Is it worth getting an extended warranty?

[FusionAndy]

Is it worth getting an extended warranty? I just got my fusion v6 2008 with 47000 miles. Should I cancel my extended warranty? It was 1100 dollars for Advantage Powertrain Plus for 5 years or 60,000 miles. It would end at 107,000 miles or 5 years.

 

The fusions are reliable right?

[bbf2530]

Is it worth getting an extended warranty? I just got my fusion v6 2008 with 47000 miles. Should I cancel my extended warranty? It was 1100 dollars for Advantage Powertrain Plus for 5 years or 60,000 miles. It would end at 107,000 miles or 5 years.

 

The fusions are reliable right?

 

 

Hi Andy. :D You will get many answers to that question, and all of them are right for the particular person who is giving them, but may not be right for you.

 

Here is my opinion: The only plan worth the money is the Ford ESP (Extended Service Plan) Plan. And even then, only when you negotiate the price well below the MSRP cost. The Ford ESP Plan is sold, implemented and guaranteed by Ford, not a third party aftermarket company. So when you have to use it, you only deal with the Ford Dealership and Ford.

 

What you have is a third party extended warranty. Most third party extended warranties are more trouble than they are worth, especially when it comes time for them to actually cover some type of mechanical work.

 

If I were you and could cancel and get my money refunded, I would.

 

And yes, the Fusion has proven to be a reliable car.

 

For what it is worth, that is the short version of my opinion.

 

Good luck. :beerchug:

[DJE]

I agree. They tried to sell me an extended last week when I bought an 06 with 26K. I have never bought them before and wasn't about to start. I had to tell the guy about 12 times that no, I don't want to do it. They really push them. We really shouldn't need them!

[skluck]

You are paying for peace of mind. Also, if the warranty companies didn't make lots of money on them they wouldn't sell them. Consumer Reports says they are a waste of money. And if you are buying a car and you think you need one, maybe you should rethink your choice and buy a car you have more confidence in.

[seamusbleu]

Here is my opinion: The only plan worth the money is the Ford ESP (Extended Service Plan) Plan. And even then, only when you negotiate the price well below the MSRP cost. The Ford ESP Plan is sold, implemented and guaranteed by Ford, not a third party aftermarket company. So when you have to use it, you only deal with the Ford Dealership and Ford.

Has anyone bought the ESP on a hybrid, and if so, what price did you get?

[JoelTheGeek]

The best way to look at an extended warranty perhaps, is that it's like a slot machine. Some people win big, but on average most people lose. The cost of an extended warranty is not random at all. When Ford (or any other company) wants to charge you $_____ for say years 3 - 5 of the car's life, they know the mean time between failure of all the components, the average anticipated repair costs in that time, an so on.

 

So let's say that 10 people buy it for $1000 each. Say 9 people get $300 in repairs but one person gets $5000 in warranty work. The result is that Ford collects $10000, pays back $7200 (9 x $300 + $5000) so they end up ahead $2800. For most people, they lost money in the deal (which I can almost guarantee is the situation in real life if the Ford actuaries have done their job), but for some (in this example, the guy who saved $4000) they win. This is just like the slot machine example that I started with. Odds are not in your favour, but you can most certainly win.

 

Joel

[JoelTheGeek]

All that being said, I opted out of the warranty

[akirby]

The best way to look at an extended warranty perhaps, is that it's like a slot machine. Some people win big, but on average most people lose. The cost of an extended warranty is not random at all. When Ford (or any other company) wants to charge you $_____ for say years 3 - 5 of the car's life, they know the mean time between failure of all the components, the average anticipated repair costs in that time, an so on.

 

So let's say that 10 people buy it for $1000 each. Say 9 people get $300 in repairs but one person gets $5000 in warranty work. The result is that Ford collects $10000, pays back $7200 (9 x $300 + $5000) so they end up ahead $2800. For most people, they lost money in the deal (which I can almost guarantee is the situation in real life if the Ford actuaries have done their job), but for some (in this example, the guy who saved $4000) they win. This is just like the slot machine example that I started with. Odds are not in your favour, but you can most certainly win.

 

Joel

 

That is exactly what it is. It's a gamble and the odds are not in your favor. Can you come out ahead? Sometimes, but over the long haul you're much better off if you self-insure (assuming you can afford it).

[acdii]

I had a warranty on a 92 Crown Vic, it paid for itself when the Fuel pump popped and took out the trunk wiring. I also had a leaking oil pan that was repaired. I had warranties on other cars, never used them. I had a warranty on a Prius that I made a killing on, I bought it for 1900, it was a quick buy day, so didn't do too much studying on the car and didnt know what to expect on the Hybrid. I found out the next day I can get the same plan for $850, call to cancel, but since they had it on the loan, they decided to give it to me for $750 and refunded the difference. When I sold the car, I canceled the warranty and the the balance left on it was $1400. So not only did I get a $1500 cash loan for 2.9%, I also got $1400 cash back, and sold the Prius for more than I paid for it. Didn't have the same luck with the Camry though

[ctrcbob]

Is it worth getting an extended warranty? I just got my fusion v6 2008 with 47000 miles. Should I cancel my extended warranty? It was 1100 dollars for Advantage Powertrain Plus for 5 years or 60,000 miles. It would end at 107,000 miles or 5 years.

 

The fusions are reliable right?

 

If you MUST get an extended warranty (also called an Extended Service Plan), make sure it is one from Ford. (the papers must say Ford on them, not the XYZ Warranty Company or in the above example, the Advantage Powertrain Plus). Aftermarket ESP's are not worth the paper they are printed on. Check out www.ripoffreport.com

 

As for the 2008 V6 Fusion with 47000 miles, you said your Powertrain Plus warranty was for 5 years or 60000 miles and that would end at 107000 miles or 5 years.

This may or may not be true. Read the paperwork with a fine tooth comb (or glasses) because I have only seen where the 5 years or 60000 miles is from the first day of operation (first owner) and not added to the date and miles when you purchased the car. That means you will pay $1100 for a warranty that only covers you for an additional 3000 miles. Don't forget the dealer F&I guy will tell you anything to sell you a large profit item like an ESP. They put you under a lot of pressure to buy these ESP's and don't want to take no for an answer. Good luck with getting your money back when you try to cancel.

 

Lastly, I've had dealers try to sell me Non-Ford ESP's when buying NEW Fords or Lincolns. Customers don't really find out that the ESP is not from Ford but from an aftermarket warranty company. When I purchased my Genesis, they tried right up to the last minute to sell me an ESP (from some company I never heard of) even when I told them that with the 10/100,000 power train warranty, and the other great bumper to bumper warranty that comes with the car, why would I want to buy an aftermarket ESP. I pointed to my forehead and said that it does not say stupid up there. When I bought my Lincolns, it was the same with their F&I guys. When I had problems with the MKZ, the regular factory warranty took care of it.

[royroddey]

Is it worth getting an extended warranty? I just got my fusion v6 2008 with 47000 miles. Should I cancel my extended warranty? It was 1100 dollars for Advantage Powertrain Plus for 5 years or 60,000 miles. It would end at 107,000 miles or 5 years.

 

The fusions are reliable right?

 

Here's another way to think about it...

 

Buy the extended service contract at vehicle purchase time and it adds $20-25 per month to your payments. If anything goes wrong with your car, you pay 0-$100 deductable and that's it. You're paying a little each month instead of possibly $1,000's all at once. Most people can afford $20-25 / month, not many can pay $1,000's if something goes wrong.

 

BTW: I work as a Ford car salesman. Purchased an extended warranty on my 2010 Fusion Sport.

 

My humble opinion.

[akirby]

Here's another way to think about it...

 

Buy the extended service contract at vehicle purchase time and it adds $20-25 per month to your payments. If anything goes wrong with your car, you pay 0-$100 deductable and that's it. You're paying a little each month instead of possibly $1,000's all at once. Most people can afford $20-25 / month, not many can pay $1,000's if something goes wrong.

 

BTW: I work as a Ford car salesman. Purchased an extended warranty on my 2010 Fusion Sport.

 

My humble opinion.

 

That is what I recommend to people who can't afford a $1500 repair bill.

 

However, most people that post about contemplating an extended warranty are planning to pay $1200-$2000 out of pocket for a warranty. If you can afford that much for the warranty then you can probably afford to pay for almost any repair except a full engine replacement. And self-insuring is always the cheapest in the long run.

[ctrcbob]

Here's another way to think about it...

 

Buy the extended service contract at vehicle purchase time and it adds $20-25 per month to your payments. If anything goes wrong with your car, you pay 0-$100 deductable and that's it. You're paying a little each month instead of possibly $1,000's all at once. Most people can afford $20-25 / month, not many can pay $1,000's if something goes wrong.

 

BTW: I work as a Ford car salesman. Purchased an extended warranty on my 2010 Fusion Sport.

 

My humble opinion.

 

So what you are saying is you purchased an extended warranty on a new car, that already has a great factory new car warranty! Also, another thing you are saying is that you have no faith in the quality of your new 2010 Fusion! You are also saying that you will keep the car long after the factory warranty ends!

 

I don't know if I'd want to buy from a salesman who has no faith in his product. (Did the F&I guy talk you into it or did he just discount it to you because you are an employee?) (or are you really the F&I guy and not a salesman?)

 

BTW, I listen to Clark Howard www.clarkhoward.com on both his radio show and on his HLN TV Show, and both he and Consumers Reports say DON'T DO IT.

I never have, and never will. I've purchased a lot of new cars, and a few "off lease" cars, and the few times I've had to fix something still cost me a lot less than what it would have cost me to buy an Extended Service Plan.

 

Lastly, if the F&I guy talks anyone into buying an ESP, make sure it is from FORD (or whatever brand you are buying). Never NEVER buy an ESP from a company that is not the manufacturers own ESP. (Sometimes hard to tell as the F&I guy is trained to talk fast and to hide that fact).

 

Also my humble opinion!

[Grey]

Here's another way to think about it...

 

Buy the extended service contract at vehicle purchase time and it adds $20-25 per month to your payments. If anything goes wrong with your car, you pay 0-$100 deductable and that's it. You're paying a little each month instead of possibly $1,000's all at once. Most people can afford $20-25 / month, not many can pay $1,000's if something goes wrong.

 

BTW: I work as a Ford car salesman. Purchased an extended warranty on my 2010 Fusion Sport.

 

My humble opinion.

 

Great explanation - peace of mind is an important factor in many customers purchase experience. I seldom keep a vehicle that is out of warranty, but my kids have. I wish they had bought the Ford ESP contract so I wouldn't have to replace the alternator, etc. If you plan on keeping your vehicle past the factory warranty, you should really consider buying the warranty (especailly on the high tech vehicles). Now that there is very little money for after warranty adjustments, you can't count on your dealership doing an out of warranty repair for no charge to you (even if they like you a lot).

 

But, Like Clark Howard says, do your research up front for your financing and know the online quotes for the Ford ESP so you make the decision that is right for you.

[akirby]

So what you are saying is you purchased an extended warranty on a new car, that already has a great factory new car warranty! Also, another thing you are saying is that you have no faith in the quality of your new 2010 Fusion!

 

Bob - he said that for people who can't afford a $1500 repair bill down the road it's better to finance the warranty with the car so they're only paying $25/month.

 

This would be important for people on fixed incomes who can afford the monthly payments but don't have extra cash for repairs.

 

My point was anyone who can afford to buy a $1500 warranty out of pocket can afford to pay for their own repairs and therefore save money over the long run (as Clark recommends).

 

I never understood the whole "peace of mind" thing. I have a lot more peace of mind knowing my money is in the bank and that I didn't pay it to someone else and may never get it back.

[royroddey]

So what you are saying is you purchased an extended warranty on a new car, that already has a great factory new car warranty! Also, another thing you are saying is that you have no faith in the quality of your new 2010 Fusion! You are also saying that you will keep the car long after the factory warranty ends!

 

I don't know if I'd want to buy from a salesman who has no faith in his product. (Did the F&I guy talk you into it or did he just discount it to you because you are an employee?) (or are you really the F&I guy and not a salesman?)

 

BTW, I listen to Clark Howard www.clarkhoward.com on both his radio show and on his HLN TV Show, and both he and Consumers Reports say DON'T DO IT.

I never have, and never will. I've purchased a lot of new cars, and a few "off lease" cars, and the few times I've had to fix something still cost me a lot less than what it would have cost me to buy an Extended Service Plan.

 

Lastly, if the F&I guy talks anyone into buying an ESP, make sure it is from FORD (or whatever brand you are buying). Never NEVER buy an ESP from a company that is not the manufacturers own ESP. (Sometimes hard to tell as the F&I guy is trained to talk fast and to hide that fact).

 

Also my humble opinion!

 

Bob - you appear to have read a lot into my words that wasn't actually written. I really am a salesperson and not in F&I and not sure why that would matter (nor why you don't believe me).

 

I have GREAT faith in my Fusion - why would a person ever buy something that they thought was going to be a P.O.S?

 

I purchased the ext service contract so that I will never have to pay anything to get my car fixed if something were to go wrong during the coverage period. All vehicles are mechanical/electrical and built/designed by humans and therefor can break. I;m just covering myself and offering the same service/peace of mind to my customers. If they feel as you do, they can just say "no" and it doesn't hurt my feelings.

 

-Roy

[akirby]

I purchased the ext service contract so that I will never have to pay anything to get my car fixed

 

This is the part I don't understand. You ARE paying for the repair. In fact, you paid for the repair up front, possibly years before you actually have the repair done. And if you don't actually need a repair - you STILL pay for it. I can understand someone taking a gamble that their repair costs will exceed the warranty cost - at least they understand that it's a financial risk that may not pay off.

[DaveM]

This is the part I don't understand. You ARE paying for the repair. In fact, you paid for the repair up front, possibly years before you actually have the repair done. And if you don't actually need a repair - you STILL pay for it. I can understand someone taking a gamble that their repair costs will exceed the warranty cost - at least they understand that it's a financial risk that may not pay off.

Have you checked to see what your dealer charges per hour labor? Just one repair could easily pay for your warranty. My neighbor had a seatbelt replaced out of warranty and it cost him almost $800 because the tech had to figure out just what was wrong with his car. The seatbelts are wired into the computer somehow and it was causing a fault to show up that led down the wrong path. We read here of some odd ball electrical problems that are hard to track down. Would you rather the dealer track them down on your dime or Fords? 20 years ago I wouldn't hesitate on skipping the extended warranty and I did so sucessfully but in this day and age of almost all electronics running almost everything on the car I think the extended warranty is worth its weight in gold.

[akirby]

Have you checked to see what your dealer charges per hour labor? Just one repair could easily pay for your warranty. My neighbor had a seatbelt replaced out of warranty and it cost him almost $800 because the tech had to figure out just what was wrong with his car. The seatbelts are wired into the computer somehow and it was causing a fault to show up that led down the wrong path. We read here of some odd ball electrical problems that are hard to track down. Would you rather the dealer track them down on your dime or Fords? 20 years ago I wouldn't hesitate on skipping the extended warranty and I did so sucessfully but in this day and age of almost all electronics running almost everything on the car I think the extended warranty is worth its weight in gold.

 

It might be worth gold to you - and that's fine. It's still half the cost of the warranty though. This is exactly what I was talking about.

 

"I'm so glad I bought that warranty, otherwise I would have had to pay out of pocket for that $800 repair". Would you rather pay $800 out of pocket or $1500? I understand there could be other repairs later, but it just seems like rationalization to me.

 

Like I said - if it makes you feel better or you want to gamble go right ahead - I'm not saying that you shouldn't buy them, just don't buy them with the expectation that you'll come out ahead financially. It's no different than gambling in Vegas - you might win and you might win big, but the odds are in the house's favor.

 

Look at it this way - the only way for the warranty sellers to make money is to pay out less in repairs on average than the warranty costs. Otherwise they wouldn't be selling them.

 

By not buying any extended warranties on my previous 4 vehicles, I've saved at least $6K with no out of pocket repairs that I can remember. Even if I had to buy a new transmission tomorrow for $3K, I'm still $3K ahead.

[ctrcbob]

It might be worth gold to you - and that's fine. It's still half the cost of the warranty though. This is exactly what I was talking about.

 

"I'm so glad I bought that warranty, otherwise I would have had to pay out of pocket for that $800 repair". Would you rather pay $800 out of pocket or $1500? I understand there could be other repairs later, but it just seems like rationalization to me.

 

Like I said - if it makes you feel better or you want to gamble go right ahead - I'm not saying that you shouldn't buy them, just don't buy them with the expectation that you'll come out ahead financially. It's no different than gambling in Vegas - you might win and you might win big, but the odds are in the house's favor.

 

Look at it this way - the only way for the warranty sellers to make money is to pay out less in repairs on average than the warranty costs. Otherwise they wouldn't be selling them.

 

By not buying any extended warranties on my previous 4 vehicles, I've saved at least $6K with no out of pocket repairs that I can remember. Even if I had to buy a new transmission tomorrow for $3K, I'm still $3K ahead.

 

 

Don't forget that for that "$800. repair", it cost him $1500. plus the deductable ($100.??), so it cost him $1500 plus $100 plus the interest on the $1500 in the car payment loan, for that "$800 repair" .

 

Like Judge Judy often says, "It don't say Stupid on my forhead"

[noreast]

Don't forget that for that "$800. repair", it cost him $1500. plus the deductable ($100.??), so it cost him $1500 plus $100 plus the interest on the $1500 in the car payment loan, for that "$800 repair" .

 

Like Judge Judy often says, "It don't say Stupid on my forhead"

 

How about this: The ESP costs, say $35 per month. Do not buy the ESP and put $35 in a savings bank account every month for the first 3 years that are covered by the manufacturer's basic warranty. There you go, you will have more than $1000 at your disposal. Your $800 repair will cost you, drum roll please, ...... $800! No deductible, no upfront payment, and instead of paying interest on the loan (when ESP is added to finance agreement), your money will actually *earn* interest (albeit at much lower rate). If your car proves reliable, keep adding to this money until you sell your car, then you can augment your next down payment.

[Andrade13]

I purchased a 2010 SE a month ago and later bought an extended warranty for $1200, $120 down and 18 payments with no interest through warranty direct and I'm very satisfied. I got peace of mind in case she breaks down on me anywhere.

 

The warranty will be worth it if only I have to use it is how I look at it. Mine also came with some benefits I can use right away in case something does happen while I'm traveling and I'm stranded. Even if that happens, I also have Ford to help with any roadside assistance.

[DaveM]

I purchased a 2010 SE a month ago and later bought an extended warranty for $1200, $120 down and 18 payments with no interest through warranty direct and I'm very satisfied. I got peace of mind in case she breaks down on me anywhere.

 

The warranty will be worth it if only I have to use it is how I look at it. Mine also came with some benefits I can use right away in case something does happen while I'm traveling and I'm stranded. Even if that happens, I also have Ford to help with any roadside assistance.

Sounds a little high for a off brand warranty. That is all I paid for my 7yr. 100K on mine and it is through Ford so I don't have to ever worry about any hassles getting something done, nor jump through the hoops.

[JoelTheGeek]

I purchased a 2010 SE a month ago and later bought an extended warranty for $1200, $120 down and 18 payments with no interest through warranty direct and I'm very satisfied. I got peace of mind in case she breaks down on me anywhere.

 

The warranty will be worth it if only I have to use it is how I look at it. Mine also came with some benefits I can use right away in case something does happen while I'm traveling and I'm stranded. Even if that happens, I also have Ford to help with any roadside assistance.

 

FYI I did not purchase the extended warranty from Ford, but I still have roadside assistance from Ford with my new Fusion.

[chipfusion]

I did a lot of research for $1100 I more than double my mfg warranty from 3/36000 to 7/75000 but I also get a great

selling feature if we decide to sell our vehicle before the warranty is up. Its a lot easier to sell a vehicle with a bumper to bumper

warranty than "as is