OK, pulled the trigger today, and got a 2001 F250 CC, 4x4, 7.3, 94k miles -- first truck and first diesel, so a newbie through and through.

thinking about the extended warranty, 3 yrs/36,000 miles for $1,700.

Apparently the transmission was just replaced with one from an Excursion with 30K miles that was totalled.

Not sure if the extended warranty is worth it -- need to decide by tomorrow -- any thoughts appreciated, thanks.

 

I am an insurance agent in Montana and just bought a 99' Ford PSD. The saleman talked me into an extended warranty for around that same price.

When I got home I read the fine print in the warranty. It said that the limit of liability (the most they will pay) for my warranty was $1500. Basically I paid $1200 for $1500 worth of coverage.

You may want to check to see what your limit of liability is on the warranty you are considering.

Luckily I can cancel mine without penalty.

Good Luck

 

Do not buy an aftermarket extended warranty!!!! I own an independant repair shop and will not deal with them. I've seen people purchase them and find out a month later the company is out of business. If your motor goes they will only pay for what is broke, ( 1 rod, 1 bearing ect. ). They will not pay for a complete rebuild, oil or filters. Most don't even cover the needed gaskets. Take the $1700 and put it in the bank. You will be more likely to cover your expences that way.

 

This question just came up the other day. IMO, it typically does not make financial sense to purchase an extended warranty. If you spend 1500 for a warranty, you must incur a repair or repairs costing at least that much over the life of the warranty for it to be money well spent. Suppose you have no warranty and you incur a repair costing $1000.00. With your warranty, you would have spent 1500 to fix a 1000 problem. Without the warranty, you pay $1000 to fix a $1000 problem.

I am sure that there are those rare occasions where someone paid extra for a warranty and ended up with an engine rebuild for only the cost of the warranty, but I am willing to bet (and in fact always bet) that I won't have a repair that costs as much as the warranty.
These warranties are big money makers for those selling them. They are betting that you will not have a repair costing as much as you paid, otherwise why would they offer it? How else would it be profitable for them?

Consumer Reports magazine (to the best of my recollection) has always taken the position that extended warranties are not worth the expense.

I'd love to hear anyone elses opinion on the matter.

 

Dont know how many miles/yr you drive, but 3/36 for $1700 sounds a little high, 'specially for a diesel. The trans has been replaced? Why? Could be they know problems are in the future...

 

Well, I'll tell you what...... I purchased a used 01' F-350. Purchased the extended warranty, and have since had all the ball joints, cruise control buttons/switches, 2 power door actuators and the $100 deductible for the 3 new injectors and and high preasure oil lines (covered under the powertrain warranty) covered. I'm glad I paid the $2000 extra. Who knows what could happen.

 

Question for WA Ranger in the same boat as far as extended warranty questions and was wanting to know who your warranty is through? Dealer or after market company. Thank You tkbbn.

 

I just bought a 99 F250 PSD and got a extended warranty through Warranty Experts. It was 1700 bux and , although it didn't sway me either way but they are giving away a 4 day carnival cruise along with the purchase. the warranty is bumper to bumper, 3/36 K miles w/ a 100 dollar deductible. It is cancellable at any time and money refunded.. I spoke w/ a buddy of mine who is a mechanic at a local ford house and he says it is one of the better warranty services available.. I'm gonna give it a try, just for the price of injectors or a injector or pump it seems to be worth it to me. just my .02

 

My warranty is through National Warranty Corp. I was concerned about hearing some of the warranty companies going out of buisiness so I asked the guy who was offering it at my dealership, "what happens if...." He said that during the duration of my warranty period, if the company was to go out of buisiness, the dealership would pick up the remainder of my warranty. I must say though, this is the best dealership, by far, that I 've dealt with. The service That I 've received has been excellent, and I've always been treated with respect.

 

i got one of them there aftermarket warranties, with a fairly hefty deductible (but less than the price of the warranty.) After getting a long-block for half-price (and recouping all of my initial investment in the warranty) a few years back, I'd rather be safe than sorry. plus you can roll up the cost of the warranty into the financing (or I did). Yeah, saving a Ben Franklin monthly would be another technique, but the warranty only raised the payment by 8 dollars. Now a HOME warranty--don't get me started!