Repair Costs vs extended warranty

[Richard Anderson]

Ok, I have recently purchased a 2002 Monterey Seacliff.  Although I had it inspected before purchase, there is always a chance that there are lurking problems waiting to happen.  Since the coach has not been in MY hands to make sure maintenance procedures have been followed, I thought to look into an extended warranty for the first year of ownership.  However, I have only been able to find warranties for a 3 year period.  So my question is, since the cost I have been quoted is $1100 per year for 3 years, how many of you have spent more than $1100 on REPAIRS (not maintenance) per year on your coach of similar age?  Thanks.

[Roy C Tyler]

We purchased our 2003 Monterey Seacliff in July of this year.  On the first trip out, the turbo feed tube fell off and the alternator went out. Had to call out a mobile mechanic ($950).  Guaranty RV in Juncition City, OR where we bought it covered that cost.  Last week, had it serviced and replaced a leaking fuel transfer pump ($934) at Cummins Pacific locally.  I was offered a warranty for $4200 and turned it down.  I have no regrets since the warranty would not cover general maintenance anyway.

[Joel Weiss]

Our PT was about the same relative age as yours when we bought it and had been well-cared for. We've put a lot into this MH from a remodeling perspective but, fortunately, actual repairs haven't been too numerous.  I assume that with any service contract you are considering there would be a deductible so really the question you should be asking is how many of you have spent $1100 + the annual deductible each year?

If I assume your deductible would be ~$500, we'd be roughly at that in repairs for the 3 years we've had the MH assuming that everything I am thinking of as a repair would have been approved as a claim.  Because we're full-timers and we drive ~10,000 miles a year we were quoted a significantly higher price for 3 years of coverage and we decided that it wouldn't be a prudent investment decision; so far we've been correct.

One thing to consider with respect to service contracts on older MH's is how they deal with older interior appliances and accessories that you might not want replaced "as is".  For example, our 12 year old washer/dryer combo started to leak, but I didn't want to be bothered repairing a unit that old so we replaced it with the new model Splendide and it is a lot better unit.  Those kinds of decisions are more complex when a warranty company is involved; they would have probably chosen to fix the leak in the old one; that sort of repair probably would have cost several hundred dollars in deductible and still wouldn't have given me as nice a machine as we have today.

[Jay and Raylene Todd]

Richard,

We had an '02 Patriot Thunder, bought it as the 3rd owners and never had a repair that would have needed an extended warranty - lucky for us as we didn't purchase one. We traded the '02 for an '06 Patriot Thunder and bought a 6 year extended warranty. We have 3 years remaining on the policy and have already paid for it in warrantied repairs.

It's not an easy decision to make, we just got lucky both times.

[Dick Simonis]

When we bought our PT, I also purchased a 4 year extended warranty on a "just in case" basis.  We had never had a MH and with getting a 10 yo coach I took the attitude that is was like insurance in that you hope you never have enough in claims to to break even but it's there jut in case.

Our warranty expires this summer and I've had ~1,000 in warranty work. so, no it would have been cheaper not to get it but that's in hindsight.

Would I do it again, probably.

[Dick Simonis]

Mine must be a pretty good one as it covers just about everything with a $100.00 deductible. I've had no problem with claims but a lot has to do with how the service center presents the case.  Ken at BCS is very good at getting claims processed.

[Richard Anderson]

Thanks everyone for your comments.

[Terry Melot]

The extended warranty is insurance. I've been in business for over 44 years.  I have always practiced this motto and saved thousands.

If you can afford the loss, insurance is always a bad deal.  They know the odds. The insurance company is like the "House" in Vegas. They know the odds and they always make money in the long run. They pay out never, never equals the premiums paid in.
The extended warranty company knows the odds. They will always win in the long run. It's always a gamble you must be willing to take.
Bet with the house and you are likely to win in the long run.
I never buy extended warranty on a blender, a TV, or a car. Now I buy loss insurance on a new car. That would be a large loss that I don't want.

[David T. Richelderfer]

When I purchased the Marquis in Aug 2012 I purchased an extended warranty.  I believe the cost was $5,000 for four years.  The card I carry says RVCARE.  After reading this thread (well after making the purchase) I figured (and hoped) I kissed away $5,000.

I just got home from going to Central Oregon for most of a week for repair work which I wanted completed before heading South this Winter.  I used Mike and Jeremy Flowerday.  Mike lives in his Patriot in an RV park in Central Oregon in the summers.  Thus, I took my coach to his RV park for the repairs - 245 miles each way from my home.  Here is what I had done:

1. Aqua Hot had a 50-50 solution leak.  Replaced the electrical element - $39.  Replaced the burner coil - $451.93.  Replaced the burner control unit - $832.00.  Labor $400.
2. Dash fan noisy.  Replaced co-pilot squirrel cage fan - $67.95.  Labor $100.
3. Replaced center roof a/c (with heat pump).  Roof air with distributor mod ($280) - total $1,589.  Labor - $200.

     Total cost on invoice - $3,679.78

On the roof a/c the distributor mod is an electrical modification to make the new unit work like my other two 10-year old roof a/c units with their 10-year old thermostats.  It was required.

I had called my extended warranty company at least a week before driving to Central Oregon.  The warranty company confirmed the above items were covered.  After Mike officially diagnosed the problems he called the warranty company with costs for parts and labor.  The warranty company decided to send an adjuster to the RV park to confirm the problems.  IMPORTANT NOTE - The warranty company doesn't want any work done before incurring any warranty costs, so be careful.  But, obviously, Mike had to replace the electric element to be sure that was the (only) leak point.  We had to show the adjuster that all failed parts had indeed failed.  The adjuster was at the RV park for over two hours while Mike methodically showed him and he confirmed the parts were either solidly failed or intermittently failing.  Both the burner coil and burner control unit were intermittently failing, and thus had to be started over and over until a failure occurred.  In the warm afternoon air the coil and control unit wanted to work fine, but as Mike pointed out, wait for a cold Winter morning and they will not work well!  The central roof a/c had a solidly locked-up compressor.

The warranty company's adjuster recommended replacement for all Mike's diagnosed problems and issued a work authorization for the total cost noted above.  While at the RV park the adjuster took lots of pictures of the coach and the engine.  He checked the VIN number, engine fluid levels, and made notes about general maintenance.  The adjuster did not ask me to prove maintenance by digging out past invoices.

I paid Mike $4,000 to cover the authorized work PLUS the couple hours while the adjuster was at the RV Park.  Mike did not charge me for that time and the warranty company did not include that time in the bill, but I felt Mike was fair to me and I wanted to be fair to him.  I will ask about it in a cover letter when I send in Mike's invoices.  I don't expect to be reimbursed, but it's worth asking about.  I will also ask about reimbursement for the 87 gallons of diesel burned to come and go to Central Oregon.

The deal with the warranty company is $500 deductible per visit.  Since I combined three problems into one visit I will enjoy ONE $500 deductible.  Thus, the warranty company will (I trust) send a check directly to me for at least $3,179.78.

[Lee Welbanks]

I follow Terry's moto, these warranty companies are not in the business to not make money. I figure on my Thunder I can repair or replace anything except heavy suspension work or R and Ring the Cat. The cash sits in the bank and if I need to replace something so be it.

[David T. Richelderfer]

Obviously, those of you who worked as engineers, electricians, auto mechanics or especially truck mechanics, farmers, etc., are comfortable performing much of your own troubleshooting and repair work.  While I grew up on a farm and am the oldest son, I did not continue farming.  When I finished high school it was OSU or Vietnam U., and I chose OSU.  Here is where I say, "Go Beavers!"  I know just enough about troubleshooting and repair work to be dangerous... as you may remember from some of my posts here in the forum.  lolol

I would ask how many of you pay someone else to manage your retirement savings?  Don't you pay 1% or more of the savings per year for their management, plus you pay a fee every time they buy or sell from your investment position?  In my working life I was a company manager and grain trader.  I am comfortable buying and selling stocks, bonds, ETFs, options, futures, etc.  Thus, I manage my own retirement savings.  I pay the minimal fee required for making position changes and I pay for an advice subscription too.  But my annual fees for trading do not amount to even close to 1%, 0.4% approximately, of my nest egg.

It's all about risk avoidance and acceptance.  I am not comfortable taking on the risk of the cost of repairs for my "toys."  But I am comfortable with taking on the risk of trading my own funds. In fact, I rather thrive on it... much like how Gerald, Edward, Lee, and others here thrive on doing their own maintenance and giving advice on maintenance/repairs.

In short, it's all about YOU; what YOU are most comfortable with.  Maybe I should have been a psychologist.  That profession surely would have been less stressful!

[LaMonte Monnell]

I just picked up my DP today from Alliance Coach. Good Sam covered a lot.
Replaced air horn solenoid
replaced lt rear ABS connection and reset
Lt rear caliper overheated/replaced
front a/c coded E1/ replaced hs capacitor/ run capacitor and control box
frig overheat temp sensor box no reset/ replaced...also control box bad/replaced

749 my costs/ 1800+ Good Sam

oil and filter change at my expense........$500 deductible