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Old 12-17-2013, 07:45 AM   #21
rebelx
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Quote:
Originally Posted by greg4focus View Post
Ford ESP's are great peace of mind for a vehicle.

the mistake people make is let the finance manager of the dealer pressure them into buying one. Its a money maker for the dealer AT THAT POINT.....

If you are interested in a FORD ESP, decline it at the dealer, then search online for one.

Several FORD dealers across the US sell ESP's online, and DEEPLY DISCOUNTED!

A $1500 FORD ESP that the dealer wanted can be had for about $600 at a online dealer. these are GENUINE Ford Esp's. they sell alot more of them at a discount, so they can still make a small profit.

Just goes to show you the markup and the added dealer profit.

Check out a FORD ESP on the ford.com website, then compare its cost
to an online dealer such as www.zeiglerfordesp.com........you'll be
shocked at the price difference.



In the case of the OP's concern....offering the "lifetime" warranty......that's purely a "we gotcha" case, since they are requiring that the car be returned there for EVERY PART OF SERVICE the car receives. They will recoup their money fairly fast by doing this....
Thanks for this information! I plan on taking advantage of it next year when I buy. I'll be declining the insurance at the dealership and buying it third party!
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Old 12-17-2013, 07:57 AM   #22
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Quote:
Originally Posted by rebelx View Post
Thanks for this information! I plan on taking advantage of it next year when I buy. I'll be declining the insurance at the dealership and buying it third party!
In my humble opinion, extended warranties are not a good investment, no matter if the vehicle manufacturer sells them or a third party. If a vehicle needs an extended warranty, then it shouldn't be purchased in the first place. Extended warranty companies go out of business at a fairly regular rate, leaving the consumer holding a very expensive extended warranty contact that is now worth nothing. Further, be forewarned that extended warranties do not cover normal wear and tear items, but only catastrophic failures. A transmission or engine with over 100,000 miles on it that fails can indeed be determined to be normal wear and tear, which is why original equipment warranties will not cover a vehicle past that mileage. A transmission or engine with fewer than 100,000 miles is generally covered by the original warranty that came with the vehicle anyway. So why spend huge money on an extended warranty? Virtually any component on a vehicle that fails/wears out after 100,000 miles has elapsed can be deemed normal wear and tear that a very expensive extended warranty will not cover. Again, they are not good investments in my opinion. "Money" magazine has had an article about this that came to the same conclusion. Save your money.
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Old 12-17-2013, 08:01 AM   #23
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Quote:
Originally Posted by BlueFocusSE5 View Post
In my humble opinion, extended warranties are not a good investment, no matter if the vehicle manufacturer sells them or a third party. Save your money.
Even the Ford ESP warranties aren't a good investment (the OEM warranties)? Seems like for appx $1400, almost any major catastrophic item is covered (granted the wear items are not) which seems like it might pay for itself with 2 visits to the shop?

I would hope that I would never have to use it, though.
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Old 12-17-2013, 09:37 AM   #24
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Quote:
Originally Posted by rebelx View Post
Even the Ford ESP warranties aren't a good investment (the OEM warranties)?
In general on extended warranties, etc...

I'm sure you folks all know what actuaries are. If not, wikipedia has a good article on it.

It doesn't matter whether you buy an extended warranty or service contract from the dealer or third party. Either way, you are statistically set up to lose by some really smart people who are in the business of taking your money, not in the business of paying out claims to fix cars.

Say we cut the dealership out. So the plan that was $2000 becomes $1000 at an online vendor. That vendor pockets $100 or $200 in profit instead of $1000 that the dealer would have. Changes nothing. The same amount of money still goes to the warranty provider, in this case $800 let's say.

Ask yourself, if they sell 10 plans for $800 (taking in $8000), do you think they are paying out more than $8000 in claims on those ten cars? Of course they are not.

Now sure, one or two of the ten people may get more back in repairs than they spent in premiums for the warranty. But the other 8 will not. They will put more in than they get out, and a lot more. The really bright actuarial staff has made sure of that when they price the warranty plan.

They have 100 years of data on cars. They know statistically with a fleet of cars on the road what will break and when it will break on average. When a water pump breaks. When a ball joint fails. Obviously they can't predict this on one car, but over a fleet of thousands or millions of cars, they can.

So with all this data at their disposal, and some real smart mathematicians and statisticians, they design a warrantly plan to sell that makes them a bunch of money by reducing their exposure to loss, i.e. repair claims.

Think of this in terms of fire insurance, or theft insurance. If you take a community of 1000 homes, how many of those are going to burn down? Not very many. Maybe one per thousand. But 1000 people are paying in premiums for fire insurance. So one guy who was paying in will get way more back for his money than the other 999. So if you ask the one guy who had his house burn down if it was a good deal, sure. The other 999 not so much.

A house fire is different in that it costs $200,000 to buy a new house, so you probably don't have that kind of cash handy either.

The bottom line is that the company selling you a service contract is taking in more on average from you than they are paying out in claims to you. A lot more. Otherwise they wouldn't be selling it to you. If you think you're the one that is going to beat the system, great, I recommend you start buying Mega Millions tickets and pick me up one as well.

There is one and only one good reason to buy an extended warranty. This is that you are a nervous wreck and are willing to lose money for peace of mind. If this is the case, then fine, a good investment in your sanity. Logical reason that makes financial sense, not so much.







Consumer Reports' advice:

"We've long found extended warranties to be a bad deal for you and advise against buying them."
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Old 12-17-2013, 09:39 AM   #25
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Lets face it, breaks. Anything mechanical is apt to break sometime in its life.

I was talking about a FORD ESP.....the ESP would be good as long as FORD as in business............Any business going under isn't really something you can predict.

Bottom line, if a ESP give you peace of mind having it on your vehicle, buy it.....if you want to save the money you'll spend on the ESP to pay for repairs later, then more power to ya.


Quote:
Originally Posted by BlueFocusSE5 View Post
In my humble opinion, extended warranties are not a good investment, no matter if the vehicle manufacturer sells them or a third party. If a vehicle needs an extended warranty, then it shouldn't be purchased in the first place. Extended warranty companies go out of business at a fairly regular rate, leaving the consumer holding a very expensive extended warranty contact that is now worth nothing. Further, be forewarned that extended warranties do not cover normal wear and tear items, but only catastrophic failures. A transmission or engine with over 100,000 miles on it that fails can indeed be determined to be normal wear and tear, which is why original equipment warranties will not cover a vehicle past that mileage. A transmission or engine with fewer than 100,000 miles is generally covered by the original warranty that came with the vehicle anyway. So why spend huge money on an extended warranty? Virtually any component on a vehicle that fails/wears out after 100,000 miles has elapsed can be deemed normal wear and tear that a very expensive extended warranty will not cover. Again, they are not good investments in my opinion. "Money" magazine has had an article about this that came to the same conclusion. Save your money.
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Old 12-17-2013, 09:40 AM   #26
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You can save almost 70% off an FORD ESP by buying it online from another FORD dealer.

Quote:
Originally Posted by rebelx View Post
Even the Ford ESP warranties aren't a good investment (the OEM warranties)? Seems like for appx $1400, almost any major catastrophic item is covered (granted the wear items are not) which seems like it might pay for itself with 2 visits to the shop?

I would hope that I would never have to use it, though.
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Old 12-17-2013, 12:49 PM   #27
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Ok i guess i should clear some things up here, but it looks like this thread has shifted a little.

I already purchased the car, last summer. The "Warranty Forever" is something put on all vehicle at this dealer. and is "thrown in" at no cost to me.... Well i know there is cost to it, and nothing is free. I got the car at a good price, and everything is in good working order, except a motor mount maybe (not covered). I tried to get them to take it off and lower the cost, but they wouldn't budge, and i liked the car.

I was just curious if anyone has had experience with this particular warranty and if its worth maintaining the warranty.

To maintain the warranty, i must return to the dealer i purchased it from, or call in and get "pre-authorized" to take it somewhere else. All maintenance must be preformed by A dealer.

I am currently up to date with it, and should still be valid. But then again, i would expect them to lead me to believe that i still have a valid warranty right up until i need to use it (better PR right?)


So lets look at cost from this point out, in my case.
service at my local ford dealer is $45 OTD, for a standard oil change & inspections (The Work's)

i can do oil and filter for about $30 OTD myself in the driveway. (i use ford oil and a fram filter)

So doing 28,000 miles a year that's 4 oil changes
$180 year at dealer
$120 year for maintaining it myself and forfeiting the warranty.

I mean for 60 bucks more a year and all i have to do is take it in and have maintenance done at the dealer, i may maintain the warranty. I hate my local ford dealer, real jerks in there, but i may continue to use them, just to maintain the warranty.
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Old 12-17-2013, 01:47 PM   #28
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I also wanted to say thanks for all the replys .... There is some good info I didn't know about warranties!

Sent from my Galaxy Nexus using FF Mobile
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Old 12-17-2013, 09:29 PM   #29
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A defective motor mount is supposed to be covered under warranty.
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