(Another) Extended Warranty Thread

[ken0042]

As some of you may recall from my previous thread, I was looking at travel trailers. Well I ended up buying this one. I pick it up in 2 weeks.

I was in yesterday to take care of the paperwork and of course the question of extended warranty comes up. Now I know that warranties are a cash grab for the dealer; and in previous threads I have stated my view of the warranties being like an insurance policy for repairs you cannot afford. And if you use it- you always end up saying "see- it was worth it."

The problem for me is I have no basis for determining how much I might use a warranty. Unlike a car where I know how much repairs cost, or electronics where I also have a good idea of failure rate; I have no such frame of reference here. I also have their brochure which sounds like it covers a lot- but who knows what exclusions it will have.

A few quick figures:
- The trailer was around $13K and the warranty will be $1800.
- The warranty is offerred through First Canadian
- The trailer comes with a 1 year warranty; and the extended warranty give an additional 6 years; for a total of 7 years coverage.
- I figure the trailer will see about 4 to 6 camping trips per year; with the furthest trip being 800 km round trip. Most trips would be closer to 300-400 round trip.
- The insurance carries a $50 deductable; which my dealer says they waive if I bring it to them for service.

The big question; for those of you with trailers- what has you experience with service been? Have you had service in the first 7 years? What did things cost?

Thanks everybody!

[CaptainCrunch]

I would look at the terms and conditions of the manufacturers warranty vs the extended warranties.

The manufacturers warranty usually doesn't cover much of anything.

[Northendzone]

in some cases the extended warranty can be purchased during the first year of ownership - if this is the case, then why not wait.

[REDVAN]

$1800 for 6 years is $25 a month.

Over 6 years, frankly, if you get two mid to major sized repairs on it you've broken even. And it will increase sale value if you decide you don't want it 3 years in...

Think about your car. I'm sure you've spent 1800 over the last 6 years after the warranty ran out. I'd imagine a trailer would be even more expensive per repair than a car.

[Hack&Lube]

Originally Posted by REDVAN

$1800 for 6 years is $25 a month.

Over 6 years, frankly, if you get two mid to major sized repairs on it you've broken even. And it will increase sale value if you decide you don't want it 3 years in...

Think about your car. I'm sure you've spent 1800 over the last 6 years after the warranty ran out. I'd imagine a trailer would be even more expensive per repair than a car.

Then again it's a trailer and not a car and therefore, not exactly rocket science to do repairs/replace parts. It depends on how handy you are I guess. I wouldn't attempt to fix something seriously wrong in my car's engine or bodywork but I would probably fix a trailer.

[Sliver]

Originally Posted by REDVAN

$1800 for 6 years is $25 a month.

Over 6 years, frankly, if you get two mid to major sized repairs on it you've broken even. And it will increase sale value if you decide you don't want it 3 years in...

Think about your car. I'm sure you've spent 1800 over the last 6 years after the warranty ran out. I'd imagine a trailer would be even more expensive per repair than a car.

Not even close. A trailer doesn't have an engine, transmission, computer, etc.

Ken I don't think you need it. I've had four travel trailers and haven't put $1800 into all of them combined I'm pretty sure.

[burn_this_city]

You'd have to look at the most expensive items and the chances of them failing. In most trailers that would be the fridge and stove. Either one would probably cost $1000 to replace. I cant imagine both would fail so I wouldnt spend $1800 on the extended warranty.

[IGGYRULES]

The way I look at any extended warranty is that the provider is in it to make money. How much of that $1800 do they have allocated to actual expected repairs? If I were to guess I'd say they'd figure spending about 25% of the cost per warranty sold to actual claims. The last 75% would be company overhead and profit. I prefer to provide my own warranty and figure I'll come out way ahead in the long run.

[ken0042]

Thanks guys. Funny- the only person really pushing me for the warranty is another Grand Am owner.

Sliver (or any other trailer owners)- what kind of repairs have you had to do, and how much did they cost you?

Yeah, I keep drawing these car analogies and knowing that even with my Grand Am's issues I would have been close to even with the extended warranty had I bought it. The problem is I don't even know what typically goes wrong; and what it costs to replace. How much is a new 3 way fridge installed? (For example.)

[REDVAN]

LOL I was thinking RV not trailer. My bad.

Don't get it, I'm sure you can handle any simple repairs on your own anyways.

[bizaro86]

Originally Posted by ken0042

- I figure the trailer will see about 4 to 6 camping trips per year; with the furthest trip being 800 km round trip. Most trips would be closer to 300-400 round trip.

I suspect the factor that would be more important with a trailer wouldn't be how much you use it, but what you do with it when you're not using it. If you're storing it in a heated garage, that's very different than leaving it outside to freeze and thaw over and over again each winter. It would also depend on how well you winterized it.

Michael

[Sliver]

Originally Posted by ken0042

Thanks guys. Funny- the only person really pushing me for the warranty is another Grand Am owner.

Sliver (or any other trailer owners)- what kind of repairs have you had to do, and how much did they cost you?

Yeah, I keep drawing these car analogies and knowing that even with my Grand Am's issues I would have been close to even with the extended warranty had I bought it. The problem is I don't even know what typically goes wrong; and what it costs to replace. How much is a new 3 way fridge installed? (For example.)

In my experience, the cost of owning a trailer is mostly in maintenance (stuff that won't be covered by a warranty anyway). Bearings, brakes, tires, etc. Every year little bits and bolts break and you're throwing a few hundred at it at the start of every season on random stuff.

I'm not a super handy guy, but I find I can do a ton of stuff on trailers myself so there isn't much of a need to take them to a dealer. I've had a hot water heater go on one of my trailers and I think the quote was pretty expensive on that - less than a thousand IIRC, but still pricey. I had the dealer replace the electric pump that draws water from the tank on my current trailer and that was a couple of hundred. Provided you're starting off with a good trailer, it would take a long time to get up to $1800 just to break even on the warranty.

Roof leaks are a big problem in a lot of trailers and can ruin things pretty quick so watch for that. If there's a bunch of tar/silicone slopped on the top it's probably leaked at some point and I honestly wouldn't buy it if I were you.

If it needs new awning fabric let me know - I can hook you up for a really good price.

[burn_this_city]

Originally Posted by ken0042

Thanks guys. Funny- the only person really pushing me for the warranty is another Grand Am owner.

Sliver (or any other trailer owners)- what kind of repairs have you had to do, and how much did they cost you?

Yeah, I keep drawing these car analogies and knowing that even with my Grand Am's issues I would have been close to even with the extended warranty had I bought it. The problem is I don't even know what typically goes wrong; and what it costs to replace. How much is a new 3 way fridge installed? (For example.)

It wouldnt hurt to figure out what kind of fridge or stove you have and call couple places to find out the cost of replacement.

[Sliver]

Originally Posted by Sliver

In my experience, the cost of owning a trailer is mostly in maintenance (stuff that won't be covered by a warranty anyway). Bearings, brakes, tires, etc. Every year little bits and bolts break and you're throwing a few hundred at it at the start of every season on random stuff.

I'm not a super handy guy, but I find I can do a ton of stuff on trailers myself so there isn't much of a need to take them to a dealer. I've had a hot water heater go on one of my trailers and I think the quote was pretty expensive on that - less than a thousand IIRC, but still pricey. I had the dealer replace the electric pump that draws water from the tank on my current trailer and that was a couple of hundred. Provided you're starting off with a good trailer, it would take a long time to get up to $1800 just to break even on the warranty.

Roof leaks are a big problem in a lot of trailers and can ruin things pretty quick so watch for that. If there's a bunch of tar/silicone slopped on the top it's probably leaked at some point and I honestly wouldn't buy it if I were you.

If it needs new awning fabric let me know - I can hook you up for a really good price.

Oh I just clicked on your link above and it looks like you bought a new trailer so ignore my note about a leaking roof or new awning. The trailer looks wicked man!

[underGRADFlame]

Mickey: Good dags. D'ya like dags?
Tommy: Dags?
Mickey: What?
Mrs. O'Neil: Yeah, dags.
Tommy: Oh, dogs. Sure, I like dags. I like caravans more.

[Hevishot]

I know that a trailer fridge costs about 2 Grand installed. How do I know this? Because I had the joy of putting one in my trailer this year you can buy a very nice house fridge for 2 grand. Its pretty much the most expensive part of the trailer next to the stove.

[burn_baby_burn]

Be carefull. Things like the fridge and stove might not even be covered by the extended warranty for the trailer. Make sure you read the warranty and understand fully what is covered and what isn't.

[burn_this_city]

The fridge and stove may come with a couple year warranty from the manufacturer. Also something to consider.

[Sliver]

Originally Posted by Hevishot

I know that a trailer fridge costs about 2 Grand installed. How do I know this? Because I had the joy of putting one in my trailer this year you can buy a very nice house fridge for 2 grand. Its pretty much the most expensive part of the trailer next to the stove.

Holy crap that's expensive.

[Hevishot]

Originally Posted by Sliver

Holy crap that's expensive.

Ya I was less than amuzed and that was cheap compared to how much some of the bigger RV dealers wanted to charge me. On the bright side the new fridge came with a 3 Year warranty lets just hope I never have to use it.