Extended Warranty Advice

[BrocoSportArea51NYC]

Historically I've driven about 8k miles per year. Was thinking of purchasing the Ford Extended Warranty for 5 years / 48k miles (would cover me for 5 years) at which point I'd probably trade in for a new car. This is only $715 which kind of seems like a no brainer but wanted to see if anyone had any experience with getting repairs with Ford's extended warranties and/or if any issues generally occur with this extra mileage from 32.5k to 48k that I'll be adding. Any advice is greatly appreciated!

Sponsored

 

[Tigger]

$700 is not much money to give you peace of mind for as long as you will own the vehicle but I’d still only purchase it if you were 100% certain. And since you already said “probably” to when you will trade in your vehicle, I’d wait until the end of the current warranty to see if an extended warranty is needed and for how long.
As far as Ford and repairs under warranty, I’ve always had good luck but others on this forum have had other experiences. It is worth using the search to read some of the good and bad experiences, especially if any are more relatable to your area.
Lastly, it is worth noting that the chance at this moment of you needing to use the warranty during that time frame is not probable but when it comes to warranties there are always two things to know:
First, will you be able to afford a repair without the warranty?
Second, warranties are sold as a profit item for the dealership, so do not be surprised or upset if you lose out on the money.

 

[Escape2Bronco]

Make sure it is a Ford extended warranty and not a 3rd party one. If you haven't looked, check out Granger for the best deal.

https://www.broncosportforum.com/forum/threads/ford-bronco-sport-extended-warranty-at-50-over-cost.5334/

 

[BrocoSportArea51NYC]

$700 is not much money to give you peace of mind for as long as you will own the vehicle but I’d still only purchase it if you were 100% certain. And since you already said “probably” to when you will trade in your vehicle, I’d wait until the end of the current warranty to see if an extended warranty is needed and for how long.
As far as Ford and repairs under warranty, I’ve always had good luck but others on this forum have had other experiences. It is worth using the search to read some of the good and bad experiences, especially if any are more relatable to your area.
Lastly, it is worth noting that the chance at this moment of you needing to use the warranty during that time frame is not probable but when it comes to warranties there are always two things to know:
First, will you be able to afford a repair without the warranty?
Second, warranties are sold as a profit item for the dealership, so do not be surprised or upset if you lose out on the money.

I appreciate this thoughtful answer! Seeing only $700 for the extended seemed like a deal but I'm sure it won't be too much more to extend it as the 3 years comes to an end. I also am paying for the Mechanical coverage through Geico for a new vehicle so that would cover repairs with a $250 deductible up to 100k. Looking at the extended warranty as a profit item definitely gives me pause. Thank you again!

 

[BrocoSportArea51NYC]

Make sure it is a Ford extended warranty and not a 3rd party one. If you haven't looked, check out Granger for the best deal.

https://www.broncosportforum.com/forum/threads/ford-bronco-sport-extended-warranty-at-50-over-cost.5334/

Thank you! It was actually through Granger that it was such a good deal!

 

[Mark S.]

The one big advantage to extended warranties is they USUALLY include provision for a rental car when your vehicle is in for a warranty repair. As Tigger noted, extended warranties are a big money maker for those who sell them. As evidence I offer the number and frequency of texts, calls, and letters you get from people selling them. There's so much profit that people can afford to spend a great deal of money promoting them.

I'm with Tigger; get an extended warranty if you don't think you can afford a repair. If you think you can, however, I would take the money you plan to spend on the warranty and put it in an interest-bearing account. When/if it ever becomes necessary to pay for a repair the money will be sitting there for you to use. In the meantime, you are collecting interest. And if you never need a repair then you get to keep all the money + interest.

 

[BrocoSportArea51NYC]

The one big advantage to extended warranties is they USUALLY include provision for a rental car when your vehicle is in for a warranty repair. As Tigger noted, extended warranties are a big money maker for those who sell them. As evidence I offer the number and frequency of texts, calls, and letters you get from people selling them. There's so much profit that people can afford to spend a great deal of money promoting them.

I'm with Tigger; get an extended warranty if you don't think you can afford a repair. If you think you can, however, I would take the money you plan to spend on the warranty and put it in an interest-bearing account. When/if it ever becomes necessary to pay for a repair the money will be sitting there for you to use. In the meantime, you are collecting interest. And if you never need a repair then you get to keep all the money + interest.

That's a good plan - I'll move the cost into my interest savings account which will accrue to about $800 in the next three years and I can see where to go from there. Appreciate the input

 

[Escape2Bronco]

That's a good plan - I'll move the cost into my interest savings account which will accrue to about $800 in the next three years and I can see where to go from there. Appreciate the input

Like others have said, these are basically insurance policies and insurance companies don’t plan on not making money. The flip side is that one minor issue out of normal warranty will cost a lot. I’ve never bought an extended warranty before but Granger gave me a great deal on both my Bronco and Bronco Sport so I still came out ahead and helps them as well. Plus I really don’t want to have to work on this given the amount of space available and the complexity. Time will tell if it pays off.

I’ve got a 10 year old Lexus that I would have wasted my money if I had bought an extended Warranty. I would have broke even or slightly ahead had I bought one on the Escape. Because the Bronco’s have a lot of technology built into them I’ve taken the risk to cover them through the extended warranty.

 

[rocks]

Like others have said, these are basically insurance policies and insurance companies don’t plan on not making money. The flip side is that one minor issue out of normal warranty will cost a lot. I’ve never bought an extended warranty before but Granger gave me a great deal on both my Bronco and Bronco Sport so I still came out ahead and helps them as well. Plus I really don’t want to have to work on this given the amount of space available and the complexity. Time will tell if it pays off.

I’ve got a 10 year old Lexus that I would have wasted my money if I had bought an extended Warranty. I would have broke even or slightly ahead had I bought one on the Escape. Because the Bronco’s have a lot of technology built into them I’ve taken the risk to cover them through the extended warranty.

On the BS, I'd definitely buy an extended warranty from Granger if I plan to keep it long.

 

[Escape2Bronco]

On the BS, I'd definitely buy an extended warranty from Granger if I plan to keep it long.

Seeing how I just bought two vehicles from Granger in a 18 month period, I don’t plan on buying another for many many years. I’ll be just as happy if I never have to use them.

 

[wireman]

The one big advantage to extended warranties is they USUALLY include provision for a rental car when your vehicle is in for a warranty repair. As Tigger noted, extended warranties are a big money maker for those who sell them. As evidence I offer the number and frequency of texts, calls, and letters you get from people selling them. There's so much profit that people can afford to spend a great deal of money promoting them.

I'm with Tigger; get an extended warranty if you don't think you can afford a repair. If you think you can, however, I would take the money you plan to spend on the warranty and put it in an interest-bearing account. When/if it ever becomes necessary to pay for a repair the money will be sitting there for you to use. In the meantime, you are collecting interest. And if you never need a repair then you get to keep all the money + interest.

The good thing is Granger sells for $100 over their cost so if you're in the market for one, that's the place to get it.

I have the PremiumCare 7 year, 75K warranty, $50 ded. With all the riders my cost was $1605.

In this day and age, the cost to repair all the advanced features on my BL is potentially above the warranty cost. It's a crap shoot I know but I'm covered if it happens.

The rider for 1st day rental and enhanced rental are extra cost, $90 total at the time of purchase.

I've used the rental 2 times so that's paid for the added cost already.

I also got the key service and the interior/exterior lighting riders.

Those 4 added up to a total of $210, not a lot for the added coverage.

Will it pay for itself, who knows but I prefer to C.M.A.

 

[Escape2Bronco]

The good thing is Granger sells for $100 over their cost so if you're in the market for one, that's the place to get it.

I have the PremiumCare 7 year, 75K warranty, $50 ded. With all the riders my cost was $1605.

In this day and age, the cost to repair all the advanced features on my BL is potentially above the warranty cost. It's a crap shoot I know but I'm covered if it happens.

The rider for 1st day rental and enhanced rental are extra cost, $90 total at the time of purchase.

I've used the rental 2 times so that's paid for the added cost already.

I also got the key service and the interior/exterior lighting riders.

Those 4 added up to a total of $210, not a lot for the added coverage.

Will it pay for itself, who knows but I prefer to C.M.A.

Actually now it's 50 over cost and for November, it's only 20 over cost on the full size. I don't know if Zach will extend that to the Sport or not.

@Granger Ford ?

 

[sajohnson]

Mark has the right idea.

Extended warranties/insurance are betting against the house. As others have pointed out, extended warranties are a huge profit item. It doesn't matter how complex modern cars are, or how much repairs cost -- the underwriter has all of that data. They are fully aware of how much repairs cost, on average, for each vehicle. They charge some multiple of that amount and pocket the difference. Sweet gig.

Most buyers of warranties will lose all or most of their money. Of course those "losers" will rarely admit that.

A very few will actually come out ahead, and they will of course brag and tell everyone who will listen how smart they were to get that warranty. So that gives a biased view of the value.

It's best to be 'self insured' for all but the big ticket expenses: life; health; auto; home (as applicable). Most of us can't cover those risks, but for everything else there is no need for insurance. That is why large companies and organizations are self insured -- it's cheaper.

The only reason to buy an extended warranty is piece of mind. The buyer knows that worst case they will pay the upfront cost of the warranty; plus any deductibles; plus lost interest -- if the money would have been invested (as Mark suggested above). That's a lot of money, but it is less than the most expensive (if very unlikely) repairs. So while there is a good chance the money is being wasted, the buyer's potential expenses are limited.

 

[Escape2Bronco]

Mark has the right idea.

Extended warranties/insurance are betting against the house. As others have pointed out, extended warranties are a huge profit item. It doesn't matter how complex modern cars are, or how much repairs cost -- the underwriter has all of that data. They are fully aware of how much repairs cost, on average, for each vehicle. They charge some multiple of that amount and pocket the difference. Sweet gig.

Most buyers of warranties will lose all or most of their money. Of course those "losers" will rarely admit that.

A very few will actually come out ahead, and they will of course brag and tell everyone who will listen how smart they were to get that warranty. So that gives a biased view of the value.

It's best to be 'self insured' for all but the big ticket expenses: life; health; auto; home (as applicable). Most of us can't cover those risks, but for everything else there is no need for insurance. That is why large companies and organizations are self insured -- it's cheaper.

The only reason to buy an extended warranty is piece of mind. The buyer knows that worst case they will pay the upfront cost of the warranty; plus any deductibles; plus lost interest -- if the money would have been invested (as Mark suggested above). That's a lot of money, but it is less than the most expensive (if very unlikely) repairs. So while there is a good chance the money is being wasted, the buyer's potential expenses are limited.

The trick here is getting it from one of the few dealers that provide a huge discount. Investing 700.00 even at todays 5% yields about 200.00 5 years. At 100.00 a year for the insurance isn’t a bad deal. I agree that it is a profit game but when you can get it for 50 over cost, I’m willing to take that bet. Like I said earlier, I might be out 700.00 in 7 years but when a headlight alone costs 1700.00, I’m willing to risk 100.00 a year. That’s like going out for dinner two times less a year. When it costs 2500.00 to get the extended warranty as it does from most dealers, I agree, I’ll risk not getting it.

For me, it was also a way to give back to my dealer who has been outstanding and has given me two vehicles well below invoice.

 

[rocks]

It comes down to Clint's 'Are you feelin' lucky?' With the BS, I don't feel lucky.

Sponsored