Extended Service Plans
#46
12-02-2010, 02:09 PM
Bluejay - have you forgone homeowners insurance too? What about health insurance? Life insurance? ________ insurance?
It's always the same argument. They have to make money or else they wouldn't sell them.
On my 4x4 platinum, the 6yr / 100k warranty with a $50 deductible was $1520.
I had just traded in my 2007 Envoy that I was wrenching on too much. I'd rather not have to use the warranty ever - but now if I do, a rental car is covered (from day 1) and I don't sweat it.
The argument of "If I thought the vehicle was going to need an extended warranty I wouldn't buy it to begin with" is just so out of touch. I used to think that way - but when you get beyond that you'll realize that there are no guarantee's in life. Humans design and build these machines, there are variances, etc. Overall they are good but who can tell if you bought a bad one? Edmunds (I think it was Edmunds) did a study on extended warranty's. Guess what - most people's repair costs do not exceed the purchase price of the warranty - big surprise right?
What matters here though is the difference between warranty cost and covered repairs - surprisingly to me it was only $200.
The dealer should be selling these with this dollar factor. Chances are you'll lose ~200 dollars on this warranty, but if you're in the 3-5% you'll make $2k on it. What's more important than that, you won't be working on your car when you should be spending time with your family, you won't be bumming rides or leaving the wife at home without a car, etc.
Worth $200? To me, yes - but to each our own.
It's always the same argument. They have to make money or else they wouldn't sell them.
On my 4x4 platinum, the 6yr / 100k warranty with a $50 deductible was $1520.
I had just traded in my 2007 Envoy that I was wrenching on too much. I'd rather not have to use the warranty ever - but now if I do, a rental car is covered (from day 1) and I don't sweat it.
The argument of "If I thought the vehicle was going to need an extended warranty I wouldn't buy it to begin with" is just so out of touch. I used to think that way - but when you get beyond that you'll realize that there are no guarantee's in life. Humans design and build these machines, there are variances, etc. Overall they are good but who can tell if you bought a bad one? Edmunds (I think it was Edmunds) did a study on extended warranty's. Guess what - most people's repair costs do not exceed the purchase price of the warranty - big surprise right?
What matters here though is the difference between warranty cost and covered repairs - surprisingly to me it was only $200.
The dealer should be selling these with this dollar factor. Chances are you'll lose ~200 dollars on this warranty, but if you're in the 3-5% you'll make $2k on it. What's more important than that, you won't be working on your car when you should be spending time with your family, you won't be bumming rides or leaving the wife at home without a car, etc.
Worth $200? To me, yes - but to each our own.
I have homeowners insurance as the replacement of that would be catasrophic. I have collision insurance as I can not keep someone from involving me in an accident. But, to buy insurance on an appliance or vhicle repair is just not in my vocabulary. To me, it's like flushing money down a toilet. The money I have saved would pay for a complete new vehicle. On a side note, I don't finance either, I hate paying interest.
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Jim
Jim
#47
12-02-2010, 02:37 PM
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There's good and bad to both sides of this argument.
If you are lucky enough to get a vehicle that lasts the entire life of which you own it, without a major repair, that's just icing on the cake. And/or... if you are financially secure enough that should a catastrophic repair be necessary and you can afford to pay the repair without burden, then insurance IS a waste of your money.
An ESP for even several smaller repairs, will likely never recoup your insurance investment... BUT for the vast majority of folks... an ESP is your best protection for not possibly having to shell out thousands of dollars... usually at the most inopportune time.
If you are lucky enough to get a vehicle that lasts the entire life of which you own it, without a major repair, that's just icing on the cake. And/or... if you are financially secure enough that should a catastrophic repair be necessary and you can afford to pay the repair without burden, then insurance IS a waste of your money.
An ESP for even several smaller repairs, will likely never recoup your insurance investment... BUT for the vast majority of folks... an ESP is your best protection for not possibly having to shell out thousands of dollars... usually at the most inopportune time.
#48
12-02-2010, 06:02 PM
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Here's my strategy. I negotiate the lowest ESP I can find, then take the same money and put it in my Scottrade account. I've done this since my first 1997 F-150.
Currently, my 'vehicle repair' account is sitting at $27,3xx as of stock close today. Any time I have a $250 or larger expense (that would have fallen under an ESP) I pull it out of the account. Most ESP's have deductibles. My cam phasers were covered by this account. I'm also to the point that tires, and all other major wear items are covered by this account.
Thirteen years, and I have $27k of a vehicle war chest built up. Granted I wear out trucks every 3-4 years, so I've put the ESP money into this account in 1997, 2001, 2004, 2007, and 2009. You tell ME which choice is better?? I assume within 2 years I can literally pay for my 2013 F150 with money that WOULD have gone to ESP.
IowaAndy
EDIT:
Here's what my best quoted price was each time:
1997 - $1370
2001 - $1204
2004 - $1740
2007 - $2120
2009 - $1775
Total principle deposited - $8209...
Currently, my 'vehicle repair' account is sitting at $27,3xx as of stock close today. Any time I have a $250 or larger expense (that would have fallen under an ESP) I pull it out of the account. Most ESP's have deductibles. My cam phasers were covered by this account. I'm also to the point that tires, and all other major wear items are covered by this account.
Thirteen years, and I have $27k of a vehicle war chest built up. Granted I wear out trucks every 3-4 years, so I've put the ESP money into this account in 1997, 2001, 2004, 2007, and 2009. You tell ME which choice is better?? I assume within 2 years I can literally pay for my 2013 F150 with money that WOULD have gone to ESP.
IowaAndy
EDIT:
Here's what my best quoted price was each time:
1997 - $1370
2001 - $1204
2004 - $1740
2007 - $2120
2009 - $1775
Total principle deposited - $8209...
Last edited by ajsturtz; 12-02-2010 at 06:08 PM.
#49
12-02-2010, 07:41 PM
I see the stragegy in a way.
I used a similar one on my health insurance @ work.
there was a cheaper rate with a ridiculous ded. ($2200)
There was the "standard" rate with a $500 ded.
Being as I rarely have to go to the doctor.
I put the EXTRA money I would have spent on the "standard" plan into a savings account (I kept the High deductible plan).
there was about a $40 difference in the plans.
SO....If I did have to go to the doctor, I'd still have to meet my deductible... (but I would have built up $40 a month in my savings account to use).
**IF** I didn't have to go to the doctor that year, I would have had $1040 in my pocket, instead of my employers pocket.
So, the OP is using sort of the same strategy in the extended warranty do or don't.
All the money he WOULD have spent on the ESP is put in a savings/equity/etc plan.
Complicated to explain, but I see the theology.
I used a similar one on my health insurance @ work.
there was a cheaper rate with a ridiculous ded. ($2200)
There was the "standard" rate with a $500 ded.
Being as I rarely have to go to the doctor.
I put the EXTRA money I would have spent on the "standard" plan into a savings account (I kept the High deductible plan).
there was about a $40 difference in the plans.
SO....If I did have to go to the doctor, I'd still have to meet my deductible... (but I would have built up $40 a month in my savings account to use).
**IF** I didn't have to go to the doctor that year, I would have had $1040 in my pocket, instead of my employers pocket.
So, the OP is using sort of the same strategy in the extended warranty do or don't.
All the money he WOULD have spent on the ESP is put in a savings/equity/etc plan.
Complicated to explain, but I see the theology.
Here's my strategy. I negotiate the lowest ESP I can find, then take the same money and put it in my Scottrade account. I've done this since my first 1997 F-150.
Currently, my 'vehicle repair' account is sitting at $27,3xx as of stock close today. Any time I have a $250 or larger expense (that would have fallen under an ESP) I pull it out of the account. Most ESP's have deductibles. My cam phasers were covered by this account. I'm also to the point that tires, and all other major wear items are covered by this account.
Thirteen years, and I have $27k of a vehicle war chest built up. Granted I wear out trucks every 3-4 years, so I've put the ESP money into this account in 1997, 2001, 2004, 2007, and 2009. You tell ME which choice is better?? I assume within 2 years I can literally pay for my 2013 F150 with money that WOULD have gone to ESP.
IowaAndy
EDIT:
Here's what my best quoted price was each time:
1997 - $1370
2001 - $1204
2004 - $1740
2007 - $2120
2009 - $1775
Total principle deposited - $8209...
Currently, my 'vehicle repair' account is sitting at $27,3xx as of stock close today. Any time I have a $250 or larger expense (that would have fallen under an ESP) I pull it out of the account. Most ESP's have deductibles. My cam phasers were covered by this account. I'm also to the point that tires, and all other major wear items are covered by this account.
Thirteen years, and I have $27k of a vehicle war chest built up. Granted I wear out trucks every 3-4 years, so I've put the ESP money into this account in 1997, 2001, 2004, 2007, and 2009. You tell ME which choice is better?? I assume within 2 years I can literally pay for my 2013 F150 with money that WOULD have gone to ESP.
IowaAndy
EDIT:
Here's what my best quoted price was each time:
1997 - $1370
2001 - $1204
2004 - $1740
2007 - $2120
2009 - $1775
Total principle deposited - $8209...
#50
12-02-2010, 10:29 PM
Here's my strategy. I negotiate the lowest ESP I can find, then take the same money and put it in my Scottrade account. I've done this since my first 1997 F-150.
Currently, my 'vehicle repair' account is sitting at $27,3xx as of stock close today. Any time I have a $250 or larger expense (that would have fallen under an ESP) I pull it out of the account. Most ESP's have deductibles. My cam phasers were covered by this account. I'm also to the point that tires, and all other major wear items are covered by this account.
Thirteen years, and I have $27k of a vehicle war chest built up. Granted I wear out trucks every 3-4 years, so I've put the ESP money into this account in 1997, 2001, 2004, 2007, and 2009. You tell ME which choice is better?? I assume within 2 years I can literally pay for my 2013 F150 with money that WOULD have gone to ESP.
IowaAndy
EDIT:
Here's what my best quoted price was each time:
1997 - $1370
2001 - $1204
2004 - $1740
2007 - $2120
2009 - $1775
Total principle deposited - $8209...
Currently, my 'vehicle repair' account is sitting at $27,3xx as of stock close today. Any time I have a $250 or larger expense (that would have fallen under an ESP) I pull it out of the account. Most ESP's have deductibles. My cam phasers were covered by this account. I'm also to the point that tires, and all other major wear items are covered by this account.
Thirteen years, and I have $27k of a vehicle war chest built up. Granted I wear out trucks every 3-4 years, so I've put the ESP money into this account in 1997, 2001, 2004, 2007, and 2009. You tell ME which choice is better?? I assume within 2 years I can literally pay for my 2013 F150 with money that WOULD have gone to ESP.
IowaAndy
EDIT:
Here's what my best quoted price was each time:
1997 - $1370
2001 - $1204
2004 - $1740
2007 - $2120
2009 - $1775
Total principle deposited - $8209...
I really need to get in touch with whoever manages your portfolio. The Dow is only about 50% higher than it was in 1997 -- so your investments are doing roughly 600% better than the market - more if you count your withdrawals (and the fact that not all of the principal was invested in 1997).
#51
12-02-2010, 11:01 PM
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#52
12-03-2010, 10:03 AM
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I really need to get in touch with whoever manages your portfolio. The Dow is only about 50% higher than it was in 1997 -- so your investments are doing roughly 600% better than the market - more if you count your withdrawals (and the fact that not all of the principal was invested in 1997).
My current truck portfolio:
Aapl - Apple
Bwld - Buffalo wild wings
De - John Deere
BP - The infamous BP
F - Ford
Nflx - Netflix
I'm going to be dumping BP, BWLD, and pick up something up and coming in the next month or so.
I find it strangely rewarding that Ford stock has paid me very well to service my Ford truck!
I've owned it and dumped it 3 different times. 
As you can see, I've made 18% just on the Ford stock since October 27th... Gotta love the stock market! Even better is Netflix, nearly 16% in one month...
IowaAndy
#53
12-08-2010, 07:38 PM
#54
12-08-2010, 10:27 PM
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I bought it with my 04 F150 and it paid for itself, at the end of my warranty, I have had the tranny replaced, 2 alternators, the rear window 3 times, phasers once, drivers window, etc....
I tried to get it lemon'd but after a long fight it would have been cheaper to sell the truck and get a new one and take the loss. So I took the money and bought an extended warranty. Now the warranty is up so I am in the market for a new truck and I will get the 100K 8 year warranty with this one as well.
I tried to get it lemon'd but after a long fight it would have been cheaper to sell the truck and get a new one and take the loss. So I took the money and bought an extended warranty. Now the warranty is up so I am in the market for a new truck and I will get the 100K 8 year warranty with this one as well.
#55
12-09-2010, 01:41 PM
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My F250 with the crappy 6 liter engine was well worth having the ESP. Ford put over ten grand in repairs for my 1,400 bucks warranty cost. turbo, heads and head gaskets, EGR cooler, front hubs 4wd, EBP sensor, FICM. I got a lot of satisfaction out of that warranty. It was also the only reason I could get 20K for it on trade after 100k miles.
I am hoping the F150 5.4L gas engine is a lot more reliable, maybe cam phasers... I will decide this year if it is worth the ESP on this truck 1,200. If I had sunroof and nav definitely.
I am hoping the F150 5.4L gas engine is a lot more reliable, maybe cam phasers... I will decide this year if it is worth the ESP on this truck 1,200. If I had sunroof and nav definitely.
Last edited by L8 APEX; 12-09-2010 at 01:44 PM.
#57
12-13-2010, 06:14 PM
Here's the scoop.
Typically, you can get the ESP before your truck reaches 12,000 miles.
The earlier you buy it, the cheaper you can get it, Rates can typically go up $100-200 (For example, I just bought my 2010 F150 two months ago).
the 2010 "year" rates will go up Jan 11, that means the PREMIUM ESP I can get for $930 now will go up to around $1130 staring Jan 11.
...regardless of purchase date of the truck.....
you can buy an ESP after the 12,000 miles BUT it does have to go thru a vehicle inspection at a dealer prior to purchasing the ESP.
There are FOUR varying levels of ESP's with varying deductibles.
Typically, you can get the ESP before your truck reaches 12,000 miles.
The earlier you buy it, the cheaper you can get it, Rates can typically go up $100-200 (For example, I just bought my 2010 F150 two months ago).
the 2010 "year" rates will go up Jan 11, that means the PREMIUM ESP I can get for $930 now will go up to around $1130 staring Jan 11.
...regardless of purchase date of the truck.....
you can buy an ESP after the 12,000 miles BUT it does have to go thru a vehicle inspection at a dealer prior to purchasing the ESP.
There are FOUR varying levels of ESP's with varying deductibles.
#58
12-13-2010, 07:00 PM
Thats not right thats comparing apples to oranges. It is a bet no question about it. Caught with no insurance you go to jail. caught with no ESP warranty youre not going to jail. Youre vehicle breaking down will more than likely cost less than most accidents you see especially when you get into bodily injury costs.
Last edited by Alex_4.2L; 12-13-2010 at 07:18 PM.
#59
12-13-2010, 07:01 PM
Sample policy ESP FORD (NEW within 12,000 miles)
http://www.floodfordesp.com/Ford%20E...ontractESP.pdf
ESP over 12,000 miles Inspection form
http://www.floodfordesp.com/Ford%20E...nChecklist.pdf
http://www.floodfordesp.com/Ford%20E...ontractESP.pdf
ESP over 12,000 miles Inspection form
http://www.floodfordesp.com/Ford%20E...nChecklist.pdf
#60
12-14-2010, 07:02 PM
Ford esp, finally bought it!
Well, after about a week of researching Ford Extended Warranties,
I purchased one.
I was checking prices on about four sites. These are NOT third party warranties. These are actual FORD dealers selling the actual FORD ESP online.
Obviously, the dealer where you purchased your truck/car at tries to soak you with an outlandish price on an extended warranty.
I've learned alot. MY dealer was going to sell it for $1250, then admitted it cost him 1,075 . . . . BUT, later found the cheapest price of $665!!!!!
that is a HUGE difference!!
Get, this FORD (on the website) wanted $1,470!!!
Goes to show you the HUGE, tremendous markup on these things.
I settled on the 72 month / 75,000 miles PREMIUM CARE ESP.
That effectively fits my driving patterns and basically doubles my factory warranty. That's less than $200 a year for coverage. I'm happy!!
If you want to research one for yours, check here, they have the lowest rates....
http://www.fordfactoryplans.com/
Talk to Michael Case. he was very helpful!
I purchased one.
I was checking prices on about four sites. These are NOT third party warranties. These are actual FORD dealers selling the actual FORD ESP online.
Obviously, the dealer where you purchased your truck/car at tries to soak you with an outlandish price on an extended warranty.
I've learned alot. MY dealer was going to sell it for $1250, then admitted it cost him 1,075 . . . . BUT, later found the cheapest price of $665!!!!!
that is a HUGE difference!!
Get, this FORD (on the website) wanted $1,470!!!
Goes to show you the HUGE, tremendous markup on these things.
I settled on the 72 month / 75,000 miles PREMIUM CARE ESP.
That effectively fits my driving patterns and basically doubles my factory warranty. That's less than $200 a year for coverage. I'm happy!!
If you want to research one for yours, check here, they have the lowest rates....
http://www.fordfactoryplans.com/
Talk to Michael Case. he was very helpful!