Motorcycle Club » The Motorcycle Rant

Warranties

5 posts from 4 voices
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  1. bhunner
    #

    OK First of all I'm from Canada and we automatically get screwed in the cost of the bike and our warranties. (KM's vs Miles)

    But we are too polite and cold to do anything about it...at this time..

    Can someone explain to me why an extended warranty for a VSTAR 950 would cost in excess of $1700 CDN for an additional 3 years? Thats 3 x's more than it cost me for a 30K car...and I got a 5 yr with that.

    Granted if Yamaha built a bike that needed an extended warranty in the 1st 3 years..they have bigger problems than worrying if I'm going to buy it. And for the record..No I did not get the extended Warranty. I am however, stil looking at snow out my window...AARRGGHH

  2. Shebhertezz
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    I so agree. I almost fell off the chair when I was told a one year extended warranty was about $800! But like you said, I wouldn't have bought the Yamaha if I felt I'd need to use it. I've never bought extended warranties. The cost of a single fix is usually cheaper than the warranty cost. (I wonder how much HD extended warranties are!?)

  3. yajare
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    Cost of the extended warranty is not worth it in my opinion.
    Yamaha will consider whether the part / service is covered under warranty, if needed, not the dealership.
    I agree with Shebhertezz that most fixees are usually less $$$ then the cost of the extended warranty.

  4. BuppaKahuna
    #

    That's not the case in the US, for several interdependent reasons.

    First, imported motor vehicles are taxed by importing governments and the tax rate is determined by the importing country, not the company doing the importing. The US government has a very good & long standing working relationship with Japanese government (for example). Yamahas are not completely built when they come into the US from Japan and dealerships finish the build & they are taxed accordingly as partially built in the USA. The base tax rate was hammered out years ago and is subject to regular review & changes all the time though not much. The US also has different smog regulations depending on where in the US the vehicle is destined to go. Dealers can not sell across international borders without risking Yamaha canceling their franchise agreement with the owner of the dealership. Franchise owners pay a good penny for the franchise and will not usually risk losing it by violating federal import laws. The cost of importing vehicles directly affects the cost of the vehicle and more ...

    Yamaha USA and Yamaha Canada are two completely different companies owned by the same parent in Japan. Since they each have their own separate import agreements between their respective countries and Yamaha corporate, you will always see price differences between the two.

    Next up is the cost of parts which are taxed, again determined by the country of destination. That is factored into the cost of warranties as well as the warranty itself. Even if the parts are made locally, if they are sold through the dealer network as OEM parts for imported vehicles, they may or may not be taxed as imported items (ask your local government). Every area is different in determining what gets taxed and how so saying it's "from Japan" or 'made here" is only a very small part of the equation.

    Since warranties are bought as inventoried items by dealerships from Yamaha they are treated ALMOST like parts with one huge exception. Since you're talking about a non-tangible item being sold by a foreign company through a local network of dealers, things now get unbelievably complicated. Again, this is not determined by Yamaha or your dealership, it's literally written into each country's import tariff regulations. When you buy a Y.E.S. in the USA, you're actually buying an insurance policy from Yamaha which is administered by your local country's branch of Yamaha owned by the parent company in Japan. Now that you have insurance regulations involved, it will only cause a bigger difference in price from one area to the next.

    A Y.E.S. may not be a good deal in Canada, but I sell them at the USA dealership I work at for a small fraction of what you guys are talking about here. If I remember right (I'm at home right now, not at work) we sell the 48 month Yamaha Extended Service policy on Star motorcycles over 901cc for $449. They're only good through the US network of about 1500 dealerships here in the US and will not transfer to other countries so I can set up my USA customers really well with a good deal but can't do a thing for our friends up north.

    I know a lot of people who commute daily between Canada and the US along it's borders but make no mistake - they are not the same country and the governments do not cut the same deals with foreign importers. Don't take it out on the guys at your local Yamaha dealership, take it up with your federal government's insurance regulators. They are ultimately the ones who affect the price of the warranties you buy from Yamaha far more than Yamaha does.

    Cheers,
    - JJ

  5. Shebhertezz
    #

    I'd have no problem buying a 48 month warranty for $449. Appreciate you explaining it all...

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