Ford Extended Warranties

[VonoreTn]

Kirby,

 

What you are saying is that you are being your own insurance company, by tracking all the times you didn't buy the warranty, and putting the money in a virtual fund. That plan definitely has common sense merit, I do that with TV's and appliances, everything but laptop computers for my daughter when she was in college, because we came out way ahead with the extended plans on those.

 

However, I have a friend who had a 04 Toyota 4 runner SUV, where he didn't get the warranty. He takes good care of his vehicles, always maintained and in a garage. At 76,000 miles his navigation system got finicky, unreliable, and he was unable to control his radio and climate control with it. The Toyota dealer where he bought it wanted $6000 for a new one. He complained that he had only paid $2000 extra for the feature initially, and told them to take it out and give him a conventional climate control and radio. They said that would cost even more, because they would have to take the entire main electrical harness out of the car.

 

He was very upset about the situation, and over a period of maybe 6 months, and working with a different more sympathetic dealer, he got a special one time deal from Toyota to replace it for $1800, which he gladly took them up on. His next vehicle was a Ford product, which he is very happy with, but he did get the extended warranty. I guess my point is that these electrical devices have no easy fix when they go, and they are expensive.

 

Now I have a question for all: How good are these non-dealer warranties? Does your vehicle still get fixed at the dealer? Does anyone have experience with an actual claim? I didn't get one yet, but our FFH is less than a month old so I might yet get one, and these lower priced ones sound like a good deal.....but I wonder how they are implemented.

 

 

I just bought a brand new computer for $450. Parts are even cheaper.

 

I have saved well over $7000 on my last 5 vehicles by not buying an extended warranty. I'm more than happy to pay $3000 for a repair - I'm still $4000 ahead.

 

 

 

Speak for yourself.

[akirby]

Like I said, you can make out on any one vehicle (or more than one). It's the long term, over many vehicles, where the warranty company wins.

 

I wouldn't trust anything except FoMoCo warranties. The non-FoMoCo warranties can be problematic.

[Grey]

Like I said, you can make out on any one vehicle (or more than one). It's the long term, over many vehicles, where the warranty company wins.

 

I wouldn't trust anything except FoMoCo warranties. The non-FoMoCo warranties can be problematic.

 

Correct again, but here is the big gamble for FFH and MMilanH owners. The transmission, electric motor and battery pack is warranted for 8 years or 100,000 miles (If my menory serves me.) But the Nav, BLIS, rear camera, brake controller, message center, sync, stability control components, cross traffic radar can be very high expense items to repair. A customer with an Escape Hybrid was handed a bill for $4,400 when his brake controller went out. It was unique to the Hybrid but not covered under the hybrid powertrain warranty. A problem you would not likely face with an SEL.

 

I hope the experience Ford has had with the Escape helped them design more durability in the Fusion hybrid components, but only time will tell.

 

That is why I am considering a high deductable plan. I'll handle the little jobs (those under the $200 deductable), just don't want a $4,000 expense popping up at 40,000 miles.

 

I, like you, would only consider a Ford ESP plan. Saw too many customers left without anything when their "Aftermarket Warranty" company went out of business. :banghead:

[fsb99]

Now I have a question for all: How good are these non-dealer warranties? Does your vehicle still get fixed at the dealer? Does anyone have experience with an actual claim? I didn't get one yet, but our FFH is less than a month old so I might yet get one, and these lower priced ones sound like a good deal.....but I wonder how they are implemented.

 

I would not even think about non-Ford warranty. Don't buy them when you purchase your vehicle unless you get a steal. The line they tell you is that you can fold the cost in and spread the payments over the term of the loan. Do your research before going in and buy from the best legitimate Ford dealer offer. Many dealers are online and sell at very low profit margin. A few of the lowest cost are posted in this forum.

[akirby]

Correct again, but here is the big gamble for FFH and MMilanH owners. The transmission, electric motor and battery pack is warranted for 8 years or 100,000 miles (If my menory serves me.) But the Nav, BLIS, rear camera, brake controller, message center, sync, stability control components, cross traffic radar can be very high expense items to repair. A customer with an Escape Hybrid was handed a bill for $4,400 when his brake controller went out. It was unique to the Hybrid but not covered under the hybrid powertrain warranty. A problem you would not likely face with an SEL.

 

I hope the experience Ford has had with the Escape helped them design more durability in the Fusion hybrid components, but only time will tell.

 

That is why I am considering a high deductable plan. I'll handle the little jobs (those under the $200 deductable), just don't want a $4,000 expense popping up at 40,000 miles.

 

I, like you, would only consider a Ford ESP plan. Saw too many customers left without anything when their "Aftermarket Warranty" company went out of business. :banghead:

 

That would be a (very well calculated) gamble, and for this particular vehicle I'd say the odds are more in your favor for the reasons you described. And going to a high deductible plan is the right way to go to minimize the overall cost. As you said - the goal is to avoid a $4k repair bill, not to pay for every little thing.

 

What kills me is when I hear people pay $1500 cash for a warranty, have a $900 repair that's covered and exclaim "I'm SOOO glad I had that warranty!". Dude - you just paid $1500 to save $900. You're still out $600. People just like the idea of not having to pay for something now and totally disregard the fact that they already paid for it previously (and then some).

[fsb99]

That would be a (very well calculated) gamble, and for this particular vehicle I'd say the odds are more in your favor for the reasons you described. And going to a high deductible plan is the right way to go to minimize the overall cost. As you said - the goal is to avoid a $4k repair bill, not to pay for every little thing.

 

What kills me is when I hear people pay $1500 cash for a warranty, have a $900 repair that's covered and exclaim "I'm SOOO glad I had that warranty!". Dude - you just paid $1500 to save $900. You're still out $600. People just like the idea of not having to pay for something now and totally disregard the fact that they already paid for it previously (and then some).

 

Wow never thought I'd see this, but sounds like you're opening up to the idea of ESPs (price dependent, of course). Look at it this way, you're a big believer in law of averages...you're 5 for 5. Maybe this is the one that pays out? No doubt the previous vehicles were OK due to proper care and maintenance but those electronic failures may come out of nowhere and definitely can make it pay for itself in a hurry.

 

As far as the high deductible option it is entirely up to the buyer, but the reason I'm buying the $50 option is because I want to fix every little thing that may be wrong before I sell it or before my warranty runs out. Difference of the insurance plans between the two deductibles is about $280. Assuming there is one warranty work that exceeds $200 during the plan (scenario you stated above), you recoup $150 of that difference. I'm sure I'll find something else that may need replacement ($150-$200) that would make up for the rest. Remember, the dealers want to make money too...they charge Ford for warranty work that I request and my portion is $50. I happen to have a contact that works for Ford as a mechanic. I'm sure he can pull a favor or two for me (some cosmetic work etc.).

[akirby]

Wow never thought I'd see this, but sounds like you're opening up to the idea of ESPs (price dependent, of course).

 

Nope. I'm just saying that the odds are better on a vehicle with new/unique components. The odds are still not in your favor, but if you're going to gamble this would be the time to do it. But with a higher deductible.

 

You seem to be focused on the little picture (what do I pay for a repair) and not the bigger picture (what do I pay in total). Do you shop for cars by monthly payment? It seems like the same mentality. If not then I apologize, but that's what it sounds like.

 

Look at it this way, you're a big believer in law of averages...you're 5 for 5. Maybe this is the one that pays out?

 

I see you still don't understand the concept. I don't care if I lose out on 1, 2 or even 3 vehicles in a row. I know in the long run I'll save money. In other words, I'm not gambling. It's like flipping a coin 10 times and coming up heads 10 times in a row. What are the odds of getting tails on the 11th toss? 50% - same as the first toss. It doesn't change based on past performance.

 

You either gamble or you don't - your choice. You can always get lucky and pick the right vehicles and come out ahead. But you can also throw a lot of money down the drain in the process.

[DaveM]

Wow never thought I'd see this, but sounds like you're opening up to the idea of ESPs (price dependent, of course). Look at it this way, you're a big believer in law of averages...you're 5 for 5. Maybe this is the one that pays out? No doubt the previous vehicles were OK due to proper care and maintenance but those electronic failures may come out of nowhere and definitely can make it pay for itself in a hurry.

 

As far as the high deductible option it is entirely up to the buyer, but the reason I'm buying the $50 option is because I want to fix every little thing that may be wrong before I sell it or before my warranty runs out. Difference of the insurance plans between the two deductibles is about $280. Assuming there is one warranty work that exceeds $200 during the plan (scenario you stated above), you recoup $150 of that difference. I'm sure I'll find something else that may need replacement ($150-$200) that would make up for the rest. Remember, the dealers want to make money too...they charge Ford for warranty work that I request and my portion is $50. I happen to have a contact that works for Ford as a mechanic. I'm sure he can pull a favor or two for me (some cosmetic work etc.).

As far as the difference in deductibles for the most part there really isn't that much. For example 7yrs. 75K 0 deduct=1285 50=1055 100=975 200=845. So between the 200 deduct and the 50 deduct is 210 dollars in which just one claim will almost wipe out the savings. I too will pick the 50 dollar deductible.

[DaveM]

That would be a (very well calculated) gamble, and for this particular vehicle I'd say the odds are more in your favor for the reasons you described. And going to a high deductible plan is the right way to go to minimize the overall cost. As you said - the goal is to avoid a $4k repair bill, not to pay for every little thing.

 

What kills me is when I hear people pay $1500 cash for a warranty, have a $900 repair that's covered and exclaim "I'm SOOO glad I had that warranty!". Dude - you just paid $1500 to save $900. You're still out $600. People just like the idea of not having to pay for something now and totally disregard the fact that they already paid for it previously (and then some).

Go with the $50 deduct over the $200 as one claim will almost wipe out the difference. What I mean is for 7/75K the $200 will cost $845 and if you take the $50 it will cost you $1055 which is $210 more. But if you have one claim you will pay the $200 instead of $50. So now take away the $150 from the $210 and now you are down to $60 and counting. Now figure that you have a repair for $195 you pay it all but if you had bought the $50 you'd only be out $50. So you just saved $145. Of course this all goes around to the will you ever have a claim. Thats the big question. I know I can't speak for everyone, just myself but if I can afford a $30K car and 845 for the $200 deductable warranty I think I can come up with another $210 and get the $50 deductable.

[fsb99]

Nope. I'm just saying that the odds are better on a vehicle with new/unique components. The odds are still not in your favor, but if you're going to gamble this would be the time to do it. But with a higher deductible.

 

You seem to be focused on the little picture (what do I pay for a repair) and not the bigger picture (what do I pay in total). Do you shop for cars by monthly payment? It seems like the same mentality. If not then I apologize, but that's what it sounds like.

 

 

 

I see you still don't understand the concept. I don't care if I lose out on 1, 2 or even 3 vehicles in a row. I know in the long run I'll save money. In other words, I'm not gambling. It's like flipping a coin 10 times and coming up heads 10 times in a row. What are the odds of getting tails on the 11th toss? 50% - same as the first toss. It doesn't change based on past performance.

 

You either gamble or you don't - your choice. You can always get lucky and pick the right vehicles and come out ahead. But you can also throw a lot of money down the drain in the process.

 

I understand your long-term plan fully and your willingness to execute at any cost is admirable. We are all different. I respect your choice. My choice is to be selective based on what I decide along the way and try to determine probabilities as best I could. I just happen to think that this choice is one that will be useful in the future.

 

And no, I invested $1200, so you better believe that I want to get that and more from year 4-7, whether through repairs or recouping the cost when selling the vehicle. It may take me 1 repair or 10 to get there, but you can bet I'll try my hardest to get value for my money. Sorry if I gave you and everyone else in this forum that impression.

 

To some extent people do shop for cars by monthly payment (or what they can afford). Otherwise, it is irresponsible like sub-prime home loans. But no, I don't consider myself compromising on FFH. My bottom line is the overall cost. That is why I shopped around to get this vehicle on $250 over invoice and only picked up an alarm as an add-on option.

[akirby]

My choice is to be selective based on what I decide along the way and try to determine probabilities as best I could.

 

So you're a gambler trying to play the odds and come out ahead. It might work out but the odds are against you. Good luck.

[rfruth]

Aren't we all gamblers trying to come out ahead ? (be it automobiles or the deep root feeding of trees or re-grout tile so it lasts longer ...)

[akirby]

Aren't we all gamblers trying to come out ahead ? (be it automobiles or the deep root feeding of trees or re-grout tile so it lasts longer ...)

 

Gambling is when you spend money with a chance of getting nothing in return. Everything else is an investment where you get something back.

[rfruth]

So is deep root feeding of trees a gamble or an investment ?

[wwoody723]

So you're a gambler trying to play the odds and come out ahead. It might work out but the odds are against you. Good luck.

 

I have followed this topic with great interest having been on the fence as to purchasing an extended warranty from Ford. I must say that akirby’s arguments have been enough to push me over the top.

 

I will be purchasing the 7 year, 100,000 mile, $50.00 deductable warranty. I will be gamboling that by doing so I will keep this thread going for several more days. I haven’t purchased a car in 30 years that hasn’t had two or three thousand dollars of work that could have been covered by the extended warranty if I had the funds to purchase it with the car. This time I do have the funds and I bet it won’t be much of a gambol that some expensive item will get me my money back plus.

[DaveM]

I have followed this topic with great interest having been on the fence as to purchasing an extended warranty from Ford. I must say that akirby’s arguments have been enough to push me over the top.

 

I will be purchasing the 7 year, 100,000 mile, $50.00 deductable warranty. I will be gamboling that by doing so I will keep this thread going for several more days. I haven’t purchased a car in 30 years that hasn’t had two or three thousand dollars of work that could have been covered by the extended warranty if I had the funds to purchase it with the car. This time I do have the funds and I bet it won’t be much of a gambol that some expensive item will get me my money back plus.

Don't worry I started this thread and I'm guessing my car will be here in 8 to 10 weeks +/- so I'll get it going again then :shift:

[akirby]

I haven’t purchased a car in 30 years that hasn’t had two or three thousand dollars of work that could have been covered by the extended warranty if I had the funds to purchase it with the car.

 

You've been buying the wrong cars.

[VonoreTn]

You've been buying the wrong cars.

 

I hear that and agree. The cash for clunker vehicle I turned in for my Fusion HEV was a 2000 Ford Explorer 4WD Eddie Baurer ($4650 clunker value including the scrap value), with 186,000 miles on it, that I'd had for 10 years. In that time the only expensive repair I had was a fuel pump went out on the road at 175,000 miles, which cost me one extra day in Roswell, NM and $500 at the Roswell Ford dealer. Being an engineer, I did all the maintance myself including brakes, and nothing was ever over $100. And of course no one warranties a car at that mileage anyway. But that was a conventional technology vehicle. This HEV is a little scary with it's brand new high technology stuff.

[DaveM]

I hear that and agree. The cash for clunker vehicle I turned in for my Fusion HEV was a 2000 Ford Explorer 4WD Eddie Baurer ($4650 clunker value including the scrap value), with 186,000 miles on it, that I'd had for 10 years. In that time the only expensive repair I had was a fuel pump went out on the road at 175,000 miles, which cost me one extra day in Roswell, NM and $500 at the Roswell Ford dealer. Being an engineer, I did all the maintance myself including brakes, and nothing was ever over $100. And of course no one warranties a car at that mileage anyway. But that was a conventional technology vehicle. This HEV is a little scary with it's brand new high technology stuff.

I agreee, we have a FFH on order and I'd hate to even think what a new speedo display would cost for that car. I remember the first couple years Prius were out a few members had to have theirs replaced, most after warranty ran out and it was well over 1K and I want to think closer to 2K.

[VonoreTn]

Gambling is when you spend money with a chance of getting nothing in return. Everything else is an investment where you get something back.

By that logic, fire insurance on your house is gambling.

[fsb99]

By that logic, fire insurance on your house is gambling.

 

I also gamble because I have a 401k :(

[akirby]

By that logic, fire insurance on your house is gambling.

 

Yes, it is, but I already pointed out the difference:

 

I can afford to pay for large car repair. I cannot afford to replace my house out of pocket. BIG difference.