Ford Extended Warranties

[Spector]

I need some opinions/expertise on how extended service plans (warranties) work with Ford. I am considering one for my 2012 Ford Product due to the electronics mostly, which would extend my current warranty from 4 years 50,000 to 7 years 75,000. I do not wish to debate whether this is sound financial practice or not but I have other issues.

I contacted Ford directly and for the plan above from them their quite is $2,100. The Dealer I purchased the car from is $1,795 and I have two online quotes from Ford dealers (one in Winsted, CT and one in Troy, NY) for substantially less, like $1,174, exact same plan from FORD, not a third party.

So, my first question is how does Ford operate these, do they sell them to dealerships like cars and the dealer can re sell them at whatever price they want? Ford is then required to honor that warranty nationwide like the one that comes with the purchase. This is the only scenario that makes sense to me and dealers can then set their own profit margins on what they sell the warranties for.

My second question is, although all the paper work appears to be proper and Ford plastered all over the documents how does one assure that these online dealers are truly selling a valid FORD extended warranty???

Anyone out there ever work for a Ford dealership in finance or can help with this?

thanks

 

[Roadkingnc]

If your buying it from a dealer it will be a ford esp plan if they state it is. The only plan for what you want is the esp premium plan, it will cover the most and is the only plan I would buy. Some of the modules are upwards of 1000 dollars. It will also provide for rental while repairs are made. If you have fluid leaks, a/c concerns, trans problem etc. it will pay for itself. If you dont have trouble you have peace of mind.

 

[Roadkingnc]

Ford does operate thier own warranty plans.

 

[Tdbo]

That goes to show the profit margin that there is in selling extended service warranties (in this case, almost a 1K spread.)
If you feel that the purchase is prudent, go with the lowest price, make sure that you have in writing that it is an actual Ford warranty. Sometimes if you take the best price you can find and go back to your selling dealer, they will match it.

IMO, $1200. for 25K worth of warranty is a bite.

 

[Spector]

I didn't want to argue the merits of it but my concerns are the display for navigation, the hard drive for the music plus the extra items with a hybrid system, the air filter is supposed to be lifetime and is 500+ to replace etc. The display itself is 3,000 to replace and knowing how long computer components last these days overall is seems like a decent insurance and it is transferable upon sale which could make it easier to sell in the future.

 

[Tdbo]

No, it was not my intent to argue anything with you. If your mileage is such that you would actually get closer to the three additional years of warranty from it, it may be worth it. If I were looking at it from my own personal situation, 25K worth of warranty would = about 8.5 months.

 

[JTK]

Originally Posted By: Roadkingnc
Ford does operate thier own warranty plans.


Well... Not necessarily. Most will sell aftermarket packages as well.

Years ago I bought a used 2001 Ford Windstar LX w/ ~34K miles on it from a Ford dealership. IIRC, it was in 2004. I purchased a warranty with it that would take me to 75Kmi and 3yrs. I don't recall the warranty company's name, but it was aftermarket.

This dealership liked working with this particular warranty company and all I could say is it was awesome. Paid like $700 for the warranty package and countless things were replaced on the van at no (additional) cost to me.

People say stay away from aftermarket warranties, but if they're sold through a dealership that's going to be doing the work, they're great.

Joel

 

[Spector]

Actually the dealership does offer a third party one from EasyCare but their limit is 6 years.

Anyone purchased a Ford ESP from an online Ford dealer?