There is a good article in Boating Magazine this month by Eric Colby about the engines produced by Mercury Racing . There is quite a difference between the two engines as far as quality goes. No doubt that the 500EFI is far superior to the 496HO. It just comes down to money. Is 2-3 mph and durability worth the cost? I simply didn't have the money for the 500EFI and wound up with the 496HO. Its been a good engine so far, and I love the closed cooling because I boat in salt water. Its also a breeze to maintain and winterize, but there's no question that I'd rather have the 500EFI. ALso, the black engines are not good looking at all, there's no drama when you raise the engine hatch.
I also think you can get more horsepower for comparable money to Merc Racing from some other engine manufacturers, ie; 540ci with 575-600hp. The problem with that scenario is that local marinas can deal with Merc better than an independent engine builder from a parts perspective.
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