wrench (um, that would be me), then it's not a bad investment. Check to see if it's transferable as well in case you sell the bike during that time frame. I bought mine and I have no regrets.

[ninja79]

how much does he want for the extended warranty and what does it cover?

[paul246]

Better to commit that extra to money to a good maintenance program, your bike will thank for it by giving good service.

Extended warranties are good instant cash cows for dealers. Don't forget that these "warranties" usually involve a "deductible" per use.

Expect the most from your quality machine and maintain it accordingly.

[earwig]

I haven't had much luck with 3rd party warranties - I bought one for my truck and several dealers didn't accept it... that said... I was able to get a refund... anyway.... I never buy warranties i figure, why would they try to push a warranty on someone unless it was going to make them more money? If everyone used the warranty and didn't have to pay their techs to fix problems etc it wouldn't be worth it for them to push on ya...

[flynrider]

The extended warranties are almost a pure profit center. Third party warranties from unknown sources are probably not the best investment.

I've been buying cars and bikes for 30 years and not once have I slapped my forhead and said, "Damn! I wish I would have bought the extended warranty". It just hasn't happened. I've found that if you maintain your machine properly, the odds of ever needing the extended warranty are slim.

[ssnow57]

I've had third party car insurance twice. First company went bankrupt. next company made collecting on a claim hell. I can't imagine that bike warranties would be any safer.