Well I had a warranty on my last truck and boy did it pay off, the tranny went to only be followed by the a/c (evaporator to be exact). The cost of the repairs exceeded $3,200 for a warranty I only paid $1300 for. So I can accuratly say that warranties have worked for me in the past, the only delima I am having is should I buy a warranty for my new truck or has Ford become more reliable with the new Tranny's? Any good advice from any enthusiast would be well appreciated. I have decided though if I buy another warranty I am not buying from Ford, they screwed me on my first car. When or if I decide to buy another warranty it will be from Warranty Gold, at least they stand behind their word, if you want to know my dealings with that firm email me and ill let you know the guy who helped me for he was very helpful.


God Bless,
Dr. Brockweilde

 

There are always cases where a warranty has paid off for the consumer. But, statistically, extended warranties are a waste of money for the consumer. If they weren't, there would be no insurance companies around... they would be out of business.

I have never purchased extended warranties on my new vehicles. Sometimes I haven't had to fix anything, other times I have had some problems. None of the problems (in cost) have exceeded the price of the extended warranty that I chose NOT to buy.

I have also learned that parts tend to fail more from age... and not miles. I know this can vary, but it is just my experience. I put a lot of miles on my vehicles... so I usually have over 100,000 miles in three or four years. This is about the time I trade my vehicles in.

Just my experiences and opinions... others may vary.

 

In the Truck Buyer Forum I had a poll going. You'll see my opinions about extended warranties as they apply to vehicles.

Are you a gamblin' man? That's really all it is. Just a gamble that you'll come out ahead. For me, it is a peace of mind that if I do happen to break down somewhere far from my tools, such as a vacation with my family, I'll have that much less to worry about. Having 4 kids in tow, I'll pay anything for peace of mind! That's usually the only "peace" I have when they are in the truck!

 

I have only bought one new car in my life. The others were used when I got them. I didn't buy the extended warranty. Didn't feel I needed it.

Monsta said it best - you are gambling. Today, you take a 50/50 chance on getting a good ride, or a lemon. Doesn't matter if its Ford, Chevy, Doge, etc. From the experiences I have seen, most of the problems you will have will hit before the 36,000 mile line if it is a lemon. Most other problems I have seen/had come from age, and not taking care of your ride.

It bugs me the people that raise cane about their ride because they have a problem, example the tranny goes out, and you ask them when was the last time they had it serviced. Their answer - "Well I've never had it seen about, I've never had a problem before."
If you don't service, maintain, and take care of your car, how do you honestly think it will last?!?!?

The lemon cars are harder to deal with. Luckily, I have never had that problem. Most of mine seem to be either self induced, or God's way of playing practical jokes on me for a laugh...

 

The warranty also ties you to the dealer shop longer. I had a two month warranty on my '95 F150 when I bought it in '99 and the slave cylnder started leaking 2 months and a day later. The dealer did me a "favor" and fixed it under the warranty, But they didn't tell me about the near gone clutch that would have been cheaper to replace while they had it torn apart. I like Ford Motor Company, but the dealers are independent businesses and I'd rather go find my own mechanic.

 

First the dealer warranty isn’t worth the paper its printed on, way over priced and gets very nitty gritty about what components it does cover. I personally like the exclusionary plans simply because everything is covered, it can easily be read without hidden clauses. If I decide to purchase a warranty it will only be through Warranty Gold, my service guy, Clint is very helpful and full of informative information, yet again that’s my personal preference. I do monthly and sometimes daily checks of my vehicle making sure its in tip-top condition, yet even doing those precautions I have unexpected items that fail from time to time, most commonly not major items like the engine or Trany but items like relays, sensors, Diodes and switches. Those repairs will nickel and dine a person to death. I have found all but *(one)* of my warranty purchases to be beneficial and that plan was through Ford. Don’t like their contracts; love their Trucks and SUV's. I guess it comes down to the piece of mind and since my wife will be driving my truck from time to time I guess it would be in our best interest to purchase yet another warranty from Warranty Gold, maybe ill do her 2002 Taurus as well. Any input anyone?

God Bless,
Taylor B.

 

My $.02 the warranties are not worth what they cost. In my case (2000 F150) the "standard" warranty covered the only problem I had; factory cassette player messed up. 57,000 miles now, long out of warranty and still no problems. I priced the full blown cover-it-all-warranties and they were pretty pricey. I figure if I have to have "major" work done, I'm not going back to the dealer (reference above post) and therefore my repair could probably be done for not much more than the cost of the warranty - maybe even less. Heck, I might even do the repairs myself and save even more.
Yes, it is a gamble - or better yet - a bet. You buy the warranty and you are betting you will need it, while Ford is betting you will not. I know this is a gross generalization, but one that I live buy. I have NEVER bought an "extended factory" warranty on ANY thing I have purchased. I believe I am WAY ahead of the game.
BUT: regard Monsta's comment...Peace of mind is worth something. It is up to each individual to determine how much that "something" is.

Brian A

 

That is certainly a valid post. I understand exactly what he’s saying, however I am not speaking of the P.O.S. warranty offered through Ford, if that’s the case I would never buy a warranty. Dealer warranties are designed to get you to come back to the dealership, basically monopolizing repairs, maitenence, and just basic service needs. I would always recommend third party warranties over dealer or factory extended warranties. My warranties through Warranty Gold were not only inexpensive but paid every repair no matter where I took my truck to get fixed without any deductible. Again it’s the piece of mind, especially with all the software running our vehicles nowadays i.e.: ecm/eec/esc sensors and modules, vacuums, retard switches, actuators, etc.

God Bless,
Dr. Brockweilde

 

Warranties are meant to make money. For the warranty company. NOT YOU. They are also marked up just like cars and trucks. You can bargain on them, just like MSRP on a car, but they have better markup.

If you figure out that they cover 72/72 miles/months, you must also figure that they do NOT cover the first 36/36 that the factory covers. They explicitly state the factory warranty applies first. Soooo, I guess that they are really selling 36/36 warranties and calling them 72/72, or whatever the combo is. Most people hear the 72/100 or whatever and forget the factory part.... You, in most cases, would be ahead to put $50 a month into a 'repair fund' after the original factory warranty is kaput, or $25 a month from the get-go. After a year, you'd have $600. Hopefully after 2 years, $1200. AND the original cost of the add-on warranty STILL in your pocket for the first 36 months! If I own a car from new, I am responsible for all maintenance. I KNOW what has been done, and when and why. I know, because I check myself, that the coolant in the radiator, not the overflow, is full and not corrosive. Because I check. I know the trans is full of good, not burnt, fluid, because I check. Ditto for all the other stuff. I know. I checked. When is the last time you checked the air pressure in your 'temporary spare' in the fambly sedan/wagon? I hadn't since 1987, and did 2 weeks ago. Last Wednesday, my wife came home riding on that spare!?! Had run over a 4X4 or something the car in front of her had kicked out unavoidably. Flattened the tire, and bent the rim. Bad. Somehow I had just checked the temp the week before. Explain that. I can't. And never gave it a thought since the car was new, 'til the week before she needed it.
Any way, my sister just bought a new Honda Odyssey. $942 for a 72/100, $700 for a 72/72, $640 for a 60/XX. Talked to her about the odds, the ins co making money at those rates, putting bucks in a repair account. She, single mom, decided to skip the warranty. Figured that she would, on average, spend the same or less than the money she gave the ins co, and would have the money in her pocket until or if she needed to spend it on repairs.
My OPINION only.
tom

 

Excellent comments Tomw and others. Whenever the other guy gets a pile of money up front (extended warranty, load mutual funds, points on a mortgage), something is wrong. Remember, a dollar today is worth more than a dollar next year (time value of money, basic economics 101). They got the money and are betting, not only on you won't need major repairs, but also that you will sell the vehicle long before the warranty runs out. If the vehicles are really that bad that you need an extended warranty, maybe you should not buy it. On the other hand, if the vehicles are as good as they say they are, if they are so **** sure, they should throw in the warranty for free--put their money where their mouth is. Now if you could buy the extended warranty proportionately, it might be all right, but since you have a factory warranty for 3 years you should not start paying until the beginning of year 4 and there should be no interest. So on a $700 7-year warranty, you should pay $175 each of years 4, 5, 6, and 7.

And as long as I am dreaming, they should make more rear wheel drive cars, put a 200 cid big block inline four in the Ranger Pickup (also throw in a SuperDuty-style grille and power hood), bring back the 300 cid inline six, make the F150 in the SuperDuty body style (with twin-I-beam), and rename the current F150 as the "SportTruck."

 

[updated:LAST EDITED ON 29-Mar-02 AT 11:05 AM (EST)]Also, the warranty doesn't really offer a "peace of mind" for your vehicle. The warranty does not make your vehicle more or less reliable. It is only stating who will pay for it. If you are out on vacation with your family and you break down, you are still broke down. It is just a matter of who pays. Your not going to be more or less stranded with or without the warranty.

I can't tell you how many times people write in the boards how they just had a part fixed under the extended warranty... and they are praising themselves for purchasing the extended warranty. More often than not, the price of the fix was much, much less than the warranty! Unless they have more problems, they still lost!

Also, how many people *FINANCE* the extended warranty. If you do, a $1000.00 warranty is going to cost much more than $1000.00.

Extended warranties are the single greatest profit making idea that manufacturers have ever come up with! (Profit making for the manufacturers and insurance companies. This applies to ANY product, not just vehicles.) Why do you think they push warranties so hard? Buying an appliance is no different.

 

Last post was a bit surreal, peace of mind knowing you wont pay for the repair, if that isnt piece of mind then this whole time I must have construed it to be, silly me. On a serious note yes it is to make them money how else do you think they stay in business and pay for claims??? Yes economics, i guarantee you that if you stick $1000 back in a Roth or MM account in 5 years when you may have a large reapir, would that $1000 pay for a new engine, new transmission, new ECM/EEC/ESM, or evaporator, condenssor? It certainly would not seeing how even the best Accounts like a Roth are only gaining 2.8%, do the math, you tell me. Someone once asked me how the wealthy stay wealthy... simple... they spend money to protect there large investments to be free from debt later on (how about that statistics 404).

God Bless,
Dr. Taylor Brockweilde

 

The wealthy may protect their investments. OK. BUT, a car or truck is, in most cases, an expense rather than an investment. I agree that the freedom from worry about who will pay for a repair out in the middle of the mojave desert is something to be considered, but if the money that you paid for a warranty were invested, statistically, it would more than pay for the repair expense you would normally incur, statistically. It's a bet. And the house, in this case, the warranty vendors, has a little edge, for the people that fail to terminate or transfer the warranty if the vehicle is sold, or cancel it if the vehicle is destroyed, or get fooled into paying for repairs that should have been covered, or get flim-flammed by people stating that they did not maintian their vehicle in the manner prescribed by the warrant company. They know all the ways to get out of paying for repairs. Just like the home warranty companies that will repair a 20 year old dishwasher rather than pay to replace it-even though the replacement may be cheaper. Precedent. Contractual wording. Stupidity. and of course greed.
I bought an extended warranty once. A 2 month old TV set was broken, and the store said 'you can send it to the repair facility in East Nowhere, and it should be back in a month or so, or I can get you an instant replacement if you buy our extended warranty for $89.' I bit, as I wanted to watch TV that month. The profits on that warranty were 100%. Or 10000% more than they originally got when they sold me the TV.
whatever.
tom

 

Well I understand your point, warranties are a bet, my bets however have seemed to pay off as of yet, therefore I will continue to put my faith in to Warranty Gold as they have been rock solid. There is something about this company that keeps me coming back, matter of fact if you ever are curious about my specific dealing you may email me and ill be glad to share. Unlike appliances its in the companies best interest to replace the part therefore they will not have the same claim a year from then paying for the same repair. My assumption is it lies all within the integrity of the company and their insurers. What are some problems yall have had with your P/U?

God Bless,
Dr. Taylor Brockweilde

 

I'll throw in a couple of cents here. I have a 3/36 extended warranty on my 99()
It is from Platinum Warranty Corp. After I bought my truck in October, I started to do some research. Ford didn't offer a warranty for my truck. So I started to price out aftermarket warranties. I checked them all. Warranty Gold is rated about the highest. However, I found Platinum Warranty to offer as much coverage for a competitive price (about $950, $0 ded). I contacted them and asked that they contact my local Ford garage to ensure that they would work together. They did and they would. They spoke to the service manager there, and gave me his name and phone number to verify. I have had 3 claims now. All three covered by my warranty. Total cost - about $350. My out of pocket - $30. So now the warranty has only cost me $630. The coverage is very comprehensive. In three years, it will probably pay for itself.