In neutral, the propeller shaft is not engaged with any other part of the motor so the prop will spin freely. You'll often see this when a boat is being towed down the highway - the prop is spinning the same as a windmill does in the wind. It's best to let it spin cause if you put the motor in gear and the prop hits something, such as your driveway while you're going in or out of your yard, there is no give and you could damage your prop or worse, the gears inside.
Sometimes the center of the prop breaks loose and slips or the splines get stripped. Also check to make sure you have the correct pitch prop for that motor and it is fastened securely.
401.2 without prop
right behind the prop, on the same shaft
I am guessing that your shift is out of alignment on this little Merc. To correct this, the gearcase will have to be removed again. Once it is off, check to see if the gearcase is in neutral. This can be determined by turning the driveshaft in a clockwise direction while watching for prop movement. There will be no prop engagement in neutral gear. If there is prop movement, using slight pressure, turn the shiftshaft to the left, or to the right, to engage the neutral detent. Check to make sure the shift handle is also in the neutral position. Grease the shaft splines, and carefully reinstall. Take note that the watertube slides into the pump housing, and that the gearcase does not jump back into gear. The driveshaft splines can be aligned by rocking the flywheel back and forth. Provided that the shift coupler is in serviceable condition, the engine should now shift properly.
$1000
Replace the shear pin.
change the prop pitch nah done that. its to do with the engine.
398lbs +prop and oil,gear lube 446lbs
The propeller size on an outboard engine, is dependant on the application. The size of the boat, and more particularly the weight it will carry, determines the propeller size.
With 1 person in it say 180 lbs. It will go 15-20 mph. This assumes the outboard is running well and the prop in good shape.
A 4 hp Mercury outboard, produces a true 4 hp, rated at the prop.
The maximum speed of the 125 mercury is dependent on the boat it is on. It can only push some boats 2mph, while other boats that are light and have a small wetted surface can run 60. To find the theoretical maximum, you should find the maximum pitch prop offered for that engine. The maximum pitch prop I can find for that engine is a 24p. The gear ratio for the lower unit is 2.07:1 . If you can turn the 24p prop at the maximum recommended rpm 5250, the fastest the boat could possibly run is 57.1 mph. The propeller is not 100% efficient, so you should factor in the slip of the propeller. With the inefficiency (slip) factored in, the boat would be more likely to run 55mph. If you can find a higher pitch prop for that engine, you can get it to run faster speeds. A 27p prop would run about 60mph.