Its basic economics. Its something you should have learned in grade school. Go buy whatever you want and have a Merry Christmas.

 

Stay away from aftermarket warr's Esp AA and continential. I have a 05 mountaineer which the 3/36 is about over, Fords ESP premium care for 4 more years is $1000.00 add another 48k which we won't use. I'm considering getting it but I'm guessing the car will never need it cause it hasn't been to the dealer yet for anything. Its got 27k miles on it now. You have to shop around for price because the normal price for the esp I may get is about $1500. I also went with $200 ded.


Dick

 

Not all aftermarket warranty companies are crooks. Basically, they are insurance companies so you have to consider the company's overall profile. Look for size and diversity. I bought a 3/36 CNA premium care warranty for the wife's Volvo. Good thing I did, because the tranny went out at 62k miles. $4000 for that, warranty was $1700. It also covered transfer case seals, turbo repair, and control arm bushings.

 

AGE mechanic,

You figured it all out! Most people don't even think your way, but I have to say you are right on the money! I agree with ya. Our company fleet of trucks have no extended warranties and we would have spent more on warranties than we have spent on repairs up to current..... Now on a Ford diesel truck with more than 100k miles a warranty would probabbly be legit! Replace a 6.0, or a turbo, or some injectors etc...I don't even know though if you can get a 200k mile warranty on a diesel engine though..

 

How about this don't buy the extended warranty, put the amount of money that it would cost into a cd or someother money making vehicle and only use it for vehicle repairs that would be covered under the extended warranty, at the end of the time if you have not used it the money is yours if you have used it you're not out anything but in most cases you'll end up with money in the bank that you can put toward a new truck or whatever you want. Hows that for piece of mind. rugerman

 

argh, just saw this. I paid 2k+ for a 7 yr 100k mile UWC warranty on my wife's Mercedes. She talked me into it, and it didn't seem like a bad idea for that term of coverage on a car that can be very expensive to fix.

I'll never buy another one (extended warranty) as long as I live.

 

I look at it like this... Murphy's Law is just a corollary to Brewster's Theoem. It goes like this.
Murphy- What ever can go wrong will go wrong.
Brewster- What ever can go wrong, to anyone, will go wrong, at Brewster's expense.

When I'm travelling with the kids [single parent], the last thing I want to worry about is a major breakdown. With the factory warranty, I just pull into a Ford dealer and it's covered.
It's worked so far. For me, anyway.

Later...
Brewster...

 

Yeah, the only extended warranty I would consider would be the Ford warranty, and I'm probably going to skip even that....

 

One thing people never talk about with warranties is the benefit of selling your vehicle with the warranty.

The last three cars I sold on the first phone call because I advertised the 100k warranty. My vehicles were priced at high blue so they actually paid for the warranty.

Lastly if you trade it in you cancel the unused part of the warranty and get money BACK.

Warranties are a no brainer for me THE MANUFACTURER ones only.

 

How many people have the dicipline to put that money away and not touch it? Not many. yeah sure it's a great idea to put that money aside and let it gain interest. How about not financing a car or truck. you are already losing money anyway with depreciation and you want to pay a bank interest? I have $1000 deductibles on on my vehicles because I can usually hide that amount if the repairs are my fault to my own vehicle, and have. I don't get ext warranties because I am my own warranty and can afford the downtime.

But not all have that luxury.

I have full coverage on my T/A that is paid off because it would be a hard lump to swallow if it was stolen. I could care less about collision because that would be my own dumb fault and I DON'T take those risks with this car, but I have to have both w/ my insurance. Some people drop all but the legally req ins as soon as they pay off the car to "Save money". I don't think losing a $20+K car would be saving money. But that is my opinion and is what works for me, if I were to ever have to utilize the coverage and I pray I don't, it would be worth it. I already pay huge premiums on the car because of where I live and what it is. Despite driving my truck more, and it weighing twice as much, the car seems to be a higher risk?

It's really up to the individual person. What makes sense to one person doesn't to another and that is fine. Just don't do something that gets you ripped off blindly. ESP warranties CAN have value, lots of it. My parents got their monies worth out of the ones they purchased over the years. Being able to go in and get it taken care of and not worry about a lump sum amount was worth what little might have been gained in the same amount of time if they invested it.... or had the lump sum up front to invest. But then we come back to the same end, would it be better to invest the amount you pay for the warranty, or put it towards the vehicle price and not pay as much finance charges.....?

AGE mechanic have your opinion but please don't be arrogant about it. I understand your viewpoint, understand mine (and others) please.

 

About six months ago, I told my buddy that he should consider getting the extended diesel engine warranty on his 04 6.0 that had 90something thousand miles on it. A couple of weeks ago, he called me up wanting to get the information on the warranty that I mentioned to him because he had just taken his truck in for EGR coller and Oil cooler replacement. Since his truck now had 101,000 miles on it, it was out of warranty and the bill was like $1300. I had to tell him that he was out of luck because he had to be under 100k miles to qualify for the warranty. So he is still running on the original turbo and head gaskets and the warranty would have almost paid for itself by now.

 

Instead of buying the extended warranty put the dollar amount for the extended warranty in a CD for the same term as the warranty and only use it for repairs on that vehicle that would be covered by the warranty. If you don't use it its still yours to spend as you like (down payment on new vehicle maybe) not making money for the stealership.

 

Well i purchased the Ford ESP on my SD for $3200 6 months ago. The dealer just finished replaceing the bedplate o-rings - over $5000 repair - cost me $100. Well worth it to me. It is a crap shoot - pay your money - take your chances.

 

A friend of mine has a third party warranty company that they sell to dealers in the mid Atlantic and Southeast.
He has his own private jet and a pilot to fly him around wherever and whenever he wants.

So yeah they do make that kind of margins... I'm with the mechanic on this one.

 

Extended service contracts have their place. People that have tight budgets and less constraint to save money for repairs down the road are better off with a service contract. Also, vehicles with higher repair rates and costs (6.0 PS) are usually better off being covered by a contract. Like many people are saying, it is like insurance. Most people could do without health insurance and just put money aside every month for it instead, especially someone that is healthy. But who does? Paying $1000-$2000 for your car to be fully covered from any failures for 100,000 miles really doesn't sound like that bad of an investment. One major thing or a few minor things and it will pay for itself. Most people forget that the average labor rate is $100/hr and you are charged by flat rate, not the actual repair time. That is why any good mechanic can earn 60-80 hours of pay in a 40 hour work week. They repair the car in half the time the book calls for.

Also, in regards to aftermarket vs. Ford esps, there is more to the story than most people realize. There are few laws governing who can start a warranty company. Some of them are just a few guys in a closet with a few thousand dollars that create a name and market their product. Before you know it they are raking in hundreds of thousands then disappearing into thin air, leaving the customers with worthless paper. But, there are also some true insurance backed companies that have the real backing to come clean on all claims even if they do go out of business. These companies typically have stricter rules, don't send you direct mail or phone calls, can be bought only through dealers, and cost a little more. Some even offer better coverage then the manufacturers extended service plans. I think it is important to research what coverages and companies have to offer and also look at their credentials before saying they are "all" garbage and a waste of money. Don't let a few bad apples spoil the bunch.