Is an Extended Warranty worth it?

[Teslaeata]

I bought an extended warranty for my Mach, $2,900 for an additional 5 yrs, giving me a total of 8 yrs of full warranty coverage. Did I waste my money? Could I have invested that massive sum of liquidity? Did I roll the dice and win big when in six years I have a major mechanical problem that will more than pay for the cost of the extended warranty? I don't care.

An important point that's being missed here is that for most people that buy an extended warranty, whether it ever comes into use or not is irrelevant. What we buy for that money is piece of mind and that's the "cost" for that piece of mind. Life is short, but for 8 of those years, I'll have zero worries about the vehicle I'm driving. If all I ever do is rotate the tires and top-off the windshield washer fluid the entire time, it'll still be 100% worth it.

Just don’t worry

I don’t worry or even care very much if owt goes wrong.

Deal with it when/if it happens and enjoy a worry free life is my outlook on life

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[ChasingCoral]

Ford gave me a free 5-year extended warranty to make up for an issue in my early-build Mach E. That ends next month.

I did buy a 5-year warranty for my Lightning using Ford Pass Reward points.

So far I haven't used either. They gave me a bit of piece of mind but that's not worth what they charge if you have to pay cash.

I plan to go back to my personal choice of not purchasing extended warranties.

 

[StevenC56]

There's a whole lot of tech on these new EV's. For those of us who keep our vehicles longer there's a better chance for component failure. Some of you seem to think if a couple minor parts fail, the cost to repair will be chump change. If one buys an 8 or 10 year warranty, what do you think the parts and labor cost is going to be in 7-10 years from now on say a control module or camera replacement? How about a leaking axle seal or failed window regulator?

 

[Mach1E]

Door components, cameras, sensors, wiring harnesses and computer modules. Plan on owning the car for 10 years and want all the gizmos to last

And none of those cost more than the warranty, but I get the feeling that trying to logic this purchase is getting us nowhere.

For sure the warranty has become a feeling purchase and you can’t really logic those.

Then again, if we only made purchases based on logic, none of us would have bought a brand new Mustang EV.

 

[Mach1E]

There's a whole lot of tech on these new EV's. For those of us who keep our vehicles longer there's a better chance for component failure. Some of you seem to think if a couple minor parts fail, the cost to repair will be chump change. If one buys an 8 or 10 year warranty, what do you think the parts and labor cost is going to be in 7-10 years from now on say a control module or camera replacement? How about a leaking axle seal or failed window regulator?

Anyone using this logic has a losing argument.

You are trying to justify paying for a warranty based on the cost of repairs.

That math doesn’t math. It’s in the HUGE favor of the warranty companies. Only about 12% of warranty premiums get paid out in claims.

This is a “feel good” purchase. If you’re ok likely losing 88% of the cost of the warranty because it’s one less thing to worry about, go for it.

But if you’re making a calculated bet that you will be ahead because of the cost of repairs…… the odds are 8:1 to NOT buy the warranty.

 

[StevenC56]

Anyone using this logic has a losing argument.

You are trying to justify paying for a warranty based on the cost of repairs.

That math doesn’t math. It’s in the HUGE favor of the warranty companies. Only about 12% of warranty premiums get paid out in claims.

This is a “feel good” purchase. If you’re ok likely losing 88% of the cost of the warranty because it’s one less thing to worry about, go for it.

But if you’re making a calculated bet that you will be ahead because of the cost of repairs…… the odds are 8:1 to NOT buy the warranty.

Well, you've convinced me. I've decided not to consider buying any extended warranty.

 

[MacherAWD]

And none of those cost more than the warranty, but I get the feeling that trying to logic this purchase is getting us nowhere.

For sure the warranty has become a feeling purchase and you can’t really logic those.

Then again, if we only made purchases based on logic, none of us would have bought a brand new Mustang EV.

My first door lock repair would have cost $900. The car required 3 additional dealer visits after to be fully fixed, I never got a bill.

Again all these discussions are pointless until we start a Poll on this forum after 5 years? 8 years?
"Have you spent more than $2000 on out of warranty repairs after X years of ownership."
"Would an extended warranty have made financial sense"

Until we have that data it is all speculation, on BOTH sides.

 

[Jimrpa]

Heck yes! You basically have a computer with lots of expensive to repair/replace components. I think of it like Apple Care for my iPhone.

 

[RickMachE]

Heck yes! You basically have a computer with lots of expensive to repair/replace components. I think of it like Apple Care for my iPhone.

I would never buy an extended warranty for a phone, tablet, or computer.

 

[Sikkun]

I deff wouldn’t on a phone given the companies still tend to let you trade them in for a new one every 3 years for free. (Ok you’re paying taxes). Which is roughly around the time I’m debating getting a new battery anyway.

 

[dalola]

Also worth considering, some of us are capable of, & enjoy repairing our own vehicles, when possible. If I was not interested or able, I might think more positively about extended warranties... (ok, prolly not....)

 

[markboris]

I would never buy an extended warranty for a phone, tablet, or computer.

Agree with you there. I never have and also never have had an issue with any of them.

 

[Jimrpa]

Agree with you there. I never have and also never have had an issue with any of them.

Apple care is rolled into the price of my phone (I’m on the Apple upgrade program). I have had occasion to use Apple care over the years, but it’s been rare.

 

[MacherAWD]

Apple care is rolled into the price of my phone (I’m on the Apple upgrade program). I have had occasion to use Apple care over the years, but it’s been rare.

I just buy an A series pixel every five years or so, $399. The savings more than pay for my MachE extended warranty.

 

[2021-MMEx-RT1]

We got the Granger Ford Extended warranty on our '21 Mach E CA/RT1 and are using it right now to replace both side mirrors. I know we've used it with different things here and there, has it added up to $1800? I think the Mirrors may have pushed it over.

We plan on keeping the Mach E for at least ~10 years so with all the electronics on this beast, and the early issues we've had, we are glad we got it.

And, if Granger Ford is looking at this thread, we'd like to extend our extended warranty to the max level to give the Mrs a bit of piece of mind for the rest of the time we own it.



EDIT: After they finished replacing both side mirrors, the bill came to ~$3,400. so my 'investment' in the ~$1,200 Granger extended warranty has paid for itself...


/YMMV

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