O/T Auto service contracts

37chief · Sep 8, 2011

The factory service contract is about to run out on my 08 ford Edge. For 1,200 I can get three more years linited service, or 1,600 for almost everything except for normal wear. I am thinking no extended warrenty. Any thoughts? Stan

Dan in North Houston · Sep 8, 2011

From my experience years ago buying another brand of car, the extended warranty that kicked in after the factory warrenty expired is an insurance policy issued by a third party that is not related to your auto maker - even though it may have your auto brand all over the paperwork. You could take the car in for something that you think should be covered, and the warranty provider may think otherwise. And if they do, it's up to you to fight the warranty company yourself - the auto dealer will not be any help to you.
That was my experience years ago, maybe someone else here has a different and more recent experience.

Anonymous-0 · Sep 8, 2011

If you've made it through the initial warranty period without any problems, you probably don't need the extended warranty. I have found that most problems develope in the first few months of it being new. The extra cost of the ins. will normally cover the cost of most of any problems you might have. Unless there is a major problem. They push it because it's a good deal for both the dealer and the ins. co. I once had a dealer that would not do my offer unless I took the extended warranty.(money in his pocket). I told him that if he didn't have more confidence in his product than that I would buy elsewhere,and I did.

Carl Schwab · Sep 8, 2011

I bought a service contract on a Dodge Stratus that I purchased used with 50 or 60K. Cost about $1200 on a $5800 car. seems dumb, but I knew I couldn"t afford a 3,000 engine or tranny rebuild and I am a Ford guy and didn"t really trust the dodge. The plan was a Chrysler plan and I don"t think I would buy one that wasn"t from a major manufacturer. On one hand, the plan more than paid for itself. I hit a raccoon tore the bottom of the radiator and condenser loose and they covered it, they put a timing belt in, a head gasket and various miscellaneous items 3 grand or so. But the other side is: I was having my oil changed at the dealer and I think they were pretty adept at finding something wrong at every oilchange. it was always covered under the warranty; I only had to pay the $50 deductible.

All that to say: I would only buy extended warranty if I absolutely couldn"t handle a surprise blown engine or some such major failure. Even then, I would only buy from a very reputable source.

John M · Sep 8, 2011

I dont know about the Ford warranty, but on all 3 of my GM products, I bought the factory extended warrany. I think it was like 6 or 700 on my Buck back in 01, and its paid for itself, the van was a little more in 05, but I may have broke even on it so far. I havent had to use it on my 2500 - yet, but with a diesel, I cant see where it wouldnt pay for itself, it was 900 or so. Id have to dig out my paperwork to be sure what I paid for them, but they sound right to me.

NEKS · Sep 8, 2011

Wife got one on a new van years ago. If you did not use it, you was to get some of the premium back. When tried to get the money back, the insurance company was gone and dealer went dumb.

John730D · Sep 8, 2011

I've got an 08 Ford Five Hundred with 105K and no problems. Still has the original brakes. If I owned anything but a Ford, I would cover my ask! You will be fine without it. Only car that I had any problem with was a 86 Chrysler Fifth Avenue that needed a transmission at 130K.
I drive all my vehicles to at least 150K, and I have never had a major repair.

Mike (WA) · Sep 8, 2011

You generally have to fight them for every claim. Had a client who bought a used motor home, got the warranty, and engine blew up in 30 miles. Drove it 20 miles home from the dealer, then left on a trip and it blew 10 miles from home. Warranty company tried to skate because he didn't check the oil before he left on the trip (only 20 miles after he bought it, supposedly all checked and serviced). We ended up getting the engine paid for, but only after hiring our own expert, etc., etc.

Dean · Sep 8, 2011

I have bought many new vehicles and have never bought an extended warranty from the manufacturer or otherwise, nor do I recommend doing so.

Dean

omahagreg · Sep 8, 2011

Dad bought a used 03 Venture van from me-I had bought it with 9000 miles on it-and had my own extended warranty. I cashed out my warranty, and Dad got his own-it had about 58,000 miles on it when he bought it. Tranny went out, rocker arm bolt broke, intake gasket was leaking. They paid SOME on all of these claims, but have now said they are done paying out on anything! Dad says he just broke even on the deal!

Dean · Sep 8, 2011

Bingo.

Historically, a warranty is intended to cover defects in materials and workmanship. Such issues are nearly always discovered during the manufacturer's standard warranty.

If one plots problems vs mileage (asuminig recommended service and no abuse) one finds that issues are initially highest early after start of service and decrease rapidly to a minimum where they will remain for many, many, many miles before gradually increasing once again as components begin to reach end of design lifetimes.

Manufacturers warranties extend well beyond the period where initial defects approach minimum values and end of life induced failures begin to manifest themselves long after most customers have sold or traded the vehicle (No, I no longer know the average mileage when this occurs because I've been away from warranty analysis for years but it is well beyond 100K.).

Dean

thurlow · Sep 8, 2011

Have bought nothing but new vehicles since 1970........typically put 100,000-150,000 on 'em and sell privately rather than trading in. Have always thought extended warranties were basically a scam except.......wife had a '05 CTS Cadillac which had numerous drivetrain problems. Just before the factory warranty ran out at 50,000, we bought an additional 50,000 mile warranty through the dealer. It was money well spent and they paid for a torque converter, a water pump, etc. On April 3rd, we were sitting at a red light in a turn lane when a dopehead hit us head-on and totalled it out, with 100,300 miles on it. Didn't buy the extended warranty on the replaceent..........

Hobo,NC · Sep 8, 2011

Lets take the $1600 deal,,, when what you think is a warranty issue you are already into it $1600 plus the deductible and all they want pay... That's how I look at it... Most reps are look'n for a out when i call....

Its a crap shoot,,, some claims go real well and some don't even if its a policy from a major player... I have had identical claims with identical cars back to back, same provider etc... one time all goes well and the other its a fight it depends on the rep i get on the other end.... I will not lie to help the customer and let the rep know this up front... Its not my insurance i did not buy it...

I have a customer that brought a 07 cat CTS from car max,,, so far so good I have been paid all but the last bill form the warranty co. She now has a bad cat/converter but holding off put'n in a claim till I get paid for the last repair... If I had to guess she's breaking their bank that's why I have not been paid yet.... :lol: If you can afford to loose the money go for it its no different than any other insurance... Roll the dice

wisbaker · Sep 8, 2011

The extended warranties are usually a waste. The person issuing the warranty has to make money and so does the agent selling it. The only time I ever bought the extended warranty was on a POS new Ford, it cleared final assembly in Louisville KY just after Christmas break, it was bucked just before Christmas (they were drunk), sat on the line over the holiday, and they finished it after Christmas (hungover). On my LAST new Ford they wouldn't fix anything under warranty so I figure the extended warranty is PAYING them NOT to fix it. I can find cheaper ways not to get stuff fixed, blood pressure stays lower too.Better option bank the money for the warranty, use the money and interest to fix or for a downstroke on the next one. My $.02

Jiles · Sep 8, 2011

(reply to post at 22:18:11 09/08/11)

An extended auto warranty is just as good as the company backing it! If you do decide to get a warranty, be sure and ask what the cost will be if you decide you don't want it---After you receive your contract. Also ask if deductable is paid per visit or per repair.
READ the contract CAREFULLY--there are MANY ways they can get out of paying.
As stated, never buy an extended warranty from just any carrier. Research the Company. A Ford warranty would be the best choice.
A friend of mine purchased an extended warranty with full coverage for mechanical parts. His fuel pump went out and the company told him it was an electric pump and it was not covered! He showed them in the warranty where fuel pump was listed. They said "yeah if it's mechanical"!!
Cost him nearly $300!

RandyB(MI) · Sep 8, 2011

Put the $1600 away for repairs ONLY. When you do need repaird , shop smart! Stay away from the dealerships. You more than likely won't use up the $1600! Oh , almost forgot , if you or anyone else driving the car drives like a maniac or doesn't believe in maintenance , then by all means get the warr.Otherwise save it.

rexhellwig · Sep 8, 2011

There are TWO parties and two parties only who will always come out ahead on service contracts:

1 - The folks issuing the contract.

2 - The fellow pocketing the kick-back to sell you the contract.

paul · Sep 8, 2011

If it is backed by the company that made the car (Ford extended warrenty coming from Ford Mo Co) then it's probably a waste of money, but it's there for you.

If it is some fly by night insurance company run away from it as fast as you can, do NOT waste your money, those are total scams, they go bankrupt every 4 years to run away with the money (used on expensive trips and luxuries by the 4 people running the company) and then they start all over again under a new name. Totalcomplete scam. go ask any independant car garage, if they _ever_ got any money back from one of those....

Run away.

--->Paul

ChrisinMO · Sep 9, 2011

We bought a used all wheel drive Ford Aerostar from a dealer years ago. They sold us a service contract at the same time. About six weeks later, both front wheel bearings gave out (sealed bearings). Took it in and they fixed them. If I recall correctly, it was $700 total or $700 each to install. It only cost us about a hundred out of pocket plus the price of the service contract. As a result we saved hundreds of dollars. I do remember hearing that the dealer had a heck of a time collecting from the service contract company.

Christopher

O/T Auto service contracts

37chief

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Dan in North Houston

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Anonymous-0

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Carl Schwab

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John M

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NEKS

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John730D

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Mike (WA)

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Dean

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omahagreg

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Dean

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thurlow

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Hobo,NC

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wisbaker

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Jiles

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RandyB(MI)

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rexhellwig

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paul

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ChrisinMO

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