THOR VEGAS 24.1 USED - SERVICE CONTRACTS
Greetings....I am buying a used Thor Vegas Motorhome and am having a rather challenging time finding out info pertaining to the service contracts available....what they cover, how much they cost etc e...
Forum Discussion
There are various types of RV contracts. As you probably know, THEY ARE NOT EXTENDED A WARRANTIES. There are ESC's Extended Service Contracts. They only cover COVERED components. THERE ARE NO GRAY AREAS IN THE CONTRACTS. IF the failure component is not explicitly covered in the Contract IT IS NOT COVERED. There are 3 types of contracts.
1. Exclusionary, which means ANY item NOT stated in the contract is covered
2. Inclusionary, which means the item HAS to be listed in the contract
3. Regular, which is very close to Inclusionary, that lists all items that are covered and what is NOT covered if the other items fail as a result of a covered item.
You need to find out if the who OWNS the ESC contract. Some dealers sell their Own and are self insured with a escrow account for claim payments. These are NOT the best way to go. BIG profit for the dealer
Dealers that sell Contracts offered by Service Contract Companies, Good Sam is probably the most well known. The sell the contract and are giver an upfront Cash profit for the sale. They are given a specific amount the ESC wants for the contract and ANY money made on top after it is added on is the dealers. So, ALL dealer sold contracts can be negotiated. Buying Direct from the ESC (Like Good Sam) the price quoted is the price you pay. ANY Dealer that will not give you a copy of the contract prior to purchase to take home and check out is NOT a reputable dealer. They want to get you in the office at close of sale and pressure you. They have cost charts and horror stories of people that had to pay thousands of dollars because they had no ESC. Also, remember if you have an ESC and attempt to deal with them to get a covered failure, READ THE CONTRACT, make sure it is covered and then use the EXACT SAME verbiage as the contract to get the claim approved. I have had ESC's deny claims years ago(I LEARNED) because I called a HYD Jack hose a HOSE, instead of a LINE. The contract stated lines, I said hose and they denied the claim. Had to go up the chain on ESC management to get it overrided. But delayed the repair for the customer by 2 weeks. If you have an extra 10k in the bank to use for future repairs go that route. But, if a 3k repair would stretch your finances or had to go the credit card route(expensive interest), then get the ESC. I have 43 years as a RV tech. Never owned an RV, But if I purchased a Motorhome used, I would research the various contracts, check them on the BBB or internet forums and purchase one. Doug
PS Forgot to mention, During the term of the contract especially the first year, and you cancel the ESC, the dealer has to give back almost all his profit from it. After 1 year it is prorated. This is one reason some bad dealers will make it difficult for you to cancel. AND it makes it harder on you if that dealer is out of state or not close to you and you have to deal on the phone or certified letters. They will do anything to make you keep the ESC.
1. Exclusionary, which means ANY item NOT stated in the contract is covered
2. Inclusionary, which means the item HAS to be listed in the contract
3. Regular, which is very close to Inclusionary, that lists all items that are covered and what is NOT covered if the other items fail as a result of a covered item.
You need to find out if the who OWNS the ESC contract. Some dealers sell their Own and are self insured with a escrow account for claim payments. These are NOT the best way to go. BIG profit for the dealer
Dealers that sell Contracts offered by Service Contract Companies, Good Sam is probably the most well known. The sell the contract and are giver an upfront Cash profit for the sale. They are given a specific amount the ESC wants for the contract and ANY money made on top after it is added on is the dealers. So, ALL dealer sold contracts can be negotiated. Buying Direct from the ESC (Like Good Sam) the price quoted is the price you pay. ANY Dealer that will not give you a copy of the contract prior to purchase to take home and check out is NOT a reputable dealer. They want to get you in the office at close of sale and pressure you. They have cost charts and horror stories of people that had to pay thousands of dollars because they had no ESC. Also, remember if you have an ESC and attempt to deal with them to get a covered failure, READ THE CONTRACT, make sure it is covered and then use the EXACT SAME verbiage as the contract to get the claim approved. I have had ESC's deny claims years ago(I LEARNED) because I called a HYD Jack hose a HOSE, instead of a LINE. The contract stated lines, I said hose and they denied the claim. Had to go up the chain on ESC management to get it overrided. But delayed the repair for the customer by 2 weeks. If you have an extra 10k in the bank to use for future repairs go that route. But, if a 3k repair would stretch your finances or had to go the credit card route(expensive interest), then get the ESC. I have 43 years as a RV tech. Never owned an RV, But if I purchased a Motorhome used, I would research the various contracts, check them on the BBB or internet forums and purchase one. Doug
PS Forgot to mention, During the term of the contract especially the first year, and you cancel the ESC, the dealer has to give back almost all his profit from it. After 1 year it is prorated. This is one reason some bad dealers will make it difficult for you to cancel. AND it makes it harder on you if that dealer is out of state or not close to you and you have to deal on the phone or certified letters. They will do anything to make you keep the ESC.
