Extended warranty...is it worth getting

timhood

Purely statistically speaking, you will get less than half the value back in your extended warranty. Some people will get more than they paid, but they are the minority. Without even factoring the total cost of the warranty (such as including the lost interest that money would have earned and/or interest paid when included in a loan), don't forget to factor in that the items you noted are covered by the 5/60 powertrain warranty, so you are talking about paying thousands to get 7-50 more years and 10-40K miles.

Personally, I always recommend that people create an "extended warranty fund." Take the money you would have spent, save/invest it, and use it for non-warranty repairs. In the end, you'll see you almost certainly came out way ahead. Keep in mind that extended warranties are not 100% coverage. Lots of parts are listed, but when you start thinking about many of them, ask yourself, "Have I ever heard of this part failing before?"

One last thought: neither the 2.7 or the 10-speed are new. Both have been in hundreds of thousands of F-150s and other Ford vehicles and are even beyond their version 1. I'm not saying that makes them perfect, but they've certainly gotten even better over the years. I don't know how many miles you plan to put on the Bronco while you own it, but 100K is not a lot with respect to the lifespan of those components. I could add some anecdotal evidence about the vehicles we've owned, including Fords, but ultimately, I think it just comes down to evaluating the facts and deciding if it's going to worry you so much that paying a couple of thousand will help you sleep better. 😊 Or, if the thought of having to come up with thousands for a major repair scares you, and it's easier to roll that into the loan by way of the extended warranty.

Timhood said:
“I think it just comes down to evaluating the facts and deciding if it's going to worry you so much that paying a couple of thousand will help you sleep better. 😊 Or, if the thought of having to come up with thousands for a major repair scares you, and it's easier to roll that into the loan by way of the extended warranty.”

I agree with most everything you said in your well written post. But the logic for people to spend guaranteed extra money and then to inflate the cost by rolling it into the loan to sleep better is nothing short of financial craziness.

These extended warranties are a conundrum. People that think they need them probably can’t or shouldn’t try to afford them. Hence adding to their debt or asset reduction. The folks that can truly afford them don’t need them. Go figure.

I agree completely. I have never purchased an auto extended warranty (and very, very rarely any extended warranty at all). I've got to be at least $10K ahead in the difference in extended warranty costs and actual repairs. Vehicles are so much more reliable that you really have to keep them a long time before real repair costs come into play. And, coincidentally, none of the extended warranties last that long.

I got extended care on my first touch screen phone because I wasn't sure if I would be a "dropper" as an out-of-warranty screen replacement is expensive. Bought a used replacement circuit board for our washing machine that was too old to get a new part and figured the $5 for a year warranty was worth it since I couldn't be sure if that part was going to meet the same fate as the one I was replacing. I suppose if the auto extended warranties were about half the cost, I'd give them some consideration. 😊

Extended Warranty is like a Whole Life insurance policy. No is the answer to your question.

I'm not so sure. My father's friend has owned a Ford dealership for 40+ years. I trust him implicitly. He said that Ford knows to the day when parts are expected to break - of course they do. It's a machine, and it's *going* to break. Obviously Ford knows the odds are in their favor, but it really shouldn't only be a financial decision.... Here's why:

Look at it like this: if you are going to spend an insane amount of money on a highly depreciating asset, that alone is insanity! New vehicles are the BIGGEST financial hole on the planet and no one even bothered to mention that. So any argument past that is just moot. BUT, if you want to continue, after you factor in overall tax rates (and opportunity cost - that's the word you're looking for), which includes everything from taxes on anything you buy, to fees, licenses, service charges, whatever, depending on where you live, to buy a $50,000 vehicle you actually have to make anywhere between $75,000 and $100,000 (in Canada, it's $100,000). That's the math!! Would you do $75,000 of work to buy a $50,000 Bronco? If you think that is insane, you are right. So to criticize someone for buying some piece of mind, for them anyway, is kinda silly, to say it nicely, when you're advocating a giant financial hole to begin with. And, if you ARE spending $50,000 to buy a Bronco, and you're worried about say, 5%, on a few extra thousand, you really shouldn't be buying that Bronco to begin with.

Everything truly costs at least 50% more than you actually pay for it. If people actually thought, how many hours, days, weeks, years, do I *actually* have to work to pay for this thing, there would be A LOT less things bought in this world. Hell, when I go to McDonalds I think, this $20 meal is going to cost me $40, (after ALL taxes). All of a sudden it seems insane. There are only say 160 hours in a month and I'm spending 1/160th of that on a burger? THAT is insane!

I know my Bronco is a financial hole. It is also the FIRST new vehicle I have bought in 50 years and there is a reason for that. New vehicles are financial holes so any criticism past that point is really unwarranted.

My rant is done.

PS: My dad's Ford friend also said he would NEVER buy a used vehicle with over 30,000 miles on it unless he new exactly how it was treated and serviced.

Bkbb

I'm not so sure. My father's friend has owned a Ford dealership for 40+ years. I trust him implicitly. He said that Ford knows to the day when parts are expected to break - of course they do. It's a machine, and it's *going* to break. Obviously Ford knows the odds are in their favor, but it really shouldn't only be a financial decision.... Here's why:

Look at it like this: if you are going to spend an insane amount of money on a highly depreciating asset, that alone is insanity! New vehicles are the BIGGEST financial hole on the planet and no one even bothered to mention that. So any argument past that is just moot. BUT, if you want to continue, after you factor in overall tax rates (and opportunity cost - that's the word you're looking for), which includes everything from taxes on anything you buy, to fees, licenses, service charges, whatever, depending on where you live, to buy a $50,000 vehicle you actually have to make anywhere between $75,000 and $100,000 (in Canada, it's $100,000). That's the math!! Would you do $75,000 of work to buy a $50,000 Bronco? If you think that is insane, you are right. So to criticize someone for buying some piece of mind, for them anyway, is kinda silly, to say it nicely, when you're advocating a giant financial hole to begin with. And, if you ARE spending $50,000 to buy a Bronco, and you're worried about say, 5%, on a few extra thousand, you really shouldn't be buying that Bronco to begin with.

Everything truly costs at least 50% more than you actually pay for it. If people actually thought, how many hours, days, weeks, years, do I *actually* have to work to pay for this thing, there would be A LOT less things bought in this world. Hell, when I go to McDonalds I think, this $20 meal is going to cost me $40, (after ALL taxes). All of a sudden it seems insane. There are only say 160 hours in a month and I'm spending 1/160th of that on a burger? THAT is insane!

I know my Bronco is a financial hole. It is also the FIRST new vehicle I have bought in 50 years and there is a reason for that. New vehicles are financial holes so any criticism past that point is really unwarranted.

My rant is done.

PS: My dad's Ford friend also said he would NEVER buy a used vehicle with over 30,000 miles on it unless he new exactly how it was treated and serviced.

I read this post three times and I still don’t know what your message is.
Can you explain?

extra toasty

I read this post three times and I still don’t know what your message is.
Can you explain?

Ha ha, I think his point was you're already throwing money at a depreciating asset, so why not throw more money away at an extended warranty on top of that? 😀

I don't subscribe to that train of thought. Otherwise, why stop there? Why not spend more on a vehicle or buy other things, too? Logic would say that one should feel he is getting value for money spent. If a few thousand spent on an extended warranty is valuable to someone, then I guess they can buy it. Knowing that these warranties are at least 50% profit and that a few thousand spent is money guaranteed to be spent, I prefer to keep that money. I've come out ahead with every single vehicle I've ever owned.

The other part of his post was making a point that $x spent on anything requires even more money earned since purchases are made after taxes. That's really irrelevant to the discussion other than his notion that if people considered how much gross earnings are required to make a particular purchase, then maybe they'd reconsider a lot of their purchases. Sounds like another reason to skip the extended warranty to me! 😁

I have never been big on extended warranty coverage on anything until recently. My husband has a 2016 F-150. Just had to have work done on it. (don't remember the details). But the work was covered under the extended warranty and MUCH more than the co-pay we had to pay.

I did buy the extended warranty for my Bronco. While I have not had an opportunity to take it off road & "beat it up yet" I am pretty rough on things. I plan on keeping my Bronco until one of us dies.

My husband is handy with vehicles. So something maintenance & repairs he will do in the future. He is certainly more willing to work on my Bronco than my previous 2006 BMW X-5 I had previously.

Bukansa

I have never been big on extended warranty coverage on anything until recently. My husband has a 2016 F-150. Just had to have work done on it. (don't remember the details). But the work was covered under the extended warranty and MUCH more than the co-pay we had to pay.

I did buy the extended warranty for my Bronco. While I have not had an opportunity to take it off road & "beat it up yet" I am pretty rough on things. I plan on keeping my Bronco until one of us dies.

My husband is handy with vehicles. So something maintenance & repairs he will do in the future. He is certainly more willing to work on my Bronco than my previous 2006 BMW X-5 I had previously.

"until one of us dies" Felt that :)
Absolutely gonna' use that one .. So thank you!!!

Looks like Granger is offering a genuine Ford warranty at dealer cost through the month of February. If anyone thinks they might want an extended warranty at some point, this might be the time to do it.
https://www.bronco6g.com/forum/thre...for-ford-extended-warranty-dealer-cost.88349/

Not worried about the engine/transmission, the electronics are what scares me with this vehicle. I'm on a fixed income and a couple of thousand dollar hit on a repair is serious. Will get the extended warranty when I get close to the end of the original warranty. Your comfort level will vary...

Yeah, with some 400 'control modules' aka computers on board, there's a BUNCH of electronics! Also, our 2.7L 'Nano' engine and 10 speed tranny's still a relatively new drivetrain. It's twin turbo, direct, ported injection, poly/alloy/graphite iron materials, etc. have very little really high mileage experiences - Extended warranty's a must have.

Cheers

Fear definitely sells but I like to play the odds and not bet against them. Think of Ford’s or any of the other extended warranties as the “house” at the casino. Who has the better odds of making money, you or them?

There’s two types of people out there. The folks that buy a policy that makes them feel better or the others that don’t buy a policy to make them feel better.

At the end of the day statistically speaking the folks that saved their money for actual repair possibilities are the winners. The others have a guaranteed up front loss with only a chance to recoup their investment.

There’s a real reason they push these policies, and the harder they push the more
untrustworthy they are.

Interesting analogy, but not really similar risks in play here. Yeah, we lived in Nevada several years and while it's great fun, probably spent too much time in their casinos. IMO, at least in the service coverage the house has MUCH greater winning odds at a blackjack table vs our Bronco's needs for several brake jobs over 100k miles..

Cheers

I've never been one to buy one as they are often snake oil,but I got a lifetime coverage on the Bronco. Being not just brand new but a completely new vehicle with so many new complex and unproven parts and features combined with the ever growing list of failure complaints it seemed prudent. My coverage covers everything except paint. I did not get the Ford one but it sounds very similar amd Granger is offering a member discount on the Ford one until the end if this month. They posted on this site about it.

extra toasty

Yeah, generally agree with your point, just not with this particular vehicle. We love our Bronco, but objectively it's reliability remains an open question. A quick Google search lists a depressing history of failures - Catastrophic engine failures, NHTSA investigation, clutch & tranny failures, axle, steering assembly & tie rod failures, numerous oil & coolant leaks, etc.

We paid a 5.5% up charge on our Bronco's purchase for 100k miles or 10yr extended warranty. Given current parts pricing and local auto tech's hourly rates from $160/hr at independent shops to $220 OEM dealerships - IMO, it's really not expensive insurance.

Cheers

Kenneth

Yeah, generally agree with your point, just not with this particular vehicle. We love our Bronco, but objectively it's reliability remains an open question. A quick Google search lists a depressing history of failures - Catastrophic engine failures, NHTSA investigation, clutch & tranny failures, axle, steering assembly & tie rod failures, numerous oil & coolant leaks, etc.

We paid a 5.5% up charge on our Bronco's purchase for 100k miles or 10yr extended warranty. Given current parts pricing and local auto tech's hourly rates from $160/hr at independent shops to $220 OEM dealerships - IMO, it's really not expensive insurance.

Cheers

Interesting. Now I don’t know what to hope for you. No problems or many issues so you can justify your purchase.😀

No worries - we're happy either way..

Cheers

Depending on the vehicle I have bought extended warranty.

Mostly never used it. My diesel pickup, man did I use it. For oil leaks. Paid for it's self in spades.

My bronco I don't know the long term reliability of the 10 speed and transfer case
Unsure of leaks. And yes the electronics.

It is a budgeting gamble for sure. And since I won big time on my diesel, you could say it paid for it's warranty and the broncos.

LOL Yeah, we traded a diesel for the Bronco and extended warranty on that oil burner was VERY helpful.

Cheers