Warranties -- Peace of Mind

[Cellbine]

Next month I will hit 2 years with my Edge. Looking at my mileage, I have crossed the 25k mile mark. It has got me thinking about my warranty. I didn't remember what option I took back when I ordered my Edge. I assume it was the 3 year/30k mile warranty. I wanted to know if it was available to extend my warranty so I don't have to worry about fixing anything after the warranty ends.

 

So I went to my dealer and asked if I could extend it. They said that I should have only had the opportunity to do that between 1-2 weeks after purchase. After that would have been too late. So naturally my mind starts racing. I asked him if he could check to see if I could extend it now or not. He took me back to his office and looked up my account and saw that I already had opt'd for the 7y/75k mile extended warranty. I was so stoked I dropped that into my purchase. I immediately said, out loud, "I am so cool!". I had totally forgot I purchased that but my past-self made sure to take care of me

 

My question to you guys/gals is, What warranty option did you guys get? Maybe drop the price you paid, if you want, for it. Turns out I paid $1,205 for 4y/~40k more miles of Peace-of-Mind.

[Larry]

Cellbine, Did you buy your edge new? If so you should have Basic 3 year / 36,000 miles , Drivetrain 5 year / 60,000 miles, Roadside 5 year / 60,000 miles, Rust 5 year / Unlimited miles, from Ford. If you bought used then you have what you bought. I have a 2013 edge. If I end up keeping it past the 3yr/36,000 I'll check around for Ford ESP plans. As long as you buy the ESP plan before the 3yr/36,000 is up the rates are cheaper. Check prices here, http://www.floodfordesp.com/ I just checked on mine. I used 35,000 miles for reference. cost was $1120.00 7yr/125,000 but actually it's only 4 yrs. because ESP plans start at the vehicles original retail date and mileage. so mine would start with 65 miles and purchase date Feb.8,2013. Ends up costing $1120.00 for 4 yrs. = $280.00 per yr. One trip to the garage to get almost anything fixed will cost $280.00 plus. Just my two cents.

Larry

 

 

 

[ls973800]

I went with the 84 month, 100000 mile $0.00 deductible Ford ESP Premium Care. I also have the first day rental and enhanced rental options included.

 

I paid $1795.00 for the plan when I first bought the car new last July. My dealer didn't offer the Ford ESP, only their own aftermarket ones. I checked here and other forums and at the time, Anderson and Koch were the best deal. Bought it online and didn't have any taxes on it since it was an out of state purchase.

[wlepse]

I think he is in europe so coverage and rules to extend may be different. we are looking to do something w 125k but not sure on length yet.

[Cellbine]

Ill check out Anderson and Koch, but I think I am good with the 7y warranty. By the time it expires, the Edge wont be our main car anymore. I ordered my Edge from the states and had it shipped over here new. I won't be here in Europe for much longer though. Next we are moving to Asia and the Edge will be in storage.

[akirby]

Just a couple of points.

 

You can buy a Ford ESP anytime before the 3 yr/36K bumper to bumper warranty expires. After 12 months the price goes up by $100.

 

As stated you already get a factory 5 yr/60K mile powertrain warranty. So that 7 yr/75K ESP only buys an additional 2 yr/15K miles of powertrain coverage.

 

It is almost always cheaper to self-insure (don't buy warranties or insurance and just pay for your own repairs out of pocket) if you can afford to do so.

Over several vehicles you will come out ahead. It's like Vegas - the odds are always in the dealer's favor (or the ESP provider in this case). Otherwise they wouldn't make any money.

 

Case in point - I've had 6 vehicles that have gone at least 2 years past the warranty period with only a couple of $100 or less repairs I did myself. That includes 2 Rangers, a Lincoln LS, a Fusion, Edge and Expedition. Had I purchased ext. warranties on all those I would have spent $7K - $10K. Even if I have to buy a new engine out of pocket tomorrow for the Edge I'm still ahead several thousand dollars.

 

I get peace of mind knowing I'm not spending money on something I may never need. But maybe that's just me.

[Cellbine]

Those are excellent points. I will definitely think about that when I purchase my next vehicle. My concern is that if something happens while I'm downrange, my wife will be able to walk in and have whatever work be done, done. When I retire, after a few years, I will be more available to DIY.

[WWWPerfA_ZN0W]

Yeah, it's the fear of "What if I am the exception to the rule statistically and need all the repairs?" that keeps selling these warranties. On top of that, you have to know how long to hold on to your vehicle, and to keep up on scheduled maintenance.

[akirby]

Yeah, it's the fear of "What if I am the exception to the rule statistically and need all the repairs?"

 

The answer is you may have one or two vehicles where you have to spend more than the warranty fee on repairs. But over the course of several vehicles the law of averages says you'll make it up and then some. You just have to be able to withstand the bad ones.

 

One exception I will point out - if you don't have enough cash or credit to pay for a large repair out of pocket (fixed income, etc.) then you should get the ESP but finance it with the vehicle so you're only paying a few dollars per month instead of a lump sum outlay for a repair.

 

If you really want to get the ESP go ahead - just understand that it's essentially a gamble and the house odds are against you winning. Don't do it thinking you're going to necessarily save money in the long run.

[edgedout]

 

The answer is you may have one or two vehicles where you have to spend more than the warranty fee on repairs. But over the course of several vehicles the law of averages says you'll make it up and then some. You just have to be able to withstand the bad ones.

 

One exception I will point out - if you don't have enough cash or credit to pay for a large repair out of pocket (fixed income, etc.) then you should get the ESP but finance it with the vehicle so you're only paying a few dollars per month instead of a lump sum outlay for a repair.

 

If you really want to get the ESP go ahead - just understand that it's essentially a gamble and the house odds are against you winning. Don't do it thinking you're going to necessarily save money in the long run.

Also be aware that these ins companies will use absolutely every excuse in the book to keep from paying. If they refuse a claim, what can you do?

They know you will not sue them over a few hundred bucks.

[akirby]

Also be aware that these ins companies will use absolutely every excuse in the book to keep from paying. If they refuse a claim, what can you do?

They know you will not sue them over a few hundred bucks.

This doesn't seem to be a problem with Ford ESPs which is the only one you want. 3rd party warranties suck for the reason you mentioned.

[OnTheFence]

Hmmm... I purchased the 72 month or 6 year 75k "PremiumCare" warranty extension plan through Ford for $1205.00, looking at paperwork now. So I'm not all that happy that others seem to be getting 7yr 75k for the same price, what's up with that? The dealer I bought at was back in Pennsylvania and I had a friend working in Service so I don't have any reason to think they cheated me, but even that warranty was only after negotiating for 25 mins.

 

So what's the deal, I didn't negotiate as good as others or maybe they are wrong and it should have been the 7 year? I'm guessing whatever is on the paper is what the coverage is. It also says there's a 100 deductible, which kinda sucks.

[wannabang]

When I bought mine used, it came with an additional warranty that I believe to be an additional 3 yr/30k mile powertrain, which give me a 7yr/100k mile warranty altogether. I opted out of the $6k 2 year electronics warranty....seemed a bit steep to me.

[akirby]

Warranty prices vary a lot - it's all in the negotiation.

 

And you always want a larger deductible - as big as you can afford. Because you more than make up for it in the price of the warranty (or any type of insurance).

 

Zero deductibles are money wasters.

[fledgex]

Zero deductibles are money wasters.

^^^ What he said...

[ls973800]

Warranty prices vary a lot - it's all in the negotiation.

 

And you always want a larger deductible - as big as you can afford. Because you more than make up for it in the price of the warranty (or any type of insurance).

 

Zero deductibles are money wasters.

 

When I purchased my 84 month, 100000 mile Ford Premium Care ESP, the difference between the $0 deductible and the $100.00 deductible was only about $400.00 or so at the time. I know from past experience (which is why I purchased the warranty to begin with) that the car is going to be in the shop more than 4 or 5 times over the course of the warranty period.

 

If I have to pay $100.00 each time, that less expensive warranty really turns out to be more expensive than the $0 deductible. I also know that if I have a repair which will cost less than $100.00, I will still take it in and get it repaired because it won't cost me anything. If I have to pay up to the $100.00 deductible for the repair, I may just let the repair not get fixed, depending on what it is. Now I have a car with a few small repairs which aren't done, or which will nickle and dime me along with any $100.00 deductible for bigger repairs.

 

Each individual owner is different, and each has to make the decision as to what works best for them. To say $0 deductibles are money wasters is one opinion. In mine, they are money savers over the long run. I will always buy $0 deductibles, until I think they no longer are worth it. Doing so will insure all repairs are done to my car, and will not cost anything additional out of pocket. From the $20.00 repairs up to the largest repair bill.

[akirby]

 

When I purchased my 84 month, 100000 mile Ford Premium Care ESP, the difference between the $0 deductible and the $100.00 deductible was only about $400.00 or so at the time. I know from past experience (which is why I purchased the warranty to begin with) that the car is going to be in the shop more than 4 or 5 times over the course of the warranty period.

 

If I have to pay $100.00 each time, that less expensive warranty really turns out to be more expensive than the $0 deductible. I also know that if I have a repair which will cost less than $100.00, I will still take it in and get it repaired because it won't cost me anything. If I have to pay up to the $100.00 deductible for the repair, I may just let the repair not get fixed, depending on what it is. Now I have a car with a few small repairs which aren't done, or which will nickle and dime me along with any $100.00 deductible for bigger repairs.

 

Each individual owner is different, and each has to make the decision as to what works best for them. To say $0 deductibles are money wasters is one opinion. In mine, they are money savers over the long run. I will always buy $0 deductibles, until I think they no longer are worth it. Doing so will insure all repairs are done to my car, and will not cost anything additional out of pocket. From the $20.00 repairs up to the largest repair bill.

 

Like I said - you can always make out on one or two vehicles. But if every vehicle you buy requires 4 visits to the shop for more than $100 repairs then something else is wrong. And remember - for every person like you who makes 4 visits there are dozens of others who make no visits whatsoever.

[ls973800]

 

 

Like I said - you can always make out on one or two vehicles. But if every vehicle you buy requires 4 visits to the shop for more than $100 repairs then something else is wrong. And remember - for every person like you who makes 4 visits there are dozens of others who make no visits whatsoever.

 

Well, you just made a perfect case for not buying the warranty. Over the course of at least 10 different cars and trucks with extended warranties, I have never "lost" money on 1. My 2003 F150 had the least problems but even with such a good repair record, that truck was at the dealer at least 5 times over the course of it's extended warranty period.

 

Once for each bucket seat seat belt tensioner that had to be replaced at different times (had to play with the seat belt to get the slack out of it when you unbuckled), a heater blower motor, a windshield wiper motor, and the "smart" lever or whatever you want to call it for the turn signal, high beams, wipers, etc. If I had to pay $100.00 for each of the seat belt repairs (made about 1 1/2 years apart) I would have just put up with the slack or the occasional locking of the belt when moving.

 

If I had purchased the warranty with a deductible, that would have been $500.00 out of my pocket.

 

You really think a car sees a repair facility over the course of 100000 miles or 7 years less than 4 times? I would buy that type of vehicle in a second!

[akirby]

 

Well, you just made a perfect case for not buying the warranty. Over the course of at least 10 different cars and trucks with extended warranties, I have never "lost" money on 1. My 2003 F150 had the least problems but even with such a good repair record, that truck was at the dealer at least 5 times over the course of it's extended warranty period.

 

Once for each bucket seat seat belt tensioner that had to be replaced at different times (had to play with the seat belt to get the slack out of it when you unbuckled), a heater blower motor, a windshield wiper motor, and the "smart" lever or whatever you want to call it for the turn signal, high beams, wipers, etc. If I had to pay $100.00 for each of the seat belt repairs (made about 1 1/2 years apart) I would have just put up with the slack or the occasional locking of the belt when moving.

 

If I had purchased the warranty with a deductible, that would have been $500.00 out of my pocket.

 

You really think a car sees a repair facility over the course of 100000 miles or 7 years less than 4 times? I would buy that type of vehicle in a second!

 

My last 4 vehicles was a Ranger (5 years), another Ranger (5 years), A Lincoln LS (6 years) and a Fusion (7 years). Neither of the Rangers ever went back to the dealer. Neither did the Fusion although I did replace one door handle myself ($60). The LS only made 2 trips for various minor things.

 

My wife's last 3 vehicles were an Expedition (6 years), an Aviator (4 years) and an Edge (5 years). The Expedition had one repair (coil pack). The Aviator had several issues including a new engine head. The Edge hasn't had a single issue.

 

So yes - I do believe you're in the minority if you've had that many vehicles with more than 4 visits during the ESP period. And just think if every vehicle was like yours - Ford would be losing money hand over fist on ESPs and they'd either raise the price or stop selling them.

[ls973800]

I tried finding some type of statistics as to how many repair visits a car has during a 7 year, 100000 mile ownership. I haven't been able to find anything yet. I really am curious how many the average car has.

[akirby]

I tried finding some type of statistics as to how many repair visits a car has during a 7 year, 100000 mile ownership. I haven't been able to find anything yet. I really am curious how many the average car has.

 

You can't count all visits. Any visit during the factory warranty doesn't count because those are already covered.

 

And here is something else you can count on 100% - if Ford charges $1200 for a warranty - on average it's not paying out more than $1200 in repairs. Guaranteed.

[12Edge]

Most extended warranty plans for appliances/electronics have language in them that state the warranty you buy is only good up to the value of the item insured. So basically if you have a $2000 TV and buy an extended warranty for $300 once the repairs performed reach $2000 they consider their contract with you fulfilled.

 

I would look for similar language in a vehicle extended warrant. I just pay for stuff myself.

 

In the last nearly 20 years I have owned a brand new mustang and a bought at 1 yr old explorer sport trac. I do all my own maintenance and keep up with it. I kept the mustang 9 years and only put tires and batteries on it. Traded it off at 95K miles. The Sport Trac I had 10 years, it was 11 when I just traded it off for the edge. I had to replace a plastic elbow that was after the water pump, tires, battery, plugs and wires. My wifes vehicles I have had similar experiences with.

 

Bottom line for me, I will drive it till I get my moneys worth out of it then get rid of it and move on. Giving someone else money for "just in case" situations seems wasteful to me. I don't buy someones product again if it doesn't last as long as I think it should. I have always had good luck with my well maintained Fords.

Edited December 5, 2013 by 12Edge