THOR VEGAS 24.1 USED - SERVICE CONTRACTS

[stephlise]

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 etc. Would be most appreciative of any information and if you think the service contracts have been beneficial to you when something has gone wrong...many thanks!

[RLS7201]

dougrainer wrote:

RLS7201 wrote:
If they can afford to sell me insurance, I can afford to not purchase it. Put the monthly payments into a savings account and you'll be ahead of the odds.
Also, you'll loose a lot of time waiting on the adjuster and the maintenance provider to come to terms.
If the money is coming out of your pocket, you're in charge.

Richard

This is a good idea. BUT, as I stated earlier, do you have the money to cover a 3000 to 5000 dollar repair in the first 2 or 3 years of owning? The cost for a ESC is usually less than $100 per month. It would take 3 years to amass a $3600 nest egg. You need to get the ADDED monthly cost of the ESC BEFORE you sign the papers. They always try to bury the actual cost in the numbers game when in the finance office. It can be very confusing if you don't understand the game the F&I people play. The F&I person makes a big chunk of his salary off the commissions he gets from both ESC and Finance rate up charges. Most people don't know that the finance rate quoted at both Auto and RV dealers is usually 2 points ABOVE the actual finance rate the Financial institution charges the dealers. THAT is also negotiable. The Dealer and F&I person gets a cash cut of the profit from the rate up charge. Always get your own financing on the hook before using the RV dealer for financing. If the dealer is cheaper, go with him. If your dealer is higher tell him to match the rate YOUR financing has quoted. They will almost always match the rate. They will just not make as much profit. But better a little than NO profit on the financing. Doug

I may be a little late responding. But Doug makes a good point. I originally posted based on my financial situation. Where as I CAN respond to any on the road billing. I didn't think about those that are in debt with little reserve.

Richard

[dougrainer]

RLS7201 wrote:
If they can afford to sell me insurance, I can afford to not purchase it. Put the monthly payments into a savings account and you'll be ahead of the odds.
Also, you'll loose a lot of time waiting on the adjuster and the maintenance provider to come to terms.
If the money is coming out of your pocket, you're in charge.

Richard

This is a good idea. BUT, as I stated earlier, do you have the money to cover a 3000 to 5000 dollar repair in the first 2 or 3 years of owning? The cost for a ESC is usually less than $100 per month. It would take 3 years to amass a $3600 nest egg. You need to get the ADDED monthly cost of the ESC BEFORE you sign the papers. They always try to bury the actual cost in the numbers game when in the finance office. It can be very confusing if you don't understand the game the F&I people play. The F&I person makes a big chunk of his salary off the commissions he gets from both ESC and Finance rate up charges. Most people don't know that the finance rate quoted at both Auto and RV dealers is usually 2 points ABOVE the actual finance rate the Financial institution charges the dealers. THAT is also negotiable. The Dealer and F&I person gets a cash cut of the profit from the rate up charge. Always get your own financing on the hook before using the RV dealer for financing. If the dealer is cheaper, go with him. If your dealer is higher tell him to match the rate YOUR financing has quoted. They will almost always match the rate. They will just not make as much profit. But better a little than NO profit on the financing. Doug

[LouLawrence]

RLS7201 wrote:
If they can afford to sell me insurance, I can afford to not purchase it. Put the monthly payments into a savings account and you'll be ahead of the odds.
Also, you'll loose a lot of time waiting on the adjuster and the maintenance provider to come to terms.
If the money is coming out of your pocket, you're in charge.

Richard

THIS^^^^^ Start with how much you would have paid and put that into a separate account. Then add some predetermined monthly amount every month. You should be ahead of the game or be left with only a minimal excess payment due at the time of the breakdown.

[RLS7201]

If they can afford to sell me insurance, I can afford to not purchase it. Put the monthly payments into a savings account and you'll be ahead of the odds.
Also, you'll loose a lot of time waiting on the adjuster and the maintenance provider to come to terms.
If the money is coming out of your pocket, you're in charge.

Richard

[dougrainer]

craig7h wrote:
I have had and was pleased with Good Sam Extended Service. I have heard that FMCA has a good plan. I would not go with dealers plan as they tie you up in to many things. With GS I can say you will beable to get the work done anywhere that excepts the plan. Thats important if you are traveling away from home alot. All you have to do is call them up and they will give you a quote, you can decide from there.

It seems you really like this coach which is good. It seems the dealer is not very knowledgeable on its condition. Thats understandable, I would (if possible) get an independent company to do an RV inspection before you sign on the dotted line. This will give you some reassurance of the condition of the coach. It will also give you a punch list of things the dealer could fix when doing the PDI.

Good Luck and safe travels

You brought up a point I did not mention. Almost ALL ESC contracts will not pay until a grace period is met. Some are 30 days from the start and some up to 90 days. That means they require the selling dealer to fix the covered item. Dealers cannot just sell a piece of junk and expect the ESC to cover it. Some unscrupulous dealers will try to get the customer to wait past that 30 or 90 day to make a claim. The ESC's are NOT stupid. The almost always send out an adjuster to verify cause and failure. Doug

[craig7h]

I have had and was pleased with Good Sam Extended Service. I have heard that FMCA has a good plan. I would not go with dealers plan as they tie you up in to many things. With GS I can say you will beable to get the work done anywhere that excepts the plan. Thats important if you are traveling away from home alot. All you have to do is call them up and they will give you a quote, you can decide from there.

It seems you really like this coach which is good. It seems the dealer is not very knowledgeable on its condition. Thats understandable, I would (if possible) get an independent company to do an RV inspection before you sign on the dotted line. This will give you some reassurance of the condition of the coach. It will also give you a punch list of things the dealer could fix when doing the PDI.

Good Luck and safe travels

[gbopp]

stephlise wrote:
thanks! the issue is the dealer won't give me ANY information up front

That should tell you everything you need to know.

[dougrainer]

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.

[stephlise]

ah...good point....I will apply the screws to them instead of the other way round!!..

[Rick_Jay]

stephlise wrote:
... the issue is the dealer won't give me ANY information up front ....

Just my $0.02....but IF the dealer won't give you any information BEFORE you buy, what hope should one expect to get any help from them AFTER you buy?

I'd just walk away from this dealer. There are other motorhomes and better dealers out there. And with a few more months of high gas prices, there's going to be A TON more available at reduced prices (from today). Patience may be your friend.

Good Luck,

~Rick

[stephlise]

thanks! the issue is the dealer won't give me ANY information up front and obviously I don't want to be taken for a ride. I would like options and to be able to make an informed decision. So any further info you are able to share is truly appreciated!

[gbopp]

RetiredRealtorRick wrote:

If I were buying a Thor product I'd definitely buy one.

Good point! 🙂

[Tvov]

Are you buying from a dealer? I would be surprised if a dealer didn't have service contracts to sell you.

[RetiredRealtorR]

gbopp wrote:
Here are a couple previous posts about SERVICE CONTRACTS.

Some forum members think they are worthwhile, others think they are a waste of money.
I would not buy one.

If I were buying a Thor product I'd definitely buy one.