Having been plagued with the leaky Head Gasket, which resulted in an FQR replacement engine, this may be a glimmer of hope for any future FORD purchase.....

Reuters Business Report
Warranty Cost Worries Hit GM, Ford Shares
By Justin Hyde
DETROIT (Reuters) - General Motors Corp. (NYSE:GM - News) and Ford Motor Co. (NYSE:F - News) shares fell on Wednesday after a Banc of America analyst downgraded both automakers, saying each would be forced to follow DaimlerChrysler AG's (NYSECX - News; XETRACXGn.DE - News) offer of a longer powertrain warranty.


Analyst Ron Tadross lowered his rating on GM and Ford to "market performer" from "buy" and lowered his 2003 earnings estimates for both companies, citing the costs of matching the warranty.
GM shares were down $2.89, or about 5.6 percent, at $48.25 in afternoon trading on the New York Stock Exchange, while Ford was down 93 cents, or 6.3 percent, at $14.16. Shares of DaimlerChrysler were also down $1.43, or about 3 percent, at $44.87.
Tadross said Chrysler's offer of a seven-year or 70,000-mile warranty on its powertrains -- including engines, transmissions and related parts -- would likely help its market share, forcing GM and Ford to reply.
Spokesmen for GM and Ford said on Wednesday they were studying the effect of Chrysler's offer, but declined to say whether they would match Chrysler's offer.
GM's sales chief said earlier this year that copying Chrysler's original 7/100 program would cost GM about $700 per vehicle and that customers would rather have the cash than a longer warranty.
Chrysler had offered a seven-year or 100,000-mile powertrain warranty since November, and Tadross noted that Chrysler's U.S. market share has improved by one percentage point since them. While the new warranty offer covers fewer miles, it also can be transferred between owners, which the previous deal was for just the original buyer.
"We do not think GM, in particular, will tolerate taking a backseat to DaimlerChrysler on quality," Tadross said in a research note. "Equally important, other automakers, like Hyundai and Volkswagen, have been in the market with similar programs."
Tadross estimated that the net cost of the warranty to Chrysler was $325 million a year, while a similar deal would cost GM $741 million a year and Ford $468 million a year. Based on those costs, he lowered GM's 2003 earnings per share estimate to $6.50 from $7.75 and lowered Ford's estimate to 45 cents a share from 95 cents.
When Chrysler made a similar offer in 1987, GM and Ford were forced to copy it. But Chrysler Chief Executive Dieter Zetsche said in an interview with Reuters last week that he did not expect GM and Ford would do the same with the new warranty.
"We think they're on a different strategy altogether ... big incentives seems to be their long-term strategy," Zetsche said. "We think after eight months this is our program and it's linked to our brands, and if others were to copy it, it might even enforce the link to our brands."
Chrysler originally rolled out the 7/100 offer as a way to counter some of the interest-free loans and cash rebates from GM and Ford. Incentives from the Big Three averaged $2,505 in June, an 8 percent increase from May, driven by a 15 percent increase from GM.
Analysts expect even higher averages in July, as all three revived zero-percent loans and increased rebates to clear out stocks and sustain summer sales.
Tadross and other analysts have also raised questions in the past few weeks about pension and health-care costs facing the Big Three, especially GM. All three rely on investments to fund retirement benefits, but analysts say weak stock markets have put automakers' assumptions of investment returns in doubt.

JR- 2001 f-150 Scab, 4.6l (FQR) auto, and a large payment

 

So I guess ultimately the question is an additional 34,000 miles under warranty worth $750? (The amount Ford estimates offering the extended service plan to its customers per vehicle.) I didn't purchase an extended service plan for my truck when it was new, so I do not know the specifics of ESP's, but I'd emagine a better warranty could be bought (to atleast 100,000 miles instead of 70,000) for similair money that possibly would cover more than only the drivetrain.

 

I went a head and got the 5 yr/60,000 mile extended warrenty. With today's driving habits and commutes I think we hit 36k miles quickly and I wanted some extra protection while I was paying off my truck.

Nothing upsets me more than making a truck payment AND having repair bills as well.


Just my opinion, but I think 5/60K should be the minimum standard for new cars...if Hyundi/DMC etc can offer better than that shouldn't GM and FORD???

If quality is job one then....

 

What did your extended warranty cost? Although hind sight is 20/20, in retrospect I'm glad I saved the money... I'm at 83,000 miles and haven't had anything come up the extended warranty would have covered (although I do agree a 5 year/60,000 mile warranty should be standard now days.) Some of the foreign companies such as Hyundai are now offering 10 year/100,000 mile warranties standard.

 

I believe a 5 year/75,000 warranty should be standard. The truck should at least be under warranty till it's paid off.

 

I paid just under 500 bucks for my extended warrenty. 5yr/60k


I know it;s a gamble, kind of like life insurance. You pay for it, but you really hope you never need it...(but we all do eventually )


Not to bash Fords 'cause I just love my F150, but reading all the threads on here about timing cover leaks, piston slap, tranny probs...I just feel better knowing I have a little extra protection while I'm paying off my loan.

Only time will tell...

STX, I'm glad to hear your FORD is running strong after 80K, I hope I can be there some day too!

 

because thier (Ford) sales are flat if you push hard enough they will trow in the warranty! Make sure they show you the the line on the contract that states warranty cost and make sure it says $0!

I got a Ford ESP on my drive train for 6/100k for free!

Good luck!

 

No question about it, an ESP or for that matter just about anything else on the truck can be negotiated as a part of the sales price, but in reality, nothing is free! They are adding there cost of the ESP to the bottom line as a part of the deal, not just handing them out for free...

 

Im my opinion, if you have to pay for it, and even if they "are thowing it in for FREE" your paying for it one way or another, the Ford ESP Premium Plan is the best.

Bumper to Bumper, covering just about everything the original warranty covers with the exception of a few electrical parts like power windows and lock ( I think so don't quote me ).

We bought a 6/60,000 ESP Premium Plan for our '98 Merc Sable for $600 and change and got a $450 refund 1.5 years later when we traded it in for our Explorer. I just checked about buying one for my '01 F-150 and it was $1,200 for a 7/70,000 Premium Plan and slightly lower for our '01 Explorer Sport. This covers the entire 4x4 power train which is VERY expensive should it need to be replaced.

And since I know some of the guys who build the transfer cases for the F-150 and Expidition (New Venture Gear, Syracuse NY) I think the extra few bucks is worth it.

I still strongly believe that this should be a standard "part" of the truck or car purchase like Chrysler does but with all the financial issues Ford has had to deal with lately, ie: Firestone, Class Action Suits, **** Poor Economy, they are going to have a problem overing more for a truck that is really not over priced in comparison to thier competators.