5 year extended warranties

[Teeitup26]

The new finance manager at Total Value is hard selling 5 years extended warranties. Most people are aware that these things make a lot of money for the finance mgr at the end of the month because he probably puts half that premium in his pocket as a bonus. I would like to hear the Forum member's opinion on this subject please. The sales pitch is that this is different than a car or truck extended warranty because everything on the unit is covered no matter where you are camping for 5 years. Yes, there is a warranty, but man this thing is going to shake apart over time since it's a house on wheels. So you need it bad.

Any opinions out there? Thanks. Dave

[groswald]

I'd want to see the details, but I can say from experience that the 1 year Good Sam service plan I purchased was pretty much worthless. Everything that is likely to happen (or did happen) is excluded. Granted, most major systems are covered for catastrophic failure. Thankfully, I didn't have to put that to the test.

My wife and I have discussed purchasing a follow-on plan from one of the better-rated providers, but have decided not to. The cost/benefit ratio is simply upside down. I'd like to have the peace of mind, but the cost is just too high for the value provided. We'll take the approach that "things happen", and we'll pony-up to fix them when they do. We expect the overall cost over the life of the coach will be less than the cost of the Service Plan.

In our favor, our coach is newish (2014) so the power train is covered by Ford for two more years. The E350/Triton V10 is damn near bulletproof. If there are no problems by then there aren't likely to be any time soon. I can do most non-chassis related repairs myself (and have done so far). For us it feels like an acceptable risk. The calculus may be different for others!

Please do note - you called it a 5-year Extended Warranty. It is not. It is a 5-year service plan. The consumer protections that apply to true manufacturers' warranties do not apply. The distinction can be significant!

If you do buy a plan I would look at an "Exclusionary Plan". These are plans where everything is covered except what is specifically excluded. You know exactly what is and is not covered. If it isn't explicitly mentioned it IS covered. Most plans, including Good Sam's, are inclusionary. They only cover what is explicitly stated. What you think is covered may or may not be - lots of room for interpretation.

Regards,

Randy

[Teeitup26]

Originally Posted by groswald

I'd want to see the details, but I can say from experience that the 1 year Good Sam service plan I purchased was pretty much worthless. Everything that is likely to happen (or did happen) is excluded. Granted, most major systems are covered for catastrophic failure. Thankfully, I didn't have to put that to the test.

My wife and I have discussed purchasing a follow-on plan from one of the better-rated providers, but have decided not to. The cost/benefit ratio is simply upside down. I'd like to have the peace of mind, but the cost is just too high for the value provided. We'll take the approach that "things happen", and we'll pony-up to fix them when they do. We expect the overall cost over the life of the coach will be less than the cost of the Service Plan.

In our favor, our coach is newish (2014) so the power train is covered by Ford for two more years. The E350/Triton V10 is damn near bulletproof. If there are no problems by then there aren't likely to be any time soon. I can do most non-chassis related repairs myself (and have done so far). For us it feels like an acceptable risk. The calculus may be different for others!

Please do note - you called it a 5-year Extended Warranty. It is not. It is a 5-year service plan. The consumer protections that apply to true manufacturers' warranties do not apply. The distinction can be significant!

If you do buy a plan I would look at an "Exclusionary Plan". These are plans where everything is covered except what is specifically excluded. You know exactly what is and is not covered. If it isn't explicitly mentioned it IS covered. Most plans, including Good Sam's, are inclusionary. They only cover what is explicitly stated. What you think is covered may or may not be - lots of room for interpretation.

Regards,

Randy

Good Advice Randy from someone with experience with them. The sales pitch by the finance manager was that it's a house going down the road shaking apart. He said, "If anything goes wrong, anything at all, anywhere in the United States and Canada, a truck will be dispatched to fix it on the spot" . Sounds to me like an inclusionary policy to me. But i wouldn't sign anything ofcourse until i found out those details., and knowing me i won't buy it anyway. They are in my humble opinion just a bonus opportunity for the finance manager which is why they start selling it almost from the beginning. They do the pitch during that call when they are authorized to check your credit, and the hook is that Bank of America will likely give me a lower rate if i say i'm buying the extended warranty. YEAH RIGHT!. That guy must think i was born last night.

[groswald]

Finance Manager = high-pressure salesman for high-margin, low-value junk...

IMNSHO

Regards,

Randy

[Teeitup26]

Originally Posted by groswald

Finance Manager = high-pressure salesman for high-margin, low-value junk...

IMNSHO

Regards,

Randy

Well Said. And besides, what the hell would a Finance Manager know about stuff failing and falling off a rig. They need to trot out the Service Manager to splain the details on his experiences. But if they did that they would essentially be admitting the rig is junk from the gitgo. Can't do dat. Hence, it's high-margin junk they are selling.

[Mr Sunshine]

Have never been a fan of extended warranties. Yes, sometimes you'll break even or save money, but the insurance company is not a charitable organization. The problem of exclusions were mentioned, but the deductibles are problematic, too.

Consider starting a reserve fund instead with that money. Over time, most folks will be money ahead being self insured. I know I am, over the last 25 years of new and used campers. The components they cover are normally quite reliable, and the policies never cover wear and tear.

If the budget is so tight that you can't handle a repair now and then, you probably stretched too far in your purchase decision. Repairs and depreciation need to be factored in, along with principal, interest, insurance, license and storage costs.

That "finance manager" may not know much about repairs, but the slick ones know how to scare you, and they profit nicely when you succumb. You are probably not far off when you say he'll get half of the premium. No wonder they smile so much!

[mhbell]

in 40 plus years of RVing I have had several experiences with extended warranties. Here is a link to a article I wrote in my blog. 5 different warranties and 5 different warranty companies. I will never buy another extended warranty.
Mel
5 case histories from my own experience.Click Here

Here is another Link to another case history. Click Here

Another case history here. Click Here

[petef]

I am not a fan of these, to many exclusions, written by lawyers.. just face the facts when it happens. Probably cheaper in the long run.

to the post about the service coming to you no matter what.. I was looking at used Jeeps recently and the salesperson gave me that spew, roadside assistance for x years.. I said what if I am out in the desert miles away, she insisted they come immediately.. I know better