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Extended Warrnty


JimmiV

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Members, picking up my Used RV in a week and the dealer is asking about an extended warranty.......the unit is a 2010 Dynamax Grand Sport 40 Gt. It has 18k miles, 100 hrs. On the generator. The unit looks to be in Extremely Good shape.

That being said...I looked at the extended contract and have seen what is covered...and then the 3 pages on what is not covered and why some of the covered things will not be covered....makes me go Hmmmmm.

Any advise out there...I know it is a risk not to get it...day 1 something could go sideways..but I think I have read somewhere that it is more likely to be a waste of money...

 

Thanks

Jimmi V.

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Insurance companies are in business to make money and they are very good at it. In the long run, the average person will pay more in premiums than they will ever collect in claims.

 

The real value of insurance or extended warranties is if a loss could be catostrophic for you. As long as you can afford any possible loss, you will almost certainly spend less paying for your losses than paying for your premiums.

 

However, if a loss could bankrupt you or mean the kids have to drop out of college or something - then insurance is a nice alternative.

 

The smart move is to research and find out what the average maintenance cost runs per year, mile, etc., and save money up to cover it. When the reserve is enough to cover possible losses, then discontinue insurance and enjoy the savings.

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Welcome to the Escapee forums! We are happy to have you be a part of the group and promise to do all that we can to help and support you in your RVing adventures.

 

On the subject of "extended warranties" I suggest that you start by reading this article about such warranties which was published in Escapee's Magazine. It may help you to understand the choices. I would also do some online shopping for other sellers of the contracts as there may be others available for less cost or better coverage, or possibly even both. Basically an extended warranty for an RV is a health insurance plan for the RV. They very seldom save the buyer money but they do offer peace of mind if you select a good one. Basically you should look at this as a business decision. A business will not insure for losses that they can absorb without major financial hardship, but does buy insurance to protect them in the event of a major loss.

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Try http://www.wholesalewarranties.com/ instead of the dealer's option. Dealers make money selling you these warranties and want you to sign, "Now!".

I totally agree. Some folks would rather "self-insure", some like me would rather buy an extended service contract (it is NOT a warranty). To-date I've received about 4/5 of the contract's cost back in covered repairs and still have 14 months remaining on the contract.

I would never buy a used MH without buying an extended service contract.Just my way of doing things.

This is somewhat like buying a life insurance policy, you hope not to use it, but if your engine or transmission requires replacement you're glad you did.

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