The factory 2 years expires on my 09 on March 21. I bit the bullet on the ESP with Jim Palmer @ Kutter 4 days ago.

$1,485.00 for 5 additional years INCLUDING the tire and wheel coverage. This covers me through March 2016.

No dickering, No BS.

My local dealer wanted $2,065 + 9% tax for the same exact plan..

Jim is a great guy. He totally respects that most of us have a lot of questions and is happy to answer all of them. He told me that he has sold over a dozen policies recently to HDF members.

I would have given the business to my local dealer if they had been willing to come within a hundred bucks or so.

 

Do some research on extended warranty and service plans for vehicles. True they save some people when the unexpected occurs, but think of this: If the warranty company wasn't making money off of you then they'd be out of business. It has been proven over and over by financial anylists that extended warranty is a bad investment and really only puts money in the pocket of the person selling it to you. I've had my bike for 4 years and just spend my first $250 to get the Screamin Eagle Compensator on my FLHX.

As I said, some people do benefit. My sister once bought a used car and the transmission went 2 months later. The extended warranty paid for itself immidiately. Otherwise, it's a losing gamble for a majority of people. Some may say, "Not everyone has the money laying around to get repairs done." Maybe that's because they do things like buy extended warranties. Heck, some even finance it, which I've done myself in the past.

BTW, I'm sure Jim's a great guy and willing to listen to you. I would be as well if I knew I was making a killing selling extended warranties and getting dozens of referals for a product most of them won't use.

 

The same can be said for insurance. They make tons of money too. Following your reasoning, do you have the absolute minimum coverage?

I have a 7-year extended warranty on my bike and I don't regret having it. I just need to damage a wheel/tire in a pothole and the cost of my 7-year warranty is fully justified. To each his own.

 

I've been talking to local HD shop about this also. Understand if your bike is not still under the factory 2 year warranty then it is considered a used bike and the cost of these extended warranties is more !! Morale of the story if you are going to get one get it while it's still under the factory 2 year warranty.

 

Apples to Oranges.

With insurance you are protecting yourself from any number of events which can happen at a much higher probability than engine failure. They also come at a much higher price than replacing the entire drive train of a motorcycle. Also, with insurance you are protecting yourself and your family from a potential catastrophic event which can lead to financial demise due to lawsuits. The average person WILL make a claim every 8 years or less. It will happen. Murphy's Law will always come for those under insured. The biggest mistake is going for the lower deductable. People with lower deductibles tend to make claims more often. They also end up paying up to 9K more than people with the highest deductable during those 8 years. Over 8 years the person with the highest deductable will also end up saving 9K on premiums alone vs. the person taking the lowest deductable. That 9K can also be used towards having better coverage. (It won't be a 9K difference in premium either.)

So to answer your question, your example of minimum coverage following my reasoning is incorrect.

You must weigh:
Initial cost
Probability
Incidental cost

Extended warranties are high cost and cover a low probability and relatively low cost of repair.

 

1400.00 paid for my HD ESP,got my money back just in tires,5 yrs. to go.ESP is worth the money if you ride ur bike instead of sittin in the garage and polishin it.

 

What i say about "Warranties" is they ain't worth a **** until you need it. I bought it for 3 years and will extend it again...I wasn't sure i would keep the bike but now know i will...It has paid for itself for me...Starter, Compensator, Fuel sending unit, Primary main shaft bearing, starter, starter, did i mention the starter....Still reacting bad..

 

I ride 25-30,000 miles a year, so that 7 year ESP I bought costs me around $17.44 a month, or a hair less than $.007 a mile. In the first year, the ESP paid for itself in tires, installation labor, and towing.

On top of that, should the crap hit the fan while I'm out on a trip, my towing, my lodging, and my repairs are all covered. Not bad for less than 58 cents a day....less than the cost of two cigarettes anymore.

 

I was just pointing out that if Extended Warranty Cos make money, the same can be said for Insurance Cos, therefore the same logic should apply, that's all. I was arguing the reasoning, nothing else.

This being said, I've had more mechanical problems than insurance claims since I've been driving and I think it's true for a lot of people, so IMO, both are useful.
$1100 for an additional 5 year coverage isn't bad at all. It doesn't take much labor and parts for a HD dealer to charge $500.

 

I agree with you on the labor expense. Honestly, if I didn't feel capable in doing most of the work/repairs on my bike, I'd probably have the warranty. HD labor is rediculous. Of my last three bikes, all of them Harley, none of them saw the dealer after it left the showroom floor. Well, then again I did take my current one to have the compensator checked because I knew it was going. They started the bike and said it was fine. Then they tried to charge me 160 EURO for the 2 sparkplugs they put in that I didn't need. Then I decided I'd just do it myself. They had my bike for a week, and now I'm still stuck just doing it myself.