Considering Purchasing a Warranty
Thread Starter
|
Senior User
Joined: May 2004
Posts: 137
Likes: 0
Considering Purchasing a Warranty
I own a 2004 f250 5.4 SC SB Fx4 with 24000 miles on the vehicle. I bought the vehicle several months ago(prolly 6) and this vehicle has never studdered or done anythign to disappoint me yet. I stopped by the dealer to get my oil changed the other day and he says I only have until november to purchase my extended warranty. It is 2100 dollars and extends my truck warranty 4 more years and until 75000 miles. My question is do you think it is worth it? I mean I dont really have the money but I could get it but I will be usuing most of my emergency stash I have for a rainy day and would rather not touch it. I mean I just dont want to be stuck with some 6 thousand dollar bill if I blow the motor or something to that effect. My question is that do you think that the warranty is worth it or should I not purchase the warranty and keep the money in the bank, and my wallet alot heavier. Thanks guys I really appreciate your comments on this subject because I am uterly confused on what decision to make. Jon
Tuned
Joined: Feb 2007
Posts: 490
Likes: 3
I'd say no. $2100 plus the associated loss of interest is a pretty big chunk o' cash. Consider your outlay versus your potential return. You are forking out about $2k for an anticipated $6k problem. That's basically betting that you have a 1 in 3 chance of that occuring between the factory warranty's expiration and 75,000 miles just to break even, not counting opportunity costs.
The purpose of insurance is to cover you for losses you can't afford, not to elimate all financial risk. Don't over insure yourself and the cost of your cash reserves. If you did need a motor, you have credit available, right? What kind of interest can you draw on your cash reserves vs. the actual interest rate of $6k pulled out on a home equity loan or negotiated cash advance? I pulled $5k out of a credit card at a negotiated fixed rate of 3.5% to fix up a house I'm selling. I could have used cash reserves, but I make more interest on them that I'm paying, and you probably will to.
The purpose of insurance is to cover you for losses you can't afford, not to elimate all financial risk. Don't over insure yourself and the cost of your cash reserves. If you did need a motor, you have credit available, right? What kind of interest can you draw on your cash reserves vs. the actual interest rate of $6k pulled out on a home equity loan or negotiated cash advance? I pulled $5k out of a credit card at a negotiated fixed rate of 3.5% to fix up a house I'm selling. I could have used cash reserves, but I make more interest on them that I'm paying, and you probably will to.
Thread Starter
|
Senior User
Joined: May 2004
Posts: 137
Likes: 0
Well I dont current own a house. I am 20 years old and go to college. I pay out of piocket for school and am payed off right now. My credit score is a 765 and I have one credit card at 0 percent. I have an investment property in florida with my three brothers that we pay the morgage on. I mean I could fesible pay for almost all the repairs out of pocket but I am worried, my last truck I bought a brand new f150 and the only repair it ever had was to repair a sticker on the symbol. I just wanted to get peoples opionion on my situation. If worse coem to worse I could get themoney from my mother but I dont forsee that I ever need to borrow money. I dunno I guess it just made me feel secure having the warranty but the truck needs an ehaust and I wanted to egt duals instead of a factory exahsut(jesery shore salt air kills exerything). I financed part of the truck and its all in my anme to build my credit score up for a future hoem purchase. I am sure I could get a high limit credit card easily but I prefer to not have the responsibility of it. I only plan to keep this truck for 2-3 years tops until I can buy a new diesel; bought used and it was a lemon. Thanks for the opions
Tuned
Joined: Mar 2006
Posts: 420
Likes: 19
i had the 5 yr 100k ext warranty on another truck i had and the trk was no problem until i hit the 90k and then that is when i was glad i had the 5 yr 100k ext package and i will be getting the warranty on my 08 in a few months and also please dont go with anything but the ford esp plans the others out there are not worth the hassle
Thread Starter
|
Senior User
Joined: May 2004
Posts: 137
Likes: 0
Thats what I would eb getting the ford esp plan. I want that so I can get serviced at any ford dealer. I dunno I would just prefer not to spend the money when I am only going to have the truck two years
Mountain Pass
Joined: Jul 2006
Posts: 221
Likes: 29
From: USA
Keep your money!!! If the engine does go south (very unlikely) you could repair it or if it's totaled (doubtfull) by a low milage junk yard engine. Same goes for the trans. The remainder of the truck is not high ticket to repair.
Trending Topics
Thread Starter
|
Senior User
Joined: May 2004
Posts: 137
Likes: 0
It seems to me that the majority of the people say to keep my money. That makes me feel better about not being such a cheap ***. I swear no matter how much money I make I could always use extra money. I guess thats the same with everyone. Now its time to go play the lottery so I can get that new f350 lol. I can dream cant i
FTE Stories
Ford Trucks for Ford Truck Enthusiasts
Top 10 Most Expensive Ford Trucks Ever Sold on Bring a Trailer
Joe Kucinski
2027 Ford Super Duty Buyer's Guide (Every Model, Engine, & Package)
Brett Foote
Top 10 Ford Truck Tragedies
Joe Kucinski
AEV FXL Super Duty - the Super Duty Raptor Ford Doesn't Make
Brett Foote
Lobo Vs Lobo: Proof the F-150 Lobo Should Be Even Lower!
Michael S. Palmer
Ford's 2001 Explorer Sportsman Concept Looks For a New Home
Verdad Gallardo
10 Best Ford Truck Engines We Miss the Most!
Joe Kucinski
2026 Shelby F-150 Off-Road: Better Than a Raptor R?
Brett Foote
2027 Super Duty Carhartt Package First Look: 12 Things You NEED to Know!
Michael S. Palmer
Thread Starter
|
Senior User
Joined: May 2004
Posts: 137
Likes: 0
Yea I highly doubt that because then in turn they would make no money off of the warranty and that is their main goal here; to make money. My brother had a truck with the warranty and traded it in while there was still a signifiganct amoutn left on his warranty. They did not credit him anyhting when he purchased a new truck. I will look into to see if they do credit your money back for not using the warranty. Thanks you guys been real helpful
Post Fiend
Joined: Jun 2004
Posts: 9,293
Likes: 10
From: Parker, CO
that is their main goal here; to make money.
Think of extended warranties in terms of a casino. The odds are in favor of the house taking your money with only a small percentage winning the "jackpot".
Postmaster
Joined: Dec 2003
Posts: 3,130
Likes: 3
From: Massachusetts
Right before the warranty runs out, check upper and lower ball joints and sway bar end links for wear. They will couse you problems in short time. Get them fixed under warranty and you will save about $5-600 bucks.
My 2003 has 90K miles on it and all I have done in repairs (not service) is ball joints and swar bar end links.
My 2003 has 90K miles on it and all I have done in repairs (not service) is ball joints and swar bar end links.
New User
Joined: Jul 2005
Posts: 16
Likes: 0
extended warranty
My own experience has been (on my '03 and my '05 F350's) that these things eat up ball joints and steering components. If you are going to keep the truck, I'd get it. By the time you reach 75K you could be on your third set of ball joints if your experience is anything like mine has been. Lots of great things about these trucks, and I love mine, but the durability of the front end and steering components needs to be beefed up in my opinion.