Extended Warranty - Worth It?

[Slopoke]

Even those brands aren't what they used to be. I just did a transmission on a Honda Pilot for $7500 covered under extended warranty. Double the warranty cost in one repair.

Not to derail the thread but, if your Pilot has the transmission the older ones had. Honda used the transmission out of the Accord in the Pilot and Odyssey minivan. The third gear clutch pack was weak and with lots of downshifts to climb, it was toast. I had my transmission in my Odyssey go out at 75,000 miles. Too many trips up the Grapevine in southern CA, fully loaded was a big reason it went kaput.

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[Shodown220]

Not to derail the thread but, if your Pilot has the transmission the older ones had. Honda used the transmission out of the Accord in the Pilot and Odyssey minivan. The third gear clutch pack was weak and with lots of downshifts to climb, it was toast. I had my transmission in my Odyssey go out at 75,000 miles. Too many trips up the Grapevine in southern CA, fully loaded was a big reason it went kaput.

I'm sorry I mispoke, it was an Odyssey, 2018 with the new 10-speed to be exact. I just went back to look. It was a clients vehicle, I am a service advisor and was doing the warranty claim and all for that one. But yeah the older pilot and odyssey transmissions were garbage and needed early replacements.

Back on topic extended warranties are for the most part, a loser for the consumer, if they weren't they wouldn't be sold. That being said, I have seen more times than I can count people use warranties enough up to and beyond the intial cost of the warranty. The biggest thing for people is they may not be able to afford a $3000 repair out of pocket all out once, but spread over the course of their loan term it makes the cost more reasonable. I'm not saying it makes good financial sense, but its good insurance for people who need it.

I deal with these warranties on a daily basis and as long as you stick with something reputable or OEM manufacture backed, you are normally good to go. Stay the hell away from anything with a commercial on TV or social media, especially if there is a "shield" in the name (carshield, auto shield)

 

[luc]

I've bought Ford extended warranties for my last 3 or 4 cars. Each one more than paid for itself.

I never bought an extended warranty on any of my cars and it more than pay off
How can we have so directly opposite results?

 

[Paris MkVI]

Every situation is individual, with different experiences and results.

All insurance does is transfer risk to someone else. Each of us must decide our own comfort zone with that, understanding it is still a bet we may win or lose.

 

[luc]

Every situation is individual, with different experiences and results.

All insurance does is transfer risk to someone else. Each of us must decide our own comfort zone with that, understanding it is still a bet we may win or lose.

Obviously the odds are in favor of the bank/insurance therefore as an aggregate, more chance that you will be ahead of the game by not buying one
The real question is can you financially afford the risk
I always been able therefore no insurance/extended warranty

 

[Paris MkVI]

Obviously the odds are in favor of the bank/insurance therefore as an aggregate, more chance that you will be ahead of the game by not buying one

I agree. It does mean we have to take up the responsibility to prepare, because stuff happens.

Not too far back in history insurance was illegal - it was considered gambling. One gambling truth stays with it, the house usually wins.

But our culture in many areas has made it a neccesity - not so much for our individual good, but for the good of society overall. In the big picture, it is a sort of shock absorber.

 

[KingKona]

I never bought an extended warranty on any of my cars and it more than pay off
How can we have so directly opposite results?

Dunno.

Give us an example of a car, what warranty you bought, how many annual miles you drove that car, and what all went wrong with it.

 

[ay1820]

Obviously the odds are in favor of the bank/insurance therefore as an aggregate, more chance that you will be ahead of the game by not buying one
The real question is can you financially afford the risk
I always been able therefore no insurance/extended warranty

While I tend to agree, I think there is another dynamic at play here related to Ford's well documented quality problem. I hate to say it, but the defect risk in any Ford product made in the last 5+ years is a much higher than historical averages. Normally you would expect that to be factored into the price of an extended warranty, but I tend to doubt that Ford is jacking up the rates on their own in-house Ford Protect program. All of this is total speculation though.

 

[KingKona]

.....Ford's well documented quality problem. I hate to say it, but the defect risk in any Ford product made in the last 5+ years is a much higher than historical averages....

I've not heard of such things. Source?

 

[ay1820]

I've not heard of such things. Source?

Comes right from the horses mouth, Jim Farely. Here is just the first article that popped up on Google. https://jalopnik.com/ford-ceo-says-fixing-quality-issues-will-take-several-1849912048

The fact that Farely publicly stated that it would take two years to address the issue speaks to the magnitude of the problem.

 

[ice445]

Comes right from the horses mouth, Jim Farely. Here is just the first article that popped up on Google. https://jalopnik.com/ford-ceo-says-fixing-quality-issues-will-take-several-1849912048

The fact that Farely publicly stated that it would take two years to address the issue speaks to the magnitude of the problem.

The mustang isn't too bad though unless we're being nitpicky with panel alignment and such

 

[KGbyrd1966]

2019 MY is the best according to Consumer Reports data.

 

[R3G]

Opinion-Ford’s build quality has gone into the crapper since 2020 for a variety of reasons like moving manufacturing to Mexico where they can indulge in paying folks $4/hr, and an over reliance on 3rd party parts/services vs building in house. Mustangs and Raptors are probably more than likely still okay overall as built in Flat Rock / Dearborn but still both suffer from the 3rd party part issue. I’d buy the warranty if planning to keep beyond 3/36.

 

[Balr14]

Buying an extended warranty is more about how risk adverse you are, than how much repairs will cost. I tried to get an extended warranty for a 2010 Porsche because the potential for serious repairs was over $60k (engine and transmission). Not likely, but certainly a possibility. That was more risk than I was willing to take. On the other hand, the same components in a Mustang would cost about $20k and are even less likely. That much risk I can deal with.

You have to decide what you are comfortable with.

 

[ay1820]

Buying an extended warranty is more about how risk adverse you are, than how much repairs will cost. I tried to get an extended warranty for a 2010 Porsche because the potential for serious repairs was over $60k (engine and transmission). Not likely, but certainly a possibility. That was more risk than I was willing to take. On the other hand, the same components in a Mustang would cost about $20k and are even less likely. That much risk I can deal with.

You have to decide what you are comfortable with.

This pretty much hits it on the head.

In the "good old days" when I could fix just about anything myself, I never would have considered an extended warranty. Replacing a water pump, or a starter, or a radiator was a couple of hours on a Saturday morning and was as much a part of owning a car as changing the oil or setting the gap in your points.

But given all the electronics and the complications in cars today, that equation has changed for me. If something like my digital instrument cluster fails, I don't even want to know about what needs to be done to fix it, I just want to be able to bring it in and have it taken care of. Call me old and lazy, but that's where I am these days.

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