Is an Extended warranty (ESP) worth it?

[Motoarzan]

Another reason why extended warrantied are a cash cow for dealers is that even when they do have to honor a repair at their cost the parts in Canada are a minimum 100% markup and labor rates is much less on warranty work than what is posted on the wall at the service department.
I had a friend with a Taurus and had his turbos go. It was $2,000 CDN per turbo. $1k for labor and $1k for the turbo...x2
That $4,000 "retail" cost was really only about $2k out of pocket for the dealer....on a $3k extended warranty package the dealer is still ahead.

 

[blwnsmoke]

I have researched the extended warranty since I have a special order 2015 explorer sport that will be ready for pickup Aug 5. The dealer uses Landcar Extended Warranty based out of Salt Lake City Utah and it is used by several dealers in the Denver Colorado Metro Area. It is around $2800 for a 6 year 72 thousand miles complete coverage with a $100 deductible that only applies after the factory warranty expires but they can use generic parts if available. I checked out the Ford ESP and it is about $3000 for the same 6 years and 72k miles and $100 deductible but includes genuine Ford parts and rental car coverage for same day or multi day service. You don't have to buy Ford ESP from the dealer but can buy it for the same price before you get to 12 months or 12k miles on your car from Ford or there is a 33% surcharge after that for the same coverage. Ford also allows you to pay monthly installments over time without interest if you buy it from them. Something to think about if you finance and add the warranty cost to your vehicle loan. I plan on buying and paying over 72 months so interest rates in the Denver area are 3.5% to 4.9% for 2015 models for 72 months. The Ford ESP is also transferable to another party if you sell the vehicle before the warranty runs out. Depends on how long you plan to keep the vehicle. You can wait until the 3 years are about up to buy an ESP but rates are always higher or have less coverage or generic parts at that point. Other ESP to consider is AAA in the US.

Some of your info is incorrect and your 3rd party pricing is CRAZY!!!

First, I'd never buy 3rd party. 3rd party will not always use OEM parts, they go aftermarket, used or from a junk yard. 3rd party also requires pre approval prior to repairs and does not pay diagnostic time.

OEM is the only way to go.

Now I paid $1,705 for my 6yr/125,000 mile FORD PREMIUM ESP with 1st day rental. The fact that you are being quoted $1,100 MORE for a 3rd party and $1,300 more for a FORD ESP is ridiculous. You need to start doing some google searching. Many ESP dealers out there that sell cheap and I have a person who will sell you one $100 over cost (what I paid).

Also, if you buy after the 1yr/12k, there is not a 33% premium increase (Ford ESP). You get surcharged anywhere from $125 to $250 more depending on which plan you choose (year/mileage etc).

 

[binaryman3]

Some of your info is incorrect and your 3rd party pricing is CRAZY!!!

First, I'd never buy 3rd party. 3rd party will not always use OEM parts, they go aftermarket, used or from a junk yard. 3rd party also requires pre approval prior to repairs and does not pay diagnostic time.

OEM is the only way to go.

Now I paid $1,705 for my 6yr/125,000 mile FORD PREMIUM ESP with 1st day rental. The fact that you are being quoted $1,100 MORE for a 3rd party and $1,300 more for a FORD ESP is ridiculous. You need to start doing some google searching. Many ESP dealers out there that sell cheap and I have a person who will sell you one $100 over cost (what I paid).

Also, if you buy after the 1yr/12k, there is not a 33% premium increase (Ford ESP). You get surcharged anywhere from $125 to $250 more depending on which plan you choose (year/mileage etc).

FYI, I have found Ford ESP plans for what you are quoting since my previous post. I was just quoting what I had been told so far locally and as you can see everybody has a different price and sales pitch to sell you an ESP at a very high price. I would only go Ford ESP with OEM parts and shop around dealers for the best price and so far a 6 year/125k Ford ESP is $1600 to $1700. The surcharge pitch was another sales pitch to get you to buy from them out of fear within the first year. I decided to start a savings account for repairs after the factory warranty runs out. And I have been doing some Google searching. I have found that posting on this forum gets more results than a Google search.

 

[cdnpont]

Hello SE!

New member. Just bought a loaded white Platinum 2015 Sport. Pick it up tomorrow. Very excited, first new car in 11 years!
Went though the usual attempt at selling me stuff I do not want. Didn't buy any of it...except the extra 90k kilometer BTB warranty.

Good move or not? It's quite a pricey add on up here. We do drive about 30K a year.

Any thoughts on this, or anything I should beware of in general with this car?

Cheers, Mark

 

[BrianT]

Mark

Thats a nice ride, same colour as mine. I have 2013 around 60K with no real problems.
Did have to do a front brake job a few weeks ago, but thats normal.

You will love you new ride.

Brian

 

[blwnsmoke]

I always buy the Ford ESPs.. I get them at cost so it is a much easier pill to swallow but one of the biggest beliefs I have is.. no repair costs while I have a payment on the vehicle. Also, I always make sure I get 1st day rental so all I have to do is drop it off and get into a free rental and drive away. It is a very nice perk!!

 

[Sgt1411]

If you keep your vehicle for more than 2-3 years I would say buy it, with all the electronics in these things now its worth it. One module failure plus labour can be almost the cost of the ESP.

If you have family or friends in USA buy it using US address because its 1/2 price compared to Canuckastan.

 

[peterk9]

Welcome to the Forum cdnpont.:wavey:
An ESP is like an insurance policy. You may or may not ever need to use it. I've had them on my previous 4 vehicles and only used it once to replace a tire. Would have been $$ ahead by not purchasing them but it does give you peace of mind. I'm sure that there a quite a few members here who had wished that they had bought one. Keep in mind that any Ford ESP starts on the day that your vehicle is first put in service. It is not added to the end of the factory warranty.

Peter

 

[Halwg]

Peter is correct, it is not a warranty, it's an insurance policy against something catastrophic happening. You bet that something will happen, the "warranty" provider bets it does not. The House wins the large majority of these bets. If they didn't they would not offer them.

If you read any of the consumer reviews, they will tell you it is money poorly spent. But, it depends on how risk averse a person is. If you constantly worry something will go wrong, then you are buying peace of mind (albeit very expensive peace of mind). If not, then you have just lined someone else's pockets. I know in 45 years of owning cars, I'm money ahead not buying them and just paying for repairs. After purchasing 15 new cars in that time period, I had to pay for one transmission rebuild.

 

[Uaglio]

One reason I got it was to ensure access to Ford certified repairs. Some problems require dealer diagnostic and repair equipment and experience. For example, I wouldn't expect an independent garage to be able to repair the keyless entry system or the advanced electronics. If I were self insuring and using independent mechanics, I'd also have to deal with the common problem of misdiagnosis, attempted repair, charges for work an then return for second attempt at repair, while negotiating over whether the first repair was necessary. With a dealership and warranty, I'd just keep bringing it back until it is fixed, no worries about racking up a big bill or getting into disputes with the independent shop owner.

 

[veloduffer]

After much hesitation, I purchased the extended warranty for my 2015 Limited. As others have cited, the amount of electronics and power features (liftgate, 3rd row) is alot of stuff that may need repair. It's only worthwhile if you plan to keep your car past the regular warranty period.

 

[JE]

When I bought an extended warranty on my Chevy I was told it was transferrable (nice if you plan to sell private party and within the warranty) AND refundable! If I traded, sold or totaled the vehicle I could get a prorated refund based on the time left on the warranty.

Some folks have mentioned that the Ford extended warranty is transferrable but does anyone know if it's refundable?

 

[5111]

In 2012, we purchased a 84mo/100,000 ESP with a $50 deductible on our 2013 Explorer Sport for $2000. It was supposed to be transferable and refundable. But since we did not buy the new one at the same dealership as the old one I have to jump through hoops to get it cancelled and refunded.

When we purchased the 2015 Explorer Sport, I wanted the extended warranty again, but this time did about 30 seconds of research on the internet. The dealership wanted $2600 for 6yr/100k with a $50 deductible (they said that it was at their cost), but they quickly price matched the one I found on my first search for $1500. I wish I had searched more and found one even cheaper.

In the 27 months that we had the 2013 the car was in the shop overnight twice. Once because it blew off a hose under boost and they had to order and replace it. The second time because the a turbo failed. That time they took 12 days. The rental was definitely nice to have, although they would have done the repairs under the factory warranty.

 

[Obreezevic]

Definitely worth it. We are having ongoing airbag issues in our 2013 sport. I am certainly glad to have the coverage of the extended warranty so I do not have to worry about future shop visits.

 

[FordServiceCA]

Definitely worth it. We are having ongoing airbag issues in our 2013 sport. I am certainly glad to have the coverage of the extended warranty so I do not have to worry about future shop visits.

Are you experiencing these issues now, Obreezevic? Please fill me in with some details, including current symptoms and an up-to-date odometer reading; I'm happy to help however I can.

Brittany

 

[cdnpont]

Thanks for the reply's guys!

We have decided to forego the "Insurance" to the tune of $3400 CDN taxes in. So, on paper it looks good. but I guess time will tell! Wish me luck with my Ford, I traded in my 310k Honda Odyssey which I had decent luck with.

I pick it up in half an hour!

Cheers, Mark

 

[pup5581]

Everyone 4-5 years or so i upgrade cars so i never buy one...but if i planned on keeping this truck for say 10 years...i would

 

[tmg19103]

Peter is correct, it is not a warranty, it's an insurance policy against something catastrophic happening. You bet that something will happen, the "warranty" provider bets it does not. The House wins the large majority of these bets. If they didn't they would not offer them.

So true. I buy and hold long term and have always come out ahead on multiple vehicles without an extended warranty/insurance policy - knock on wood.

A lot has to do with how you maintain your vehicles and how well you are at picking up symptoms quickly. I'm also good at DIY.

Where you will often have problems long term (suspension issues, corrosion, paint issues, boots, belts, hoses, leaks) is with things not covered by an extended warranty. That's why they are not covered.

 

[Halwg]

Thanks for the reply's guys!

We have decided to forego the "Insurance" to the tune of $3400 CDN taxes in. So, on paper it looks good. but I guess time will tell! Wish me luck with my Ford, I traded in my 310k Honda Odyssey which I had decent luck with.

I pick it up in half an hour!

Cheers, Mark

If you spend $3400 on repairs you definitely have a lemon! And remember, in addition to the cost of the "insurance policy" there are deductibles to pay and a lot of things these policies don't cover.

 

[HughCares]

Thanks for the reply's guys!

We have decided to forego the "Insurance" to the tune of $3400 CDN taxes in. So, on paper it looks good. but I guess time will tell! Wish me luck with my Ford, I traded in my 310k Honda Odyssey which I had decent luck with.

I pick it up in half an hour!

Cheers, Mark

go to this website http://www.fordesp.ca/ or call them at (800) 797-0710. I got a quote for a 72 month premium care esp ($50 deductible) from them and then just had my dealer where I bought the EX match it. Cost me $2045 tax in.....