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[CVOStreetglide]

As many here know almost 2 years ago,  I bought a 5 year warranty with tire and wheel from Jennie at Tri-County for my 2010 CVO Street Glide before she left.

I recently sold the bike just before it hit 4,500 miles and at least 30 days before the initial in service date.

I filed the necessary papers for a refund and expet it this week. However out of curiousity I called and asked what the refund check amount would be. They informed me that the amount would be around $640 or over 40% less than I paid.

THE QUESTIONS I HAVE:

Since the original factory warranty was still in place when the bike was sold AND no claims would have or have been filed on the extended warranty, WHY is the prorated refund so low? The extended warranty was never used.

I recognize that the premium is lower if the policy is purchaed when the bike is new but tey have the use of my money for 2 years before they have any exposure that would offset any premium paid.

Thoughts??



 

[SteveFLHTK]

The Extended Warranty begins the day you bought it.  If you purchased a 5 year, then it's the 2 year primary warranty, then 3 years extended.  Some things apply immediately, like the travel portions of the coverage.  If you purchased a 5 year, 2 years ago....your warranty is 40% used.

[RedDevil]

Also, if you bought the tire/wheel extended warranty, that also starts from day one and is prorated accordingly also. 

[CVOStreetglide]

The Extended Warranty begins the day you bought it.  If you purchased a 5 year, then it's the 2 year primary warranty, then 3 years extended.  Some things apply immediately, like the travel portions of the coverage.  If you purchased a 5 year, 2 years ago....your warranty is 40% used.

So breaking down the features of the Extended Warranty

You do get travel with your original warranty as well. So $0.0 cost for that part.

The tire and wheel coverage as RedDevil points out starts day one and is $250 for five years. So $100 used and $150 remaining.

All other Warranty coverage, $0.0 used

Now having said that there are alo sales commissions and other overhead expenses to consider.  But try as I might I can't resolve the huge used premium cost.

It's too late for my 2012, since I already bought the same coverage about 2 weeks ago. However, going forward unless I either keep the bike into the extended warranty coverage period OR transfer it to the new owner it may not be worth the expense.

[Twolanerider]

So breaking down the features of the Extended Warranty

You do get travel with your original warranty as well. So $0.0 cost for that part.

The tire and wheel coverage as RedDevil points out starts day one and is $250 for five years. So $100 used and $150 remaining.

All other Warranty coverage, $0.0 used

Now having said that there are alo sales commissions and other overhead expenses to consider.  But try as I might I can't resolve the huge used premium cost.

It's too late for my 2012, since I already bought the same coverage about 2 weeks ago. However, going forward unless I either keep the bike into the extended warranty coverage period OR transfer it to the new owner it may not be worth the expense.

Or wait to buy the extended service contract until shortly before the manufacturer's warranty expires.

[cvobiker]

 

Or wait to buy the extended service contract until shortly before the manufacturer's warranty expires.

There Ya go   

[CVOStreetglide]

 

Or wait to buy the extended service contract until shortly before the manufacturer's warranty expires.

Well they figured that one out too.  The premiums are at least 30% higher for the same coverage if you wait as opposed to buying up front when the bike is new.

It's an educational exercise that may help others who are considerng the same strategy.


Thanks vey much for you guys thoughts.

[Midnight Rider]

You have to look at it like an insurance policy, because that is basically what it is.  You hope you'll never need it, and they hope you'll never use it.  If you plan on keeping the bike, or think you will, it's great peace of mind to know that if the bike is 25 months old and the motor takes a crap, you won't have to plunk down 3K or more for repairs.  If you have a large enough bank account, and don't mind dipping into it if necessary, the ESP is probably not a great idea.

It's also a good selling point if/when you sell the bike...if a person is looking at two bikes that are basically the same, and one has a 3 year warranty and the other one doesn't, they're more likely to buy the one with the warranty.  If you trade, then it's a different matter, but then the extended warranty is the least of your worries, as you're taking a beating on the trade, 9 times out of 10.

Like insurance...I don't know many people who ever get back the money they've spent on insurance policies, no matter what kind they are.  If somebody pays cash for a 40K car, they don't HAVE to take out Collision/Theft, but most do, even though they are unlikely to ever use it before getting rid of the car.   

[Twolanerider]

Well they figured that one out too.  The premiums are at least 30% higher for the same coverage if you wait as opposed to buying up front when the bike is new.

True, service contracts purchased well after product purchase always cost quite a bit more.  But the pro-rata refund would at least apply to your actual period of use.  It's not like they're going to let you come out ahead no matter what.  Only way that ever happens with a service contract is if you're unfortunate enough to have one for a product with some significant failure.  Of coures that's a whole different set of annoyance....

[1sharprdkg]

Or wait to buy the extended service contract until shortly before the manufacturer's warranty expires.

X2 Thats what I would do!