Extended service contracts

[Sinton4616]

Looking at buying a fifth wheel this weekend. When you purchased an RV, did you get the extended service contract from the dealership while signing the loan? Is it worth it?

I'm trying to get a quote from Coach Net, two business days.

[Javi]

Take the same money and put it into a savings account... you'll come out ahead most of the time.. especially if you're paying interest on the policy...

The service contract is at best an insurance policy.. however nearly everything in the trailer except the actual walls is covered by the particular items manufacturer's warranty and not Keystone's anyway..

[Sinton4616]

Received a Good Sam ESP Gold quote for $35.46/mo for a 6 year plan. Of course, wouldn't pull the trigger right away, since the FW should have a year warranty.

Coach Net is a 2 day turn around.

I don't see the value adding an extended warranty into a contract that if I take it to term would expire well before the FW is paid off. What are your thought?

[Javi]

Originally Posted by Sinton4616

Received a Good Sam ESP Gold quote for $35.46/mo for a 6 year plan. Of course, wouldn't pull the trigger right away, since the FW should have a year warranty.

Coach Net is a 2 day turn around.

I don't see the value adding an extended warranty into a contract that if I take it to term would expire well before the FW is paid off. What are your thought?

If you buy from a good dealer who makes sure that everything is right before you pick up the trailer there is little reason to ever worry about the Keystone warranty anyway.. If you are not intimately familiar with your dealer, spend some time checking them out.. it'll pay off in the long run..

Another point is... the vast majority of buyers don't keep their trailer longer than 4 or 5 years.. so watch that financing.. it's easy to get upside down... and have a big shock when trying to trade..

[JRTJH]

$35.46 per month is 425.52 per year and 2553.12 for 6 years.

The basic trailer has a 1 year warranty, 3 years on the structure and most appliances have either a 2 year or a 3 year manufacturer's warranty (not Keystone, but the component manufacturer).

Most "extended warranty" products are really an insurance policy that picks up the repair cost (minus a deductible) AFTER the manufacturer's warranty expires.

So in reality, a 6 year extended warranty may only cover the "back 3 years" of ownership. As posted previously, most "first time RV buyers" seldom keep their first RV longer than 2 years, during which time the extended warranty is being consumed as a "sure win" for the underwriter. Only if something breaks after 3 years, only if what breaks is a "covered component" and only if the cost to repair is greater than the deductible will the underwriter have to pay.

I'd guess that most people who buy an RV can afford to "fund their own repairs" within reason. If you take that 2553.12, put it in the bank in a savings account (or invested in higher yield programs), chances are that at the end of the RV ownership (if you trade or sell) or at the end of 6 years, you'll have substantially more of the original investment than if you "donated it to an underwriter"..... YMMV

[JimMach1]

For what it’s worth I never buy extended warranty’s. Vehicles or toys that being said I can either fix my issues myself or buy a new one to replace it I don’t like the stories I hear about warranty’s having to fight to get them fixed or covered.

My vote is no to the extended warranty.

[rshipyor]

I worked in the retail business for over 32 years and these policies only work when no exclusions and no or very very small deductible. Also it matters when it kicks in and where can you get it serviced at . Unfortunately many are not worth the money they are printed on.

[wiredgeorge]

I will check to see if they pay return shipping OR have someone come to me to fix whatever is wrong. Having to pay return shipping on a generator, for example and I will just bite the bullet and fix it myself. An RV? Dunno but for folks who are interested in the Good Sam deal, go to RV.net, home of Good Sam and read what folks have to say about the repair warranty or break down warranty.

[JimMach1]

Originally Posted by wiredgeorge

I will check to see if they pay return shipping OR have someone come to me to fix whatever is wrong. Having to pay return shipping on a generator, for example and I will just bite the bullet and fix it myself. An RV? Dunno but for folks who are interested in the Good Sam deal, go to RV.net, home of Good Sam and read what folks have to say about the repair warranty or break down warranty.

George I agree with you. I fix it if I can replace it if I can’t I think they are a rip off. For the most part. I have in the past bought extended warranty we had lightning strike our house got our tv computer freezer and refrigerator. Bought extended warranty on new tv never used it they said if lightning hit it they would replace it. So will my home owners insurance. Guys read the fine print on these warranties. Some have to break down on the highway at mile marker 57 before you are covered.

[flybouy]

Originally Posted by JRTJH

$35.46 per month is 425.52 per year and 2553.12 for 6 years.

The basic trailer has a 1 year warranty, 3 years on the structure and most appliances have either a 2 year or a 3 year manufacturer's warranty (not Keystone, but the component manufacturer).

Most "extended warranty" products are really an insurance policy that picks up the repair cost (minus a deductible) AFTER the manufacturer's warranty expires.

So in reality, a 6 year extended warranty may only cover the "back 3 years" of ownership. As posted previously, most "first time RV buyers" seldom keep their first RV longer than 2 years, during which time the extended warranty is being consumed as a "sure win" for the underwriter. Only if something breaks after 3 years, only if what breaks is a "covered component" and only if the cost to repair is greater than the deductible will the underwriter have to pay.

I'd guess that most people who buy an RV can afford to "fund their own repairs" within reason. If you take that 2553.12, put it in the bank in a savings account (or invested in higher yield programs), chances are that at the end of the RV ownership (if you trade or sell) or at the end of 6 years, you'll have substantially more of the original investment than if you "donated it to an underwriter"..... YMMV

And don't forget to look for the "normal wear" and "normal maintenance" exclusions. They can exclude a very large percentage of the typical repair causes.

[mtofell]

I say skip it for the reasons all the knowledgeable folks have mentioned. It's actually very surprising how little these "warranties" actually cover once you account for the factory warranty and the warranties of the individual products. You can always gauge just what a bad deal it is for you by how upset the dealer gets when you don't buy it. Up until this point they have been screwing you out of every dollar they could. Now, all of the sudden they are concerned about you spending YOUR money?

[wiredgeorge]

Better yet are the dealers that have an "RV WARRANTY FOREVER" program. Claims it costs you nothing; labor/parts are paid for. All you have to do to abide by terms of this deal are to drag the trailer in and they inspect wheels/hub, hot water tank inspection/cleaning and furnace inspection are typical. This stuff will likely cost a couple hundred bucks for 10 minutes LABOR (no parts are used to inspect), no wheel bearings greased, and some water drained. What the heck is "hub" inspection anyway.... do they count them? I guess you could see a dangling brake line or a bent axle when you look under the trailer but thanks but no thanks. If the inspection were free it might make this kind of deal a bit attractive but it is just another way to put their hand in your pocket!

[Sinton4616]

Thank you for all the replies. I think I'll skip the dealership extended warranty offer. If DW "feels" we need it after the first year, will look again.

[chuckster57]

Extended warranties can be lifesavers for some and an unnecessary expense for others. You have to determine your own level of abilities. If you can diagnose/ repair stuff then your dollars ahead just saving money in an account. I see more and more buyers that don’t have a clue beyond knowing how to use the RV and in some cases even that’s a stretch. For those, the warranty is a good thing.

[Moneyslinger]

I just bought a used 2013 trailer (originally sold in 2014) in Aug 2018 that had a "Gold Plan" extended warranty to 2020 that was transferable. I saved about 9k over buying a newer model (w newer appliances) that was just a few years old. Being the buyer...it made the decisions easy. Now, will they follow through if something breaks? That's another concern.

[charlesjemeyson]

Originally Posted by Sinton4616

Looking at buying a fifth wheel this weekend. When you purchased an RV, did you get the extended service contract from the dealership while signing the loan? Is it worth it?

I'm trying to get a quote from Coach Net, two business days.

Hope this helps: --

Yes, it is worth it. My wife and I purchased the 7-year service contract when we purchased our 2008 5th wheel and again when we purchased our 2014 5th wheel. Now, how do you use your RV?? That will depend on how good a service contract you need.
We use our 5th wheel when we spend 5 months on the Gulf Coast where "rust" can really damage some parts. I've had my AC's replaced on both 5th wheels as the salt will damage the AC's. On the AC’s on top of your roof, you can remove the covers and actually run you finger down the aluminum fins and the fins will crust like power. (This is what the salt air will do to AC fins.)
I have also had my slide out pinion gears and the metal arms with the teeth on them replaced.
Our Norcold fridge, model 2010, went out several times and had to have the WHOLE guts replaced, plus when it rains, the Norcold has a circuit board that controls the heat (when too much heat, it will shut down), BUT the problem with this board is when it gets MOIST, it WILL SHUT the fridge down. Also, we’ve had repairs on our hot water heater. (The Norcold fridge going out had nothing to do with the salt air.)
We are on vacation at this moment, but when we get back to our RV dealer we will have our bathroom sink replaced as it leaks underneath and the sink connections are molded together.
Service contracts are NOT all the same. We purchased the most expensive one available. So, you can see we’ve gotten our money’s worth out of it.
The company that offers this contract has ALWAYS been really nice and wanted to help with ANY problems.

This year, we’ve camped away from the coastal waters where the salt air doesn’t bother the RV. In earlier years we were about ½ mile from the beach. Hope this helps. If you want further info, then email me [email protected]. I think I could write “volumes” on our experiences. Email me and I will tell you about our sofa and theater seats "MADE IN CHINA" are doing. (I think a lot of RV's have China made furniture. UGH!!)

Thanks, Charles

[Tom Griff]

Just make sure you know what your getting my 7 year warranty ONLY cover parts after deductible so far labor is a killer at 125.00 per hour just make sure what you buy.

[wiredgeorge]

Hey Charles, Welcome to the fray! Live just west of San Antonio in Medina County out near the lake. If you are in town, hope you are enjoying the rain and rain and rain. Lake was down to about 40 percent full so I guess we needed it!

[charlesjemeyson]

Originally Posted by Tom Griff

Just make sure you know what your getting my 7 year warranty ONLY cover parts after deductible so far labor is a killer at 125.00 per hour just make sure what you buy.

Tom:
I have a deductible of $25 when I take it to the RV dealer.

I used a "service tech" once and he charged the service contract for his service call. I was told by the tech I had the best coverage.

[charlesjemeyson]

Originally Posted by wiredgeorge

Hey Charles, Welcome to the fray! Live just west of San Antonio in Medina County out near the lake. If you are in town, hope you are enjoying the rain and rain and rain. Lake was down to about 40 percent full so I guess we needed it!

Wife and I are still in Port Aransas. Will return home for the weekend, church and then come back to Port A on or around Tuesday. We've had our share of rain here in Port A and made the fishing a little bad. Now, the "red tide" is moving in so we will fish in the bay.