Extended Warranty?

[kdryden99]

But in all honesty, looking at the latest post on TFL's community page, how worried are you guys about this car being a first gen? Also i dont think we'll see a second gen until yrs from now so do you think itll suffer ftom the same stigma as ICE'S

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[generaltso]

But in all honesty, looking at the latest post on TFL's community page, how worried are you guys about this car being a first gen? Also i dont think we'll see a second gen until yrs from now so do you think itll suffer ftom the same stigma as ICE'S

I‘m not worried at all.

 

[DBC]

But in all honesty, looking at the latest post on TFL's community page, how worried are you guys about this car being a first gen? Also i dont think we'll see a second gen until yrs from now so do you think itll suffer ftom the same stigma as ICE'S

I didn't see anything that would worry me. The issues he had seemed to be software related and hence easily fixable.

Sometimes the first generation of a totally new product, which the MME is, is more reliable. Since the failure points aren't known the engineers do a belt and suspenders design. Later models start taking out costs and the suspenders.

Doesn't mean the tech won't age. Also doesn't mean there won't be issues. There always are.

But if you're worried there is always Ford Options. Limits the downside.

 

[efisher]

Extended warranties are never worth what they cost. Sure, there are rare examples where someone ends up on the winning end, but they are few and far between. A far better strategy is to price out what an extended warranty will cost per month, and then take that money and invest it in a US government bond fund. (If the warranty costs $200/month invest $200/month.) If the car needs repairs not covered by its standard warranty, simply sell enough of the fund to cover what is needed. You will almost certainly come out ahead. (And end up with a nice little nest-egg after you sell your car.)

 

[DBC]

Extended warranties are never worth what they cost. Sure, there are rare examples where someone ends up on the winning end, but they are few and far between. A far better strategy is to price out what an extended warranty will cost per month, and then take that money and invest it in a US government bond fund. (If the warranty costs $200/month invest $200/month.) If the car needs repairs not covered by its standard warranty, simply sell enough of the fund to cover what is needed. You will almost certainly come out ahead. (And end up with a nice little nest-egg after you sell your car.)

This won't work for two reasons. The first reason is that you have to set up the entire reserve in the first month. This follows because, if the extended service plan is for 84 months, the repair can occur in month 1 as well as in month 84. Consequently you have to have the entire amount needed for the repair you're insuring against in month 1 not month 84.

The second reason is that the repair you are insuring against should greatly exceed the premiums. An extended service plan is an insurance plan not a pre-paid service plan, and in an insurance plan with pooled risk what you're insuring against is the very expensive tail repair, not the less expensive more common repairs. Paying $2000 for a extended service plan only makes sense if the repair(s) being insured against greatly exceeds that amount -- say $10,000. If it doesn't you should never buy the plan.

The whole "it's never worth it" argument is misguided. It's like saying a life insurance policy wasn't worth it because you didn't die and your family didn't collect. In fact insurance policies work best when the policy holders never want to collect, because in these cases they don't through their behavior increase the risk they are insuring against. The better argument would be that the repairs being insured against will never or will virtually never exceed the premiums. In this regard, as mentioned earlier, battery repair is likely the most expensive repair you would encounter, and these repairs are covered by a separate warranty.

 

[Ajax]

So true. Like you I typically self-insure. I have only ever purchased two extended warranties, once for a range with certain known issues and once on a car.

For the auto warranty I endeavored to remove as much of the dealer profit from the transaction as possible, so I would, hopefully, be paying mostly for the value of the true warranty bit and not too much profit. Part of the difficulty managing this effort is determining how much the manufacturer views as the 'cost' of warrantying the car and how much profit the dealer is attempting to add to the transaction.

I believe others have mentioned that Flood and Ziegler are good starting points if one wants a Ford ESP at a fixed cost. They sell Ford warranties and maintenance plans closer to the price Ford puts on the products, ostensibly accepting a thin margin in exchange for a huge increase in the volume of sales. Internet lore has the margin being very low. Similar opportunities exist for other manufacturers.

Using the fixed cost pricing information I was able to negotiate a price lower by half from the dealer's initial offer by asking them to undercut the internet price. If they know you can go elsewhere only pride prevents them from competing on price.

Thus far I have not made a claim under the auto warranty plan [beyond accessing same day auto service 'free' rentals]. But I am only one electronic control module away from it being a good decision....

Self-insuring here. I will probably only have this Mach-E for 3-4 years with low mileage and use Ford Options to get a newer one when the Options time is up. Manufacturer's warranty should keep me covered for the most part, and if I reconsider I'll just go with one of Flood's plans to be on the safe side.

 

[Mach-Tony]

I usually use Endurance for my extended warranty but you cannot purchase one directly through them if you live in CA and probably some other states. However, as long as you keep your out of state address on file, you can actually transfer those warranties from car to car and purchase new ones. The MME is so new that they only have a 5/60k plan, which doesn't do us any good for the battery system and isn't worth it for the 24k extra miles, in my opinion. I went with Geico's warranty because they did the 7/100k that covered all of the electrical systems, which I had them clarify, and it costs me $6 month. I'm not sure if they price increases if you wait until 12k miles (posted earlier) to save the double coverage costs, but it probably will increase like most warranties do.

Keep in mind, warranties are also refundable, assuming you don't use it too much. Also, look into a policy that covers your wheels, windshield, door dings, and insurance claim deductibles. I use Multishield, which I purchase through my TX credit union, and they have paid out before with no deductibles and it's super easy. 5 years cost my like $400 and they paid out $1200 and took out door dings, so definitely something to check out.

 

[Mach-Tony]

Here is what an extended warranty and/or Multishield costs for the MME.

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