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I need to buy a motor for my boat and don't have a clue on how much to spend on one.my yamaha dealer has a 2.5 hp for around $900. I was hoping to find one for a few hundred bucks . I need a 3 hp max ,anybody know which ones are good and what to avoid?
For a "few hundred bucks" you're gonna have to look for a used one. Have a look at what Cabellas sells; they used to have specials on small motors every once in a while. Be better if you have a local Cabellas store you could visit about January when they want to shed inventory....
Check Craigslist. I have had a number of Evinrudes that were pretty good. My father has a new Merc that he has had a lot of trouble with.

This time of year generally has better prices than in spring in our area also.
For only $300.00 and assuming your looking at used ones I'd more more concerned about the condition than the brand. See and hear it run before you buy it. Look for leaks, how smooth it idles etc. I know nothing about 2 or 3 hp motors but generally speaking they're all decent.
A strong transom mounted electric would be good for a 10 ftr.
Used to be 100 a hp, I like 4 cycle due to not pushing oil in the water liek a 2 cycle.
with a motor that small you probably don't want a 4s. Tough to find cheap ones now days. Craigslist may be your friend.
I also remember when it used to be about a $100 per HP, but I think that was back in the mid-1980's. I bought a 1984 Evinrude 8hp for $750 that I still own. Now I think about $300 per HP is probably more like it. FWIW, I also think that the small motors 2-4hp have gotten A LOT better. Maybe the move to 4 stk is the reason but those small motors weren't that reliable 25 year ago. A 10' jon boat is pretty small, you're probably looking at about a 2hp motor. An electric might work but the battery can be heavy and you don't get the power you get with a gas motor.
a quick search yielded this- you might even find one on ebay as well. Check your local newspapers too.

http://eastky.craigslist.org/boa/1883989770.html

http://huntington.craigslist.org/boa/1888278800.html

http://lexington.craigslist.org/boa/1889829216.html

http://lexington.craigslist.org/boa/1881271248.html

http://lexington.craigslist.org/boa/1876385122.html

http://lexington.craigslist.org/boa/1870393929.html
I saw a few 5 HP 4-Cycle Briggs & Stratton on ebay ,would that be too big for this boat?I think it has a remote fuel tank and weighs around 70#.Heres a pic of the actual boat to give an idea.
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The briggs are heavy for their hp, and are supposed to have pretty bad vibration, they are a single cylinder engine, I believe most "real" o/b's are twins, and hence much smoother running.

Look for an older johson/e-rude in 5-8 hp. So long as it has good compression, it'll last a long time. I use an early 80's 8 horse on our 10' inflatable, weighs ~56 pounds and plenty of power. Smaller o/b's go for a premium up here, you should be able to find one for ~$300.

One pain with the smaller 4 strokes is you have to be careful how you lay them down so you don't spill the crankcase oil.
There should be a tag with max hp on the boat. The Briggs motors are really loud! Kinda like a lawnmower in back of you.
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