davelinde
Freehold, New Jersey
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Joined: 11/02/2003
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Anyone heard of this? I just got a pitch to add this to my new FifthWheel purchase and it does not pass my "too good to be true" test...
Normally when I get the extended warranty pitch I shut it off immediately with the "I self-insure" comment. By that I mean that I NEVER buy these things, I take the money I save, and IF I have a failure I apply the money already saved to just pay for it. So far I am ahead (well ahead) on this approach.
However, this one has me wondering. According to the plans the service contract covers pretty much everything and anything including things I consider fair wear and tear items. It also includes a roadside assistance section. They will reimburse towing.
Here's the kicker - apparently you purchase it through a finance company (Signet Financial Services) and if you never make a claim they refund the entire purchase price at the end of the term. I am unclear on how they make money on this... which has me thinking there must be a catch.
From a financial analysis I already pay for roadside assistance so I can drop that making this plan net cheaper. (although this plan is reimburse only so if I needed a tow I'd need to make my own phone calls and in theory could get someone who will charge more than the allotted amount).
The company could go out of business...
I guess that since they cover maintenance (eg brakes) that many people would use the contract for maintenance and be unable to claim the refund? You must also follow the paperwork rules to get the refund and many people cannot do that and would not get the refund. And the refund would only come to the original owner after 7 years (and many people do not own for 7 years I'd guess)
I'm scratching my head. Can anyone share their experiences here? I understand the plan has been available for a while.
Dave Lindemulder
Tammy, Mark & Kirsten
04 Dodge 2500 4x4 SLT QC/SB
HO-CTD/48RE - Graphite: Raptor SS nerfs, Prodigy, Reese 16K Kwik-slide, BD X-Monitor, PML Trans pan, PML Diff cover, Firestone Airbags
09 Heartland Cyclone 3210
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longtrailer48
Kent, WA
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Read your own post. You already answered the question. It's gambling and you usually lose.
2000 F350 4X4 7.3PSD CC SB SRW Superglide 18K 4" Flowmaster K&N Garrett Turbo Pwr Chp 8-21 MPG
2008 WW FTL4005+5 5th Wheel Toyhauler 48'x102"x13'-6" 3 slides
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davelinde
Freehold, New Jersey
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longtrailer48 wrote:Read your own post. You already answered the question. It's gambling and you usually lose.
I guess the biggest risk is that the company stops doing business?
I'm not sure where the gamble lies here though... as presented it seems like a kind of sure thing? I'm not quite sure I've found the flaw yet.
Again - anyone who has used this service might shed some light good and bad.
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M GO BLUE
Southgate, MI
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Joined: 01/29/2001
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Never will take an extended warranty program...
From what I have found on Company's that promise a "full refund" if not used is that they will prefund you a pro-rata share of what you originally paid for the warranty...
Want my advice? Pass on all extended warranties....
ERIC & BEV
2005 Chevy Silverado 3500 dually CC/LB Duramax/Allison
2008 Jayco Designer 35RLTS
Built-In Onan 5500W generator
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davelinde
Freehold, New Jersey
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M GO BLUE wrote:
From what I have found on Company's that promise a "full refund" if not used is that they will prefund you a pro-rata share of what you originally paid for the warranty...
Want my advice? Pass on all extended warranties....
For sure I always pass on extended warranties, as noted in OP I self-insure and so far I am ahead. I requested (and was sent) a copy of the refund agreement. It is quite unambiguous. If you file no claims you get 100% of the purchase price (fill in the blank on the form) refunded.
The way I see it, I could use this as a catastrophe policy. For small stuff I just fix it like I would anyway. However if I have a major issue I submit it. If I never have a major issue I get the refund and they have just had use of my money for 7 years (essentially if they invested it they would have earned the policy in interest).
Still looking for someone who's used these companies.
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pappaone
colorado
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Dave; if you ever get a straight answer from someone regarding your question please let me know, I also have the opportunity to purchase this service contract and it sounds good. Maybe to good.
Rich & Jennie(mate for 49 yrs)
1 spoiled cat
2004 Sea Breeze 1341
2004 Malibu toad
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roadrunner16
Tucson
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I had this policy on a car I bought in 2000. Never used it and 5 months after it expired I discovered what the policy said and made an inquire about it. There answer was a check for the full price of the policy.
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AlfGulford
Central Oregon
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Joined: 07/07/2004
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If you finance they get the interest on your payments for that part of the contract. If you never make a claim they've had the use of your money for 'X' number of years.
If claim payouts are less that the purchase price do you get a partial refund?
Alf
[b]Alf
2001 Ford F-250SD, V-10, 4x4, 3.73
Coachman Catalina 285RK
Note: Due to invalid formatting, all formatting has been ignored.
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davelinde
Freehold, New Jersey
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AlfGulford wrote:If you finance they get the interest on your payments for that part of the contract. If you never make a claim they've had the use of your money for 'X' number of years.
If claim payouts are less that the purchase price do you get a partial refund?
No, it's an all or nothing deal - if I use it I bought it, if I don't they refund it.
I sure, sure wish someone who used these companies would post - because I'm leaning towards trying it. I think this is a modification of the "rebate" approach. The actual number of rebates sent is much, much less than 100%. You must follow the rules exactly and you must follow up if your rebate is "lost" or you get no cash. HOWEVER, if you can follow rules and keep good records and follow up you will get your money AND a good price. My wife has a 90%+ success rate with rebates (although some of them have surely tried her patience).
In this case the rebate comes 7 years later, only to people who remember, and are still original owners and who have not just used the policy to collect $99.95 for a broken widget. Also... as those $99.95 broken widgets pile up you are surely tempted to take your money now assuming there will be more to collect vs paying it yourself to get the refund in X years. Also, as noted - the time value of money means that by using my money 7 years they can essentially double it before they give me back my principle (they keep the interest).
So... although it seems too good to be true - the fact that I buy on credit every day, use the float, pay off my balance in full and get "cash back" on my credit card ALSO seems too good to be true - but it works.
I guess that leaves me with two questions --
1. Anyone ever process a major claim against Phoenix American and did they pay? (this policy says I front the money and they reimburse)
2. If using this for my roadside assist -- are there numbers to call to get a double tow (TV and FW) if needed? and is $300 enough to "typically" get me off the road? Here again, I arrange the tow service, I pay up front and the insurance just reimburses me assuming I followed their rules exactly.
(understand that I've now paid nearly $400 since I've had my RV to call an ERS and never called once...)
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