View Full Version : Extended

02-23-2008, 10:14 AM
Soon to be new owner.An extended warranty for five years,at a cost in
the range of $1200.00 was mentioned.I am not a big fan of these.
Any help.
rarin2go 2-23-2008

02-23-2008, 12:52 PM
This gets to be a personal decision, but since you asked, I will share my philosophy on extended warranties. In general, the company who is selling the warranty will be making money on them - otherwise they wouldn't do it. So, for the average person, you will lose money on it. Does that mean don't do it - it depends. The same logic holds true for something like home insurance - the average owner will lose money, but we all do it because the value of the potential loss is way more than we can stand to lose. So should you do it for your TM - my logic says no, if you can afford to cover whatever might fail that is covered by the warranty, if you can't afford to cover the potential loss, then the insurance might make sense - although I have a hard time thinking of any likely failure in the TM that would cost $1200 to replace. Hope my logic makes sense to at least some of you :)

02-23-2008, 01:54 PM
I share Tracey's thought, with a few extensions.
First, the TM is made up of two parts - the frame/axle/walls/roof, and the appliances. It is unlikely that there will be a failure in the first, because the parts are generally pretty rugged and not very complicated. A big event, such as crash, will be covered by your car insurance or a policy that you buy from (probably) your car insurance company. So an extended warranty, even if it covers those things, won't buy you much.

A failure in the appliances is more likely. They carry their own individual warranties from their manufacturer, which generally last from 1 to 3 years. During that time, an extended warranty won't do a thing for you, because the manufacturer's warranty takes precedence.

If there is a failure in the time beyond the manufacturer's warranty, that's when an extended warranty might kick in (you need to understand the fine print in detail). RV appliances are expensive, but $1200 will buy a lot of brand new appliances. In other words, it would pay for itself only if you had multiple (probably 3 or more) catastrophic failures during that time. That is certainly possible, but I think highly unusual.

Also to be considered - if the refrigerator, for example, fails during year 4, will the extended warranty pay for a brand new refrigerator (about $400)? Or will it pay only some depreciated value (much less than $400)? Read your fine print!

Finally, Good Sam seems to have a comprehensive extended warranty called Continuing Service Plan which, if I recall, pays full repair or replacement cost, at about the same cost. I don't have it because I, too, am skeptical about these things. But you might look into it, just to compare.


02-23-2008, 09:43 PM
I've read that the dealer usually gets a 50% sales commission of whatever we pay for an extended warranty. They have good reason to push them so hard -- especially if you've negotiated a low-profit deal on whatever you bought.