Extended Service Plans
I just received a quote from GS for an extended service plan. I thought it was a little high ($1700 a year-500 deductible). Anyone have another company that offers the extended service plan? I own a...
Forum Discussion
Extended warranties are insurance policies, nothing more. And most extended warranties pay about 50% of what you pay as a commission to whomever sells the policy. So if you buy a $3000 extended warranty from the dealer, then the dealer gets $1500 and $1500 goes to the warranty company. That is why they are so easer to sell these policies.
Is it a good deal? If you have a covered breakdown and it's more than the policy costs than it is. They are betting that doesn't happen to most of their customers and you are betting that it does, even though you don't want it to happen. I paid over $3500 for a warranty when I bought my motorhome. They started at $5000 and came down to $3500. The dealer can negotiate away their commission. Sure they want to sell it for $5k, but if they can get you to buy it for $3.5K then they still get a grand commission. I never had anything break that would have been covered by the warranty.
If I buy another new motorhome I doubt I'll pay extra for a extended warranty. If I bought a few year used one, I may look into a 2 or 3 year warranty only because you don't know how the previous owners treated the things.
Is it a good deal? If you have a covered breakdown and it's more than the policy costs than it is. They are betting that doesn't happen to most of their customers and you are betting that it does, even though you don't want it to happen. I paid over $3500 for a warranty when I bought my motorhome. They started at $5000 and came down to $3500. The dealer can negotiate away their commission. Sure they want to sell it for $5k, but if they can get you to buy it for $3.5K then they still get a grand commission. I never had anything break that would have been covered by the warranty.
If I buy another new motorhome I doubt I'll pay extra for a extended warranty. If I bought a few year used one, I may look into a 2 or 3 year warranty only because you don't know how the previous owners treated the things.
