Yamaha 2010 VF225 with cracked powerhead

We have a 2010 VF225LA. Less than 200 hours. Purchased used on a Premier 25 pontoon in August last year and used about 50 hours by us without any issues. When it went into the water this year it started fine. But when marina restarted, it wouldn't start. Water in oil pan. Cleaned out, tried again and hydrolocked again. Eventually Yamaha dealer took it apart to find power head was cracked and needed to be replaced. And, said that there was so much corrosion in the cylinders that he could not in good conscience fix just the power head as we would have major problems within the year relating to the corrosion. All in, just over $21,000 to repair. And given that we could get a new motor for not that much more than that, they recommended not repairing. Warranty expired March 2014.


None of the dealers that we have spoken to have ever heard of a powerhead cracking like this. Has anyone ever heard of this? And any thoughts on corrosion? I have heard that early versions of this engine 2002-2005 had this issue. Trying to decide whether we repair engine or junk it. So far Yamaha's response has been that we are out of luck. That problems such as this are normally caused by inadequate warm up procedures. Which seems odd given how few hours the engine has.


Boat in on Georgian Bay, so fresh water, and used only in spring/summer months.


Any help/thoughts much appreciated.

David

Tried---Gordan Bay Marine --------in Mactier ???

Thanks. They are the dealer that diagnosed the problem and recommended buying a new engine.

A few comments - selling you a new engine is how the dealer makes maximum profit from your business. Risk free since Yamaha pick up the warranty and ties up his staff for minimal time. Doesn't mean that what they are saying is wrong, just that they have a pretty good incentive to quote a new engine as the best solution.
When you talk about a cracked powerhead, is that a cracked head or a cracked block? I assume that it is a cracked head(?) and the corrosion in the cylinders is from water getting into them. If so, how many cylinders are affected by corrosion?
If it is a cracked head, is it just one head or both? My first choice if it is one cracked head would be to pull down the engine, get the corroded bores honed, fit new rings in those ones, and reassemble. Still costs a few $000's due to a new head being required, but a fraction of what you are otherwise looking at. During the teardown you can inspect the crank and bearings etc for and damage so you can know if there is any 'subsequent' damage before committing to buying the new parts. Takes about 4 man hours to remove the powerhead and break it down to check.