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

[BroncoWTFAN]

I'll probably go for the 10 year warranty but not sure about the miles since I won't be putting a bunch of miles on the Bronco. If I'd had a 10 yr warranty on the Ram it would have saved me 3 times what the warranty cost.

Ford knows that X milage at X years gets costly to repair which is why the price jumps up after 8 years. There are a few ways to look at this but as others have noted extended plans generally are a losing proposition. It just a matter of luck or being unlucky, the ESP like any other extended is prepaying for the future should one be unlucky.

A few things I have found with the ford ESP that make it more desirable

The Good

- 100% transferable or partial refund should you sell before it expires.
- Paying today for tomorrows repair costs. Let's face it, cost will keep going up, I fear the next 10 years and the amount of tech shoved under the Bronco hood.
- Peace of mind for whatever it's worth from the unexpected.

The Bad

- Dealer / Ford can deny a repair or give you a run around for various reasons.
- Prepaying for something you might not use, would you be better investing etc.
- Failure to procure the right amount of time or milage.
- Read the fine print as it's not a bumper to bumper plan.
- Some modifications can deny ESP repairs or the lack of proper maintenance / abuse.

Ford ESP FAQ

IS AN ESP CONTRACT TRANSFERABLE IF I SELL MY VEHICLE?
Yes. For a $75 transfer fee you can transfer your contract to another person (private party) to give them the added confidence of Ford Protect. Coverage is transferable from private party to private party, through the life of the contract. The fee may vary by state.

CAN I CANCEL MY FORD PROTECT CONTRACT?
Yes. For most states if you cancel within 30 days and no services have been rendered you can receive a full refund minus a $75 cancellation fee. After 30 days the refund will be prorated by time and mileage.

Sponsored

 

[BodhiMac]

Run your quotes through Granger and Flood to get the best price.

 

[Contact]

So, besides financing the extended warranty, you're purchasing something that you won't use for an estimated 3 years or 36k mileage and 60k for powertrain. Why not stashed this money in savings, wait until your factory warranty has expired, and then purchase a warranty? Maybe, before then you've already traded your current vehicle in and purchased a new one that has a factory warranty. I can maybe see if you drive a lot of miles each year, but still, couldn't you just wait? For me, if my vehicle kept breaking down, especially the drive train I would probably trade it in. I guess, each their own.

 

[cracKen]

If this vehicle doesn’t last 100k without needing major repairs I’ll be disappointed. It’s after 100k miles that I start to worry. I do drive 12k a year just for work alone. Add other mileage for hobbies and trips. If anything, it’s the 175k mile warranty that I’d want.

 

[UGABronc]

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 absolutely amazing, but at the same time it makes me think that SOMEBODY has a little too much time on their hands!

 

[stroix]

This is absolutely amazing, but at the same time it makes me think that SOMEBODY has a little too much time on their hands!

Thanks! Somebody's gotta do the hard work around here

 

[buzpro]

You’re missing the factory 5 year / 60k drivetrain warranty. So in your example of a 6 year warranty you would be buying a product that only provides one additional year of coverage on the most expensive components of the vehicle and then three on everything else.

Yes, you are correct ..... I'm still trying to decide if its worth it ..... my biggest worry is the Electronics on these cars

 

[timhood]

That and the factor of cost of repairs and availability of parts. I can tell you I bought this for my truck based off mileage driven per year as mentioned above. I’ve used it once, just got my truck back Monday, and it already paid for itself. I’m $8500.00 better off as of now after subtracting the cost of the warranty. Side note, if you sell the vehicle you can be reimbursed for remaining warranty.

Dang, I don't think I want to know how you racked up $10K in repairs on one vehicle! I don't think I've spent $10K in repairs total in the past 15 years!

 

[timhood]

I'm in the camp that thinks you should have an emergency fund instead of paying for warranties/extra insurance. In hindsight, I've never needed them so I'm glad I never wasted my money on them. But I do have a decent sized emergency fund should anything pop up. Better to have that money in my high yield savings account earning me more money instead of lining Ford's pockets with more money

Yeah, if people put the $1,500-$2,500 (more if the warranty is being paid with the loan) into an investment, or even a CD or something, they likely find there's plenty of money leftover after paid repairs.

These warranties aren't a charity option. Beside the dealer profit, the warranty issuer makes a tidy profit. Yes, occasionally, someone will have net money saved with an extended warranty, but overall, it's a losing proposition. I've yet to own a vehicle that I would have saved money with an extended warranty.

 

[BigRed13]

Dang, I don't think I want to know how you racked up $10K in repairs on one vehicle! I don't think I've spent $10K in repairs total in the past 15 years!

These newer vehicles are crammed together so much tighter, and packed with electronics. EVAP that has a known drain issue backed up, drained on the BCM and took it out. They had to do the TSB repair on the evap and replace the entire wiring harness and install a new BCM. Had to gut the interior of the truck with over 20 hours labor just for the harness which was 6k itself! Its a 2019 Super Duty with 34k on it that could have already cost me another 10k. Crazy.

 

[mx6bfast]

Anyone know if there is a hack to buy a warranty at a discount in Florida?

I used my parents TN house where I used to live.

 

[Faust]

Anyone know if there is a hack to buy a warranty at a discount in Florida?

What @mx6bfast said above. This a trick I learned in the past when trying to buy ESP on my mustangs. Just used my inlaw's address in a different state (As long as it's a state that doesn't share the stupid extended warranty law like FL). I never had a problem with the ESP on my mustangs doing that.

 

[Leilani]

That and the factor of cost of repairs and availability of parts. I can tell you I bought this for my truck based off mileage driven per year as mentioned above. I’ve used it once, just got my truck back Monday, and it already paid for itself. I’m $8500.00 better off as of now after subtracting the cost of the warranty. Side note, if you sell the vehicle you can be reimbursed for remaining warranty.

Thank you for sharing, BigRed

I also opted for the 7 year plan...peace of mind is everything

 

[smiths65]

I was fortunate or unlucky to have Ford pony up for 2 plans (bronco being a TSB pig...)
3yr/45K PREM maintenance (5k interval)
5yr/75K PREM ESP
Again, start date is purchase date...mileage "adjusted" to start date of contract

 

[Neekoy]

https://grangerfordextendedwarranty.com/

$50 over dealer cost, can't beat it.

Thanks for the link. Am I missing something or is California not available?

Sponsored