Extended warranty
#1
05-23-2006, 07:18 PM
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Extended warranty
I have seen posts in the past about purchasing an extended warranty after the fact. I am interested in possibly doing this. Do you do this through Ford themselves or somebody else? Also, how do they figure the pricing for this warranty? My truck is a 2005 with 26000 miles on it. Thanks
#2
05-23-2006, 08:27 PM
I'd stick with a Ford ESP. Aftermarket ESPs get kinda dicey in the things that they do and don't cover. For major failures, aftermarket warranty companies usually want to send inspectors out to see what went wrong, this means more downtime for your vehicle. And they often **** around with the dealers as to how much labor time to pay and what the parts cost, which again means more downtime for your vehicle. Logistically, aftermarket warranty companies suck.
I bought a PremiumCare ESP for my truck when I bought the truck, so I'm not sure how you'd go about buying one afterwards.
I bought a PremiumCare ESP for my truck when I bought the truck, so I'm not sure how you'd go about buying one afterwards.
#4
05-23-2006, 09:54 PM
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#5
05-23-2006, 10:19 PM
No. I refused the extended warranty because it would have been a huge windfall for the dealer with little benefit to me. Here's what Dave Ramsey has to say about this topic.
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BIZNETDAILY COMMENTARY
Are online extended warranties a good idea?
--------------------------------------------------------------------------------
Posted: March 1, 2005
1:00 a.m. Eastern
By Dave Ramsey
--------------------------------------------------------------------------------
© 2005 WorldNetDaily.com
Are online extended warranties a good idea?
Dear Dave,
I’ve been trying to follow your advice, cut up my credit cards and get rid of my debt. I bought an extended warranty for my Ford F150 pickup truck. I compared a lot of warranties and a lot of companies were trying to bamboozle me, but I did find one company who promised to provide coverage similar to the original factory warranty. When I checked it out, the warranty looked pretty good.
I had to have my air conditioning repaired and the shop charged me $1,550. This warranty company really stepped up and covered me.
Now I’ve got a friend who has an older car and is looking at an extended warranty. I recommended this company, but would like to give him some key things to shop out on these warranties. What do you recommend?
Jerry
Phoenix, Ariz.
Dear Jerry,
I recommend he not buy one. Extended warranties are not a good deal! Extended warranties are insurance. Insurance is made up of four components: commissions, overhead expenses, the statistical probability of the event occurring and profit. When you buy an extended warranty, you’re covering commissions, overhead and profit. Thirteen percent of what you’re paying for an extended warranty goes toward actual repair costs. If you’d set that amount aside, you could cover that average repair expenditure on your vehicle. The remaining 87% of what you are paying is going toward the warranty company’s marketing costs (commissions and sales expenses) and profit. Extended warranties are extremely profitable for those selling them and a terrible deal for those buying them.
Fifteen hundred dollars for an air conditioning repair on a Ford pickup is a rip off. Self-insure with an emergency fund and choose your repair people better.
Dave
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BIZNETDAILY COMMENTARY
Are online extended warranties a good idea?
--------------------------------------------------------------------------------
Posted: March 1, 2005
1:00 a.m. Eastern
By Dave Ramsey
--------------------------------------------------------------------------------
© 2005 WorldNetDaily.com
Are online extended warranties a good idea?
Dear Dave,
I’ve been trying to follow your advice, cut up my credit cards and get rid of my debt. I bought an extended warranty for my Ford F150 pickup truck. I compared a lot of warranties and a lot of companies were trying to bamboozle me, but I did find one company who promised to provide coverage similar to the original factory warranty. When I checked it out, the warranty looked pretty good.
I had to have my air conditioning repaired and the shop charged me $1,550. This warranty company really stepped up and covered me.
Now I’ve got a friend who has an older car and is looking at an extended warranty. I recommended this company, but would like to give him some key things to shop out on these warranties. What do you recommend?
Jerry
Phoenix, Ariz.
Dear Jerry,
I recommend he not buy one. Extended warranties are not a good deal! Extended warranties are insurance. Insurance is made up of four components: commissions, overhead expenses, the statistical probability of the event occurring and profit. When you buy an extended warranty, you’re covering commissions, overhead and profit. Thirteen percent of what you’re paying for an extended warranty goes toward actual repair costs. If you’d set that amount aside, you could cover that average repair expenditure on your vehicle. The remaining 87% of what you are paying is going toward the warranty company’s marketing costs (commissions and sales expenses) and profit. Extended warranties are extremely profitable for those selling them and a terrible deal for those buying them.
Fifteen hundred dollars for an air conditioning repair on a Ford pickup is a rip off. Self-insure with an emergency fund and choose your repair people better.
Dave
#6
05-23-2006, 10:53 PM
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Originally Posted by rocky85
No. I refused the extended warranty because it would have been a huge windfall for the dealer with little benefit to me. Here's what Dave Ramsey has to say about this topic.
---
BIZNETDAILY COMMENTARY
Are online extended warranties a good idea?
--------------------------------------------------------------------------------
Posted: March 1, 2005
1:00 a.m. Eastern
By Dave Ramsey
--------------------------------------------------------------------------------
© 2005 WorldNetDaily.com
Are online extended warranties a good idea?
Dear Dave,
I’ve been trying to follow your advice, cut up my credit cards and get rid of my debt. I bought an extended warranty for my Ford F150 pickup truck. I compared a lot of warranties and a lot of companies were trying to bamboozle me, but I did find one company who promised to provide coverage similar to the original factory warranty. When I checked it out, the warranty looked pretty good.
I had to have my air conditioning repaired and the shop charged me $1,550. This warranty company really stepped up and covered me.
Now I’ve got a friend who has an older car and is looking at an extended warranty. I recommended this company, but would like to give him some key things to shop out on these warranties. What do you recommend?
Jerry
Phoenix, Ariz.
Dear Jerry,
I recommend he not buy one. Extended warranties are not a good deal! Extended warranties are insurance. Insurance is made up of four components: commissions, overhead expenses, the statistical probability of the event occurring and profit. When you buy an extended warranty, you’re covering commissions, overhead and profit. Thirteen percent of what you’re paying for an extended warranty goes toward actual repair costs. If you’d set that amount aside, you could cover that average repair expenditure on your vehicle. The remaining 87% of what you are paying is going toward the warranty company’s marketing costs (commissions and sales expenses) and profit. Extended warranties are extremely profitable for those selling them and a terrible deal for those buying them.
Fifteen hundred dollars for an air conditioning repair on a Ford pickup is a rip off. Self-insure with an emergency fund and choose your repair people better.
Dave
---
BIZNETDAILY COMMENTARY
Are online extended warranties a good idea?
--------------------------------------------------------------------------------
Posted: March 1, 2005
1:00 a.m. Eastern
By Dave Ramsey
--------------------------------------------------------------------------------
© 2005 WorldNetDaily.com
Are online extended warranties a good idea?
Dear Dave,
I’ve been trying to follow your advice, cut up my credit cards and get rid of my debt. I bought an extended warranty for my Ford F150 pickup truck. I compared a lot of warranties and a lot of companies were trying to bamboozle me, but I did find one company who promised to provide coverage similar to the original factory warranty. When I checked it out, the warranty looked pretty good.
I had to have my air conditioning repaired and the shop charged me $1,550. This warranty company really stepped up and covered me.
Now I’ve got a friend who has an older car and is looking at an extended warranty. I recommended this company, but would like to give him some key things to shop out on these warranties. What do you recommend?
Jerry
Phoenix, Ariz.
Dear Jerry,
I recommend he not buy one. Extended warranties are not a good deal! Extended warranties are insurance. Insurance is made up of four components: commissions, overhead expenses, the statistical probability of the event occurring and profit. When you buy an extended warranty, you’re covering commissions, overhead and profit. Thirteen percent of what you’re paying for an extended warranty goes toward actual repair costs. If you’d set that amount aside, you could cover that average repair expenditure on your vehicle. The remaining 87% of what you are paying is going toward the warranty company’s marketing costs (commissions and sales expenses) and profit. Extended warranties are extremely profitable for those selling them and a terrible deal for those buying them.
Fifteen hundred dollars for an air conditioning repair on a Ford pickup is a rip off. Self-insure with an emergency fund and choose your repair people better.
Dave
Complete BS. Everytime my parents have bought a new vehicle they have gotten the extended warranty. Everytime, and I mean everytime, after the 36,000 miles was up there was something that would have cost about $2,000 would quit working. Transmission, engine, air conditioning, etc.
Their 2001 SuperCrew blew a motor at 97,000 miles. Now they would have been out about $4,000 if they didn't have the extended warranty. Their last vehicle, a 1997 Windstar needed a transmission at about 75,000 miles. I think their extended warranty paid itself off both times in one repair, not to mention the other small repairs like starters and alternators etc.
Seeing that they used extended warranty everytime they had it, I bought one with my 05 Screw.
Most of the stuff that Dave Ramsey says is pretty good stuff but in this case he is completely wrong.
#7
05-24-2006, 12:53 AM
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Just think of all of the times that you can by warranties? tv's, dvd, washer, dryer, car, truck, etc. Add up all of the money you spend on extended warraties and never use. I know for me I would rather keep my money and spend it when I need to instead of giving it away if I do not have to. Remember after the warranty is up they keep the money even if you do no not use it. Just my 2 cents.
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#8
05-24-2006, 09:27 AM
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A couple of points...
1. If the dealers and manufacturers didn't make money on them they wouldn't sell them.
2. It is insurance...nothing more nothing less. Some people prefer the piece of mind that it affords the buyer.
3. You may never use the warranty. In which case you spent $1500 (or whatever) for the insurance and the peace of mind. It isn't a waste if you feel the peace of mind is worth it.
4. If you make one or two claims you will likely break even or make out by purchasing.
I never view them as a waste if #3 has any value to you.
That said I would only buy the Ford version. I do have one because with a new model (at the time) and all the electronics (DVD, etc) I didn't want to be bothered.
1. If the dealers and manufacturers didn't make money on them they wouldn't sell them.
2. It is insurance...nothing more nothing less. Some people prefer the piece of mind that it affords the buyer.
3. You may never use the warranty. In which case you spent $1500 (or whatever) for the insurance and the peace of mind. It isn't a waste if you feel the peace of mind is worth it.
4. If you make one or two claims you will likely break even or make out by purchasing.
I never view them as a waste if #3 has any value to you.
That said I would only buy the Ford version. I do have one because with a new model (at the time) and all the electronics (DVD, etc) I didn't want to be bothered.