Extended warranties...which are the best?
Hi- We had been looking for a class c, however, we found an Itasca, Sunstar that is 26'11" for a reasonable price. It is a 2013 and has 6,611 miles on it. Our question is, what type of warranty sho...
Forum Discussion
Here's my 2 cents on this topic, take it for what it's worth...
Understand this one thing if nothing else: You generally don't win with extended warranties.
Here's why: Any company that sells an extended warranty is not about saving you money but is strictly trying to make money themselves. So they price their product to include their expenses (what they need to pay out in claims & their other expenses) plus a profit. So assume you do pay them $5000, here's a rough example of how that money would be spent by the extended warranty company:
*** claims - $3000 (they keep some amount in a reserve to cover what they think would be average for the particular coach including age, mileage, etc)
*** expenses - $1000 (they spend some to pay the dealer a commission for selling a warranty, pay their staff, pay their light bill, etc)
*** profit - $1000 (for the owners of the company to buy some nice stuff for themselves!)
These are just hypothetical numbers but the idea is to say that you'd be further ahead putting $3000 in a cookie jar & covering your own repairs versus paying $5000 to cover the repairs plus everything else above.
No doubt there are people on this forum & others who say, & probably did, come out ahead. But, the simple economics of the situation is that you won't (the company has to pay out less than they take in or they go out of business).
About the only time I'd recommend somebody buy an extended warranty on a camper is if they don't have a slush fund already or can't park & leave untouched some money to cover unexpected expenses. Although, even then honestly, I would suggest they might want to rethink if this (expensive) hobby is the right choice for them.
Again, JMHO.
Understand this one thing if nothing else: You generally don't win with extended warranties.
Here's why: Any company that sells an extended warranty is not about saving you money but is strictly trying to make money themselves. So they price their product to include their expenses (what they need to pay out in claims & their other expenses) plus a profit. So assume you do pay them $5000, here's a rough example of how that money would be spent by the extended warranty company:
*** claims - $3000 (they keep some amount in a reserve to cover what they think would be average for the particular coach including age, mileage, etc)
*** expenses - $1000 (they spend some to pay the dealer a commission for selling a warranty, pay their staff, pay their light bill, etc)
*** profit - $1000 (for the owners of the company to buy some nice stuff for themselves!)
These are just hypothetical numbers but the idea is to say that you'd be further ahead putting $3000 in a cookie jar & covering your own repairs versus paying $5000 to cover the repairs plus everything else above.
No doubt there are people on this forum & others who say, & probably did, come out ahead. But, the simple economics of the situation is that you won't (the company has to pay out less than they take in or they go out of business).
About the only time I'd recommend somebody buy an extended warranty on a camper is if they don't have a slush fund already or can't park & leave untouched some money to cover unexpected expenses. Although, even then honestly, I would suggest they might want to rethink if this (expensive) hobby is the right choice for them.
Again, JMHO.
