EXTENDED CAR WARRANTY

[williamlayton]

I have a 2010 Ford GT Mustang Convertable. It has 30,000 miles on it.
Ford is offering an extended warranty to 100,000 miles for $2,500.
What is your opinion ?
Blessings

 

[Rule3]

I believe Consumer Reports does not recommend them.

Extended warranties: A high-priced gamble

 

[sceva]

How long is the original bumper to bumper warranty for?

Is the Engine / Powertrain covered for for a longer period on the factory warranty - many are.

Most aftermarket warranties don't pick up until after the factory warranty so if the engine / drivetrain are covered say to 75,000 you are only getting an extra 25k miles.



The extra warranty

How many years- if 5 years / 100k miles and you don't put a lot of miles on it you will run out of years before you ever reach 100K - Most of these count time from the day the auto was placed into service so : a 2010 auto 5 years / $100,000 miles ; assuming it was placed into service (purchased new) in 2010, over two years of the warranty are already gone. Will you put an additional 70k on it in three years or even 5 years if it's a 7 year / 100k warranty.

What deductible?

What does it cover?

I suggust you bank the $2500 towards future repairs; the chance of major repairs being needed in 100 k miles is fairly low and they are banking that they'll pocket the $2500 and not pay out a fraction of it.

 

[Comrad]

That's a lot of wood, I would pass.
Companies don't sell maintenance because the are your friend and want to help you. They sell them because they are tremendous money makers for them.
I figure the money saved over the years never buying maintenance saved me enough to cover any repair on anything.

 

[Dmaxboy08]

I work at a chrysler dealership and we offer extended warrenties on most cars. For the price I take it its only for powertrain. If it was me, i would do it. My reason is this: You never know what is going to happen. For example, I had to replace a engine is a dodge challenger. 5.7L hemi. We hardly see any issues with these engines but for some reason the timing chain broke on this engine causing the valves to contact the pistons and cylinder walls. milage on car was 37,000 miles. It was driven by a older women who prolly ever drove it hard. She had a factory extended warrenty because her warrenty was out by time. Warrenty covered it all. Total bill was 4,800 dollars.

I have seen other issues like this where warrenty saved the customer from a large bill. Others can go 100k miles and have no issues. Its a gamble, but....2500 dollars for a warrenty that will last you 70,000 miles and might save you from a big repair, or it may be 2500 dollars of waste. Its a gamble but again you never know what will happen.

 

[frdfandc]

It's more than likely a powertrain warranty (engine, trans, rear) for that amount of money.

If you had a VW or BMW or some type of vehicle like that, then I would probably go for it. But since you own a Mustang GT, I'd skip the warranty.

Reason being is that Mustangs are a dime a dozen, the 4.6 V8 rarely has issues in stock form. Main problems is the automatic transmissions are expensive to repair/replace, but the 6 speed auto's are much better than the older 4 speeds they replaced.

If you have a manual, you can pick up a new or reman 6 speed for under $1500 and install it in your driveway in under an hour (at least I can).

 

[CAJUNLAWYER]

three tears ago I bought my daughter a 2005 Yukon XL for such an incredible price that I went ahead and sprung for the bumper to bumper 4 year unlimited mileage warranty (cost 2.5k but the car with only 45000 miles cost me 10k ). I normally do not buy warranties for all the reasons posted, but since this car had sat for around three years (due to litigation), I decided to gamble. Well, I am way ahead on the warranty had a new ac compressor , fixed a major electronic glitch in the dashboard instrumentation and several other things. Car dealership cringes when they see me come in.
It is a gamble pure and simple and in my case paid off. The main reason I did it was the fact that the car sat up for three years and that just isn't good for any piece of machinery.

 

[johngalt]

In general, no. If this was a 3rd party warranty, a really BIG NO. I read stories once in a while of people trying to make a claim on their extended warranty and being denied due to the failure being declared a 'wear item'.

 

[max]

The mark up on extended warranties can be huge. There are places online that sell them for a hundred or so over cost and I have no problems with those. I bought one, at cost, for my wife's car and it has more than paid for itself.

 

[o3rugby1]

One. Make sure it is a true ford extended warranty.

Two. You can negotiate the price on the said warranty. (Yours was proabably mailed to you) go to your dealer to do this. 1800-2200 $$ saves you a few hundred.

Three. Make sure you only have a 36k mile warranty and not a powertrain to 100k etc. if you have the powertrain to 100k or 50k etc. dont buy the warranty.
If your a guy that trades every 40-50k dont buy the warranty.

 

[joespapa]

The mark up on extended warranties can be huge. There are places online that sell them for a hundred or so over cost and I have no problems with those. I bought one, at cost, for my wife's car and it has more than paid for itself.

Why should anyone in any business sell ANYTHING at cost ? Is this not America? The free enterprise system survives on PROFIT. Although , in another four years that may be gone altogether..... Just my two

 

[max]

I sold cars for 20 years and have no problem at all with making a profit. However, extended warranties are sometimes marked up over 1000%.

 

[jframe]

Waste of money. I've been in a dealership for eighteen years, and these things are just a big markup for the dealership, plus a big bonus for the F&I people in the office. Most of them have at least $100.00 deductible, and many of the repair costs are considered "wear items" and not covered.

 

[straightshooter1]

I suppose I am one of the few here that has the dealer service my vehicle, a 2007 Pathfinder with 150K on it (I put a lot of miles on my SUV-this being retired is a LOT of work).

I really like the CS reps and all of them have told me NOT to buy an extended warranty as many of them deny claims as posters above have noted. They said there was one that wasn't too bad, but still didn't recommend them.

So far (cross fingers, knock on wood, pray for mercy) only routine problems, batteries, tires, brakes, one tune-up), but I know, eventually I'll have to spend some money on it.

If it wasn't for car salesmen, I'd probably already have purchased a new one. But, that's another story.

Bob

 

[doc540]

worked in the industry for decades

1. ESA (extended service agreements) CAN be a good investment
2. their price is negotiable just like the price of a car
3. any ESA company can go broke and disappear, and many big one's have
4. I've personally used them many times to cover repair expenses
5. Take note that most designate repair parts "of like kind", meaning "used". (surprise!)
6. Keep detailed service records or they may deny your claim
7. Pay attention to length of coverage since most run concurrent with any existing factory warranty. If you buy a 5yr/50K mile ESA and your factory coverage is 3/36, you're paying for two years and 14K miles of coverage.

hope this helps

 

[truckemup97]

No.


Apparently that answer isn't long enough, but the four letter word I wanted to put in front of "no" isn't allowed around here.

 

[sophie]

In the long run you would be fortunate to make your money back on the extended warranty. I know some who have, but in my opinion it is not worth the expense.

__________
James

 

[doc540]

I've "made my money back" numerous times with ESA's.

Unless you do your own repairs, even the most simple of part replacements can be expensive these days.

Checked current labor rates lately?

Most dealerships are north of $100/hr and moving up.

 

[Wingmaster]

I look at it as insurance. If it was really a warrntee it would be from the manufacturer.
That being said, Insurance companies don't loose money. They make money, lots of money. They do pay on claims but not as much as they take in.

Wingmaster

 

[williamlayton]

OK now. I thankee all who chimed in. I am convinced in my own mind that I ws correct in my thinking in the beginning.
Thanks Ford--but, well--no thanks.
Blessings