How much did you pay for GT EXTENDED WARRANTY?
06-02-2006, 09:47 AM
#12
1st Gear Member
Join Date: Apr 2005
Location:
Posts: 125
RE: How much did you pay for GT EXTENDED WARRANTY?
ORIGINAL: tangtang
I paid something like $1250 for mine. its for 4years bumper to bumper + roadside assistance, free towing, free car rentals when car is in service, however it does not cover tires, oil changes etc.!!! Gap insurance was cheap so i bought it as well....paid $220 for that.
My buddy has 5 year bumper to bumper with free oil changes and free tire repair and tires etc. etc. and paid about $2600, which i think is ridiculous.
I regret buying mine and would never buy ANYTHING other than the car from a dealership.
I paid something like $1250 for mine. its for 4years bumper to bumper + roadside assistance, free towing, free car rentals when car is in service, however it does not cover tires, oil changes etc.!!! Gap insurance was cheap so i bought it as well....paid $220 for that.
My buddy has 5 year bumper to bumper with free oil changes and free tire repair and tires etc. etc. and paid about $2600, which i think is ridiculous.
I regret buying mine and would never buy ANYTHING other than the car from a dealership.
06-02-2006, 10:54 AM
#13
5th Gear Member
Join Date: Mar 2006
Location:
Posts: 2,544
RE: How much did you pay for GT EXTENDED WARRANTY?
My suggestion is to avoid the extended warranties, period.
The reason is that they are basically gambling, and the odds are always in the house's favor. The company that underwrites the warranty has figured out statistically that they pay less money in claims than they are collecting in fees. Matematically, the odds are in their favor. If that wasn't the case, they simply wouldn't be selling the extended warranty at all. No company stays in business for long if they are loosing money on their sales.
I agree that in some cases they can pay off, if you have a very expensive problem with your car (or a "lemon" with a series of problems). But, it is an empirical fact that for the majority of the population, it is a loosing bet, and this is why warranty companies exist and make a profit. (Hey, you can always "get lucky")
A better idea is to take that warranty money and put it in an interest-earning account, such as a CD or money market, etc. If you need the money for repairs, go ahead and take it out. If not, you'll have saved a tidy sum once the years go by.
If you are going to buy a warranty, then DEFINATLEY wait until your factory warranty is getting close to running out. You'll be better equipped to make the decision at that time, and you're maximizing the utility of the warranty.
The reason is that they are basically gambling, and the odds are always in the house's favor. The company that underwrites the warranty has figured out statistically that they pay less money in claims than they are collecting in fees. Matematically, the odds are in their favor. If that wasn't the case, they simply wouldn't be selling the extended warranty at all. No company stays in business for long if they are loosing money on their sales.
I agree that in some cases they can pay off, if you have a very expensive problem with your car (or a "lemon" with a series of problems). But, it is an empirical fact that for the majority of the population, it is a loosing bet, and this is why warranty companies exist and make a profit. (Hey, you can always "get lucky")
A better idea is to take that warranty money and put it in an interest-earning account, such as a CD or money market, etc. If you need the money for repairs, go ahead and take it out. If not, you'll have saved a tidy sum once the years go by.
If you are going to buy a warranty, then DEFINATLEY wait until your factory warranty is getting close to running out. You'll be better equipped to make the decision at that time, and you're maximizing the utility of the warranty.
06-02-2006, 11:55 AM
#15
I ♥ Acer
Join Date: Apr 2006
Location:
Posts: 782
RE: How much did you pay for GT EXTENDED WARRANTY?
CrazyAl
+1
But what you are saying is true with any insurance (life-health-car-etc.) That's why life insurance is cheap @ age 20, and expensive @ age 50.
The bad thing about waiting until the current warranty is almost gone, is the price goes up alot, at that point.
Basically, the dealer makes 1/2 of the price. I got mine for $889.00, 5yr / 100k (more of an investment than anything.) As if I ever decide to sell, itsa great selling point, that adds value, at resale.
+1
But what you are saying is true with any insurance (life-health-car-etc.) That's why life insurance is cheap @ age 20, and expensive @ age 50.
The bad thing about waiting until the current warranty is almost gone, is the price goes up alot, at that point.
Basically, the dealer makes 1/2 of the price. I got mine for $889.00, 5yr / 100k (more of an investment than anything.) As if I ever decide to sell, itsa great selling point, that adds value, at resale.
06-02-2006, 01:43 PM
#16
5th Gear Member
Join Date: Mar 2006
Location:
Posts: 2,544
RE: How much did you pay for GT EXTENDED WARRANTY?
ORIGINAL: LEJAY
CrazyAl
+1
But what you are saying is true with any insurance (life-health-car-etc.) That's why life insurance is cheap @ age 20, and expensive @ age 50.
CrazyAl
+1
But what you are saying is true with any insurance (life-health-car-etc.) That's why life insurance is cheap @ age 20, and expensive @ age 50.
In fact for many kinds of insurance I think you have to carefully weigh the risks and costs. For example, on my old vehicle (4x4 truck) was paid off long ago. After it was paid off, I only kept minimal insurance on it. One day some @sshole broke into it and stole an extension cord and a power drill that was in the back seat. So, I was out a few hundred bucks to repair the damage. It would have been nice to have insurance cover that. But on the other hand, the money I saved not paying those premiums over the last couple years were much more money than the cost of repairs.
Health insurance is a little different. With a car, if you get "screwed" on needing a lot of work done, you can at least deal with it. Yes, it would be awful to get stuck with a serious repair bill, but its at least possible for you to "take care of it" (especially if you saved the money rather than spending it on a warranty). On the other hand, if you have a serious health problem like a bad accident or a serious chronic disease, then there's simply nothing you can do. You can't work if you're that sick, so no matter what your intentions are, you can't get out from under it.
06-02-2006, 02:47 PM
#17
1st Gear Member
Join Date: Jan 2006
Posts: 100
RE: How much did you pay for GT EXTENDED WARRANTY?
I'll have to respectfully disagree 
I was in the same boat as you in my opinion of the extended warranty, until my girlfriend reminded me of a few things:
1) Standard warranty is ONLY up to 3y/36k miles for ALL components!!! - what a joke in this day and age, all others offer at least 5y/60k on engine & tranny;
2) it's a FORD, yes, the quality has improved, nonetheless...
3) more expensive to pick up extended warranty once you get closer to expiration date;
4) I like to drive, a lot (10k in 5 months...);
5) I don't have a garage to tinker with the car much (city dweller);
6) it's a FORD...
Truth be told, #1 was my biggest sell. If a crappy(?) Hyundai can give 100k worth of warranty free of charge, why is Ford, an established manufacturer refuses to go up to even typical warranties of 5 year/60k miles for key components? Do they know that they CAN'T warranty for that long since enough cars will have issues by that point?!?!? I don't know, not willing to take that chance after sinking ~$30k for an american car. Parts for new cars are expensive...
A peace of mind man, that's really what it's about... As long as you're not ripped off during the sale, my advice would be to go for it and buy that warranty.
AD
I was in the same boat as you in my opinion of the extended warranty, until my girlfriend reminded me of a few things:1) Standard warranty is ONLY up to 3y/36k miles for ALL components!!! - what a joke in this day and age, all others offer at least 5y/60k on engine & tranny;
2) it's a FORD, yes, the quality has improved, nonetheless...
3) more expensive to pick up extended warranty once you get closer to expiration date;
4) I like to drive, a lot (10k in 5 months...);
5) I don't have a garage to tinker with the car much (city dweller);
6) it's a FORD...
Truth be told, #1 was my biggest sell. If a crappy(?) Hyundai can give 100k worth of warranty free of charge, why is Ford, an established manufacturer refuses to go up to even typical warranties of 5 year/60k miles for key components? Do they know that they CAN'T warranty for that long since enough cars will have issues by that point?!?!? I don't know, not willing to take that chance after sinking ~$30k for an american car. Parts for new cars are expensive...
A peace of mind man, that's really what it's about... As long as you're not ripped off during the sale, my advice would be to go for it and buy that warranty.
AD
ORIGINAL: CrazyAl
My suggestion is to avoid the extended warranties, period.
The reason is that they are basically gambling, and the odds are always in the house's favor. The company that underwrites the warranty has figured out statistically that they pay less money in claims than they are collecting in fees. Matematically, the odds are in their favor. If that wasn't the case, they simply wouldn't be selling the extended warranty at all. No company stays in business for long if they are loosing money on their sales.
I agree that in some cases they can pay off, if you have a very expensive problem with your car (or a "lemon" with a series of problems). But, it is an empirical fact that for the majority of the population, it is a loosing bet, and this is why warranty companies exist and make a profit. (Hey, you can always "get lucky")
A better idea is to take that warranty money and put it in an interest-earning account, such as a CD or money market, etc. If you need the money for repairs, go ahead and take it out. If not, you'll have saved a tidy sum once the years go by.
If you are going to buy a warranty, then DEFINATLEY wait until your factory warranty is getting close to running out. You'll be better equipped to make the decision at that time, and you're maximizing the utility of the warranty.
My suggestion is to avoid the extended warranties, period.
The reason is that they are basically gambling, and the odds are always in the house's favor. The company that underwrites the warranty has figured out statistically that they pay less money in claims than they are collecting in fees. Matematically, the odds are in their favor. If that wasn't the case, they simply wouldn't be selling the extended warranty at all. No company stays in business for long if they are loosing money on their sales.
I agree that in some cases they can pay off, if you have a very expensive problem with your car (or a "lemon" with a series of problems). But, it is an empirical fact that for the majority of the population, it is a loosing bet, and this is why warranty companies exist and make a profit. (Hey, you can always "get lucky")
A better idea is to take that warranty money and put it in an interest-earning account, such as a CD or money market, etc. If you need the money for repairs, go ahead and take it out. If not, you'll have saved a tidy sum once the years go by.
If you are going to buy a warranty, then DEFINATLEY wait until your factory warranty is getting close to running out. You'll be better equipped to make the decision at that time, and you're maximizing the utility of the warranty.
06-02-2006, 03:34 PM
#18
2nd Gear Member
Join Date: Feb 2006
Location: Denver, CO
Posts: 345
RE: How much did you pay for GT EXTENDED WARRANTY?
I paid 1k for upgrade to 6 yr 80k warantee, with roadside and roadhazard. I have in the past done all of the work, on all of my cars, myself. But, if something catastrophic, or even minor comes up in the next six years, and I dont have the cash at least its taken care of. Besides I did a 6 year loan (yay for 3% financing, and no early pay off penalty) and I figured the car should be covered at least that long.
06-02-2006, 03:36 PM
#19
2nd Gear Member
Join Date: Jan 2006
Location:
Posts: 235
RE: How much did you pay for GT EXTENDED WARRANTY?
Why pay now for something you can buy later.
You can always buy the Ford ESP plan before your 3 year warranty expires.
And for people who have a Ford ESP plan and have regrets, you can cancel anytime. They will prorate your usage and get a refund for the rest. I did.
You can always buy the Ford ESP plan before your 3 year warranty expires.
And for people who have a Ford ESP plan and have regrets, you can cancel anytime. They will prorate your usage and get a refund for the rest. I did.