I didn't even consider that an ESP could be discounted, I just figured it was a normal contract price regardless of the dealer. This is helpful information, thank you!

 

Here's a copy of my original quote for those who may be interested in doing the same. May be cheaper than some, but I declined the rental car coverage. I have two other vehicles, so I don't need it. I also chose the $200 deductible. My entire DPF system was replaced by the dealership about a month after I bought my truck. That was what I worried about the most before I even bought my truck, so I can rest easy now. (Knock on wood) More on that escapade in my other posts!

 

Check with Flood, Lombard, as well as Ziegler Ford. From what I read, Flood will do better deals on brand new trucks. You can do a quote online with them before you buy your truck. Be on the lookout for online promo codes. I found one for $250 for Ziegler. Lombard emailed me a promo for $180 off after I did their quote. I think you'll be surprised by what you find.

 

3rd party warranties are junk. They require an inspection for any questional repair in their eyes (think anything remotely expensive). They do not have to use OEM parts (in which you have no say), heck they could use used parts if they chose. I still remember when the 3rd party I bought (shame on me for being young and not researching) on my Audi was going to put in a Chinese radiator instead of a German oem to save $42. I paid the difference out of pocket for the oem one.

3rd party warranties have asked in the past and it is stated that all maintenance records must be kept incase of major failure to prove you have done everything the manufacturer requires (paraphrasing).

And the OP at $3,600 paid about $1,400 too much for the Ford ESP.

The only reason dealers offer 3rd party is because they make more profit on it. And honest sales or finance manager will tell you to avoid 3rd parties at all cost.

 

Dpf is not covered by any Ford ESP. Once outside the factory emissions warranty, you are on your own.

 

I’ve never bought an extended warranty in my life. Best case, you recover most of what you spent. Usual case? Ford profits further.
3rd party is a joke...

 

Once again, someone who doesn't know what they are talking about. SOME aftermarket warranties can be garbage. But Ford will also set vehicles for inspection, they will also require maintenance records for certain repairs. They won't use aftermarket or used parts, which can be an option for aftermarket contracts. It will vary depending on the company, but many will only use used parts if that's all that is available. Typically, they send in reman parts from a vendor for cost savings. This is what they shop dislikes, because they don't make money off the part that way. So what do they do? They call the customer and try to get them fired up claiming it's an inferior part.

I agree that some aftermarket companies are horrible, but making a blanket statement that they are all bad is incorrect.

 

If you've never bought one, how would you know?

 

I can read and understand contract small print..

Extended warranties are no different than playing Black Jack.
Vegas wasn’t built on losses.

 

I know exactly what I am talking about. Of course Ford can send for an inspection on any type of major catastrophe but it is rare and I've only ever seen 1 member ever been asked for maintenance records (from ford) on any of the forums I am part of and that was because their oil was like sludge on the 6.7.

I have had over $7k worth of work done on my 07, never an inspection. I've had almost $10k worth of ESP work done on my Explorer, never an inspection. It is far easier with Ford for warranty work. No preapproval on most repairs (computer system approves most) and if there is a preapproval, most of the time it is just a hotline phone call for approval.

I've also never been charged a diagnostic fee which most if not all 3rd parties dont cover if the warranty repair isnt covered and independents will certainly pass that on. Granted it is not covered by Ford ESP either but that is a dealer providing good CS.

In summary, yes not EVERY 3rd party is junk but majority are and majority make the approval process more difficult (more steps to get paid). Oh and guess what, if the 3rd party only pays X amount, your mechanic is going to charge you the difference on what they pay and what he Bill's out. Example, they are paying me 1 hour of labor for this but it took 2 hours, so I'm billing you the extra hour. Dealers cant do that under a Ford ESP.

And lastly, the fact you can get Ford ESPs at dealer cost makes it a no brainer over 3rd party contracts.

 

Post 25, paragraph 2. $1,6xx for my 07 esp, $1,7xx for my Explorer esp, $16,xxx in warranty repairs not including rentals over both vehicles life. Guess I should go to Vegas.

 

Of course every gambler brags about the wins, but never shares the overwhelming losses.
Warranty underwriters are obviously making profit.. and are still flourishing in a profitable business model.
Considering what you invested in warranties, you should probably take the push or slight loss and stay home..
I guess it’s not so common sense to understand that if warranty contracts didn’t benefit the writer as a whole, they would not be writing them.

 

You are reading forums, I actually RAN Ford service departments. I can tell you that we had inspectors sent by ESP many times. Not as often as an aftermarket warranty because Ford can always audit you AFTER the fact and charge you back for the repair, aftermarket companies cannot. Diagnosis charges are set by the shop, not the warranty company. If ESP doesn't cover the repair it is 100% up to the shop whether or not to charge diag and it doesn't matter to them who the extended warranty is through. As far as payments go, most aftermarket companies require an final invoice be provided either via fax or email, but then they usually fax a CC payment so the money arrives quickly. Finally, your example of "they are paying me 1 hour of labor for this but it took 2 hours, so I'm billing you the extra hour." is a dealership over charging. Most aftermarket companies pay customer pay labor times and rates. But technicians are notorious for wanting to charge more time than is verifiable in any labor guide. Ford ESP pays WARRANTY labor times and rates. Their labor time is typically 30-40% less than customer pay. You are correct that they cannot charge more if it's ESP, but that's simply them overcharging...period. If a tech takes longer to perform a repair than it pays, they need to speed up. I guarantee you if a job pays 2 hours and they are finished in 30 minutes they still flag the 2 hours.

There are a lot of shady companies out there in every field, and extended warranty companies are no different. But that doesn't mean there aren't any decent companies out there or that you should never use one. All companies are in business to make a profit. Clearly, you cannot make a profit if you are paying out more in claims than you take in in contract premiums. But the goal isn't to make every contract profitable, it's to make the program in general profitable. Companies WILL lose a LOT of money on some contracts, but hopefully most will never be needed.

 

It's a risk business, and making profit is the goal of most EVERY company. But a large number of contracts are huge losers for the warranty company.

 

I'd question this, otherwise, they wouldn't be profitable. I'd say, there are some number of contracts..........

These extended warranties are just another form of insurance. Insurance companies are profitable because they take in more than they pay out and invest your premium. My take on this, is self insure yourself by investing the premium that you would have paid. As was mentioned before, a 8 year/100k warranty is really only a 3 year/40k warranty as the base manufacturer warranty (power train...the real expensive stuff) is 5 year/60k (100k on diesel). Lots of people, don't keep their vehicles beyond this.