To warranty or not to warranty? That is the question.

Discussion in 'GS Boxers' started by solarinsocal, May 23, 2012.

  1. '05Train

    '05Train Mind is not for rent

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    This is a non sequitur, as warranties don't cover maintenance, and maintenance doesn't necessarily prevent breakdowns. BMW's warranty is 36,000 miles, or roughly 18 months. I plan on keeping my bike much longer than that. Additionally, Murphy's Law's pretty clear about catastrophic failure only occurring when you're far, far away from your toolbox.

    It doesn't take much research to see what the GS's repair history looks like. If you ride serious miles and tend to go outside of your local area, you're tempting fate by not having a warranty. It will literally take one covered issue for the policy (5 years, unlimited miles) to pay for itself.
    #21
  2. Anorak

    Anorak Woolf Barnato

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    Not all the customers used their warranties. I saw more extended warranty repairs at the BMW dealer than when I worked at the Ducati, M.V. Agusta, Triumph, Husqvarna, Moto-Guzzi and sort of Benelli dealer.

    If you can get access to the dealer cost of the warranty, you can get an idea of longer term reliability of the brand. The more reliable, the lower the price of the warranty.

    Also, the price of the warranty is negotiable.
    #22
  3. bigbadandugly

    bigbadandugly Been here awhile

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    Yeah, you can get a lot of parts for $990, but that $990 also gets you the labor...and piece of mind. You guys are valuing your time as worthless. This may be a fair assumption if you're unemployed or retired, but if you're mid-career working 45-50 hours a week, commuting two hours a day, and have teenage kids with soccer practice and what have you, leisure time is a scarce commodity and shouldn't bee valued at $0. Not to mention the possible need for specialty tools, running around for parts, spending time on the forums learning how to...

    Piece of mind. For many the $990 is well worth it, particularly for a motorcycle that is three years old with 66k miles on it. You can't value that at $0 as well.

    Exactly.

    Wisest advice in this thread. If the warranty has a huge exclusion list (including electrical) and high deductibles/low coverage limits, the run, don't walk.

    Personally, I think extended warranties for electronics and automobiles are unwise purchases, but am not convinced this is the case with motorcycles. That being said, if you're the kind of person that puts 2k local miles a year on the bike, perhaps you should roll the dice.
    #23
  4. David13

    David13 Been here awhile

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    "Exactly."
    Charley.
    If I woulda got the warranty the other 40 or 50 times, I would have lost money every time. Except once.
    How many thousands behind would I be.
    You do have a point if you have no leisure time.
    I enjoy working on a bike or car, or truck, or boat, or airplane. I value the time I do that as worth $1,000 per hour. In terms of happiness about doing it.
    dc

    They don't sell those warranties to lose money. They are making money. You lose.
    #24
  5. WeazyBuddha

    WeazyBuddha Carbon-Based Humanoid

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    FWIW, I did the search here on Gspot, did a lot of hand wringing and ultimately bought the after-market warranty after my BMW warranty expired.

    Get informed, these things only cover what is specifically mentioned and nothing else.

    BTW, I think this is the first extended warranty I've ever bought. I'm not a believer in 'em but in the case of my GS I ultimately decided to get it.
    #25
  6. dirtybikefrank

    dirtybikefrank Beast wrestler

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    Just the facts..

    Purchased my 08 GSA from a friend a year ago in March w 32000 miles on it. No issues besides the fuel strip prior to my ownership of the bike. These were all covered under warranty. I wondered the same thing about purchasing the extended warranty since i usually politely decline such offers. My plan with this bike was to ride the piss out of it and with only 6K left on the factory warranty opted for the the full deal Interstate warranty though my dealer. Ran me about $1100.


    Cut to:

    Three weeks ago. Final drive seal began weeping at 42000K. BMW of Atlanta replaced the whole final drive without even a second thought. This wouldnt have happened without taking the gamble on the warranty a year ago. Saved me a ton of money and most of all TIME. I was back on the bike in two days.

    This experience completely changed my thinking of extended warranties. To me theyre worth their weight in gold...
    #26
  7. David13

    David13 Been here awhile

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    For every one of you that wins, there are ten, or 100 that get nothing on it. That's how they stay in business.
    But I think BMW did drop out of the warranty business on motorcycles in the usa a few years ago. Maybe they did go broke paying out claims. Now you can only get an 'aftermarket' warranty.
    dc
    #27
  8. bobobob

    bobobob badbadbad

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    Look, if you're going to blow smoke and make up numbers, try to make it
    seem slightly plausable by not tossing out a random 10 or maybe 100.
    It screams "I have no fucking idea" so I made these up. :lol3
    #28
  9. trc.rhubarb

    trc.rhubarb ZoomSplat!

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    It works like this...
    If you buy the warranty, you are all but guaranteeing no failures
    If you don't buy it, you will have failures and buy it from now on, but the bike won't break until you finally stop buying them

    Mine that came with the bike from the 2nd owner doesnt cover clutch or shocks. Read carefully...
    #29
  10. bigbadandugly

    bigbadandugly Been here awhile

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    In a pure economic sense, it may be true that some extended warranty purchasers don't recover their investment. But the "piece of mind" value could easily exceed the cost of the extended warranty, even if they don't use it at all. I'm sure you are a consumer of life insurance for the "piece of mind" value because there is absolutely no other reason to have it (other than lender obligations on loans).

    Further, you comment reflects your ignorance of how insurance companies work. I agree that insurance companies are in business to make money, but most insurance companies lose money or break even on the underwriting side of the business and rely on the investment side of the business to generate the profit for the business based on investment returns on the premiums.

    Ever wonder why BMW Financial Services does not sell extended warranties for its motorcycle division? It, of all entities, has the best information to determine post-warranty failure rates and the associated costs. It sells extended vehicle protection plans in its car divisions, so why not for its motorcycles? Clearly because it is not profitable for them (manufacturers don't invest the premiums like pure-play insurance companies do).

    I as well do not typically purchase extended warranties. I will, however, buy an extended warranty on my 2012 GS if I can find one because:

    1) In general bikes face harsher conditions than automobiles, and in my case I ride it as if I rented it, not like it's some Goldwing
    2) Read the forums - the number of tales I read of GS failures given the # of GSs sold is astounding relative to the Honda Pilot failures I read in the Pilot forums (although this is probably due to #1 above)
    3) BMW Financial Services doesn't sell extended warranties - what does that tell you?
    #30
  11. mattjw916

    mattjw916 never wears lip balm

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    Maintaining a vehicle properly means fixing things that break. Not sure what your point is here.

    First, I'd wager most people don't ride 36k miles in 18 months so double that to 36 which is what the brochure says. Don't make up facts to support your conclusions.

    Second, "Murphy's Law" doesn't care about a warranty. Whether you pay out of pocket or some company pays instead you can still have a breakdown anywhere. I'm not even sure WTF you were trying to say here.

    If I paid for an extended warranty on my K1200RS for instance, the money would have been totally wasted. No problems except the fuel couplings in 8 years. A warranty wouldn't have got me to work that morning or saved me any money. In fact, I would have lost money. Just because something breaks doesn't mean you're going to rack up an instant $1000 repair bill... that's just going to make you just break even on the typical warranty btw...
    #31
  12. '05Train

    '05Train Mind is not for rent

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    Errr, no. Fixing things that break is called "repair". The maintenance schedule is called out in the manual. Two different things.

    Couldn't care less about "most people", that's how much I ride. Don't make assumptions when you don't have facts.

    The point, which you missed, is that there's no telling where you'll break down. Given Murphy's Law, you can't guaranty that you'll break down near your toolbox, so the people who talk about doing their own work are S.O.L. if they break down a thousand miles from home. Further, with said warranty, towing costs and motel stays are covered, as well as the cost of the repair.

    Well good for you. If you're happy with your decision, I'm happy for you.

    For me, the amortized cost of the warranty (around 60 cents a day over the 5 years of the coverage) is negligible, and well worth the peace of mind when I'm thousands of miles from home. Not all breakdowns will equal the initial cost of the warranty, but the potential is there. And I'm willing to wager that at some point during the 5 years of coverage and 150,000 miles or so I'll ride, something's gonna fail. If I'm wrong, I'm wrong. BFD.
    #32
  13. David13

    David13 Been here awhile

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    Bobo
    It isn't my number. I didn't make it up, or toss it out. It's the number from the company that sells the warranty. They have the number. They know the number. It's their number. They ain't gonna tell you or me. But they are in business to make money.

    Sounds like you are trying to blow smoke ... and sell warranties. And it's more like playing the lottery, than buying insurance. It sounds like you have ... 'no fucking idea'.

    Somebody doesn't know the difference between life insurance and a car or motorcycle extended warranty, aka aftermarket warranty.

    I don't get any peace of mind from life insurance. It isn't designed to benefit me. It's designed to benefit those left behind. I'm worth quite a bit ... dead.

    dc
    #33
  14. GapRunr

    GapRunr Been here awhile

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    I went for the Mac Daddy aftermarket warranty on my 07 GS when I was about to expire my 3 year/36,000 mile warranty after two years. I've never been a big believer in aftermarket warranties, but with the price of some of the components, like ABS modules, $2K final drives, $400 fuel pumps, $500 starters, etc., I shopped around and got a great deal on an extended warranty. This was back in 09, and I bought an additional 6 years with unlimited mileage. A few weeks ago my starter took a crap. The parts and labor for that repair bill was within a hundred dollars of what I paid for the extended warranty.

    Without the warranty I would have shopped around for a used starter, or maybe ponied up for a new one, and then replaced it myself at night after work. I have the ability to do this myself and without a warranty I would have done it myself out of necessity, but I just don't have the time. With the extended warranty I made a phone call and had it fixed. That convenience is one of the things I was willing to pay for. I've pretty much broken even on my warranty, and I still have a couple of years to go.
    #34
  15. Dan-M

    Dan-M Long timer

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    It seems to boil down to if you are paranoid about your bike having a catastrophic failure, buy a warranty.

    If you think the warranty company on average makes money on these, then it would follow that on average the bike is going to need less covered repairs than the cost on the warranty. Actually, less than the cost of warranty without the dealer or salesman commission.

    I've always played the odds and not bought these things. If now after all these years if my bike needs a final drive or my washing machine needs a motor, I'll pay out of pocket and still be money ahead.

    I do speak with some experience here. I've owned an auto repair shop for more than 31 years. Automotive extended warranties are the same product. Most people don't use more than they spent.

    YMMV
    #35
  16. tlwood99

    tlwood99 Been here awhile

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    I agree 100% with nanotech9. I would add that not everything in a warranty is covered. If the bike has a history of being a lemon I would get rid of it. Otherwise I would keep my money, and pay for repairs as needed.
    #36
  17. GS-A-Day

    GS-A-Day Adventurer

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    How many miles you are going to travel under warranty also makes a difference. For those of us who ride a lot, a warranty makes a lot more sense.

    The more you ride, the better the deal for you--the less you ride, the better the deal for the company. :deal
    #37
  18. nanotech9

    nanotech9 ** Slidewayz **

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    I'm gonna own one sometime... I may not be able to drive it more than a few hundred miles to avoid making crazy expensive repairs and oil changes, but I'm gonna own one dammit!
    #38
  19. mattjw916

    mattjw916 never wears lip balm

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    Yeup, you're wrong. Nothing you said proved otherwise. Roadside assistance is free with almost everything now so you can't factor that in. The "fancy" plans even cover stuff like "trip interruption" and pay upwards of hundreds of dollars for being inconvenienced... all without spinning the extended warranty roulette wheel at the same time.

    In the end, people who use this thing called math come out on top... the rest have crappy critical thinking skills and lighter wallets as a result...
    #39
  20. '05Train

    '05Train Mind is not for rent

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    You'll have to post where you bought your crystal ball, as we won't know whether or not I've chosen wisely for another 5 years when the warranty expires.

    But you get to feel superior by calling a stranger on the InterWebz wrong, so...Yaaaay You!


    Your parents must be so proud......:clap
    #40