Extended Warranties

[transitman]

Well, I went and did it and purchased a Ford ESP today. I go back and forth on the cost/value/potential need/put away a few bucks every week to cover future repairs/peace of mind factors, and decided to do it, the last being the most deciding factor. The Escape meets my every need and I intend to keep this vehicle for a long time so I purchased a 7yr/100,000 PremiumCARE package. I wish there was a more al a cart offer to fine tune individual needs because I'll no doubt reach the 7 years before 100,000 miles. At the annual rate I drive the car, I will surpass the 36,000 mile mark after about 2.5 years and the 60,000 mile mark after 4.4 years from the sales date. This will give me full coverage until 7/28/2019 or two years after I retire. I thought I was getting in under the 12 month window but the price goes up at 13000 miles or more than 12 months, so it cost an extra $100. Other than updates, MFT is covered, so that could pay for it right there. I checked every online listing, Ford ESP and with my dealership and this is how it broke down among the major online offers.

 

Ford Online/Dealership: $2440

Lombard: $1564

Zeigler: $1490

Troy Ford: $1270

Champion Ford: $1220

Flood Ford: $1215

Edited June 29, 2013 by transitman

[Colerpa]

I would really like some feedback in this area. I have always viewed extended service plans as a higher margin on the sale, not a grate value. I can be swayed by facts, not so much by anecdotes, or slick marketing. This also gets back to the reliability of the vehicle, the more reliable the less we need the ESP. This sort of feels like the house always wins. I have not used this in the past with. Dodge D-50 pickup, Nissan Maxima (diesel), Datsun 240 (?), Ford Explorer, Ford Expedition, Dodge Durango R/T, VW Jetta TDI. Nissan Maxima, Ford Explorer, Ford Expedition and Jetta TDI all well over 100,000 miles, Jetta now at 190,000 miles. I don't know in any case if and ESP would have helped much. Recalls and fundamental design issue usually show up sooner than later. There was in issue with first year Ford Expedition that may of us fought (poor head design).... spark plugs blew out. ESP might have help here... know did not get the support from Ford I hoped for. I take delivery of a new Ford in August... does ESP make sense? Feedback is welcome.

[transitman]

An ESP is like any type of insurance, you're glad you have it if you need it and don't really think about it if you don't use it. This vehicle (and all new vehicles) is pretty electronically advanced, one glitch in any of the electronics could cost hunderds if beyond the B to B. You are correct though, most often power train issues show up early or within the 5yr/60,000 power train warranty period. My main concern are issues with the turbo as it ages, and beyond the 3yrs/36,000 coverage, I want to be protected against a costly repair for all the electronics; the rear camera, one rear sensor or a power window motor or switch could end up costing several hundred dollars and that's the easy stuff. It makes me feel good to know that I won't get socked with a major repair bill.

Edited June 29, 2013 by transitman

[akirby]

It makes me feel great knowing I have at least an extra $7000 in my pocket by never buying an extended warranty. Even if I had to pay $4K for a new engine tomorrow I'm still $3K ahead. You might come out ahead on one vehicle or two but in the end the house is going to win guaranteed. Otherwise they wouldn't be selling them.

[jcthorne]

I looked at it from a different perspective. We bought an ESP with 0ded and first day rental coverage. Now my wife has no fear of going to the dealer and just letting them fix it. She never fears she has to 'haggle' with a service writer any more. So far it has actually worked out pretty well except one time the Enterprise agent tried to pull a fast one and upcharge her for the rental. Dealership stepped in and fixed it and it has never happened again.

 

She drops the car off in the morning and they give her a rental. Pick it up when done that day or later does not matter. So for me, the $1300 approx. cost of the ESP was well worth it in more ways than just repair cost. Wife has actually gotten to like the folks at the dealer rather than avoid them.

[akirby]

I looked at it from a different perspective. We bought an ESP with 0ded and first day rental coverage. Now my wife has no fear of going to the dealer and just letting them fix it. She never fears she has to 'haggle' with a service writer any more. So far it has actually worked out pretty well except one time the Enterprise agent tried to pull a fast one and upcharge her for the rental. Dealership stepped in and fixed it and it has never happened again.

 

She drops the car off in the morning and they give her a rental. Pick it up when done that day or later does not matter. So for me, the $1300 approx. cost of the ESP was well worth it in more ways than just repair cost. Wife has actually gotten to like the folks at the dealer rather than avoid them.

 

That's a totally different perspective - you're paying for ease of service and if that's worth $1300 to you then that's perfectly fine. But too many people do it solely to save money or because they hate the idea of spending a few grand on a big repair - although they don't bat an eye at payin $1500 out of pocket up front for something they may never use. That's the logic that escapes me. If you're able to pay cash for a $1500 warranty then you're able to pay for a big repair in that unlikely event.

 

It's like people who drive further distances just to save a few pennies on gas. They're actually losing money but have the perception they're saving money. I know people who buy $4500 worth of ESP coverage on 3 vehicles, then have one $2K repair and think they saved money. That's what drives me nuts.