7year 100,000 mile extended warranty?

[HavasuCat]

I'm looking at the ESP Premium Care, covers 1000+ components. As close to Ford bumper-to-bumper as you can get. Yea you could just get powertrain but with all the gadgets and crap, well you know. I do keep my cars an average of 9+ years.

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[packerfan]

i would suggest getting the esp plan. but i wouldnt finance it with the car unless you got 0 percent. cause you can finance the warranty separate for no interest for 12 months. mine expires on my 11 gt next year, and would you know it the ac went out. so ive already paid for itself.

 

[Indyorangepony]

i'm not paying interest on the warranty as i paid cash for that and the car. the extended warranty is supposed to cover everything except the key fob at $100 deductable. they wanted another $350 to cover the key fob and i thought that was way extreme.

 

[Lightsaber]

Do the math. Most third party warranties are too expensive for what it is. If you were to pay yourself with that warranty payment and invest in a safe index ETF, it should pay off a lot better than the warranty.

There are good third party warranties that the contract would handsomely pay you when the car breaks, but to find those warranties is about as easy as finding a virgin in a whorehouse.;)

 

[HavasuCat]

I'm not looking at aftermarket warranties, only Ford.

 

[CCCP1999]

The heck with the warranty. These are fun cars and by God i am gonna go WOT every chance i get.

 

[HavasuCat]

Yea they are fun cars.
Still need peace of mind, s#@t happens and it can be expensive!

 

[Chameleon]

I don't keep cars long enough to justify it.

 

[vernonator]

Only way id spend that money is if It was a Diesel and I did on my F350
and guess what it blew the heads off.......I won !

but for a car like our mustangs I think you wasted your money

Depends on how much you pay - these cars are full of very expensive tech to replace. For the Mustang I paid less than $1k to extend the 3/36k coverage to the full 6/60k of the drivetrain. Well worth it IMHO if even one semi-major repair comes up.

 

[AmericanLegend]

Well, it's better than say back in the olden days when they would try to sell you scotch guard for $600 and rust proofing for $800, etc, etc, what a hoot!

Terry

My dealer tried to sell me "paint sealant" which they claimed would mean I'd never have to wax the car...ever. I think it was $600. I didn't buy it.

LoJack was something I thought about for $495 put didn't go with it....maybe I'll do that at a later date?

I got them to lower the premium 7 year, 100,000 mile warranty to ~ $1500, but still didn't bite. I might buy it before the factory bumper to bumper 3/36k has expired?

I've only purchased extended warranties a couple times, and I've ended up paying more for the warranty then I would of for repairs.
Remember, the price is set to statistically ensure the manufacturer comes out ahead. It's a gamble either way I guess.

 

[timd38]

They are betting that the car won't break, and you are betting that it will, when you buy an extended warranty.

It is all about managing risk and I agree with Ford, their car isn't going to break!

 

[17Grabber]

My dealer wanted $1500 for a 5yr/60K extended warranty thru a 3rd party company. I showed them I can get a 7/100K thru ford online for less. They weren't amused and said they would be talking to ford about this and Ziegler who was selling the plans at what my dealer claimed was cost. I bought it online thru Ziegler.

 

[packerfan]

why would a dealer be selling a 3rd party warranty and not an esp plan? sounds shady to me.

 

[bscn8c]

why would a dealer be selling a 3rd party warranty and not an esp plan? sounds shady to me.

They use 3rd Party for a couple of reasons:

1. There is very little price regulation on service contracts. So 3rd party companies will make the contract cheaper than Ford. Then dealers can put a larger markup on it, charge the customer the same as the Ford contract, and make a larger upfront profit.
2. Many 3rd party companies act as Administrators of the contract only, so the contract is basically the dealer's obligation. Then the dealer makes a profit on the contract itself on top of the markup. Each dealer can then keep it's own premiums and the investment interest that the premiums earn.

There are many other business reasons why they may use non-Ford warranties, but essentially the reasoning is that dealers have much more flexibility and can make more money with 3rd party contracts.

 

[timd38]

why would a dealer be selling a 3rd party warranty and not an esp plan? sounds shady to me.

If it isn't from the car manufacturer, run away, fast.

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