I read a comment elsewhere that seemed to infer that Ford's was ok but not others, if bought at a low price.

Any experience or opinions?

Generally I do not believe in or buy such thinks but there have been a few exceptions that did turn out to be worth while?

Never have done it on a car or truck.

 

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I know a little bit about this... I dont work for Ford, but I used to sell independant service contract plans. It's kinda complex, but I offer this for you and others.

3 things about extended service plans...Who is the Obligor, who is the Administrator, who is the Insurer. For a Ford (in this example, or any other manufacturer plan) the Obligor is Ford, the Administrator is (a Ford owned subsidiary), and the Insurer is (a Ford owned subsidiary). For the Brand X 'Independant' (non-Ford) owned contract - the Obligor is 'John Doe Service Contract', the Adninistrator is 'Whoever John Doe can get', and the Insurer is 'Whoever John Doe can get'.

The Obligor is responsible for payment of claims...the Administrator is who manages, approves, denies, and pays claims...the Insurer is who pays the legitimate claims if the Administrator and the Obligor go broke because of high claims.

There are many independant service contract companies, and there are many dealer owned (self-serving; profit motive) service contract companies. I could go on and on, but who would you rather back up the repair of the Ford you bought - Ford?, or one of the others who could care less if you got your truck repaired, or ever came back to the Ford dealer for your next truck? (Assume you moved out of state - the Dealer owned company would look for any reason to deny your claim - they know you'll never buy another truck from them, and that you can't trash their reputation from out of state). The Independant will look for any reason to deny your claim because they are a 'for profit' company.

Independant or Dealer owned contracts are not necessarily any cheaper, either. They sell them because the Dealer Principal says so (profit motive).

You will never know if the administrator or the insurer go broke or are changed with any contract except the manufacturers. The insurer could go from a 'AAA' insurer to a 'A, or B' insurer - and you may never get paid, whatever happens.

Bottom line, who cares more for your customer satisfaction - Ford? or the dealer?, or independant company?

I'll stay with the Manufacturere's Plan, thank you!

 

wow, thanks for the info on extended warranty! How do you know if you are buying one from the dealer or manufacturer when you're at the dealership signing the papers? All I knew before was that it depends on the manufacturer, some give you only a short timeframe to decide to take it or not, while others give you the full time period of the original warranty to decide if you want it. but sometimes the only way to get 0 deductible is to take the warranty at time of purchase.

 

...Beware of the F&I dep't. They will take advantage of the 'ignorant' with gusto! The only way you know if you are getting a factory backed service contract is if the documents presented to you for your signature say 'Ford ESP', or Mazda MEPP, or GMPP... etc. Most manufacturers allow you to buy an extended service plan anytime during the factory warranty period...(for example, 3 years or 36,000 miles). The deductable is not an issue - the only benefit of financing a service contract with the purchase is a rental car reimbursement during the factory warranty, and the convenience of financing the premium over the term of the loan. The flip side is paying cash for one later without including it in your monthly payments, while you are still covered under the manufacturers warranty. (Will you remember, and can you afford to pay + - $1000 two years from now??)

The Dealer must offer the Manufacturer's extended service plan. They cannot force you into another plan without the risk of a lawsuit. It is up to the buyer to educate themselves to avoid high pressure tactics. It is not unusual for a sale to make as much profit in the F/I dep't as they make on the vehicle price.

It is up to the buyer to educate themselves BEFORE they get into the F/I dept. You should NEVER make a split second decision at the closing table... If you are not informed, you are 'ignorant', and fodder for the predators at the typical dealer closing table. That is not to mean all dealers are without dignity - but many of their employees are...

"The informed will never be accused of ignorance"....