Question on reliability and XtraRide protection plan

[pg_rider]

I'm trying to decide if I should purchase the XtraRide five-year protection plan on my new Rockwood 2306. My first reaction was "no", but I'm trying to consider all factors. Can anyone weigh in on the following:

1) The protection plan provides a full refund if you end up not using it. Has anyone ever bought a plan, not used it, and truly gotten the full amount refunded back to them?

2) What is the real-world longevity of various major components like the fridge, electric brakes, AC, furnace, and water heater? Will they usually last ~10 years, assuming they survive infant mortality in the first year? Or are they "likely" to break in the 3-5 year range?

3) Assuming I don't go with the protection plan and something like the water heater DOES break after three years, is it something I can buy and replace myself on the cheap? Or will I need to go through a dealer / repair facility and pay top dollar?

My sales guy offered up the following pitch. Any thoughts?

While things may be easy to work on, who is going to pay for the expensive parts that need to be replaced once it goes bad? You will still have these large costs. Below are a few items just to name a few of costs you could be looking at. So with the costs of these, and the fact the plan is 100% refundable if it is not used, truly makes this a no-brainer.

Fridge: $1700 to $2200 for replacement.
Electric Braking System: about $1000 to replace this
Air Conditioner Replacement: $1100-$1400 for replacement ($850 Part cost)
Furnace: $1000-$1300 Replacement ($800 Part Cost)
Water Heater: $700-$1100

[LFugate]

2 things to consider:

1. Will the warranty company still be around when you need them? I've heard of people buying these and when it's time to use the warranty the company is out of business.

2. I had my last TT 7 years and never had any of those items replaced or repaired. Just the awning fabric and tires. The prices you quoted are for full replacement. Would you really replace the entire item or have it repaired at a fraction of that cost?

Ok, 3 really. It really comes down to how you feel and what makes you sleep good at night. I always thought the warranties were overpriced and unncessary.

[punkaccountant]

Do you mind telling us how much they quoted you for this warranty? If it's $500 then it might be worth it. If it's $2,500 then you could bank the $ yourself and then not have to worry about if or when you use it.

[pg_rider]

Their initial offer is $1500 for five years. I'm assuming they'll come down a little, but probably not below $1000 (which might help convince me ).

[punkaccountant]

I guess I'm curious...if it is 100% reimbursable if it isn't used then how do they make $ on those policies. The 1st thing you hear from people is that these policies are in place to make $ (for both the dealer and the company endorsing them). If that's the case, then how can they make a profit if they are reimbursing people's $ at the end. They are either making a bunch of $ on interest or they are hoping people only use a portion of it and not all. There has to be some hook to that.

[muzbomb]

Originally Posted by punkaccountant

I guess I'm curious...if it is 100% reimbursable if it isn't used then how do they make $ on those policies. The 1st thing you hear from people is that these policies are in place to make $ (for both the dealer and the company endorsing them). If that's the case, then how can they make a profit if they are reimbursing people's $ at the end. They are either making a bunch of $ on interest or they are hoping people only use a portion of it and not all. There has to be some hook to that.

You nailed that one on the head!!! They are making interest on all the money that they have for 5 years out of people so doubling there money and when people us it they make the original $ that you gave them. So dont ever thing that they are not making money!! they will tell you that and what you want to hear.

[tentcamper1]

my thoughts.. get the 2 year warranty from FR and then decide after that. does their warranty start the day you take delivery or after the manufacture warranty ends, so is it a 5 year or 4 year warranty? really read the fine print, ask for a copy, how long have they been around, etc.... as said above they are in it to make money.

[pg_rider]

These are all good points! I guess my bottom line question is this: how long do major components / subsystems typically last? I know that's a loaded question, but are the odds better than 50/50 that something will break in the first five years? If so, then the protection plan seems to make sense. My reasoning is this -- the ~$1000 itll cost me to buy the plan up front can be rolled into my loan so I don't really notice the cost (other than the little bit of extra interest I'll be paying. Whereas if I don't buy the plan and something breaks, I need to come up with the ~$1000 cash out of pocket for whatever repair is needed. Can anyone fault my logic?

[tentcamper1]

have you read thru the plan yet and have you researched the company that provides it. really look at it - don't take the word of the salesmen. make sure there are no hidden deductibles or fees for diagnosis. do they prorate anything?

[muzbomb]

Originally Posted by pg_rider

These are all good points! I guess my bottom line question is this: how long do major components / subsystems typically last? I know that's a loaded question, but are the odds better than 50/50 that something will break in the first five years? If so, then the protection plan seems to make sense. My reasoning is this -- the ~$1000 itll cost me to buy the plan up front can be rolled into my loan so I don't really notice the cost (other than the little bit of extra interest I'll be paying. Whereas if I don't buy the plan and something breaks, I need to come up with the ~$1000 cash out of pocket for whatever repair is needed. Can anyone fault my logic?

If you payed the 1000 Cash up front you would be better then putting it in your loan cause in the end after how every many years your loan is you will have payed way more then 1000 bucks for that warranty. That is just how i always feel about the extended warranty never put it in your loan. It is your choice if you think when something breaks and your will not be about to afford 1000 or 2000 out of your pocket then get the warranty. It is your desicion go with your gut and don't let other people make your life choices for you. Good luck and all the best!!!!