Jump to content
Sign in to follow this  
Bill&Anneli

Extended Warranty ?

Recommended Posts

Hello,

We are purchasing our first DP motor home, not mechanically inclined so will not be doing any of our own mechanical work. We are looking at the extended warranty plans out there, GoodSams offers one for a 2015 Dutchstar (which is what we are considering) for $1629/yr with a $1,000 deductible, that is for comprehensive.

Does anyone have any experience with these types of extended warranties ? or any advise for us ?

Thanks so much !

Share this post


Link to post
Share on other sites

I like Barb's system--put that payment money in a special savings account, adding to it as you go,  then use it if and when you need work done. You can get a lot of work done with that amount of money and you won't be restricted by what the insurer says.

Linda

Share this post


Link to post
Share on other sites

Depends upon what the problem is.   How old is the coach?  If used, do you have access to all service/repair work done?  As Linda said, we started with 10% of purchase price in an account and add to it every month.  That has covered not only repairs, but annual service, tires every 6-7 years, new batteries, windshield wipers, repairs to house portion, etc.  We’re on year 14 of owning our rig.

Share this post


Link to post
Share on other sites

You purchase liability insurance hoping you will never have an accident. I have never heard of anyone suggesting putting the premium in a savings account. I have $500,000 limits on my policy. Buy term and invest the difference never works either. If you were buying a trailer then maybe go without an extended warranty but you are buying a diesel motorhome with a motor, transmission and lots of appliances and components. Make sure it is an all inclusive policy that lists anything that is NOT covered and NOT a policy that only lists what is covered leaving everything else out.  The price you stated for Good Sam sounds high and I have seen many negitive reviews regarding Good Sam. Shop around, you don’t have to buy from the selling dealer. Check out Wholesale Warranties, who is a broker for many companies. 

Share this post


Link to post
Share on other sites
39 minutes ago, Twotoes said:

You purchase liability insurance hoping you will never have an accident. I have never heard of anyone suggesting putting the premium in a savings account. 

Liability insurance was not part of the question. Vehicle insurance and extended warranty are two very different items. I would not be without insurance but I would not buy an extended warranty.

 

55 minutes ago, Bill&Anneli said:

10% of purchase price would be $21,000, if we don't have that to set aside - are we fools for purchasing the motor home?

So don't put 10% of the purchase price into savings. Put your initial warranty payment payment plus your deductible into savings. Add the annual cost every year plus anything else you feel comfortable adding. You're still likely to come out ahead unless you bought a true lemon and a pre-purchase inspection should keep that from happening.

If you do decide to buy an extended warranty be sure to read the fine print first. It usually doesn't cover wear items like tire, belts and hoses so you'll end up paying out of pocket for those things anyway.

Linda

Share this post


Link to post
Share on other sites
3 hours ago, Bill&Anneli said:

10% of purchase price would be $21,000, if we don't have that to set aside - are we fools for purchasing the motor home?

We bought a used DP, so our initial contribution was less than what it would have been for a new DP.  I negotiate the price down because I was going to set up the fund and we were willing to walk away from the deal if they said no.    You didn't say what you are buying so we have no way of knowing whether the MH you're looking at is from a manufacturer with a long positive history or one whose products don't hold up as well, and whether it is new or use, and if used, whether the records of service, etc. were available.  The previous owner of our coach  had a binder in the coach with all of the service records,  etc. 

 

Share this post


Link to post
Share on other sites
3 hours ago, Twotoes said:

You purchase liability insurance hoping you will never have an accident. I have never heard of anyone suggesting putting the premium in a savings account. I have $500,000 limits on my policy. Buy term and invest the difference never works either. If you were buying a trailer then maybe go without an extended warranty but you are buying a diesel motorhome with a motor, transmission and lots of appliances and components. Make sure it is an all inclusive policy that lists anything that is NOT covered and NOT a policy that only lists what is covered leaving everything else out.  The price you stated for Good Sam sounds high and I have seen many negitive reviews regarding Good Sam. Shop around, you don’t have to buy from the selling dealer. Check out Wholesale Warranties, who is a broker for many companies. 

We aren't talking about liability insurance - - Texas wouldn't let us register without liability insurance.

We have had our DP for 14 years, and have used the fund to not only pay for any needed repairs (and ALL RVs will need repairs at some point) but also for our yearly service, for new tires/batteries as they age out.  Just put 4 new tires on the rear of the coach this spring - put on credit card, then paid out of fund at end of month.  Timed it so that our cash back card was giving 5% on fuel/service during that quarter so got 5% of the cost of the tires in our cash rewards - - Starbucks for the summer!

Share this post


Link to post
Share on other sites

This should really be made as a business decision. The so called "extended warranty" is actually a health care insurance plan for your RV. Let me suggest that you take the time to read this article on extended warranties that was published in Escapees Magazine a few years back, before you make up your mind. To put it in simple terms, you should insure against any loss that could cause you serious financial distress, but not insure if you could pay that loss from existing funds without financial stress. 

Share this post


Link to post
Share on other sites

Thank you to all for the thoughts, we did read the article on this topic in escapees magazine from a few years back, we both have worked in the financial services industry so are familiar with how these contracts work. What we don't know is what to expect in terms of repairs etc on a 450hp Cummins Diesel engine, the chassis, allison transmission and all the "house stuff". Is there such a thing as an "average" amount to be expected on repairs (not wear and tear that is not covered)? probably not....

We are looking to buy a used Newmar Dutchstar 2015 for what it is worth in case there are any Newmar owners out there that may have additional comments. We are having it inspected and the prior owners have provided maintenance records. Maybe after the inspection we will feel more ready to make a decision on this. 

Thanks again!

Share this post


Link to post
Share on other sites
2 hours ago, Bill&Anneli said:

Is there such a thing as an "average" amount to be expected on repairs (not wear and tear that is not covered)?

If you look at your homeowner's insurance, you don't buy the insurance to pay for routine maintenance but rather to pay for catastrophic repairs. That should also be the way you look at an extended warranty. It is very unlikely that buying one will save you money on normal maintenance. Where they do come into play is in the event that you have a major engine or transmission failure, or at least a refrigerator and/or air conditioner. In addition, the cost of that extended warranty increases with the age of the RV, just as health care insurance cost rises with age of the insured and for the same reason. More parts are failing due to age. 

While I have never owned a Dutch Star, I have several friends who have and 2 of them now own their second DS. It is a quality coach from a very reputable RV manufacturer with a good history of support. With it nearing 5 years old there is some degree of risk but it sounds like a good choice. When choosing if you buy an extended warranty or not, ask yourself what the impact on your finances will be if the worst should happen and you need a major engine or transmission repair, which will likely cost you $15k or more. If you can survive that type of event, you probably should not buy an extended warranty. 

Share this post


Link to post
Share on other sites

Newmar makes a good coach. If the inspection goes well you will have yourself a nice unit.  How risk accepting you are, you have to determine.  Remember, insurance companies make money by settling fewer claims than they take in.  

Edited by Barbaraok

Share this post


Link to post
Share on other sites

We full-timed in a Newmar diesel (Cummins/Spartan) for 8 years with absolutely no repairs to anything.  Diesels are known to run a long, long time if you do the necessary maintenance on them.  We traveled mountains and gravel backroads all the time.  Ours got a workout, for sure .... but no issues.  Yes, you couldn't be that lucky.  That's the chance you take.  We've never bought extended warranties on anything we've owned and have never been sorry.  Like Barb.... we've always made sure we have money set aside for emergencies and that money increases if not used.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

RVers Online University

campgroundviews.com

Our program provides accurate individual wheel weights for your RV, toad, and tow vehicle, and will help you trim the pounds if you need to.

Rv Share

Rv Insurance Benefits.com Logo

Dish For My RV.

Find out more or sign up for Escapees RV'ers Bootcamp.

Advertise your product or service here.

The Rvers- Now Streaming

AGS Now Hiring

RV Pet Safety

RVTravel.com Logo



×
×
  • Create New...