Service Contract Question

[lucyh]

Thanks so much for posting all your thoughts and findings, Deek. We may call Coach Net since we now know that their policy has a high coverage limit. Paying that amount for a coverage limit as high as the value of the coach makes a lot more sense to me than paying the same amount for a limit of only $35,00.

[mikelm48]

Good choice, Deek.

[jigsup]

Originally Posted by Deek

Lucyh --

This, frankly, is a VERY important question you ask, in my opinion. The following answers your question as well as provides a wrap up of my research and decision on the service contract inquiry I first posted above.

First, as to your question:

In the written policy language I was provided for my coach's quote, Wholesale Warranties limits coverage to the lesser of: (1) $35,000.00; (2) the purchase price of the motor coach; or (3) the "current NADA value" of the coach -- thus, for all practical purposes, limiting coverage to $35,000.00 per claim.

Coach Net does not have the (hugely, IMO) restrictive $35,000.00 limit; its coverage per claim is limited to the "NADA average retail value of the coach on the date on which the Service Contract is purchased".

This is, to me, a very big and very real difference.

Next, as to my thinking now that most of my homework has been completed:

My research shows that for my application, both service contracts are priced fairly closely -- within $400-500 of each other -- with similar tire and wheel coverage, the same deductibles, terms and mileage in each. I am inclined at this point, however, to go with Coach Net. For a few reasons: (1) I don't like the coverage limitation with Wholesale; (2) everyone I have spoken to who has Coach Net says that they have been very good with claim handling and did not wrestle people when covered claims arose; (3) my past experience with Coach Net when I had it for my 2013 Dutch Star 4018 was professional, prompt and they were very easy to work with when I sold my coach and the remaining contract price was quickly and fully refunded; (4) I also like the fact that the Coach Net Premier Roadside Assistance applies to all vehicles within the household (motorcycles included) and they include needed medivac coverage anywhere within North America and Mexico as part of the policy. All good things that make a difference to me when considering the spending of these dollars.

On another topic, briefly: Having carefully listened to the many comments to my initial inquiry from those who feel that service contracts do not justify their cost, I am grateful for the advice but nonetheless am not persuaded not to buy one -- simply because of the comments that I and others have made earlier on this thread: Our motor coaches today are so darn complicated with so many moving parts and pieces that if anything on the coach with any degree of sophistication goes bad after the new coach warranty runs, it stands to be a very expensive repair / replacement situation. And I observe that of those people who have discussed their own real claims experience on this thread, it is clear that it is the rare story of a repair that did not justify the service contract cost involved.

Bottom line is that I just don't care to be without this safety net after our warranty runs very shortly this month. I am not very skilled in the repair department on my own, and I am equally unskilled in knowing how much money to escrow to be able to cover replacement of any of the very expensive parts and pieces of this marvelous coach that are inevitably just waiting to bite me bin the back end (as they always do) as I use the heck out of the coach. If I were as handy as PDR John or Swag, or as rich as Jigs, I might think otherwise, but these guys undeniably have me dead to rights within their respective areas of expertise -- so left to my own devices, I have decided to spend the money and keep for myself some version of a decent get-out-of-jail card in case I need it.

Just my judgment, of course, not necessarily speaking for anyone else here.

My only decision at this point is to determine which term I want to go with (5 years v. 7 years). There is little doubt in my mind that I will keep (could keep) the coach seven years and, honestly, even five years may be stretching it with my motor coach spending habits -- so the likelihood is that I will go for the 5 year contract. With Coach Net, any unused portion is prorated and refunded if the service contract is terminated due to selling the coach before the term runs out.

The final price I obtained from Coach Net with the broadest form Exclusionary policy, $200 deductible, their top roadside assistance, medivac coverage, wheel and tire coverage and 5 year / 65,000 miles, is $5,230.00. I still have calls in to a couple of dealers to see if by chance, they could do any better on the same product by indirect sale through them, but preliminary indications are that they cannot match the price quoted directly by Coach Net. Would love to get a better deal and cut the cost if I could, but it looks like this is the best and sharpest deal that can be had for my needs.

Hope this sheds the light you were looking for.

Deek

The first thing I would like to clarify is the on-going ascertain and gross misperception that I am even close to wealthy. Just because I wasn't smart enough to have bought my third coach first, and ended up buying that third coach within a scant two year period, in comparison to most of you who stretched it out over many more years, doesn't mean I am wealthy. It simply means I don't have a wife who told me I couldn't do it! It also helps that I don't have any children to put through college; more specifically for a particular mud-slinger, who shall go un-named, but who is known to all as , a child currently attending Harvard Law School. The moral of the story is: "Don't Hate the Player - Hate the Game".

Seriously - Back to the topic at hand - Deek and I bought our current coaches at the same time. We shared the planning, design and purchases through the same dealer. So naturally, we both are considering the topic of researching extended service contracts simultaneously. I concur completely and whole-heartedly with Deek's analysis. I couldn't have expressed myself as eloquently as Deek (very few can); so I have nothing further to add in my decision to also purchase a service contract, other than to share I also am choosing Coach-Net. I have elected to purchase their 7 year, 75,000 mile, Ultimate Package with Luxury Option. I have also chosen their Roadside Assistance (Roadside Protect) and Tire and Wheel coverage (Hazard Protect). In the end, my decision is not about wheter or not I will recover the cost of the policy. I look at it more as peace of mind in terms of insurance, in the event I incur future repair costs at double or even triple the cost of the policy.

PS: Look at all the money I saved by not having to buy service contracts on my first two rigs!

[Deek]

Well said, Jigs, as always.

To the rest of the popcorn gallery: I have never, ever met a police officer more thoughtful and articulate as Hilton and you can see exactly why I say this. Does anyone who knows our Jigs disagree with me? Fact of the matter is that all of us have learned from Hilton with his careful and well thought out analysis of all things motor home and I look forward to him continuing that tradition for our mutual benefit. And I will be one of the first in line when Jigs decides he's ready to sell his beautiful Mountain Aire and slip into his new King Aire. Sooner rather than later I suspect. And do NOT believe his nonsense about not being wealthy. This cop makes this lawyer look like a piker in the disposable income category

Lucy, glad this helps you. I am buying the same coverages Hilton is, just in the five year version as I will have my next Dutch Star by the end of that period I am pretty sure.

Thanks to everyone who posted for the great feedback and thoughts. This give and take is what makes our Newmar Owners' Forum the incredibly special and valuable place it is, no doubt about it.

Deek

P.S. My baby girl is at Notre Dame Law, not Harvard.

[VP Chianese]

[QUOTE=jigsup;3110967 I couldn't have expressed myself as eloquently as Deek (very few can); [/QUOTE]

Jigs,

The reason is that you don't get paid by the "word count" like

You must be getting close to the second tank of DEF and thus the "For Sale" sign. Let me know.

[Sky_Boss]

Originally Posted by Mr_D

I don't buy them either but sure wish I had with the present Magna. The offer info didn't arrive till after the engine blew. Contract price was just under $10,000 but the engine ultimately cost $22,000 to fix and I'm still fixing stuff the Cummins shop broke or damaged. ...

There in lies the major point of the decision. "Do you feel lucky"?

Assuming (yes, all things end up making assumptions) that one finds a good, reputable service contract administrator, it boils down to luck.

1. It is often said that Service Contracts (SCs) are VERY profitable for dealers and providers. No argument there. On a whole they would have to be or they wouldn't be available.

2. Some say they put aside money into some kind of escrow for big things. Not a darn thing wrong with that as long as you don't have a major problem that taps out your escrow to a price more than a SC would have cost. Let's face it, unless you can escrow a HUGE amount of cash that pays significant interest/dividends there is no way it is a money maker strategy if you have a repair that costs a few thousand dollars or more above the cost of a SC.

3. Yes, I am repeating myself, a SC is a wealth management tool as is any hazard insurance product. You pay a premium for protection under major/catastrophic conditions. A SC is no more, or no less than that.

I don't want to sound like I am picking on Mr_D. I know that in the past he AND MANY OTHERS were/are not big proponents of SCs and I respect that those who have made that choice have found it to worked out for them in the past. Still, in Mr_D's case, I have to think that perhaps that approach is what might have made the decision to not immediately get one to cover his coach proves my points. In the end, I suspect the cash he has put out on the Magna would have paid for several years of SCs are at least been a close race not counting other things that they would have covered over the years.

[VP Chianese]

Originally Posted by Sky_Boss

I know that in the past he AND MANY OTHERS were/are not big proponents of SCs and I respect that those who have made that choice have found it to worked out for them in the past.

All true but that was the past. This is much like the folks that say they won't buy XYZ engine because they want to do their own work on their engine. That ship has sailed long ago. Aside from oil and filter changes including fuel there isn't much we can do to any of the engines of the last seven or eight years with out really expensive testers. So if we are going to own something newer it will have to go to the shop when that little light comes on that says it does.

The new coaches have so many new and fancy items on board that they just are almost impossible to repair. Case in point one of my roof A/C units has been acting up for the last four months. One week at Camp Newmar and they could not find the problem. I left and went on to Chicago and on the first day the unit rolled over with it's feet in the air. I drove back to Pro Customs in Elkhart because Newmar was over booked and the folks at Pro Customs spent the better part of half of a day with Newmar and Dometic to come to the conclusion that the whole unit needs to be replaced. Ten years ago it would have been a new circuit board, compressor or freon. Not today.

[FlaRider]

I'm looking to buy a 2014 DSDP, any insights or advice on buying a service contract on a used MH from either a dealer or private seller

[Norm Mac]

Deek, you must be one heck of a convincing lawyer!

I never wanted one of these Service Contracts and now you've got me thinking about it again.

[FLSteve]

Originally Posted by VP Chianese

Ten years ago it would have been a new circuit board, compressor or freon. Not today.

Vinny ... I just had one of my units replaced and was told about the same thing. Now days with the sealed compact units, about 90% of the time they just replace the entire unit vs. even trying to diagnose and fix it. I guess that is called progress.

Steve

[VP Chianese]

Originally Posted by FLSteve

Vinny ... I just had one of my units replaced and was told about the same thing. Now days with the sealed compact units, about 90% of the time they just replace the entire unit vs. even trying to diagnose and fix it. I guess that is called progress.

Steve

Steve,

Well I have the middle A/C unit that was checked out at Newmar for a week and a half that they could not find a problem with but the very next day after I left Newmar it rolled over dead. Had to come back to Elkhart for Pro Customs the Newmar overflow repair shop to check it out and they, with Newmar, Dometic concluded it was in fact DOA and needed to be replaced. Only to find out that there are none to be had and it will take 4-5 days for Dometic to supply one. So I said that I need to get on the road and they could supply it where ever I was five days from then. Newmar agreed and away we went to MD. The very next day the front A/C rolled over as well. Every thing runs but no cold air. So here I sit in MD near Baltimore with two dead units. The good part if there is one, is that the outside temps are in the 70's so the one unit has no problem keeping the coach cool. Today a mobile guy is coming out to check if the front unit is bad so we can change both units at the same time. My guess is they will need to replace both units.

Of course this is all under warranty but these two units alone would more than pay for a $6 k plan and we are only one year old. Not to mention the Oasis that took two days to fix with a complete new mixing box replacement in which the main pump failed a week later. After that was replaced it has been working as it is supposed to. But add that up. The Oasis repair was at least $3 k, each of the A/C's is about $1,300 + replacement labor so not counting the work they had to do on the FWS we are way above the $6000 a service contract costs. Six months from now this would have all been covered under the service contract instead of warranty.