How much is a guarantee worth?

[AlpinePossum]

A local dealer has an adventure tourer with minimal km's and a two year transferable guarantee and a $1000 less than new price.

That still leaves it a $1000 or two more than some equivalent 2nd hand bikes with a maybe a few 10000 more kms.

What it comes down to then is this... Given that I can self insure, how much is a 2 year guarantee from a local dealer worth?

[YellowDog]

I think your answer depends upon the bike in question and also what the guarantee actually covers.

I have had my new bike for 14 months and have had two software updates and a recall check performed under the warrantee; so in my case the warrantee has been worth about $150.

I guess if it was a new model that had not yet had the teething problems sorted out, then a uarantee/warramtee would be pretty important.

[CookMySock]

Under the consumer guarantees act, a guarantee is worth plenty. Even witn no guarantee you are still covered, so the wording isn't too relevant. Even if they specifically exclude some items from cover in their wording, it does not mean that the CGA will support that. Basially, all you have to do is buy it from a dealer and you are covered.

Good on you for self-insuring.

Steve

[FJRider]

See if you can get/find in writing, what the guarantee actually covers. They should supply you with a copy if you ask for one...

[p.dath]

A local dealer has an adventure tourer with minimal km's and a two year transferable guarantee and a $1000 less than new price.

That still leaves it a $1000 or two more than some equivalent 2nd hand bikes with a maybe a few 10000 more kms.

What it comes down to then is this... Given that I can self insure, how much is a 2 year guarantee from a local dealer worth?

A guarantee is only credible if you believe that the entity offering it is financially capable of meeting its commitment. If the entity offering the guarantee goes bankrupt tomorrow, the guarantee is worthless.

[YellowDog]

A guarantee is only credible if you believe that the entity offering it is financially capable of meeting its commitment. If the entity offering the guarantee goes bankrupt tomorrow, the guarantee is worthless.

Unless it is a thrid party underwritten guarantee; like you get when you buy a car from an Auction.

[p.dath]

Unless it is a thrid party underwritten guarantee; like you get when you buy a car from an Auction.

Same deal for the underwriter. It's only as good as the company offering it.

There are plenty of insurance companies in financial trouble at the moment ...

[Robbo]

I'm assuming that you are referring to the bikes original factory warranty in which case you need to confirm that it is transferable with a change of owner and a signed document from the dealer that they will honour it if the factory does'nt.
If you can identify on here the make and model of bike i'm sure that someone will be able to comment on any good or bad points to look out for when making your purchase.

Cheers

[Vgygrwr]

My experience since returning to bikes six years is to have bought four bikes, owned one for one year, one for two years, the third for three and still own and the fourth just bought. None have required a warranty claim. Guess you can be unlucky, and it helps to know who you buy off, but tend to feel a warranty is a means of adding margin by insisting all work is done by the seller and charging generously for servicing. That can make a warranty an additional cost IMHO. Is it not possible to buy mechanical cover with bikes as with cars?

[mynameis]

Under the consumer guarantees act, a guarantee is worth plenty. Even witn no guarantee you are still covered, so the wording isn't too relevant.

[ital916]

Under the consumer guarantees act, a guarantee is worth plenty. Even witn no guarantee you are still covered, so the wording isn't too relevant. Even if they specifically exclude some items from cover in their wording, it does not mean that the CGA will support that. Basially, all you have to do is buy it from a dealer and you are covered.

Good on you for self-insuring.

Steve

whats self insuring?

[ital916]

too. Explain.

So If one was to buy something that had no warranty or anything it would still be under some compulsory guarantee?

[p.dath]

too. Explain.

So If one was to buy something that had no warranty or anything it would still be under some compulsory guarantee?

As long as it was not used for business purposes, and was a simple transaction from a retail store. As soon as you start talking about auctions, run out sales, etc things change.

[p.dath]

whats self insuring?

If something goes wrong, you pay for it!

[AlpinePossum]

whats self insuring?

Part of what a guarantee is, is insurance. Insurance against "gambler's ruin".

If the bike is your only form of transport...and it dies and you don't have enough money to replace it, and can't get to work. Then you're stuffed. In that situation the guarantee gives you something extra. Protection against a bigger calamity (losing your job / only means of transport / ...)

Insurance takes a little money from lots of people to even out the hurt. But on balance it costs you more on average than it's worth. (Insurers have to eat. Caviar.) ie. If you can, your expected return (purely in terms of value from the dealer, not counting knock on effects) is greater is you can self-insure.

In my situation it's not my only means of transport, so the "insurance against a major knock on calamity" aspect of a guarantee is worthless. It's then strictly a matter of probability of something being Bad with the bike * average cost to fix it * probability that the dealer will cough up and not rat.

...and whether that comes to more that $2000 on $9000 machine.

Hmm I think I have just answered myself. In the computer biz the standard maintenance contract is 15% per annum of purchase price.

So that's about $1350 per year. Computer hardware is probably more reliable than bike hardware, but the software tends to be dodgy.

Hmm. So let's say about $2000 for a two year guarantee. So this bike would be about equivalent to a $7000 low km second hand.

Hmm. Tardme only has bikes that low on North Island.

Hmm. Hard.

Grr. I don't really want new. I know I'm going to drop the bike (at low speed) several times. I know I'm going to lose every shred of plastic and scrape the paint off.

Why? Because if I don't, the road isn't interesting enough.

Any reliable if somewhat scratched DR650's out there?