What are you guys paying for extended warranties?

[da_jokker]

You are missing the main issue that one must consider regarding buying an extended warranty....

What is the PROBABILITY that you will experience a major defect after the standard warranty expires? .05 (5%), .01 (1%)? Let's say there's a 2.5% chance you'll have a $10,000 repair bill covered by a $2000 warranty with a $500 deductible.

Case A - no warranty
.975*0 + .025*10,000 = $250

Case B - warranty
$2000 + .025*500 = $2012.50

In this case, you are 8 times better off with no warranty. (2012.5/250=8.05)

Rational people should use probability weighted scenarios when making these types of decisions. Believe me, the folks that are selling warranties are very good at estimating potential future repair costs and the probability they will occur. Their pricing reflects this plus a substantial profit for them. Product defects will generally make themselves known during the factory warranty period (3yrs, 36,000 mi ?). Once the vehicle has made it his far, the probability that a defect hasn't shown itself is low. Personally, I'd never buy an extended warranty, but that's me.

Ok so two different things. To Warranty or not to Warranty is one thing. I'm with you, I have never purchased an extended warranty on a vehicle, and hardly ever on anything I bought.

I was addressing the concept that you could take the money you would use to buy the warranty and invest it in a way that would cover major losses later. That's not going to happen.

When it comes to the warranty, this Bronco is a different beast. There have been so many problems from so many people that an extended warranty may actually be a good purchase.

But what I would suggest to everyone, and it has been said, you do not have to buy an extended warranty at the time you pick up your rig. You have 3 years, 36,000 mi to get a feel for the dependability. as it gets closer, if you've had a lot of issues, that's when you think about buying the extended warranty.

Now with that said, investing the original 2K may actually cover the price of buying an extended warranty later down the road since they get more expensive as time goes on.

In a nutshell, my advice, is if you're thinking of buying extended warranty take that money and invest it, and revisit this topic as you get close to your factory warranty ending. Then either use that investment to purchase an extended warranty at a bit higher price then, or let it ride and congrats that your 1st year Bronco didn't give you any grief.

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[71to21-2DR]

What Would Dave say?

 

[iKore]

FWIW. My wife bought a 2015 Explorer from CarMax and got the extended warranty. She had to take it in 4 times for repairs. Cost her $100 a pop and they even replaced the infotainment screen in one visit. For her it paid off big. This was all < 100k miles. Yeah, maybe the previous owner abused it. I plan to abuse my bronco. I already assume it will be in for repairs. One broken steering box or a couple of tie rod ends is going to use that warranty up quick.

 

[jwoobs]

I just picked up one from flood, and I sprung for the rental car coverage.

Assuming my 2.7 drops a valve and is out of commission for a month, the ESP will pay for itself and I won’t even be out of the 3yr/36k base warranty period.

I would never spring for a 3rd party plan though. If they’re going to use aftermarket and junkyard parts anyway, I would just do it myself. Part of the draw is getting genuine Ford / motorcraft replacements.

My big worries are the driveline, steering and infotainment systems. I expect any issue with those is going to be $1000 right out of the gate.

Edit: also from that CR article, 45% of the people surveyed said they used their extended warranty. Woah!

 

[Bdisco]

Just got the ‘FORD PROTECT’ mailer.
$100 off if you sign up before 12 months or 12k miles. Coverage up to 8 years or 150k miles. What they don’t list is prices for coverage. $100 off of what? I think I’ll call the 888# get a ballpark amount then maybe talk to my dealer and ask them to use their $1000 customer satisfaction bucks to knock it down to a reasonable price.

 

[TX-Hans]

I have not been one to purchase extended warranties in the past but with this being a first year product that has encountered a number of issues, I see the merit of some type of extended warranty for protection once get past the factory warranty. It's a first for me. With the Ford PremiumCare ESP that has a $100 deductible, I assume the deductible does not apply until after the Ford factory 3yr/36K miles warranty expires (for us, it's the 3 years given we drive few miles a year). From reading the Ford ESP agreement it seems to operate that way but it's not explicitly stated. Would suck to enter into an extended warranty that obligates you to a deductible for the entire 8 year period including the first 3 years when it wouldn't require a deductible for those first 3 years (or 36k miles). Don't believe it works that way but would like to hear from others that have first hand experience. Anyone know the answer?

 

[SpeedTwin]

 

[Jeffal]

I just picked up one from flood, and I sprung for the rental car coverage.

Assuming my 2.7 drops a valve and is out of commission for a month, the ESP will pay for itself and I won’t even be out of the 3yr/36k base warranty period.

I would never spring for a 3rd party plan though. If they’re going to use aftermarket and junkyard parts anyway, I would just do it myself. Part of the draw is getting genuine Ford / motorcraft replacements.

My big worries are the driveline, steering and infotainment systems. I expect any issue with those is going to be $1000 right out of the gate.

Edit: also from that CR article, 45% of the people surveyed said they used their extended warranty. Woah!

Which level of extended warranty did you go with? I’m debating PremierCare vs the lower levels that mostly cover powertrain stuff.

 

[jwoobs]

@Jeffal did extraCare myself.

Probably hosed if the Sync module dies, but most of the other stuff should be covered including front and rear diffs and T-case.

 

[VictoryLights]

I paid a couple hundred more than flood Ford’s prices for the convenience of doing it right at the point of sale with my dealer.

I just brought up flood Ford’s pricing table and asked if they could match. They couldn’t.

 

[Happy]

With everything from the gas pedel to to the differential lockers being controlled by an electrical module I predict that the ESP Premium Care buyers will be shown to the smart ones by the end of 8 years.

If this turns out to be wrong, we bought from Flood and used Ford Point so we are not out a bucket of money.

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