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
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