Extended warranty - Yea or Nay?

[BdubBronco]

My neighbor was bragging about how he was able to negotiate $600 off of the extended warranty on his new Subaru. I've never purchased an extended warranty, but it got me thinking... M.Y. 2021 is a new vehicle with a lot of goodies. Maybe I should purchase some peace of mind. This screen shot is from Zeigler Ford that has been previously mentioned. Any thoughts?

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[Deleted member 15966]

I've had good luck with my Fords over the last few years. Only one I really wish I would have bought an extended warranty for was a 2000 Explorer. My recent ones (2010 GT500, 2014 and 2018 Raptors) have been rock stars. In looking at the Bronco, while we know it's going to be a new body, it's incorporating tech and mechanicals from other platforms that have been out a while. That's the only reason I would have considered the first model run. In addition, with most extended warranties, as long as you purchase before the base warranty runs out you're covered. I'm getting all those "your warranty is running out soon" letters in the mail from Ford on the Raptor, but it's been bulletproof since I bought it so I'll pass. If the first 3 years of the Bronco don't go well, I'll probably dump it before the warranty runs out anyway. If it's annoying little things, I may opt for buying it late. But hey, that's just me!

 

[Drex]

The underwriters of the policies set the price to cover the actuarial numbers of a payout plus profit, meaning that in the long run they pay out less then they take in (beyond profit, they also have to cover salaries, office space, general costs, taxes, and so on.) The dealer marks it up a lot, maybe double or triple that cost. On the face of it buying one means your are betting $1500 that an engine or transmission will fail after the factory warranty and before the extended ends. Costs that, on average per a large population of vehicles, cost a whole lot less, Example case; Your transmission starts slipping at 78k miles and you have a 100k mile power train deal.
Let's assume you don't get denied for not having done your 60k factory fluid flush or whatever done and the transmission work runs you $3100. After a hundred dollar deductable, $3000. You just saved $1500 (you did remember to subtract the original $1500, plus the interest paid, right?) Unless you expected half of all (let's personalize it for us) Bronco's to have a slipping transmission at 78k miles, betting half the cost of a major repair for your particular vehicle (outside of factory warranty) is foolish. In addition, you won't be getting a new transmission, you will get a repaired, or 'refurbished' one, which might mean a visual inspection and a couple of new seals on one that failed on someone else.

An extended warranty will pay off for some people, but, overall, won't for most. Don't forget all the expenses, before even paying it a dime, the people writing the policies have, on the face of it, biggest sucker bet in the western hemisphere. Sure, a few people 'win', but most lose or the purchase price would be higher to the dealer.
If it makes you feel better to have the coverage, then go for it, might be worth the peace of mind, but financially it is not a good idea and don't kid yourself about it.

 

[DGTUX20]

Soooooo...If you did all your maintenance @ a FORD dealership and on time...would an aftermarket roof rack potentially void a warranty?

 

[Felix808]

I am leaning towards it but after purchase/ not financed manly for the tech in the car (high Pkg)

Side Note Pennzoil Platinum give you a 10 year 300k & 15 year 500k engine warranty.
Covers Turbos and a lot within the engine. Documentation is the key. I use the stuff on all my cars & trucks anyway so it's an extra coverage basically free for the engine.
https://www.pennzoil.com/en_us/warranty.html

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