I hit 31k miles today.. It's time to get some cash together for an extended warranty.

Any opinions? Worth it? I think I'm going to buy from the dealership.. Ford extended warranty. $1600 I think was the price? And they'll actually finance for 12 months, 0 down...

Let me know what you think.

And is the price negotiable?

 

Yes the price is negotiable & yes I would go for it if I were you. I have the extended warranty & it's just about paid for 50% of itself due to stuff I've taken the truck in for.

KC-10 FE out...

 

What $$number should I shoot for? I'm fairly decent at negotiating vehicle pricing.. but I'm not sure how to go for negotiating warranty cost.

 

I've never had a problem in over 16 years of owning trucks where a $1200 warrenty would have paid for itself. I've known very few people where it would have paid for itself. They are a money grab. Save your money and you can pay for most any repair you'll have oin the first 100000 miles.




-jeff b

 

What ever you do, just make sure you read what you ae buying. Ther are different kinds of warranties. Some cover just powertrain (internal lubricated parts only) which means if you throw a rod you're covered but if the starter goes out, you're paying for it.You got a High tech warranty (think thats what they call it) which covers powertrain + electrical items (starters power window motors etc.) and a/c repairs. I think there is one higher than that but not sure what all it covers. All i'm saying is read whats being covered before you sign. I've had alot of customers raise hell cause "I got a warranty" but didnt read what their warranty really covered.

 

Hi Jeff !!

Please, take no offense, but you can hardly discredit an extended warranty based on the lack of problems from a handful of people out of millions of trucks on the road. ANYTHING can happen.

I had an extended warranty on my 2000 Lariat and it paid for itself when I got 4 brand new wheels from Ford. They were the 17” 5 spoke chrome wheels. They all had TINY spots of rust on them. The dealership replaced them with no resistance. I also had the whole back window replaced since the seal was intermittently catching when you would open/close the rear sliding window. Those aren’t even mechanical issues! I’ve never had mechanical issues, but the warranty sure came into play!!!

I purchased my 06 Lariat screw back in Sept. I got a 100,000/7yr extended warranty for $1100 or $1200. It is very cheap insurance for those “just in case” moments for practically anything on the truck, not just the drive train.

 

If you Didn't have one, and a $1600 repair job popped up on your New truck, it would Really Suck, and I think be very unexpected (I mean, that's why you have a New truck).

So Why go ahead and fork out $1600 for the Hell of it?? Especially if you don't even Have the $1600 bucks and have to Finance it.

Maybe if I had a truck with a bunch of issues during the First 30k, but it's pretty much proved itself if it hasn't.

I think that's how Dealerships make all their money. It's not just cars. Everything comes with an Optional warranty. Digital cameras, TV's, Refrigerators, Radio's, bicycles, . You can spend a Fortune trying to "insure" every doo-dad in your house!

 

It depends. Some folks buy an extended warranty and never have to use it, and some folks just put money to the side in case of a major failure and never have to use it either.

Hell, I work on my own truck and I bought an extended warranty when I bought the truck...and I haven't needed it yet. Go figure.

 

if i have to shell out 1600 for a repair on my truck i would take that 1600 and put it towards a new truck and just trade it in and let the dealership worry about it when they try to sell it.

 

Not to hurt anyones feelings, but i dont think you all understand the cost of repairs. Here's what i'm saying, you may not ever have a repair that cost 1600, but just small repairs say Check engine light comes on, take it the dealer lets say its a code P0307, Cyl 7 miss fire, between diag time which is an hour min. part, and labor you have a bill for 300. Maybe a year later a window motor goes out, there's another couple hundred. Just little thing could add up and pay for the warranty. Alot of us have experiance to do our own repairs so yeah a warranty may not be needed, but with the price of parts that 1600 can go a long way

 

I have had 2 window regs done w/ my extended warranty @ $365 a window. I paid the $50 deductible. When the other two go out the warranty would have paid for itself. To me it is worth it. I would check the fine print though, I got screwed one time by the bow tie people.
Their extended warranty deductible was $50 per item, That meant if i had an a/c problem and they changed the compressor and the condenser it was $100.
My new warranty i can take it in and do my a/c, fuel pump and rear end for one $50 deductible

Its a peace of mind you get.

 

x2

 

No survey, no study, EVER showed a value to extended warranties.
That doesn't mean you might not 'profit' from one.

It means that if 1000 people buy them, 900 plus will lose big, 50 will lose a little, 20 will break even and 30 will 'win'.
About 5 of the 30 will 'win big' that is, get back more than the cost of the warranty and the cost of the loss of the money for the warranty.
A 1600 dollar warranty costs you about 2500 bucks over 4 years, minimum. See note if you don't believe this.

Plus it 'locks' you into going to places that honor the warranty. So a valve cover leak taken to a dealership costs you 200, your warranty picks up 160 netting you a 40 dollar out of pocket. As opposed to taking it to the local shop which charges 100 bucks, netting you 100 out of pocket.
This distorts the numbers tremendously.

Bottom line, if even 1 in 3 persons 'broke even' on an extended warranty, they would not offer them. Period.
Retailers have learned that extended warranties are the main source of profit in sales. You can find hundreds of documentations of this, it's not a secret.
Car dealers got on the band wagon late, and are striving to catch up.


So buy it, if it makes you feel good, but as an 'investment' it's just fractionally better than lottery tickets.
The only exception is a known lemon.
If your truck spends a few weeks a year at the dealership, buy an extended warranty. If it's normal or even just a little worse, don't.

Chris




Note; for those that don't understand money, if you spend 1600 dollars on something, it costs more than 1600 bucks. Your actual cost might include interest, but always cost the amount that 1600 dollars can earn in the same time. Example 1600 cash costs 1600 plus say 4 years of interest at 5%.
That's a minimum.

Another way of looking at it, it may cost you the 19% interest you pay on your credit cards on the 1600 bucks you don't use to pay them off...

1600 bucks over 4 years is roughly 2500 real dollars and can be much more.

 

I have had my truck since sept 05 and I only have 7,600 miles on it due to being deployed twice since then. My factory warranty runs out in sept this year. I haven't even broke this thing in yet. I plan on calling ford to see if they could helo me out with getting a xtended warranty cheap concidering I haven't been able to drive it that much. I think all factory warranties should be based on the miles alone, not years. So when I reach 36,000 thats it. Instead of after only three years, just not enough time.

 

Even if my warranty doesn't pay for itself it's built into my fianancing so I don't mind too much. If I forked out the cash seperate it would bother me more. I like getting the extended warranty as an ease of mind. If it's broke it's on them till 100,000.