Question About the Warranty Pitches

[Zodiac]

I bought the extended warranty, thinking I'd never modify the car because it was already perfect bone stock. Now I kind of regret it in a way, because I keep thinking of so many things I want to do to my car! :frusty:

You should be able to cancel your warranty for a prorated amount if it bothers you that much.

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[timd38]

I bought on a Escort my daughter had in the 90's and it more than paid for itself.

If you do buy one, make sure it is through Ford, not a third party.

http://www.edmunds.com/auto-warranty/third-party-extended-warranty-scams.html

 

[zxd9]

I bought the Platinum coverage plan which covers a lot of stuff. My logic was not so much that I'll have a lot of mechanical problems but electrical. These cars have so many gadgets on them, something is bound to go wrong over time. I plan on keeping mine for many years so I'm pretty confident it will pay for itself.
$1109 72mos / 100,000 miles

 

[dgc333]

In my 40 plus years of buying new cars I have never purchased an extended warranty and have never wished I had. Also, I typically keep cars 7 to 10 years and put over 200,000 miles on them.

Here's something to ponder; every manufactured item has a characteristic life cycle. They are all the same shape: failure rate starts out high and ramps down to a low constant failure rate then as it approaches end of life the failure rate ramps up as it wears out. It's called the bath tub curve. Your basic warranty covers the car during the high initial failure rate.

All extended warranties provide coverage during in the low constant failure rate area of the curve when the car is least likely to fail. The manufacturers know this and push them because they are a huge money maker for them because they seldom have to pay out.

Another thing to keep in mind; the manufacturers will hound you to buy an extended warranty for the life of the basic warranty, so you do not need to buy it when you buy the car.

Dave

 

[RegDir]

As cars become more complex these warranties are starting to make sense to those who purchase cars at the upper end of their means.

 

[RitzGT]

The warranties don't make financial sense. Statistically speaking, you're unlikely to ever recoup your investment in the warranty cost (or else the insurer wouldn't be able to offer it). It's really only worth it for folks that would be sweating the cost of an expensive out-of-warranty repair once the factory warranty is up. For folks with a sufficient "rainy day fund," this is a no-brainer....pass. If such a repair would create financial stress for you, then perhaps the warranty "makes sense"....but only because it is allowing you to finance and spread out that "rainy day" money over time. Then the sweat of not having the $$$ for repairs is replaced by the sweat of running the gauntlet of having the warranty company actually honor it.

Best,

 

[daltron]

The warranties don't make financial sense. Statistically speaking, you're unlikely to ever recoup your investment in the warranty cost (or else the insurer wouldn't be able to offer it). It's really only worth it for folks that would be sweating the cost of an expensive out-of-warranty repair once the factory warranty is up. For folks with a sufficient "rainy day fund," this is a no-brainer....pass. If such a repair would create financial stress for you, then perhaps the warranty "makes sense"....but only because it is allowing you to finance and spread out that "rainy day" money over time. Then the sweat of not having the $$$ for repairs is replaced by the sweat of running the gauntlet of having the warranty company actually honor it.

Best,

It depends entirely on if you plan to keep the car or not after the factory warranty runs out and if/what you mod, not if you have a rainy day fund or not. $3K is cheap peace of mind for 8 years/150K of warranty. If I had that on my 05 GT it would have saved me quite a bit of money.

 

[AR306]

I got the Ford Extended Warranty and the GPS tracker cuz I'm an idiot who was just happy to get an S550 Lol.

It's ironic too.. I've helped lots of friends and some family members to get great deals on their new cars but when I went to get mine, I did it all alone and got bent over.. mostly because I bought on emotion and not logic. I guess it's easy to walk away from a deal when you're not invested in it at all.. who cares if my girl gets her stupid nissan sentra sr, doesn't affect me.. Lol. That attitude leads to a strong negotiating advantage. But when you love the car, love the way it looks, love the way it feels and want it more than you've ever wanted any car, it's hard to be reasonable heh.

On my next Mustang I'll be sure to take some one with me to stop me from allowing myself to be sodomized.

 

[fstenuf]

Ford ESP or Protective extended service plans are great and do do what they say they will otherwise they wouldn't be in business long. If you don't drive that much but plan on keeping the car that long it may not be a bad idea for not much money. Especially if you buy the Premium with all the electronics. Cars aren't getting any easier or cheaper to work/repair.

Life/disability insurances I wouldn't worry about.

GAP Insurance is a good idea depending on how much you are borrowing against the car.

Protective coatings like paint sealant/undercoating/interior protection/crystal fusion is up to you on if you see value in that.

:cheers:

 

[RitzGT]

On my next Mustang I'll be sure to take some one with me to stop me from allowing myself to be sodomized.

Word. :lol:

My strategy was simple. I went to cars.com and did a search on 2015 base GT's with a manual located within 50 miles of me. There were a couple available in the $28-29k range. So I went to the closest matching dealer which was about 30 minutes away and looked at the car. Before I got there, I said I wasn't interested in any extras/warranties/paint sealant/etc and the sales critter was fine with that. I showed up for a quick test drive after work, loved it, wrote a check, asked if I could come pick up my old car the next day, and drove the Mustang home. Total time elapsed was about an hour and I didn't have to deal with all the smarmy sales pitches for XYZ.

Best,

 

[MikeD1]

"We are sorry but due to Florida law, Florida Residents are not eligible for online service contracts. Please contact your local dealer."

That's because our FL Legislature are a bunch of self-serving greedy politicians & they (at the behest) of the FL Dealers Assoc. lobby passed a law that requires a special license to sell a manufacturers extended warranty to FL residents and that said policies had to be sold at full retail (MSRP as it were).

This locked out most alternate, out-of-state sources as they do not want to bother with getting the license when they can't really offer a discount beyond not charging FL sales tax on the transaction.

Of course, the politicians & Dealers Assoc touted it as "protection" for FL citizens & there was a hearty round of back slapping after it (very quietly) passed .............. thus we are protected from the unscrupulous places in other states selling the exact same factory warranty for 1/2 the "retail" price !

 

[JamesinLittleSilver]

Good price if you don't mod, though the mileage is a little low.

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