Extended warranty???

[tmbeckers]

Should I buy an extended warranty?

[pbucha]

If you want to do all of the maintenance yourself and are very handy, then think twice about it. They are very expensive, but not as much as a new engine for example, but you pretty much need to have all maintenance done on time and well documented in case you ever have a problem. It's an easier decision if you didn't plan on doing your own maintenance anyway.

[lenkerb]

and if you are buying new....read the posts about what issues other have had and maybe, if you are lucky, they won't happen to your rig. We purchased an extended warranty on a new rig...unfortunately it starts at the purchasing date. The normal new purchase warranty is usually good for the first year so an extended warranty is useless during that time...you lose on the first year But our pump for our jacks failed and it cost $3000!! But is was covered under the extended warranty...you just never know. Most say that if you are handy, bank the money that you would've put on the warranty...

[Crasher]

It's an easy question for me. I used to do my own maintenance, but have turned it over to a trusted shop for the last 10+ years. I didn't buy one before and do not buy them now. Some people like the feeling of security of spending thousands up front hoping they will be covered if a problem develops. Some are happy they did, but most never get to what the original premium was. That's why it's such a good profit center for the dealer selling it and the company issuing it. Over my lifetime, I have saved tens of thousands by not buying them. But wait, some will come back with all they saved by having one. Most won't.

[PopBeavers]

My one year ran out in October on the new FW. I will be filing two small claims this month on the extended warranty.

I stopped working on my own cars in 1986. I do not expect to do much of my own maintenance. Because almost every little thing that fails will result in money out of pocket then I will lose less than those of you that do at least some of the time.

I sleep better at night.

[Mike8253]

For the money you pay out in premiums, plus the deductibles you pay on each claim, plus the claims that will be denied, I don't know how you ever make it pay for you. Unless you have a very significant failure that happens to be covered, you are just giving your money to someone else to hold for you (forever). It's a hell of an expensive way to get a little comfort. I'd rather put the money I'd pay for the premiums into a dedicated account (which I am doing) for future issues and have them repaired where I want and how I want. Maybe I won't come out ahead either, but I probably have a better chance of doing so than I would just handing that big chunk of change over to someone else. There's a reason they make money on these things.

[ThePowells]

Welcome to the boards!

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[diesel odor]

Originally Posted by Mike8253

For the money you pay out in premiums, plus the deductibles you pay on each claim, plus the claims that will be denied, I don't know how you ever make it pay for you. Unless you have a very significant failure that happens to be covered, you are just giving your money to someone else to hold for you (forever). It's a hell of an expensive way to get a little comfort. I'd rather put the money I'd pay for the premiums into a dedicated account (which I am doing) for future issues and have them repaired where I want and how I want. Maybe I won't come out ahead either, but I probably have a better chance of doing so than I would just handing that big chunk of change over to someone else. There's a reason they make money on these things.

Wonderfully said!

[deaton]

Originally Posted by Mike8253

For the money you pay out in premiums, plus the deductibles you pay on each claim, plus the claims that will be denied, I don't know how you ever make it pay for you. Unless you have a very significant failure that happens to be covered, you are just giving your money to someone else to hold for you (forever). It's a hell of an expensive way to get a little comfort. I'd rather put the money I'd pay for the premiums into a dedicated account (which I am doing) for future issues and have them repaired where I want and how I want. Maybe I won't come out ahead either, but I probably have a better chance of doing so than I would just handing that big chunk of change over to someone else. There's a reason they make money on these things.

X2 - save your money

[777 Driver]

Originally Posted by tmbeckers

Should I buy an extended warranty?

Welcome to iRV2. There is a vast amount of experience here.

To me, that’s a difficult question to answer because it depends on several variables. Are you buying new with a manufacturer warranty? Do you have cash reserves (or available credit) to cover potential expenses? In the words of Detective Harry Callahan (Dirty Harry), “Are you feeling lucky?”

There’s a concept used in reliability engineering that’s referred to as the “bathtub curve”. The simple explanation is that, typically, failure rates decrease during the first period of expected useful life, then stabilize for a longer period of time, and finally the failure rate increases toward the end of useful life. I know that it’s frequently seemed to me that stuff generally either breaks shortly after it’s new (infant mortality) or it lasts a long time. If you’re buying a new RV, it’s possible that some of the failures will occur during the manufacturer warranty period, benefitting from the “free” manufacturer warranty (yeah, I know, you’ve already paid for that).

I’m in the process of buying a new coach. The dealer has offered me an extended warranty. Basically, $12,000 for 5 years coverage from date of purchase on the “house”, nothing on the chassis. So, it seems to me that the folks providing the coverage have bet that any failures during that 5 year period will cost them less than $12,000. I’ve never seen the numbers on how much of that warranty price stays with the dealer, but, the effort the dealer expends trying to sell me the warranty, I presume the dealer get a pretty good chunk of the $12,000. The company underwriting the warranty has studied many, many policies that they’ve sold and they believe that they’ll make money on my $12,000 policy. With that thought in mind, the question to me becomes, can I absorb a $12,000 expense in the first 5 years (OK, not really because my manufacturer warranty is for 2 years). If my expense is less than that $12,000, I win.

One other thing to be careful about is to be sure that the policy is very clear about what is and is not covered. There are many stories about satisfied customers who are happy that some repair was covered; unfortunately, there are other stories of disappointment.

If you're financing your purchase, keep in mind that you'll be paying interest for that warranty coverage for the full term of your loan, increasing the cost to you.

One interesting tidbit. As the finance guy at the dealership started the email negotiation for the extended warranty, his emails suggested that I was his “favorite customer”. After trading a few emails, enough to demonstrate my skepticism of the value of the extended warranty, he’s pretty much dropped the “favorite customer” stuff.

Take care,
Stu