Ford Extended Warranty Plan Analysis (Cost-Per-Mile Comparison)

[vzqhsg]

My car just arrived at @Granger Ford and now I need to decide which warranty I should go with, if any.

This is only for the PREMIUM CARE ESP WITH $100 deductible as of 3/22/23.

I did a cost per mile analysis for each option in the table to find out what would be the best bang for the buck. I hope this will help others make an informed decision.

MILES/YEARS	3	4	5	6	7	8	9	10
36,000	-	$380	$410	$435	$525	$600	$685	$785
48,000	$475	$505	$530	$590	$745	$850	$975	$1,120
60,000	$550	$585	$620	$695	$895	$1,030	$1,185	$1,365
75,000	$720	$780	$840	$955	$1,275	$1,470	$1,695	$1,955
85,000	$940	$1,010	$1,085	$1,230	$1,480	$1,700	$1,950	$2,240
100,000	$1,070	$1,110	$1,165	$1,275	$1,420	$1,640	$1,900	$2,200
125,000	$1,410	$1,460	$1,540	$1,690	$2,020	$2,340	$2,710	$3,140
150,000	$2,105	$2,180	$2,295	$2,520	$3,020	$3,500	$4,055	$4,695
175,000	$2,510	$2,600	$2,740	$3,015	$3,615	$4,195	$4,865	$5,635

Here's a breakdown of the cost per mile for each option, calculated as (Price / (Miles * Years)):

Considering that most modern cars are built to last at least 100,000 miles without significant issues, it's reasonable to assume that the probability of encountering problems increases beyond the 100,000-mile mark. With that in mind, I chose a plan that offers coverage up to the 100,000-mile range.
Looking back at the cost per mile breakdown, the following options are close to the 100,000-mile range:

1. 60,000 miles / 6 years: $0.0019 per mile
2. 75,000 miles / 7 years: $0.0030 per mile
3. 85,000 miles / 7 years: $0.0029 per mile
4. 100,000 miles / 7 years: $0.0020 per mile

From these options, the 100,000 miles / 7 years plan stands out with a cost per mile of $0.0020, which is only slightly higher than the best overall cost per mile (60,000 miles / 6 years at $0.0019 per mile). This plan provides a good balance between coverage and cost, making it the best option when considering the potential for car issues beyond the 100,000-mile mark.

I hope this helps others in selecting which warranty to chose.

what's the deductible?

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[5PC24]

we plan on keeping ours for a long time, so we went 10/125k. also got dent, tire, and premium care with granger. ended up saving $2800 with those compared to my dealer, and they only offered max 6/125k.

I don't see anything online about dent coverage. Was that only through dealership upon purchase?

 

[Fmuguira]

These extended warranties are no different than Actuary Tables and Life Insurance policies. Companies selling any of this stuff have the best numbers on failure rates, true costs to fix such ( not what they charge you) and knowing how to spread the risk to a large group of “buyers” while MAKING $$$.

I worked for a Fortune 500 company for 38 years and whenever the manufacturers offered ‘insurance’ (extended maintenance warranty) and you plowed through all the detail of expected failures, opportunity cost of funds ( your borrowing capacity), time value (NPV) of money and the end answer was always the same; if you can afford to self-insurance (pay for any failures yourself, IF they occur) then that’s the best value!!

Remember that companies offering extended warranties, insurance or whatever you want to call it, MAKE $$$ selling these policies.

Our Company was a multi-billion dollar in sales entity and profitable…. Thus we could afford the “self-insurance” option and that’s what these analysis ultimately come down to.

Good Luck with whatever choice you make.

 

[mx6bfast]

I don't see anything online about dent coverage. Was that only through dealership upon purchase?

Dealers have it, simply ask what protection plans they have. For granger you need to ask specifically for it since it’s not on their website.

 

[Constraints]

How do I go about purchasing the extended warranty from granger if I’m getting my bronco in California. Also if something happens do I have to go to granger ford? Never mind I guess you can’t buy a plan if your from California at Granger….

 

[Machz963]

My car just arrived at @Granger Ford and now I need to decide which warranty I should go with, if any.

This is only for the PREMIUM CARE ESP WITH $100 deductible as of 3/22/23.

I did a cost per mile analysis for each option in the table to find out what would be the best bang for the buck. I hope this will help others make an informed decision.

MILES/YEARS	3	4	5	6	7	8	9	10
36,000	-	$380	$410	$435	$525	$600	$685	$785
48,000	$475	$505	$530	$590	$745	$850	$975	$1,120
60,000	$550	$585	$620	$695	$895	$1,030	$1,185	$1,365
75,000	$720	$780	$840	$955	$1,275	$1,470	$1,695	$1,955
85,000	$940	$1,010	$1,085	$1,230	$1,480	$1,700	$1,950	$2,240
100,000	$1,070	$1,110	$1,165	$1,275	$1,420	$1,640	$1,900	$2,200
125,000	$1,410	$1,460	$1,540	$1,690	$2,020	$2,340	$2,710	$3,140
150,000	$2,105	$2,180	$2,295	$2,520	$3,020	$3,500	$4,055	$4,695
175,000	$2,510	$2,600	$2,740	$3,015	$3,615	$4,195	$4,865	$5,635

Here's a breakdown of the cost per mile for each option, calculated as (Price / (Miles * Years)):

Considering that most modern cars are built to last at least 100,000 miles without significant issues, it's reasonable to assume that the probability of encountering problems increases beyond the 100,000-mile mark. With that in mind, I chose a plan that offers coverage up to the 100,000-mile range.
Looking back at the cost per mile breakdown, the following options are close to the 100,000-mile range:

1. 60,000 miles / 6 years: $0.0019 per mile
2. 75,000 miles / 7 years: $0.0030 per mile
3. 85,000 miles / 7 years: $0.0029 per mile
4. 100,000 miles / 7 years: $0.0020 per mile

From these options, the 100,000 miles / 7 years plan stands out with a cost per mile of $0.0020, which is only slightly higher than the best overall cost per mile (60,000 miles / 6 years at $0.0019 per mile). This plan provides a good balance between coverage and cost, making it the best option when considering the potential for car issues beyond the 100,000-mile mark.

I hope this helps others in selecting which warranty to chose.

This is super helpful, but to be intellectually rigorous -

To get the actual cost per mile, shouldn't the math be (Price / [ (miles-36,000) * (years-3) ] ) because you already have a 3/36k warranty and this only kicks in after that is gone?

That makes the cheapest option

60k miles / 6 years: $0.0097 per mile instead of $0.0019 per mile; 5x more per mile.

 

[timhood]

This is super helpful, but to be intellectually rigorous -

To get the actual cost per mile, shouldn't the math be (Price / [ (miles-36,000) * (years-3) ] ) because you already have a 3/36k warranty and this only kicks in after that is gone?

That makes the cheapest option

60k miles / 6 years: $0.0097 per mile instead of $0.0019 per mile; 5x more per mile.

That's probably the closest cost-per-mile that can be easily calculated. Since the Ford powertrain warranty is 5/60, we'd have to value the powertrain portion and rest of the vehicle separately and apply the calculation to the extended part of each.

This highlights how these warranties really aren't that great of a deal. The 6/60K is basically only extending the non-powertrain portion of the factory warranty unless someone drives only 10K miles per year instead of 12K.

 

[LarryZiegler]

How do I go about purchasing the extended warranty from granger if I’m getting my bronco in California. Also if something happens do I have to go to granger ford? Never mind I guess you can’t buy a plan if your from California at Granger….

California recently passed a law that disallows the out of state purchase of automobile extended warranty products. The loophole go this is if you can use an out of state address with which to make the purchase (using a friend or relatives address). California tightly regulates the allowance of out of state warranty companies focusing on their financial capabilities to handle claims (much like regular insurance companies have to meet approved financial guidelines….such as being rated A by AM Best). I’m suspecting the out of state purchase prohibition begins with the franchised auto dealers losing business to direct online marketing of Mfg labeled extended warranty plans at a much lower cost than being purchased directly from the in state dealer.

 

[bluesun68]

These extended warranties are no different than Actuary Tables and Life Insurance policies. Companies selling any of this stuff have the best numbers on failure rates, true costs to fix such ( not what they charge you) and knowing how to spread the risk to a large group of “buyers” while MAKING $$$.

I worked for a Fortune 500 company for 38 years and whenever the manufacturers offered ‘insurance’ (extended maintenance warranty) and you plowed through all the detail of expected failures, opportunity cost of funds ( your borrowing capacity), time value (NPV) of money and the end answer was always the same; if you can afford to self-insurance (pay for any failures yourself, IF they occur) then that’s the best value!!

Remember that companies offering extended warranties, insurance or whatever you want to call it, MAKE $$$ selling these policies.

Our Company was a multi-billion dollar in sales entity and profitable…. Thus we could afford the “self-insurance” option and that’s what these analysis ultimately come down to.

Good Luck with whatever choice you make.

But have you seen how I drive?

 

[Fmuguira]

Bluesun68 … U better do the warranty !!

 

[PC Austin]

These extended warranties are no different than Actuary Tables and Life Insurance policies. Companies selling any of this stuff have the best numbers on failure rates, true costs to fix such ( not what they charge you) and knowing how to spread the risk to a large group of “buyers” while MAKING $$$.

I worked for a Fortune 500 company for 38 years and whenever the manufacturers offered ‘insurance’ (extended maintenance warranty) and you plowed through all the detail of expected failures, opportunity cost of funds ( your borrowing capacity), time value (NPV) of money and the end answer was always the same; if you can afford to self-insurance (pay for any failures yourself, IF they occur) then that’s the best value!!

Remember that companies offering extended warranties, insurance or whatever you want to call it, MAKE $$$ selling these policies.

Our Company was a multi-billion dollar in sales entity and profitable…. Thus we could afford the “self-insurance” option and that’s what these analysis ultimately come down to.

Good Luck with whatever choice you make.

I see your point and you're not wrong. I don't buy most extended warranties. But even if I could self-insure my health insurance, I would still buy health insurance because I think it's a better investment and I'll save money.

 

[Fmuguira]

Cost of medical procedures and appointments are outside of 99% of the populations ability to self insure so kind of a different set of true options.

Now if your last name is Gates, Buffett, Bezos or Musk then it might still be optional !!

 

[LarryZiegler]

These extended warranties are no different than Actuary Tables and Life Insurance policies. Companies selling any of this stuff have the best numbers on failure rates, true costs to fix such ( not what they charge you) and knowing how to spread the risk to a large group of “buyers” while MAKING $$$.

I worked for a Fortune 500 company for 38 years and whenever the manufacturers offered ‘insurance’ (extended maintenance warranty) and you plowed through all the detail of expected failures, opportunity cost of funds ( your borrowing capacity), time value (NPV) of money and the end answer was always the same; if you can afford to self-insurance (pay for any failures yourself, IF they occur) then that’s the best value!!

Remember that companies offering extended warranties, insurance or whatever you want to call it, MAKE $$$ selling these policies.

Our Company was a multi-billion dollar in sales entity and profitable…. Thus we could afford the “self-insurance” option and that’s what these analysis ultimately come down to.

Good Luck with whatever choice you make.

You are absolutely correct on the assessment of profits , especially as it relates to the purchase of appliances and electronics in the retail environment. As a typical non purchaser of extended warranty products, I did purchase a 10 yr 100,000 mi Ford Extended Warranty. I’m not as worried about mechanical issues as I am about electronic demons as the Bronco is filled with technology. As a former small business owner that relied heavily on technology to run my business, I have had experience where gremlins required the use of computer techs at an hourly cost of $100-$120/hr. The current dealership hourly rate where I live is currently $180-$200/hr and should an electronic gremlin need to be dealt with, it could conceivably take several hours of labor for diagnosis. That’s an expensive potential diagnosis cost. As inexpensive as I paid for my warranty, this potential cost exposure is just not worth self-insuring.

 

[Coastalcop]

I would add that some car insurance companies (Geico). Will offer basically extended warranty coverage on a NEW vehicle you purchase if you’re insured with them. I did it for a few ( but I bought the bronco used so that isn’t an option). Cost for 100k mileage was about 8 bucks a month on the XOs GX460.

my only worry is turbo and electronics ( 2nd turbo I’ve ever owned) so I got 8yr. 125k through flood.

I’m still in the learning curve so turbos, like diesels are voodoo to me lol.

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