Purchase extended warranties, yay or nay??

[Off Rez]

I always find it interesting when people bemoan the fact that companies/dealerships only offer things that are "for profit". Well, they don't offer things that they know will lose them money!! Of course that's what they're out for, profit. Insurance is a way of protecting yourself against the catastrophic. Some will suffer it and some will not. But your protecting yourself against the PROBABILITY of the catastrophic occurring & whether or not you can handle it YOURSELF, both financially and mechanically. Some are more confident that they can handle it themselves. If you don't feel that way, maybe the ESP is for you.

Secondly, many find enjoyment in repairing and maintaining things themselves. For them, it is a choice to invest in their own purchases. They have (or buy) the tools, the space, the time, and the DESIRE to do these things. If you lack any one of these things, then maybe an ESP is for you.

I lack the space, time, and much of the desire to repair faulty items. The time spent diagnosing, tearing into, repairing, fixing my mistakes because I normally have no idea what I'm getting into, re-repairing, and cleaning up is not a luxury I have RIGHT NOW. I have no driveway to work in, and no vast array of tools on which to draw. My motto: "I'll do what I do well so I can pay others to do well what they do well." Therefore, the ESP is for me.

[dcheatwood]

Originally Posted by babock

If you have enough money in the bank to replace these items, then you self insure. If you don't, you buy the insurance. It's a math problem! Probabilities vs cost of policy vs how much you can absorb risk.


Consumer reports did a survey and found that 65% of consumers spent more on the extended warranties than the cost of repairs. Have read that some extended warranties are 80% profit!

I agree. It's profit oriented as are all U.S. commercial businesses. My phylosophy is this, "I don't mind you making money on my deal, just don't try to fund your kids college tuition on this one deal "

[Vince and Charlette]

The math is not based on a simple probability. For the consumer, it's the probability that any repairs will exceed the cost of the policy. So, I put $3,000 in the bank and avoided the dealer's "service plan". (BTW, many of these are not warrantees, they are extended service plans. There's a significant difference.) In my case, needed repairs would have to exceed $3,000 before I am in the hole. Also, things like my Cummins diesel engine come with their own extended warranty. So does the refrigerator and a few other things. Therefore, the only things my money would cover initially is the coach and it's related items. (It would eventually cover the refrigerator, etc. once their individual warrantee ran out.) The chassis also is under its own Freightliner warrantee. Lots to think about, but warranty (service plan) isn't just about a simple probability of whether or not you will need it.

[43Hawk]

I never have bought, and never will buy, an extended warranty. If I thought any product was likely to fail immediately after the regular warranty expired, I wouldn't buy it in the first place.

[NMWildcat]

Originally Posted by 43Hawk

I never have bought, and never will buy, an extended warranty. If I thought any product was likely to fail immediately after the regular warranty expired, I wouldn't buy it in the first place.

Your crystal ball must be better than mine

[Mr. Dan]

Originally Posted by 43Hawk

I never have bought, and never will buy, an extended warranty. If I thought any product was likely to fail immediately after the regular warranty expired, I wouldn't buy it in the first place.

Five years after purchase is not "immediately" in my book.

[moose074]

Originally Posted by Vince and Charlette

The math is not based on a simple probability. For the consumer, it's the probability that any repairs will exceed the cost of the policy. So, I put $3,000 in the bank and avoided the dealer's "service plan". (BTW, many of these are not warrantees, they are extended service plans. There's a significant difference.) In my case, needed repairs would have to exceed $3,000 before I am in the hole. Also, things like my Cummins diesel engine come with their own extended warranty. So does the refrigerator and a few other things. Therefore, the only things my money would cover initially is the coach and it's related items. (It would eventually cover the refrigerator, etc. once their individual warrantee ran out.) The chassis also is under its own Freightliner warrantee. Lots to think about, but warranty (service plan) isn't just about a simple probability of whether or not you will need it.

Some of us don’t have 3,000 to put in bank so the extra $12 a months is a fair deal. One I hope dealership wins on because then my rv is waiting to be used not repaired

[RET.LEO]

If you sleep better having it.............it's the best money ever spent, worth every penny.
If you don't buy it and have a big problem..............you'll stay awake at night kicking yourself. It usually doesn't take that big of a problem for it to pay for itself.

[babock]

Originally Posted by moose074

Some of us don’t have 3,000 to put in bank so the extra $12 a months is a fair deal.

So...not only buying an extended warranty but financing it too? How many months and what interest are they charging?


Curious how many people that buy extended warranties on their RV, do it on there home too. For example, I just replaced a $5k heater AC system. How many people own a Home Shield warranty to cover stuff like that too. BTW, I don't and also feel its a huge waste of money.

[Daxinarian]

Originally Posted by babock

So...not only buying an extended warranty but financing it too? How many months and what interest are they charging?


Curious how many people that buy extended warranties on their RV, do it on there home too. For example, I just replaced a $5k heater AC system. How many people own a Home Shield warranty to cover stuff like that too. BTW, I don't and also feel its a huge waste of money.

We used to do American Home Shield until we had to replace an AC compressor. They informed us that disposal of the compressor is not covered, so I decided that I would handle the disposal and told the company as much. The problem came when the technician refused to give us the compressor and insisted we had to pay for disposal... $130
That’s $130 for them to drain the oil and take it to the scrap yard where they would get paid for the scrap metal. It all became clear when I talked to another company about replacing a compressor and found out they charged $130 for the replacement and disposal was free!
(We also verified that there was nothing special that needed to be done related to the refrigerant or oil through my wife’s contacts with the EPA and other chemical disposal experts)

[AbdRahim]

I will add my two cents. I bought a seven year extended warranty. I is a gamble. I don't think I would do it again. I would invest the money and pay for repairs. So that depends on your comfort level. I had a camera go out early on. Dealer said we can get you in in two months or so and would charge $150. That did not exceed the deductible so I would pay out of pocket anyhow. I called the camera manufacturer and got 2 day shipping on a new camera for $75. It took about 45 minutes to install.

Warranty Forever - big dealer selling point. Except for checking for propane leaks, this is a big money source for the dealer. My yearly inspection is just over $200. The third year right after their roof inspection the roof began to leak in multiple places. So much for the value of their bi annual inspection. It turns out that one spot was was probably leaking since the day I purchased it.

I now have RV Armor and a roof guaranteed for life. The only reason .I get the yearly inspections is for the propane leak test. I an considering having a permanent manometer installed, so .I won't even need that.

It is all a matter of risk benefit and your comfort level with the possibility of having to pay for a major repair early in the life of the RV and how much money that money could be earning while no repairs are necessary.

[Vince and Charlette]

Here's another hidden factoid about many extended service plans. I had an item fail under the extended service plan. The authorized repair facility (the dealer) said it took 8 hours to repair. At $100 per hour that's $800. But, the extended service company said that it's only a 5 hour job ($500). Guess who paid the $300 difference! You guessed it on the first try - it was me. Unfortunately, there is no Chilton's Motor Manual for RVs. (For autos, Chilton's Motor Manual or Haynes Repair Guide provide repair time labor guides which give an estimated standard time for most any auto repair (by make and model). Reputable facilities abide by it fairly closely.) However, your extended service plan company gets to decide how many hours a repair should take, and there's little to no way to challenge their estimate. As you can imagine, this little trick makes them a lot of $.

[babock]

I bought a boat that had 3 years left on its 5 year extended warranty. I cost me $50 to transfer it. Shortly after I bought the boat, the shift cable failed. Called a few dealers to see if I could get the cable fixed. Turns out, you get put on the bottom of the list for this type of extended warranty repair if the shop is busy. They make way more on a regular repair than one of these extended warranty repairs according to both dealers I called. Instead of waiting a couple months for the busy season to end, I just did it myself in a few hours after I received the part.

[NMWildcat]

Several examples in this thread of why you should only go to a dealer for warranty, or extended warranty work, if you have no other option.
Independent service only shops will make your life so much better.
And with any extended warranty, again, you have to read the fine print, and never buy one associated with a dealer.
My XtraRide extended warranty required pre-authorization, $50 deductible for the visit, regardless of how many items were being repaired, and we were never turned down for any repair.
Also never had a shop try to extort extra $$$ beyond what the policy paid. We did have one shop that requested extra compensation, with proof of need, and they received it from XtraRide.
They also paid our local RV service shop quickly and fully.
So, not all extended warranty policies are created equal.

[Iwritecode]

Originally Posted by 43Hawk

I never have bought, and never will buy, an extended warranty. If I thought any product was likely to fail immediately after the regular warranty expired, I wouldn't buy it in the first place.

Skip to the 3-minute mark.

https://www.youtube.com/watch?v=j6YEpXS_ugU

[garyhopp]

Do you subscribe to any of the camping or RV magazines? Ever read the complaints and help from them? Every month I receive 4 of them and every month the number one complaint is " My warranty company refuses to pay my claim!" If you do have one read the fine print and follow to the letter or that is their out!
No not for me! I have been camping for over 40 years and yea had a few problems but you know most of them work out and over all those years think of the warranty money I have saved. Not only that but the problems are the things you set around the campfire and yack about!
HAPPY CAMPER!

[moose074]

Originally Posted by babock

So...not only buying an extended warranty but financing it too? How many months and what interest are they charging?


Curious how many people that buy extended warranties on their RV, do it on there home too. For example, I just replaced a $5k heater AC system. How many people own a Home Shield warranty to cover stuff like that too. BTW, I don't and also feel its a huge waste of money.

Yes I do and not ashamed to say it. I could say I am not mechanically inclined but, I can hold my own and then some. I could lie and say I’m not good with my hands. While not great with them I did build my moms house ground up( except roof and plumbing) That said not eating out once a month or two large coffees from Starbucks ($12 ) gives me the luxury of not putting in 60- 80 hour work week then trying to find the time and a place where I can make a repair. If I had 3k laying around I didn’t need then yes the story would be different. Now if your offering me 3k so I don’t have to pay interest. I am very interested and very thankful.

[babock]

$3k Wow!

So $144/year How many years is this warranty and how long is this loan?

Originally Posted by moose074

Yes I do and not ashamed to say it. I could say I am not mechanically inclined but, I can hold my own and then some. I could lie and say I’m not good with my hands. While not great with them I did build my moms house ground up( except roof and plumbing) That said not eating out once a month or two large coffees from Starbucks ($12 ) gives me the luxury of not putting in 60- 80 hour work week then trying to find the time and a place where I can make a repair. If I had 3k laying around I didn’t need then yes the story would be different. Now if your offering me 3k so I don’t have to pay interest. I am very interested and very thankful.

[moose074]

Originally Posted by babock

$3k Wow!

So $144/year How many years is this warranty and how long is this loan?

Honestly, why are you so concerned about how I spend my money. 3k was the amount another user posted as having put in savings. I am happy they and others are able to do that. I would agree that that might be the best way to go if one has the money to do so. I hope you’re not implying that because I live paycheck to paycheck because I chose public service. That I shouldn’t be enjoying my rv.

[DFW Rusty]

I know it is to each their own, but I am pro extended warranty for new units.

One of my best friends gave me some sound advice. He has lived in an RV for going on 20 years and has had multiple new and used 5ers. "Expect problems from a new one, expect wear and tear on an old one". What he meant is new ones can and more than likely will have some manufacturer defects, and used ones have more than likely had all the defects fixed but will have the typical issues from being and older unit.


Our last camper made the extended warranty more than pay for itself. Last summer alone our warranty floated a big $ bill for repairs to our camper (a/c out, fridge out, furnace had to have a new heating element, roof trim was pealing off, front stabilizer jack had a weak motor that had to be replaced). On top of last summer our camper has been in the repair shop multiple times over the 4 years we owned it. I will never buy a new camper without the extended warranty.