I just did some pricing on a 26' 5600lb boat and it has both the Volvo and Merc engines as options. I quickly noticed that the Volvo 8.1 GXi is a mere 5hp less at 420hp and $4,000 less than the Merc 496HO.

What is everyone's thought on the GXi vs 496HO from a mechanical perspective? I understand that there is less volvo service centers out there and that may be a reason for staying with merc. With that aside, mechanically and technology wise, what makes one better than the other?

I would have no problem with a Volvo marinized 496 but would prefer a Mercury drive.
Does Volvo offer something similar to Smartcraft? Is the Volvo a closed cooling system like the Merc's setup?

Volvo specs... http://www.volvo.com/NR/rdonlyres/94...0/81_DP_05.pdf.

Cooling system is an option with volvo. That closes the $ gap a bit.

I was told by a dealer that sold both, but mostly merc, that the volvo stuff was better in his opinion, but that black was easier to sell. The average uninformed boater just thinks merc is the most common therefore must be the best. He felt merc's drives were slapped together quickly and they would fix the few warranty claims while volvo spent more time precisely engineering their drives. I've had both and was very happy with the volvo equipment.
Keep in mind....aftermarket performance parts are limited on volvo motors.

I have neither, but have also been told by a couple different local marinas and mechanics that they feel Volvo is better hands down. Also they felt the Duoprop was better than the Bravo 3. Never asked about any other drives. This was while cruiser shopping with a friend, not high performance.

Also if you price a boat on NADA like the Formula 400SS the Volvos are worth $10K more than the comparable mercs. FYI

Don't know about a Smartcraft equivalent, but you can get full digital (fly-by-wire) control with Volvo. (I think Mercury offers it, too as "DTS".) That engine is now also available from Volvo with their composite drive. What's the pricing on that package? You'll give away a little all-out top speed with either of the Volvo drives, but your cruise speed, fuel mileage and docking will be tons better. I run DPX drives (with 600 hp/side) on my 38 Formula and love 'em. All that prop area will absolutely launch you out of the hole.

Here is a link to volvo pricing which lists the OSi, looks like about $1k more. Looks like it only comes with the 375hp volvo.

http://www.capsante.com/PDF%20Files/Volvo%20Gas.pdf

We have sold volvo product since 1993, only five claims against warranty.
we have sold mercruiser since 1995, probably 5 claims a week.
the engines are basically the same the volvo drive system... i hate to say it but it is far supurior. a dps hits the rocks you replace the props
a bravo three hits the rock its usually trashed

I understand that either motor will be legal in APBA and SBI Factory racing this year.