Dealer income from extended warranties?

rogerkathy · 03-02-2016, 05:04 PM

Any ideas on the percentage dealers get from buyers? Several years ago one dealer got mad when we refused to buy an extended warranty and we were thinking it was because he wasn't getting his percentage of the EW.

Alex.mcintosh40 · 03-02-2016, 08:34 PM

I know when I worked for a Ford dealer with cars the finance guy got 12% of what he sold it for. They can lower the price of it if they want. I believe if I they sell a certain amount in that month they get a real big kick back from the ew company

rogerkathy · 03-02-2016, 08:42 PM

I suspected it was between 10-20%. I'll be interested if anyone else has info on this. I can see EWs being beneficial (for peace of mind) but we are planning on traveling out of state and I don't want to worry about going for repairs with other dealers than my own. It seems that can be where the real problems come in (according to reports found elsewhere in this forum).

Alex.mcintosh40 · 03-03-2016, 07:31 AM

Yeah they are specially for RVs cars and trucks I don't think so as much in my opinion camper dealers get funny about service work if you didn't buy it there. That is the truth on the peace of mind we just bought a 2016 coachmen chapparal 371mbrb and had a 14 lacrosse and had the ew on it and it saved are butt on are air conditioner it went out the day after the year warranty was up was so mad first trip out for the year. We also got the ew on the new one and the tire protection after reading how they are putting cheap tires on these new campers

rogerkathy · 03-03-2016, 02:40 PM

Was your warranty work done at the dealer you bought from? If you are going to stay in the state (or general area) where you can take your RV to your home dealer, then I can see an EW might make sense. On the other hand, if I plan on traveling out of state a lot, it might be better to just store the EW money in an account instead of giving it to the dealer and then access it as needed.

greyhumpy · 03-03-2016, 03:27 PM

Buy a policy from a strong insurance company then you are covered. If you try to find the cheapest, then you will get the cheapest coverage(if any), and then complain. Buy quality, get quality: buy cheap, get ??????

5picker · 03-03-2016, 03:38 PM

Quote:

Originally Posted by rogerkathy

Any ideas on the percentage dealers get from buyers? Several years ago one dealer got mad when we refused to buy an extended warranty and we were thinking it was because he wasn't getting his percentage of the EW.

HUGE.

Way more than you even want to imagine.

bob dirt · 03-03-2016, 03:44 PM

Dealer totally shut down their niceness act when I wouldn't buy their warranty. She told me I better be handy because they all break. I also told her I was paying it off right away with the sale of my cabin and she asked if I would make payments for at least 6 months. I told her I doubt it. She had a bunch of trophies on her window sill with "best producer" or something like that.
Their percentage must be pretty high because they come down in price right away when you refuse.

rogerkathy · 03-03-2016, 04:04 PM

I remember years ago (when we were young and inexperienced) buying into one of those camping grounds that you become a member of. Salesman started out with a pitch showing all the benefits if you pay this huge price, but lowered it dramatically to encourage you to buy into their facility today. Seems to be a SOP for any type of program they want you to buy into.

Alex.mcintosh40 · 03-03-2016, 04:50 PM

No the warranty work wasn't because it wasn't worth to me pulling it 300 miles home when I stored it there and 300 miles back in the gas money when they got it done right away there and my dealer told me about four week wait to just look at it.I saw there bill when the screen came up and what they charged the ew place was basically what I had paid for the ew

rogerkathy · 03-03-2016, 05:43 PM

Sounds like you had a good experience. I've read about others in this forum who have had bad experiences trying to get EW repairs away from their main dealer (and probably the dealer they bought from as well).

spudston · 03-03-2016, 05:49 PM

The original purchaser of my Rockwood paid $1300 for the 6 year EW. When I bought it second hand, the dealer paid $400 for the final 4 years. Have you known anyone who has benefitted from an extended warranty? I don' t mean internet reviews or anecdotal stories, but people you actually know? EW's are an enormous cash cows for retailers, that's why you can hardly can buy a product without being pressured to buy one.

Alex.mcintosh40 · 03-03-2016, 06:06 PM

Yes it was just a good thing we had it no problems and they actually didn't charge me the 150 deductible either and when we traded the camper in the ew was only active for 8 months and we got almost all of the money we paid for it back from the ew company and only took them a week to get us the check was very surprised.

Rich H · 03-03-2016, 07:05 PM

Quote:

Originally Posted by Alex.mcintosh40

Yeah they are specially for RVs cars and trucks I don't think so as much in my opinion camper dealers get funny about service work if you didn't buy it there. That is the truth on the peace of mind we just bought a 2016 coachmen chapparal 371mbrb and had a 14 lacrosse and had the ew on it and it saved are butt on are air conditioner it went out the day after the year warranty was up was so mad first trip out for the year. We also got the ew on the new one and the tire protection after reading how they are putting cheap tires on these new campers

Alex Just some FYI But when you sold your Lacrosse did you cancel your Extended Warranty? We are trading our 2014 Shasta Phoenix in on a new 2016 5th wheel. We will be getting a check for $1500.00 from the canceled unused portion of the Extended Warranty.

Big bird · 03-03-2016, 07:48 PM

This subject is not new. Extended warranties are like gambling in Los Vegas. No one, but the casino owners, makes money. If you are unlucky enough to have RV problems and lucky enough to have a very honest dealer, you may be protected. The chances of having good coverage is not very good. Good luck

Alex.mcintosh40 · 03-03-2016, 08:00 PM

Yes sorry that's what I was trying to say we got 1780.00 back from canceling it

Avan · 03-03-2016, 08:32 PM

Unless other wise stated in the EW contract ! Remember that no cosmetic work is covered......
So the Faded Cap Syndrome continues.......

rogerkathy · 03-04-2016, 07:36 AM

I guess it all depends on 1) if you have breakdowns covered under warranty and 2) the quality of the dealership you go to.

aceinspp · 03-04-2016, 07:53 AM

The only EW I've bought is the one furnished by FR. If it's foing to break it will be within the two years. I refuse to buy any type of EW sure makes the car dealers mad also. Ya don't take out loans from them either. Cash or no buy. Later RJD

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