Extended Warranty - Yes or No

Flanders · May 8, 2023

Hey Everyone.

I just purchased a 2021 ST with 18,000 kilometers on it.

In Canada, our warranty is as follows:

Basic Coverage: 36 months/60,000 kms
Powertrain: 5 years/ 100,000 kms
Safety Restraint System: 5 years/ 100,000 kms
Corrosion (perforation only): 5 years/ Unlimited distance

I am under basic warranty until August of 2024 and powertrain/safety until August 2026 based on time alone as I likely will not reach the mileage limits in those timelines.

Based on your experience do you recommend getting an extended warranty package?

Thanks!

TMac · May 8, 2023

It depends on factors that you don't include:

How long are you planning on keeping the vehicle?
What is the price of the warranty?
What specifically does the warranty cover?
How stringent are the maintenance schedules?

Most vehicles that have some type of problem are going to experience it in the first couple of years. After that, it's maintenance stuff that you have to pay for anyway. It's a dice roll. Companies that sell extended warranties aren't in business because they are paying more out than they take in.

Especially important is the warranty's maintenance schedule. I have known people who have bought an extended warranty, only to have it denied because they could not prove they performed certain 40k, 50k, etc services at the right time.

Flanders · May 8, 2023

Thanks for your fair response. I do have quite a bit to think about before I decide if I invest in an extended warranty.

What I have received so far regarding pricing.

To 2027 or 100,000 kilometers - $2,825.00
To 2027 or 120,000 kilometers - $3,485.00
To 2027 or 150,000 kilometers - $4,240.00

Have been told that it covers everything with exception of the maintenance as you indicated. I am not sure about the maintenance schedules yet.

I am thinking at this point I would likely keep the vehicle for 4 years. I will have to do some calculations to see if it makes sense.

Most concerned with all of the electronics.

TMac · May 8, 2023

So, no matter what you pay, come August '27, it expires? If so, forget mileage, you're only getting one more year? If that's the case, (and this is only MY opinion), I wouldn't go for it.

Two more questions to think about- what are the deductibles/copays? Also, what if you have a major problem that they deal with via the powertrain warranty in a year? If that were to happen, would you continue to own the vehicle?

I understand people wanting peace of mind. I'm just not a fan of extended warranties. It'd be interesting to hear from other people who actually had a great experience with an extended warranty, because I don't know of any.

MikeHTally · May 8, 2023

When I bought my Mustang, the credit union offered a basic coverage policy for $2,200. I declined and put $3,000 in a savings account.So far, I've hit it only when the turbo failed for $1,700. I add a bit from time to time.

Having said all that, I did go for an extended service contract on the ST, mostly because the dealer credited their ridiculous document fees against the insurance policy charges, and partly for the electronics coverage. Otherwise, I've never come out well buying those things. On many instances, the policy expired before a covered system failed. Only one policy ever paid for itself.

bluesnake01 · May 8, 2023

TMac said:

Powertrain warranty would be only 1 year but rest would be for 3 "more" years.

Not sure how loaded is OP's Explorer but if it has a moonroof, that alone would cost about 2k for fixing the shade if it ever goes off the rails. Not including anything to do with Sync and electronics. More electronics/options, more stuff to fix later on.

Also, adding a car rental for $100~ more is a plus, no need to worrying about not having a car when its getting fixed

Flanders · May 8, 2023

Explorer is a full load ST with moonroof, technology package, street pack etc.

Yes, it would be an additional year of powertrain and 3 more years for everything else. I have it calculated that by August of 2027 I would have ~110,000km's on the Explorer. I am currently finding out about the deductibles and the maintenance schedules. Also, if the extended warranty is transferrable.

deadhead20st · May 9, 2023

To me it was a no brainer. With all the electronics etc. I was offered one for less than 1300 bucks through Ziegler and it's a Ford gold esp plan. 100 dollar deductible. Gets me a loaner car plus roadside assistance with it.

My piece of mind. That if something breaks. Such as moon roof or any electronic module. It is only 100 bucks.

Not to mention. Since it's a Ford plan. I get to transfer it to the new owner if I sell it. So I can get more money on the sale. Or I can transfer it to the next explorer st I purchase. It's actually the years left prorated and they put the difference on new warranty.

Last car I had was Lincoln nautilus. So this warranty for the explorer only cost me 400 out of pocket. Since the last warranty transfered over for 1000.00 bucks

bobter3 · May 9, 2023

Flanders said:

If you are going to get the extended, I would also make sure that the plan chosen has LED coverage. That is an add on to standard plans. LED Headlight alone is over $1k from Ford (USD)

R2D2 · May 9, 2023

Flanders said:

Oh my, they look really expensive.
I would suggest you shop around a bit more and even try the Ford protect directly to get a quote.

For me it was as follows on a new vehicle.
Ford Protect Premium Care added for 48k miles, $0 deductible, 6 years, including rental, key replacement and lights, @ 1840 USD.
Details here

US have more options that Canada I guess. Mind you, I have paid more than many others have paid in US.

pyroguy · May 9, 2023

Extended warranties are a waste of money. Approximately 60% of the cost of the extended warranty is pure profit for the warranty company. The next roughly 30% covers costs like advertising and commissions for sales people, with the warranty companies figuring about 10% of the actual cost of the warranty to cover repairs. Sometimes they don't get it 100% right and some vehicles are more prone to problems than others, but insurance companies are great at one thing and that is calculations, otherwise they would be out of business FAST. Save your money and use it for repairs and/or mods.

Toadster · May 9, 2023

I got 7 year 100k miles $0 deductible for $1,985 through https://www.floodfordesp.com/

I figure if any electrical nannies show up - it will pay itself off with one fix

R2D2 · May 9, 2023

Toadster said:

You are one of the lucky people who could do it before the rules changed it for CA people.

AtlasBlue2022 · May 9, 2023

Also I would check to see if it has trip interruption coverage. Some VSCs will pay up to, I think, around $300 if you break down during a road trip & that would help cover the cost of a hotel/motel and food for 2-3days. Also don’t forget that those prices are negotiable. Tell them you are gonna shop around for pricing and I’m willing to bet the finance manager will start lowering the prices. If they don’t, bring those prices to other dealers and ask them to beat that price. Make them compete against one another.

bluesnake01 · May 9, 2023

R2D2 said:

Thank you for this info! Had no idea us people in LA still had choices like these LMAO! I tried to go thru Flood exactly in April but was already a week too late. So i've been searching around as dealers near me are charging over $2,500! for similar plans

Flanders · May 10, 2023

I have found out the following:

EW has a $100.00 diagnostics check / deductible
It is transferable to a new owner
The maintenance required is nothing more than usual
It does have trip interruption, emergency lock-out and Ford's roadside assistance.

All in all, for $2,100.00US it may not be bad peace of mind.

I am usually against EW's so I understand both sides of the story that have been presented.

Decisions, decisions.......

AtlasBlue2022 · May 10, 2023

I think for used cars it’s a good call. We bought a car for our kids from Carvana and got an EW. It paid for itself within the first year, we had a tie rod go and it was replaced $0 out of pocket, and a coolant line broke and by the time our daughter was able to get to the side of the road the engine was done. The engine got replaced $0 out of pocket. On a new car I feel the factory warranty is sufficient, but an EW is kinda like an insurance policy, you hope you don’t need to use it but it’s nice to know it’s there in case you do.

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