09-23-2015, 02:13 PM
I'm sorry, but that's just wrong on so many levels, IMHO.
If the purchase price is $500, then the dealer makes $100...before taxes! "Boon"? Really?
American Honda gets $400 for providing four additional years of manufacturer's guarantee. The buyer(apparently not you) has peace of mind that any noise, wobble, or breakdown is 100% covered for five years. If he sells the bike before the time is up, he can transfer the warranty to the buyer for free. Or, he can get a pro-rated refund for the unused period.
The service department at the dealership where I worked was by far the most profitable of the three: sales, service, parts. They loved warranty work because Honda paid full-bore retail for parts and labor, plus they paid immediately. They just insisted that the failed parts be sent to them, at their cost, so they could be examined for cause of failure.
I ALWAYS buy the warranty but I make sure I'm paying a fair price. I've always had warranty claims. They have never been denied. I think $500 is quite reasonable.
Here's the other side. Customer brings in his 2014 CTX700 three weeks out of warranty. His headlight reflector is melted. Throws a hissy fit in the parking lot when he is told it probably won't be covered. Starts the usual tirade "F*ck Honda, I knew it! BS quality, blah, blah, blah. He was asked if he had modified the headlight in any way, since there were no reported similar failures. Heck no, he said. I only changed the LED's in the dash and the blinkers. After he leaves, awaiting a decision from the regional Honda rep, the service tech looks up the guy's Facebook page. Sure enough, there are photos and a description of the LED headlight bulb that he had installed that was "so bright", and, OBTW, so hot.
If the purchase price is $500, then the dealer makes $100...before taxes! "Boon"? Really?
American Honda gets $400 for providing four additional years of manufacturer's guarantee. The buyer(apparently not you) has peace of mind that any noise, wobble, or breakdown is 100% covered for five years. If he sells the bike before the time is up, he can transfer the warranty to the buyer for free. Or, he can get a pro-rated refund for the unused period.
The service department at the dealership where I worked was by far the most profitable of the three: sales, service, parts. They loved warranty work because Honda paid full-bore retail for parts and labor, plus they paid immediately. They just insisted that the failed parts be sent to them, at their cost, so they could be examined for cause of failure.
I ALWAYS buy the warranty but I make sure I'm paying a fair price. I've always had warranty claims. They have never been denied. I think $500 is quite reasonable.
Here's the other side. Customer brings in his 2014 CTX700 three weeks out of warranty. His headlight reflector is melted. Throws a hissy fit in the parking lot when he is told it probably won't be covered. Starts the usual tirade "F*ck Honda, I knew it! BS quality, blah, blah, blah. He was asked if he had modified the headlight in any way, since there were no reported similar failures. Heck no, he said. I only changed the LED's in the dash and the blinkers. After he leaves, awaiting a decision from the regional Honda rep, the service tech looks up the guy's Facebook page. Sure enough, there are photos and a description of the LED headlight bulb that he had installed that was "so bright", and, OBTW, so hot.