Extended Warranty costs

[DaveH]

I'm not planning to drive mine a lot of miles so I will hit 3 years on the manufacturer warranty before I hit 36K miles. I was thinking I would wait until I am approaching the end of the 3 years before deciding on an extended warranty. By that time, there will be plenty of DDs that will be over 50K or more miles. There should be some good indications of whether a Bronco will have issues that would justify an extended warranty. What is the fallacy in this logic?

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[Studawg]

As someone who does 99% of my own work, and has actually myself replaced the entire AC system on my previous C5 Corvette, I can say with confidence that you are not aware of what remediating an AC compressor failure requires. At a *minimum* you also need to replace the orifice tube/in-line filter assembly, and only an incompetent shop would skimp on replacing the receiver/drier and condenser. It's amazing how little left over debris in the system downstream of the compressor is needed to ruin a compressor replacement job.

For the folks that would "never" buy an extended warranty plan, more power to ya. I used to be in the same camp, because I've done most every job a car might require (except an auto tranny rebuild -- I'd would love to attempt one, but have never had the need).

Fast forward to today, and the issue for me isn't the cost of doing the work (which I'd want to do myself anyways), but the cost of the parts -- both electronic modules and mechanical components. And the prices continue to go up as more electronic and mechanical components are "cost optimized" by integrating different functions and/or being configured to lower assembly costs, not to facilitate replacement or to support aftermarket manufacture.

I'm not one that is afraid of "cars being all computers now so you can't work on them." That isn't the case -- they are still mechanical systems, just with a greater number of electronic controls and greater electronics integration. You may need some additional tooling/code readers, but that's just part of having a complete tool chest. So again, the cost of labor doesn't scare me, just the component prices.


A separate matter: For the "I'd never buy and extended warranty" crowd, whether you intend it or not, you come off as belittling or looking down on "the fools" that are "suckered" into extended warranty purchases. Extended warranties are clearly not "right" for you, but that doesn't mean that no one else should consider extended warranties. There are plenty of other people with their own different situations and concerns, and for them balancing the cost of an extended warranty against their wants and needs can legitimately result in the choice to take out such an insurance policy, knowing they may never use it, but having the comfort in knowing it is there.

FWIW, I've owned dozens of vehicles over the decades, and have only purchased two ESPs -- one for a C6 Corvette (after experiencing some expensive repairs on a C5 Corvette that fortunately was still under the original warranty), and my wife's 2018 F-150. In those two cases, I was perfectly comfortable purchasing a specific thing: peace of mind.

The thing is, people who do it for peace of mind often try to pass it off as doing it because it’s economically practical. The fact is, more often than not, it’s a waste of money, or the companies wouldn’t be selling them.

I guess my position on the subject comes from a variety of things, one of which is the knowledge that the service department is what keeps dealerships actually profitable, and sales departments make a good portion of their profit selling extended warranties.

 

[Old Guy]

There are all kinds of assumptions in this comment. You are assuming that the shop was both competent AND honest. Sorry, but that’s a big IF.

Just because a shop told you the car needed a certain repair, and it would cost this much, doesn’t mean the car needed that repair, and even if it did, that it should cost that much.

I seriously doubt the compressor, expansion valve and reducer all went out at the same time.

There is usually a MUCH cheaper way to fix a problem than what a shop tells you.

And a dealer service department??? Pfft. All they do is throw parts at it, they don’t diagnose anything. Then they charge you top dollar for labor and parts. Anybody taking an out of warranty vehicle to the dealer to get fixed is just asking to get ripped off.

Hell, they can’t even patch a tire if it’s within an inch or so of sidewall. They tell you you have to buy a new one. It’s ridiculous. But people who don’t know better just eat it up and pay for it all day everyday.

Or they buy a warranty because they think they will need to cover all these bogus repair bills.

Warranty is just insurance. You pay for insurance on all kinds of things, including your home, if you own one. Of course most insurance don't pay out the total cost of any individual policy. No one is pretending they are doing this out of the kindness of their hearts. There is a peace of mind aspect.

Often the same people who are belittling others for warranties, are buying thousands of dollars of coffee each year. Everyone has different comfort levels about money, and how they choose to spend it.

As to dealers ripping you off, some do, just like some don't. Additionally, you cant have
Bob, at the local garage diagnose and fix your 2021 car anymore. Bob is good at engines, sadly, most times its electronics or the cpu that is failing on modern cars. The engines and transmissions are very very good now.

 

[mrock]

I suggest that you stick with a Ford ESP Plan. On my 2018 F250 I purchased a Premium Care ESP Warranty from Lombard Ford ( all done on line- I don't even know where Lombard is)- they had the best pricing at the time, and the coverage is the same no matter what dealer services your vehicle. I have a diesel, so the issues are a little different, but I would not consider any 3rd party warranties. Things change, so it is worth shopping around at whatever distant point in the future your Bronco arrives. You do not have to purchase right away- I bought mine at 35249 miles. I assume that someone on this forum will find a good deal and share it with the rest of us when the time is right.

 

[NayNay]

I do about 24k miles a yr .....so I will be racking up the miles on my Bronco. For the first time in my life I will need to purchase an extended warranty as I plan on keeping mine 150k at least . I have no clue what they cost or how many miles they cover. Can people chime in on Ford or others extended warrantys costs / miles / terms etc.....

If you need actual quotes just let me know your vin number as soon as it is available to you. I'll gladly break out your options for you. No, you're not required to buy it from me, or your vehicle either.

 

[Broncocito]

^^^^NayNay is a team player

 

[AZHUND]

surprised that Geico MBI hasn’t been mentioned yet. Super affordable, pay as you go, backed by Buffet’s endless billions.... you do need to also have geico for insurance, but I have no plans on dropping them.

if no Geico, then Ziegler of course. You can try having your dealer match Ziegler pricing but they will probably LOL it and claim they are an internet scam. They are not.

 

[NayNay]

As someone who does 99% of my own work, and has actually myself replaced the entire AC system on my previous C5 Corvette, I can say with confidence that you are not aware of what remediating an AC compressor failure requires. At a *minimum* you also need to replace the orifice tube/in-line filter assembly, and only an incompetent shop would skimp on replacing the receiver/drier and condenser. It's amazing how little left over debris in the system downstream of the compressor is needed to ruin a compressor replacement job.

For the folks that would "never" buy an extended warranty plan, more power to ya. I used to be in the same camp, because I've done most every job a car might require (except an auto tranny rebuild -- I'd would love to attempt one, but have never had the need).

Fast forward to today, and the issue for me isn't the cost of doing the work (which I'd want to do myself anyways), but the cost of the parts -- both electronic modules and mechanical components. And the prices continue to go up as more electronic and mechanical components are "cost optimized" by integrating different functions and/or being configured to lower assembly costs, not to facilitate replacement or to support aftermarket manufacture.

I'm not one that is afraid of "cars being all computers now so you can't work on them." That isn't the case -- they are still mechanical systems, just with a greater number of electronic controls and greater electronics integration. You may need some additional tooling/code readers, but that's just part of having a complete tool chest. So again, the cost of labor doesn't scare me, just the component prices.


A separate matter: For the "I'd never buy and extended warranty" crowd, whether you intend it or not, you come off as belittling or looking down on "the fools" that are "suckered" into extended warranty purchases. Extended warranties are clearly not "right" for you, but that doesn't mean that no one else should consider extended warranties. There are plenty of other people with their own different situations and concerns, and for them balancing the cost of an extended warranty against their wants and needs can legitimately result in the choice to take out such an insurance policy, knowing they may never use it, but having the comfort in knowing it is there.

FWIW, I've owned dozens of vehicles over the decades, and have only purchased two ESPs -- one for a C6 Corvette (after experiencing some expensive repairs on a C5 Corvette that fortunately was still under the original warranty), and my wife's 2018 F-150. In those two cases, I was perfectly comfortable purchasing a specific thing: peace of mind.

Thank you for detailing and saying all of that. Working at a dealer and seeing people say no because someone else told them to say no then seeing them at the service department with repairs they can't fix or afford is upsetting. I also think many people do not realize that Ford does take care of their own. When you buy a Ford and then support your local Ford by getting maintenance and or service done with them (they keep records) and then something happens that's not covered by warranties Ford will usually jump in and pay for part and sometimes all of a repair. I see it often. They call it Ford loyalty, and yes it is a real thing. But again thank you.

 

[NayNay]

I'm not planning to drive mine a lot of miles so I will hit 3 years on the manufacturer warranty before I hit 36K miles. I was thinking I would wait until I am approaching the end of the 3 years before deciding on an extended warranty. By that time, there will be plenty of DDs that will be over 50K or more miles. There should be some good indications of whether a Bronco will have issues that would justify an extended warranty. What is the fallacy in this logic?

None.

 

[sootie007]

I looked at Flood Ford ESP plans...looks like you can get a 150k 8 yr powertrain plan for 2k ...... accepted at 5k Ford dealers supposedly ......I understand not wanting to shell out 2k for a plan but I have read online about Ford Turbos going at 30k a few times.....thats something I dont want to have to shell out the $$$ for.....Tx J

 

[NayNay]

It's very odd how much I see individuals just flat out bashing dealership employees. The mentality of some is get the vehicle as cheap as you can and go elsewhere for everything you need done. Do all u can to stay clear of the service, parts, and sales department. You realize that if people actually avoided a dealership at all costs it would shut the place down. That in turn puts so many people out of work. The work that most of the people who bash a dealership would never do. Your local dealer is local, they aren't corporate owned. Those people live and work and pay taxes in that community. Many local dealers also support the little leagues that your kids play on, shelters that someone you may know may one day need, fire departments that stop your home from burning to the ground, food banks that people need more now than before, local schools that your children attend, etc. Some of you are really big jerks. My small store has several single moms running departments. Our internet, parts department, aftermarket, customer service, and finance are all run by women who live within the community in which they work. We are all not bad people doing a bad job coming to work every day plotting to rip people off!!!!

 

[sootie007]

If you need actual quotes just let me know your vin number as soon as it is available to you. I'll gladly break out your options for you. No, you're not required to buy it from me, or your vehicle either.

Tx Nay Nay ....will take you up on that .

 

[mneblett]

Following up on NayNay's last comment:

No. 1 problem that leads to all the hate: Old school sales techniques.

No. 2 problem that leads to all the hate: Customers not understanding what work their vehicle actually needs, and assuming a big bill is just a profit-providing rip-off.

Crooked sales types? Absolutely they exist, but it doesn't take much research/knowledge in the Internet age to be able to pretty much instantly recognize the unscrupulous.

Crooked service writers? Absolutely they exist, but customers willing to take what they are being told and not double-checking it with some simple Internet searching can protect themselves better.

My impressions (take as FWIW):

Sales: A sloooow-turning ship, still having a lot of lowest-common-denominator types that are trying to make a quick buck, but being unsuccessful because they won't take the time to learn better behavior -- which loses them sales and thereby increase their willingness to take as much advantage of the unprepared as possible.

Service: A much better picture, with many fewer sleeze-balls. Yes, many are on commission, but at least in most areas the amount of service business is so large they don't need to resort to less-than-ethical practices to make a living, so they can be more "straight-forward."

Their biggest problem is customers that automatically think the service writers are trying to screw them over, rather than simply presenting an estimate of the cost of the parts and the amount of labor time required (which is usually manufacturer-fixed, book-based hours per task (hours that most techs will tell you are substantially lower than what the work actually requires). **

In other words, the customer's lack of knowledge translates into self-generated fear that could be substantially eased with a little effort. For those that say the customer may not have the chance to do any research when they are told the sprocket-gizmo is kaput, there's nothing stopping them from saying "I'll be back in a minute" and sitting in the lounge for 5-10 min. of quality google time.

Are there other opportunities to pad the bill? Of course. I always decline fuel injector services (the occasional bottle of Techron for me), but I can't fault the service writer for offering something that may or may not be necessary depending on how the vehicle has/has not been maintained during its life. And there are certainly unethical people behind the counters out there, but my experience is they are far fewer than the general public assumes.

FWIW2: I am not a dealer apologist -- nothing makes me happier than seeing bad people caught and punished, and I hope they enjoy their special place in Hades. On the other hand, I try to maintain an objective view on most everything, and avoid fully adopting "popular opinion" before I start a transaction. There's a substantial difference between expecting to be screwed over before you even start and therefore judging everything you hear as an inflated attempt to rob you, and being *appropriately skeptical* and thinking about the validity of what you're being told.


**Yes, dealer labor rates and OE parts are higher than Joe's local service station and Rock Auto. There are both the issue of a dealer having higher overhead (service carrying the dealership to offset low-performing departments), and the much more important Econ 101 fact that they can price their goods and services higher because of the public's perceived benefits (justified or not) of conducting business with a dealer (service dept. access to OE technical publications and assistance, OE as a perceived potential recourse behind the dealer, etc.). If the pricing wasn't appropriate for the relevant market, it's Econ 101 that the volume of business would decrease until prices are lowered to put cost vs. demand back in balance.

So I don't buy into the oft-heard refrain that "they are trying to screw people over by charging outrageous rates." Don't like the rates? See Joe if you're comfortable that he can do the fix right (and that he's not more dishonest than the dealer). Rates aren't set in a vacuum -- they are what the service-buying public will tolerate. Truly outrageous "rip-off" rates are truly rare, and in today's age of Internet communications, they don't survive long before the word is out.

 

[Wanted33]

Ford offers an extended service plan. ESP. They're comparable to other companies as far as price. But Ford gives certain protection that others may or may not.
Ford ESP will register at EVERY Ford in the U.S. and they share records which will be linked to your Ford Pass.
Only a certified tech may work in the vehicle.
Only genuine Ford/OEM may be used on the vehicle. They don't allow aftermarket nor rebuilt parts.
Deductible is 100 but can be adjusted to lower overall cost.
You can finance with your vehicle, pay separately, and some dealerships (mine does this) offer a 0% financing option too.
There's full roadside assistance along with travel reimbursement too.
There are several plans you can choose from though I recommend the premium so you're covered.
Rental car coverage.
If you trade or sell or pay off a vehicle you can get money back, they hold their value well. They're also transferable for a small fee.
I generally caution people about 3rd party ones as they can cost as much as Ford but may not cover as much as Ford will, they allow for rebuilt parts, and some dealerships sell ones you can only use with them. There's no integration with your Ford Pass app either. Hopefully this clarified some different aspects. FYI I do absolutely sell these so I'm available to price them out for anyone even if you didn't buy your Ford from us. Be careful when a dealership just offers one at a price. Make sure they're asking you how long u plan to keep your vehicle and how many miles per year. Ford offers a wide range of options to cater to how you drive. As an example I have an 8 year 75k because I drive less than 10k a year. My husband has an 6 year 150k because he drives a ton daily.

Well put Renee. I know it's a possibility I'll never use an extended warranty, but the peace of mind knowing it's there is the main thing for me. We were nearly 3k miles from home several years ago, and thank goodness I had an extended warranty. The dealer in Albuquerque took care of the problem, and we were on our way at no cost. So, yes it happens.

 

[NayNay]

Ford offers an extended service plan. ESP. They're comparable to other companies as far as price. But Ford gives certain protection that others may or may not.
Ford ESP will register at EVERY Ford in the U.S. and they share records which will be linked to your Ford Pass.
Only a certified tech may work in the vehicle.
Only genuine Ford/OEM may be used on the vehicle. They don't allow aftermarket nor rebuilt parts.
Deductible is 100 but can be adjusted to lower overall cost.
You can finance with your vehicle, pay separately, and some dealerships (mine does this) offer a 0% financing option too.
There's full roadside assistance along with travel reimbursement too.
There are several plans you can choose from though I recommend the premium so you're covered.
Rental car coverage.
If you trade or sell or pay off a vehicle you can get money back, they hold their value well. They're also transferable for a small fee.
I generally caution people about 3rd party ones as they can cost as much as Ford but may not cover as much as Ford will, they allow for rebuilt parts, and some dealerships sell ones you can only use with them. There's no integration with your Ford Pass app either. Hopefully this clarified some different aspects. FYI I do absolutely sell these so I'm available to price them out for anyone even if you didn't buy your Ford from us. Be careful when a dealership just offers one at a price. Make sure they're asking you how long u plan to keep your vehicle and how many miles per year. Ford offers a wide range of options to cater to how you drive. As an example I have an 8 year 75k because I drive less than 10k a year. My husband has an 6 year 150k because he drives a ton daily.

I forgot to mention Ford loyalty too. When you support your local dealers and get an Esp plan and something happens that isn't covered or your plan just ran out, Ford helps out. They're more likely to pay a portion and at times the entire cost of a repair and or part if you've been going to y

Following up on NayNay's last comment:

No. 1 problem that leads to all the hate: Old school sales techniques.

No. 2 problem that leads to all the hate: Customers not understanding what work their vehicle actually needs, and assuming a big bill is just a profit-providing rip-off.

Crooked sales types? Absolutely they exist, but it doesn't take much research/knowledge in the Internet age to be able to pretty much instantly recognize the unscrupulous.

Crooked service writers? Absolutely they exist, but customers willing to take what they are being told and not double-checking it with some simple Internet searching can protect themselves better.

My impressions (take as FWIW):

Sales: A sloooow-turning ship, still having a lot of lowest-common-denominator types that are trying to make a quick buck, but being unsuccessful because they won't take the time to learn better behavior -- which loses them sales and thereby increase their willingness to take as much advantage of the unprepared as possible.

Service: A much better picture, with many fewer sleeze-balls. Yes, many are on commission, but at least in most areas the amount of service business is so large they don't need to resort to less-than-ethical practices to make a living, so they can be more "straight-forward."

Their biggest problem is customers that automatically think the service writers are trying to screw them over, rather than simply presenting an estimate of the cost of the parts and the amount of labor time required (which is usually manufacturer-fixed, book-based hours per task (hours that most techs will tell you are substantially lower than what the work actually requires). **

In other words, the customer's lack of knowledge translates into self-generated fear that could be substantially eased with a little effort. For those that say the customer may not have the chance to do any research when they are told the sprocket-gizmo is kaput, there's nothing stopping them from saying "I'll be back in a minute" and sitting in the lounge for 5-10 min. of quality google time.

Are there other opportunities to pad the bill? Of course. I always decline fuel injector services (the occasional bottle of Techron for me), but I can't fault the service writer for offering something that may or may not be necessary depending on how the vehicle has/has not been maintained during its life. And there are certainly unethical people behind the counters out there, but my experience is they are far fewer than the general public assumes.

FWIW2: I am not a dealer apologist -- nothing makes me happier than seeing bad people caught and punished, and I hope they enjoy their special place in Hades. On the other hand, I try to maintain an objective view on most everything, and avoid fully adopting "popular opinion" before I start a transaction. There's a substantial difference between expecting to be screwed over before you even start and therefore judging everything you hear as an inflated attempt to rob you, and being *appropriately skeptical* and thinking about the validity of what you're being told.


**Yes, dealer labor rates and OE parts are higher than Joe's local service station and Rock Auto. There are both the issue of a dealer having higher overhead (service carrying the dealership to offset low-performing departments), and the much more important Econ 101 fact that they can price their goods and services higher because of the public's perceived benefits (justified or not) of conducting business with a dealer (service dept. access to OE technical publications and assistance, OE as a perceived potential recourse behind the dealer, etc.). If the pricing wasn't appropriate for the relevant market, it's Econ 101 that the volume of business would decrease until prices are lowered to put cost vs. demand back in balance.

So I don't buy into the oft-heard refrain that "they are trying to screw people over by charging outrageous rates." Don't like the rates? See Joe if you're comfortable that he can do the fix right (and that he's not more dishonest than the dealer). Rates aren't set in a vacuum -- they are what the service-buying public will tolerate. Truly outrageous "rip-off" rates are truly rare, and in today's age of Internet communications, they don't survive long before the word is out.

You put all of that way better than I did. Probably because I do work for a dealer and at times it makes me angry. We have a really great service department, parts, etc, and the reviews people put out and how loyal they are here speaks huge volumes. What upset me in your response was it took me a good 5 minutes to figure out the FWIW ..... my brain hurts now, but I got it!!!!

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