Is the extended warranty worth it?

[Illini4]

Long odds against being a good thing, but sometime it happens.

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[MustangNoob]

I got it like a moron. Ford Protect Premium Care 84 months or 75k miles.
Now let’s do some quick calculations.
the car come with a limited Bumper to Bumper warranty of 3 years or 36k miles , whichever comes first. In addition it comes with a power train warranty for 5 years or 60k miles whichever comes first.

The plan I purchased essential includes both bumper to bumper and power train so in essence I got an “extra 15k miles on power train and an extra 39k on bumper to bumper. And the “extra” is because the plan starts counting on the day I purchase the car and it heavily overlaps with the cars warranty. So in reality I loose most of the plan’s timeline/milage.

For that reason I will cancel this week. And the funny thing is that I will loose few dollars…such a scam and such an idiot I am.

 

[RLE55]

If you feel its not for you, then its not for you. Each owner weighs their own decisions right or wrong. After 3 years, something major goes bad, I prefer to be covered than not. Not everybody has thousands of $$$$ sitting in the bank to pay for major automotive repairs.....then again, lots of people will spend thousands on mods that they really don't need....hmmm.

 

[smurfslayer]

AFAIC, the primary purpose of the ESPs is to avoid having to pay a monster bill for a major repair (engine, trans, etc.), not necessarily the nickel and dime stuff.

True. Monster bill is different for different people. There’s a youtube video floating around entitled something along the lines of ‘$5,000 for a new tail light’
Not a joke. F Series BLIS module is embedded in the tail light and if they crack and get water intrusion it causes a short, which can screw up signal values for dozens of things connected to the gateway module.

 

[MustangNoob]

It saying that is not needed. I am saying that it does not make sense to purchase it at the time when you buy the car brand new. It makes sense when the limited warranty is about to expire.

 

[Illini4]

A better idea would be to deposit whatever the premium is in an investment account. That way you could withdraw money for repairs if needed. If not needed, you get to keep the money with interest.

 

[Mspider]

I won`t keep a car long term without one. The problem for me is how cheap a extended warranty is. With the right dealership pricing you can drive a V8 sports car for 100k+ miles or 8 years and not worry about any expensive part breaking on the car for 2k-3k. Just doesn`t make sense to not buy one if you plan to keep the car long term.

 

[MustangMitch69]

I have a 2024 Mustang GT Premium...who has bought the extended warranty from Ford and what did you purchase?

Past Consumer Reports member surveys showed that car owners typically paid more for the coverage than they got back in direct benefits. This isn’t surprising, because extended warranties make a lot of money for those who sell them.

“The fact is, extended warranties are overpriced. That’s the reason people sell them, because they make a bundle on them in commissions,” says Dave Ramsey, a money expert and radio talk show host. “I don’t recommend buying extended warranties, ever. If you can’t afford to repair your car, then you can’t afford the car.”

Ramsey recommends that owners create an emergency fund for repairs that they can tap into when needed, and a separate fund to save toward the purchase of their next car.

 

[SSuperDave]

That is sound advice, but in reality, most folks can't afford to do that, or more to the point, don't have the discipline to do so. To save up and pay cash for a new car is also sound advice, but not possible for the average person.

 

[akawease]

I appreciate the respones. My last new vehicle besides my wife's new Honda was a 2016 Jeep Wrangler. I had a seven year warranty on the Jeep, but only had a few issues after the first two or three years. Quick fixes. I never needed it again, but I didn't pay extra for it. I didn't buy the Ford extended warranty right off the bat, but just asking anyone with maybe an older model if it was worth it. Depending on which plan, it could cost anywhere between $2,000 and $3,500. I need to look into it more, but curious on people outside the base warranty. Thanks.

 

[d7dun]

If you can afford it and get it at one of the discount Ford Warranty places, yes!

My F150 had just barely under 100,000 miles and one of my turbos went out and they wanted to replace them both. My bill close to $5000 cost me only my deductible.

As with any insurance, you are betting you will have an issue or issues that will exceed the cost of the EW and they are betting you don't.

 

[Mspider]

Past Consumer Reports member surveys showed that car owners typically paid more for the coverage than they got back in direct benefits. This isn’t surprising, because extended warranties make a lot of money for those who sell them.

“The fact is, extended warranties are overpriced. That’s the reason people sell them, because they make a bundle on them in commissions,” says Dave Ramsey, a money expert and radio talk show host. “I don’t recommend buying extended warranties, ever. If you can’t afford to repair your car, then you can’t afford the car.”

Ramsey recommends that owners create an emergency fund for repairs that they can tap into when needed, and a separate fund to save toward the purchase of their next car.

The problem with that data is that it averages the amount people spend on extended warranty. The vast majority of people who buy extended warranty don`t get good pricing. They buy it from there local dealership at marked up pricing OR some random 3rd party company.

 

[IFFV68]

I have a 2024 Mustang GT Premium...who has bought the extended warranty from Ford and what did you purchase?

I always purchase the extended warranty and the maintenance plan.
Like was mentioned.
It’s a Crap Shoot.
I’m betting something will happen?
They’re betting something won’t.
If I plan on keeping my vehicle for more than three years I always get both.
The maintenance plan provides Oil Changes, Windshield Wipers, Air Filters. The 2024 GT has Two. In Cabin Air Filters, Brakes, & more.
I paid an extra $2100.
Is it worth it?
It’s very subjective.
I always go to Phil Long Ford Denver. I’ve never had any problems with my Extended Warranty or Maintenance Plan. .
The maintenance plan and extended warning might also depend on your dealer being Honest?

 

[akawease]

I always purchase the extended warranty and the maintenance plan.
Like was mentioned.
It’s a Crap Shoot.
I’m betting something will happen?
They’re betting something won’t.
If I plan on keeping my vehicle for more than three years I always get both.
The maintenance plan provides Oil Changes, Windshield Wipers, Air Filters. The 2024 GT has Two. In Cabin Air Filters, Brakes, & more.
I paid an extra $2100.
Is it worth it?
It’s very subjective.
I always go to Phil Long Ford Denver. I’ve never had any problems with my Extended Warranty or Maintenance Plan. .
The maintenance plan and extended warning might also depend on your dealer being Honest?

I apprecriate your input. I am totally considering it due to all the electronic parts. I'll only use Ford's extended warranty so I know what is specifically covered.

 

[MustangNoob]

I bought it. I added 7 years to the factory warranty.

That’s the mistake we all making. You don’t add 7 years. The first 3 years are the limited bumper to bumper and is extended up to 7. In essence you pay for 7 to add 4 more years after the limited warranty expires. That is why it does not make sense to buy it for a brand new car. I am going tomorrow to cancel mine.

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