razol

The market sort of dictated their need to go for the 100k warranty. Hyundai had an abysmal reliability rating and they could not move their products unless they put a solid warranty out. While Ford had had some reliability issues, their stats have never been as badd as Hyunday in the 90s. Since then, they have made a dramtic improvement, I think they now rank in the top 3 for reliability. Still, market demand forced their hand initially. That copuled with the fact that their 100k warranty is very limited. Add to that, they are infamous for being difficuly in covering items even when the cars are new....

http://www.lawyersandsettlements.com...ai_clutch.html

sl8anic

I just used Hyundai as an example. There should be no reason why Ford can't be in the mainstay of the market which is 5/6y, 60k miles for power & transmission components...

CrazyAl

Everyone is entitled to their own decision as to wether or not to buy an extended warranty, If you want to buy one, that is your decision.

However, that doesn't change the FACT, that as a general rule EXTENDED WARRANTIES ARE A LOOSING BET. The factory warranty isn't relevant (though the quality history of the car factors into the price you pay for your warranty). If ten guys all buy new cars with extended warranties, perhaps one or two of them will get their money's worth--maybe more. Everyone else ends up getting screwed. If it wasn't profitable, nobody would sell them! The simple fact that you CAN buy an extended warranty means that as a whole the warranty companies are charging their customers (you) more money than they are paying to have cars fixed.

The warranty company doesn't come out and fix your car. They don't "have a garage" and do the work cheap becasue they hire an army of whiz-kid expert mechanics that work for low pay. They pay out full price to everyday garages and dealerships all over the country to have work done. EVEN THOUGH THEY PAY FULL PRICE FOR REPAIRS THEY STILL MAKE MONEY. In other words, it's still a loosing bet even if you have to pay a mechanic for all the work to be done.

Extended warranties are only worthwhile if the warranty contract pays out more money than you spent on it. That is usually quite a bit of money--especially if you financed the contract as part of the purchase price of your car. The chance of that happening is overwhelmingly NOT in your favor. The warranty companies know this, and that is why they are in business. It's just like in Vegas. In the end, the house always wins.

sl8anic

Once again, if it was a Camry or something and not a V8 american car - I'd 100% agree with you You're probably right about it being a loosing proposition. Unfortunately dealer is already ordering a steering pump, new radio, new window motor for my <6 month old car, not to mention loose clamps on the exhaust & other misc loose HW on a brand new car that was supposedly prepped & inspected. Doesn't inspire confidence, does it? That's just my experience so far...

alphy

I bought the extended warranty, I actually asked for it. The dealer had forgotten all about it.

I bought it for one reason...

2005 Mustang GT was the first of a radically new car in both design and engineering from Ford. I wanted to make sure everything was covered since humans designed the car, I figured an "Oh Sh*t, we forgot to.." was bound to happen on the first model year.

Plus it helps me sleep better at night, so I figure the extra expense was worth it.

Cowtown

I paid $820Cdn for a 5 year/100k basic. I just felt a little better covering it for the length of my loan. It was pretty reasonably priced.

LEJAY

CrazyAL
So I gather extended warranties are not a good buy ? What makes you think this ? Please explain.

SonicStanGirl

I paid $1000 I think for the 60K warranty, the finance guy had shaved off 500 to fit it into my financing. The cost for the warranty, in my opinion, is mostly profit for them so they can price it where they want to.

When I re-financed my car my new lender got my old warranty refunded and purchased me another one for 100K miles on the car for the same price.

flewbyu

I got 5 years, bumper to bumper 2 years free service with 2 years oil change, free car rental or loaner. Think it came to like $1900 Can look at my paper work later and let you know for sure. Got the 06 Gt

Sonic Boom NH

A few things to think about…

First, it’s always best that IF you purchase an extended warranty you purchase one through Ford. They have been many warranty companies that are very cheap but tend to go out of business taking your money with them. That or they are extremely picky on what they “actually” cover. Sure their documentation may say one thing but if they find a reason, any reason not to cover something they will and you’re out of luck unless you have a boat load of money for court cost.

Second, when you do purchase a Ford extended warranty its really mis-leading for many people. When you purchase, for example, a 5 year 50,000 mile warranty your really purchasing a 2 year 14,000 mile warranty.

All Ford extended warranties begin on the date you purchased the vehicle as well as the miles on the vehicle when you purchased it. So, you have free 3 year 36,000 mile warranty that is “extended” for 2 years and 14,000 miles if you purchased a 5 year 50,000 mile warranty.

You can purchase a Ford extended warranty at any time prior to it reaching 3 years of age or 36,000 miles and NO it is not that much more expensive to wait until your factory warranty is just about up, actually I believe it’s a whole $100 or $200 more then if purchased new. Any extended warranty purchased after the first year or 12,000 miles gets the $100 or $200 surcharge.

Lastly DO NOT purchase an extended warranty from the dealership. You can purchase a Ford extended warranty on line at:

http://www.fordwarrantys.com/

Or simply wait and Ford will send you, a few times before your warranty is up, offers in the mail to purchase an extended warranty. Both on-line and the mailings from Ford are 99.9% of the time much cheaper then what a dealership will charge you.

An example from fordwarrantys.com

2006 Ford Mustang

$0 deduct
4/100,000 - $1730
5/100,000 - $1825
6/100,000 - $2120

$100 deduct
4/100,000 - $1275
5/100,000 - $1370
6/100,000 - $1665