Extended Warranty?

[s1njin]

Figured I might as well ask you guys. I'm sure the dealer is going to hard sell me on the Good Sam ESP when I sign papers on Monday. Is it worth it?

Looking at approx. $3100 for 7 years including tire/rim coverage. Its their Gold plan, whatever that is. I got the quote online - dealer might be able to cut more off the bone I'm not sure.

Am I throwing away money?

[garykk]

Originally Posted by s1njin

Figured I might as well ask you guys. I'm sure the dealer is going to hard sell me on the Good Sam ESP when I sign papers on Monday. Is it worth it?

Looking at approx. $3100 for 7 years including tire/rim coverage. Its their Gold plan, whatever that is. I got the quote online - dealer might be able to cut more off the bone I'm not sure.

Am I throwing away money?

From what I have read about Good Sam ESP and some others, your answer is no and yes....

[s1njin]

Bah ...

[RickO]

Always a very tough question because it's also very personal.

EW's can provide a degree of peace of mind to some. I bought one with my new DP and I'm glad I did. I was a newbie and this gave me some peace of mind that I wouldn't be stuck with a huge repair bill once the warranty ran out.

You don't mention what type of rig this is for or whether it's new or used, but that doesn't sound like much money for 7 years. Do a search on this forum for Good Sam ESP and you'll see what others have to say about that vendor. Whether or not to get an ESP is a separate choice.

Best of luck.

Rick

[s1njin]

Sorry, its a new 2014 Minnie Winnie 31h.

[Tom N]

Get the best deal without it.

Then just before signing the papers tell the dealer that you'll only do the deal if they through in the GS ESP for FREE. The ESP is huge profit for the dealer and cost them almost NOTHING.

[vsheetz]

If new then manufacturers warranties are in place for a period of time. Suggest to wait till manufacturers warranties are about to expire then make the decide on an extended warranty once you have a history and comfort level with the RV.

[vsheetz]

Originally Posted by Tom N

Get the best deal without it.

Then just before signing the papers tell the dealer that you'll only do the deal if they through in the GS ESP for FREE. The ESP is huge profit for the dealer and cost them almost NOTHING.

Dealers are aware of this and similar techniques. Don't be surprised if they push back. If you have cut a slim deal for them already they are less inclined to deal further at this point. .

[s1njin]

I'm guessing/figuring I got a pretty decent deal. They lured me away from the Jayco I almost bought so they had to make it worth it. I'll probably wait on the warranty.

I assume the same goes for tire coverage?

[emiddleb]

Extended warranties are a lot like insurances... in essence the company is betting you won't have enough claims for them to lose money. By buying it, you are betting that you will have enough claims to be worth the cost. Some people have house fires, car accidents, medical issues where they recoup the cost of the coverage, some don't. It's a personal decision.

Based on many threads I've seen over the years on this, the one thing I will advise is to THOROUGHLY read the warranty and be very sure you understand what is and isn't covered, and what you need to do to make a claim. Don't take a salesman's word, read the doc. Many times I've read of denial of payment because they didn't go through the steps properly, it wasn't covered in the fine print, it was considered a maintenance item, they didn't do the required preventive maintenance, it happened on an even-numbered day, it was a blue meteor and they only covered red meteors, etc. Don't assume anything, read the fine print, not just the big advertising. Then make your decision...

[Davdeb1]

I worked for a auto dealership for over 20 years. 15-16 of them it was my primary responsibility to market extended warranties. I made lots of money, and I won lots of prizes.
The dealer started out selling aftermarket plans, much like Good Sams. They were nationwide plans, and 40-50% of the premium went to the dealers coffers. Customer satisfaction on these products were very low. After about 10 years, I finally talked the dealer into using the Ford factory backed extended warranty. Customer satisfaction went way up.

Does Winnebago sell a service plan? If not, ask yourself why. You are buying a new unit, DON'T buy the ext Warranty.

[UFO Pilot]

I bought a 7 year policy at the time of purchase, so I really got 6 years of coverage. I have recouped 3 1/2 times what I paid for the policy.

Mine was worth every dollar I paid for it. Your results may vary.

[KSCRUDE]

Maybe for some on a use rig. But I would never buy it on a new rig. You probably have a Ford chassis. You get 3 year bumper to bumper on that. And 5 year 60K on the drivetrain. And probably one year on the coach, although some builders are giving two. Get any any all bugs worked out while you are under factory coverages, and you should be good to go. Then if you do have a problem, only you can deny yourself coverage, and you will have all the money that you didn't give the dealer.

[macnut]

If you do buy a warranty, you might want to comparison shop a bit. I got an exclusionary warranty form these guys for much less than a similar policy from the dealer.

http://www.wholesalewarranties.com/q...arranty-quote/

Hopefully, you will never need it! Good lunch and happy travels!


2013 Itasca Sunstar 26HE
2014 Honda CRV with Roadmaster tow package
RVing on weekends and vacation since June 2012

[s1njin]

Thank you all for the responses. I appreciate them.

[StevenNSteph]

EW's are huge profit centers for the dealer (or wholesaler) and for the EW company themselves. If you listen to any financial guru they all give the exact same advice, save the money you would have spent on the policy, put it into a bank account for that purpose and that will be your self-insurance fund.

About a year ago I read that nationally 90%+ of these types of policies (they included all EW's) never paid out what the "EW insurance" company brought in. As others have said the markup is huge, so they are usually only getting between 20-50% of what you paid. Think about that for a second if you pay $3000 for your policy and the company gets $1500 - 90% of the people will never recoup $1500 in claims.

Since you unit is new I would forgo the policy now and see how the unit is. If you find out the unit is a maintenance hog you can always add one later or better yet sell the problem and try again with another unit that has a good maintenance record (one of the many benefits of buying gently used).

[SuperGewl]

As most have said it's up to you. I did purchase the CW warranty with my coach, including the Tire warranty. I plan on putting a lot of miles going across country and just don't want to have to worry about the money for tires if I catch a nail or something.
The one other thing to think about is the ERS - this may very well be worth the money. Of course some say no and some say yes. I will say that have helped me when needed. They also state that they will send as many or as large as need tow trucks to assist. That was the main thing I wanted to here when I doing the 5th Wheel thing because I didn't want to leave my 5th wheel on the side of the road if I had issues with the truck.
It's your choice, bank the money now or give it to them and hope you get a return on your investment. Sounds like insurance to me

[georgetown350]

If you listen to any financial guru they all give the exact same advice, save the money you would have spent on the policy, put it into a bank account for that purpose and that will be your self-insurance fund.

This is why we don't listen to gurus. I'm going to pay out 4800 bucks for 4 years of peace of mind. What is 4800 bucks in the bank going to do for you if your repairs are up wards of 20 thousand.

[RickO]

Originally Posted by georgetown350

This is why we don't listen to gurus. I'm going to pay out 4800 bucks for 4 years of peace of mind. What is 4800 bucks in the bank going to do for you if your repairs are up wards of 20 thousand.

I'm in your camp when it come to the value of peace of mind.

Everyone's tolerance for risk is different and EWs can be very valuable in some circumstances. The decision should not be made purely on a financial basis because this isn't an "investment"... it's insurance.

Rick

[s1njin]

I jumped on this too. Got 7 years coach and chassis for a few dollars south of 3k. Rolled it into the financing; Good Sam Platinum $100 deductible, $50 if I'm at Camping World.