Would like Ford ESP purchase advice

[Amy White]

Hi. This is my first post here, but I have found many interesting things in this forum. I am looking to purchase the Ford ESP for my 2008 Edge Limited AWD. I have 32,500 miles so I'm feeling the need to purchase it very soon. I haven't had any problems with my car but intend on keeping it for a while (and possibly passing it down to a new driver in a couple of years). Anyway, purchasing directly through Ford is hundreds of dollars more than through either Troy Ford or Broadway Ford. I'm not local to these dealers but they both have good BBB ratings and I've seen them mentioned in other posts. Does anyone here have direct experience with purchasing Ford ESP through either of them? I'd appreciate any feedback. Thanks!

[akirby]

Hi. This is my first post here, but I have found many interesting things in this forum. I am looking to purchase the Ford ESP for my 2008 Edge Limited AWD. I have 32,500 miles so I'm feeling the need to purchase it very soon. I haven't had any problems with my car but intend on keeping it for a while (and possibly passing it down to a new driver in a couple of years). Anyway, purchasing directly through Ford is hundreds of dollars more than through either Troy Ford or Broadway Ford. I'm not local to these dealers but they both have good BBB ratings and I've seen them mentioned in other posts. Does anyone here have direct experience with purchasing Ford ESP through either of them? I'd appreciate any feedback. Thanks!

 

Have you considered keeping the cash in your pocket? If you can afford to spend $1000 - $1500 out of pocket now then you can probably afford to pay for repairs out of pocket also and in the long run (over several vehicles) it will almost always be cheaper to insure yourself. Otherwise insurance companies and extended warranty companies wouldn't be in business.

 

Just something to consider.

[Amy White]

OK so after pondering your comment maybe I take that cash and put it in an interest bearing CD. Then I leave it there until I have a problem. Not bad advice and it would certainly be easier to move it from my savings account to a CD.

[Stryprod]

WARRING WARRING!!! Detailed and thorough post below!

 

Answering a question about warranties is tricky because if you break it down to its core component, an extended warranty plan is essentially insurance and insurance is essentially gambling and gambling by its very nature means that sometimes you win and sometimes you lose but more often than not... you lose.

 

So what are the odds? According to consumer reports dot org, 65% of those that purchased a warranty paid more for the plan then they ever got back in utilizing the warranty. So you have better odds at winning playing blackjack in Vegas than you do utilizing a warranty. Can these odds change over time or vary on other factors? Yes, but just know that warranty sellers don’t offer warranties to lose money spo the odds are padded in their favor.

 

So no warranty right? Not so fast. Since we are talking about gambling here, just like Vegas casinos which have statistical odds based of large chunks of data, so to do warranty issuers based on averages.

 

There are seven main factors (other than price) that should be considered when purchasing a warranty. In no order of importance; First are mechanical abilities and skills, or that of someone you know. Second is your style of driving. Third is proper maintenance of the car. Fourth is the manufactures reliability record. Fifth is the model a brand new never before seen model or a significant refresh? Sixth is your piece of mind. Seventh is ability to save money.

 

If you, or someone you know, is great with fixing at least minor issues with cars such as an alternator replacement, etc… well then you might add one strike to not getting an ESP. Do you drive like a bat out of heck or like an 18 year old male? Specifically, do you break and accelerate hard intentionally or even force via bad traffic in areas such as southern California, New York or Texas? Well might be a point in favor of getting an ESP because that wears hard on the car. Do you get your car serviced at the recommended service intervals, if not more? Then add a point in favor of not getting an ESP. Are you buying a brand that has a good reliability record? If so, an ESP might not be needed as much. Has this model never existed before or is this model a significant refresh over the previous year’s model? Might consider adding a point in favor of getting an ESP as any potential issues have yet to be discovered and hashed out and the workers are building new cars that might require new techniques to construct which equates to more errors which equates to more headaches for you. Do you suffer from anxiety or worry a lot about the unknown? Might be a point in favor of an ESP. Can’t seem to save a dime and are always grabbing for the credit card? Might be a point in favor of an ESP.

 

So how do you put the odds in your favor?

 

Obviously if you can work all the aforementioned main factors into you favor, the odds are REALLY in your favor. Another way is having the car for a period of time and not having any major issues which does appear to be your case and statistically equates to less major problems down the road. Saving the money and placing it into a savings account for “auto” that is safe but yields a high interest is a GREAT idea especially if nothing happens as you just helped fund your next new car down payment which lowers interest rates, etc, etc. The problem is most folks say they will save the money but either a) don’t do it or raid the fund. Don’t do either of those.

 

So final advice? Inconclusive because a) I don’t know you and your behavior and because sometimes, despite the odds, crazy random happenings… well... happen.

 

OK so after pondering your comment maybe I take that cash and put it in an interest bearing CD. Then I leave it there until I have a problem. Not bad advice and it would certainly be easier to move it from my savings account to a CD.

[akirby]

The only time I recommend ESPs is when someone is on fixed or low income and simply can't afford to pay for a large repair out of pocket. In that case they should buy the ESP when they buy the car so that it only costs a few dollars per month.

 

Otherwise, if you can afford to buy a $1500 warranty out of pocket then you can probably afford to pay for a repair. If you want to gamble that's fine but as for the peace of mind theory - I get a lot more peace of mind knowing I've saved over $9K by never buying one on my last 6 vehicles. Even if I had to replace a transmission tomorrow, I'm WAY ahead.

[Amy White]

Thank you for taking the time to really lay it all out on the table (without making the decision for me). After giving it much thought I've decided not to buy the warranty. :yup: I understand that it's a gamble either way, but I do have the discipline to put the money in an account and leave it there in case I need it. Hopefully I won't need it, but knowing it's there will give me the peace of mind that spending that same money on the warranty would have (but the money is still mine). Funding my next down payment with that cash if I don't have to spend it works for me, too. The only problem I've had is the PTU and after three tries the dealer replaced the whole thing. That was over 10K miles ago and all has been fine since. I don't drive like an 18 year old guy and I'm faithful about taking it in for service when it's due. Thanks again!