# Extended Warranty



## Bull Elk (Feb 28, 2005)

I believe that I there was a thread about this, but I was trying to find out if an extended warranty is worth it. On our 2005 28 RSDS, we have been offered a five year extension for around $1450.00. Have there been enough problems to make this worth the money? Any input would be great.
Thanks.


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## CamperAndy (Aug 26, 2004)

Bull Elk said:


> I believe that I there was a thread about this, but I was trying to find out if an extended warranty is worth it. On our 2005 28 RSDS, we have been offered a five year extension for around $1450.00. Have there been enough problems to make this worth the money? Any input would be great.
> Thanks.
> [snapback]30901[/snapback]​


I would not do it. There is typically too much fine print and restriction on where and who can do the repairs. Most extended warranty's are BIG money makers for the issuer.

Try this out on your dealer or who ever is issuing the extended warranty. Search the forum for the 5 worst problems. Then present these issues to the warranty provider as a hypothetical faults and you would like to know how they would pay on it. If they cover 100% with no deductible then maybe you are good but if they only fix say 3 of 5 issues, you may also notice that you still have premium left over and you are still out of pocket.

Just put the money in the bank and use it to cover repairs for the first 5 years (not maintenance) and when the 5 years are up you will most likely still have a nice chunk of change in the bank.


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## HootBob (Apr 26, 2004)

I would agree with CamperAndy, it just a legal money scam from issuer
Not worth it.
Don


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## Thor (Apr 7, 2004)

I did not do it... So far money it has been money in the bank.

Thor


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## Ghosty (Jan 17, 2005)

I did not do it for this trailer, my last trailer, or my boat, or my new truck -- my uncle who is a large car dealer here in Texas says thats its one of the biggest cash-cows (ie SCAMS) that they have going... tooooo much fine print and think about it -- you would have to have at least 1450 dollars in things go wrong before you would even break even -- and on a trailer this well built... thats allot....


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## Castle Rock Outbackers (Jan 18, 2004)

We don't do extended warranties unless it is a refrigerator, washing machine, or treadmill. Sears offers low cost warranties that include yearly service visits that more than pay for the warranty.

Randy


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## NDJollyMon (Aug 22, 2003)

I don't generally buy any extended warranties...
However, I did buy one from SEARS on the new resistance trainer (Bowflex thing) because of the yearly service clause. (there are no maintenance places close by, and this thing would have to be taken apart. It took 4 hours to put together!)

Also, (and WAY more expensive) I bought one for my new TITAN.

Reasoning: 2004 was the first year NISSAN made a full size truck, and usually, first year vehicles are plagued with problems. Also, I have a theory with new vehicles: They are programed to break as soon as the warranty expires! (see all my Chevy posts) Vehicles cost WAY TOO MUCH TO FIX these days.

Those are the only 2 extended warranties I've ever purchased.


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## Not Yet (Dec 13, 2004)

I, like Pete, bought one for my Titan. Pretty much the same reasons. First model year, 4x4, and towing heavy trailer. I would not at all be surprised if I had some transmission or rear end work done before the end.

Jared


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## camping479 (Aug 27, 2003)

I've never bought one. I wish I had though on our Yukon though. We've had to make a couple of pretty expensive repairs and an extended warranty would have covered them. In the future I'll buy one on a new vehicle, like Jolly said they're so expensive to repair. I don't think I'll get one on anything else though.

Mike


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## California Jim (Dec 11, 2003)

It's likely that the odds are very much in your favor if you don't buy an extended warranty for the Outback.

My dealers bottom line as I continually said "no thanks" was about $1200 for 5 years coverage. In my situation I would have had to pay $1200 out of pocket in repairs to break even, and only then would I be money ahead on subsequent repairs. Oh yeah, and that $1200 would be financed into the purchase so after adding the finance charge would cost even more.

Since all of your major systems are covered for at least one year from the manufacturer you further decrease the amount of coverage by one year.

Lastly, if you had to study statistics in school (







), you learned of the "bathtub curve". It's a graph that shows the likelyhood of failure over time. When an item such as an appliance is first put into service the possibility of failure is at about it's highest as defective components will usually show themselves right away. If it doesn't fail then the likelyness of failure drops to almost zero over the expected lifetime of the item. Then at the end of it's expected lifecycle the curve goes way up again as the item nears death.

It's this simple principle that the insurers are banking on and winning big. They are carefully positioning their liability right smack in the bottom of the "bathtub", the most unlikely period for failure. Yes you could still get the one unit that betrays the norm, but it's "statistically" unlikely









If you're really bored and haven't already fallen asleep reading my post, here's a link that explains it in greater detail and also shows the graph itself. It's geared to electronics manufacturing but the basic principle remains the same:

Bathtub Curve


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## Bull Elk (Feb 28, 2005)

sunny Thanks for all the input. I really am not a big fan of Extended Warranties, but my only experience with travel trailers, recently, has been my sister. They bought a TT, not an Outback, and they had to replace the fridge, A/C, & water heater in years 3 and 4. But it appears from this thread that this must have been more of a fluke, then the norm. Has anyone had any major problems in years 2-6? Thanks for any feedback.


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## CamperAndy (Aug 26, 2004)

Bull Elk said:


> sunny Thanks for all the input. I really am not a big fan of Extended Warranties, but my only experience with travel trailers, recently, has been my sister. They bought a TT, not an Outback, and they had to replace the fridge, A/C, & water heater in years 3 and 4. But it appears from this thread that this must have been more of a fluke, then the norm. Has anyone had any major problems in years 2-6? Thanks for any feedback.
> [snapback]31003[/snapback]​


Not as sure about a fluke as maybe a scam. Hard to see how a whole fridge needs to be replaced unless there was some kind of pipe rupture. The AC and Water heater could be due to poor power regulation at a campground or operator error but even then you can replace a motor or heating element without replacing the entire unit.

That is where this kind of forum comes in handy. You have a problem and you can ask questions. Then if you really need to go to the dealer you are informed enough to get a repair without near as much BS.


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## TheBoyds (Jan 1, 2005)

We got a 7 year through warrenty experts in San Antonio. It was about $800.

They have replaced the step and fixed a torn seal. They cost on these two repairs was $600.00 and we still have 5 years left.

We got it after our GMC sub went through 4 trans of which I paid for two in less than 90k.

That is why we now have a Ford
Brian


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## NDJollyMon (Aug 22, 2003)

So far...I'm in CA Jim's "Bathtub" curve. My ugly problems reared their heads quickly, and were taken care of. So far...so good. Hope it stays that way!


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## Mgonzo2u (Aug 3, 2004)

I never buy extended warranties for any kind of electronics. However when I upgrade all of my A/V equipment to get lined up with the HDTV and HD DVR set up later this year, I just may do it because that set up just may cost me upwards of $7-10K.

I generally buy extended warranties on all large expense items like SUV's, cars and of course my traveling vacation home (read: Outback).

What you need to know is the bottom line the dealer will accept for the extended warranty you need. As has been stated, EW's are cash cows for dealers but not so much if you know how to ask for and get an EW at your price.

I always tell the finance closer when they approach me with all the unwanted extras, including the EW, that I have friends who are ASE certified mechanics (the truth) when buying a vehicle or that I have a friend who has his own mobile RV repair company (the truth). You should see how fast these closers can lower the cost of the EW to whatever amount you are willing to settle for.

Although on my recent Durango purchase I passed altogether on the dealership EW offer because I knew that I could go directly to Chrysler and get it far cheaper than the dealerships best offer and could have it financed at 0% for up to 36 months. I saved about $750 on that one.

As for the deal on the OB extended warranty, when I told the closer about my RV fixing friend, it was funny (but expected) to watch him take his initial paperwork offer of $1,750 for the EW and in the end settle for $550 for a 5 year EW.

Amazing how that works eh?

I saved myself $1200 bucks just by being in tune.

I know down the road my tranny on my Dodge or something on my OB is going to go after the factory warranty expires and I will be sitting pretty.

Of course you can take all of this with a grain of salt knowing that I am in the insurance business. NO ONE gets ahead without being properly insured for any situation life can serve up to you!


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## NDJollyMon (Aug 22, 2003)

Mgonzo2u said:


> Of course you can take all of this with a grain of salt knowing that I am in the insurance business.Â NO ONE gets ahead without being properly insured for any situation life can serve up to you!
> [snapback]31473[/snapback]​


Ahhh. Insurance. The 'sometimes' necessary EVIL.








If they could only live up to their Tv ad claims. (can you tell I'm bitter?)









No offense meant...just bad past experiences.


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