Is an Extended Warranty worth it?

[2021-MMEx-RT1]

They will gladly sell you and everyone here more warranties……. Because even at their discounted prices they still make a TON of profit. Even after paying the salespeople, dealers, staff, advertising AND claims.


I have no clue why so many people here think it’s a good bet.

The “sleep better at night feel good” purchase people I honestly do understand. They aren’t trying to justify it with math.

Those trying to somehow convince us that the odds are in their favor? I think have just been duped by anecdotes or marketing. I’m trying to save you people money!!

as mentioned in my original post, they finished installing two (2) new side mirrors and the cost was $3,400. (minus $100 deductible). with a free loaner on the first day.

Like you,. I normally don't buy, and never had, but the Mrs wanted 'to be sure' and as our Mach E now has 51,000 we would have eaten that cost.

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[2021-MMEx-RT1]

Yet give our new coal-based economy a few more years. It takes a lot of hydrocarbons to melt those glaciers. Were working hard to give you an ocean-front property

well crap, I already have ocean front property! Maybe it'll be an island now?

 

[Mach1E]

as mentioned in my original post, they finished installing two (2) new side mirrors and the cost was $3,400. (minus $100 deductible). with a free loaner on the first day.

Like you,. I normally don't buy, and never had, but the Mrs wanted 'to be sure' and as our Mach E now has 51,000 we would have eaten that cost.

That’s good that it worked out for you, but that still doesn’t change the math. 7 out of 8 times it just won’t.

FWIW, the $3400 is just “inflated dealer pricing.”

Those parts are only $566 each for the complete assembly and would only be a couple hours of labor. Out of pocket that repair should be closer to $1500 and you’d still be upside down on your warranty purchase. https://ford.oempartsonline.com/oem-parts/ford-mirror-assembly-lj8z17683ca

Both side mirrors though? Never heard of that happening to anyone else here. What went wrong?

 

[DennisD]

That’s good that it worked out for you, but that still doesn’t change the math. 7 out of 8 times it just won’t.

FWIW, the $3400 is just “inflated dealer pricing.”

Those parts are only $566 each for the complete assembly and would only be a couple hours of labor. Out of pocket that repair should be closer to $1500 and you’d still be upside down on your warranty purchase. https://ford.oempartsonline.com/oem-parts/ford-mirror-assembly-lj8z17683ca

Both side mirrors though? Never heard of that happening to anyone else here. What went wrong?

I get a chuckle when I read those "stories". It reminds me of people that gamble, they only tell you when they win and never when they lose.

Yes, they may come out ahead on one vehicle but as you suggest, they lose on the other 7.

It doesn't make sense to me of why they purchase this as well but if they are happy throwing their money into the wind, I just hope I have my window open and some of it flies my way...............

 

[MacherAWD]

I get a chuckle when I read those "stories". It reminds me of people that gamble, they only tell you when they win and never when they lose.

Yes, they may come out ahead on one vehicle but as you suggest, they lose on the other 7.

It doesn't make sense to me of why they purchase this as well but if they are happy throwing their money into the wind, I just hope I have my window open and some of it flies my way...............

I have bought 7 vehicles in my lifetime from a dealer. On 6 I did not purchase an extended warranty and I am glad I did not. The one vehicle I DID purchase one on, the MME, paid for itself 4 months after my factory warranty ended.

Lets stop with the conventional wisdom and data that is based on 100 years of gas cars, and a period of time when corporations put quality over profit.

 

[DennisD]

I have bought 7 vehicles in my lifetime from a dealer. On 6 I did not purchase an extended warranty and I am glad I did not. The one vehicle I DID purchase one on, the MME, paid for itself 4 months after my factory warranty ended.

Lets stop with the conventional wisdom and data that is based on 100 years of gas cars, and a period of time when corporations put quality over profit.

The Company that you purchased the extended warranty didn't just wake up one day and start selling their warranty. They factor in odds no different than Vegas bookies.

Once again, you are ahead but if you are playing the odds, you will not fare so well in continuing purchasing said warranties.

And let's just say you are correct, the company that sold this to you would go broke if warranties did indeed make you come out ahead ------ you would be out anyway if indeed EV's were crap because the warranty company would go under if they continued to operate at a loss. You would STILL lose.

Irony at it's best...............

 

[StevenC56]

I think we all know the odds, and if you only keep your vehicles 3-5 years it probably makes no sense. But if you keep your vehicles 7-10 years, then I'll bet the possibility of component failure increases.

 

[MacherAWD]

The Company that you purchased the extended warranty didn't just wake up one day and start selling their warranty. They factor in odds no different than Vegas bookies.

Once again, you are ahead but if you are playing the odds, you will not fare so well in continuing purchasing said warranties.

And let's just say you are correct, the company that sold this to you would go broke if warranties did indeed make you come out ahead ------ you would be out anyway if indeed EV's were crap because the warranty company would go under if they continued to operate at a loss. You would STILL lose.

Irony at it's best...............

Ford lost how much money on each EV? The warranty companies may be similar, plan to lose money initially and then raise costs if needed.

Also the dealer I bought from told me $4k for an extended, I ended up paying $1600. I would not have bought one for $4k, and yes they probably would have profited heavily. At $1600? We will see. If the warranty cost $1 they would obviously lose money.

 

[DennisD]

I think we all know the odds, and if you only keep your vehicles 3-5 years it probably makes no sense. But if you keep your vehicles 7-10 years, then I'll bet the possibility of component failure increases.

You already have a factory warranty of 3 years/36k miles. An extended warranty only applies after that period, so if you plan to keep the car for just 3–5 years, it honestly makes no sense to buy one. You’d essentially be paying for coverage you’ll never use.


The EV components are already covered for 8 years/100k miles. Even if you keep the car longer than that, the math still doesn’t work. By the time you’re past 8 years, the car is often worth far less than the cost of the extended warranty—especially the $4k ones many people buy.


If a rock hits your headlights or something “nature-related” happens, that’s what insurance is for. Any comprehensive policy should already cover that.


In reality, extended warranties are more often than not useless and rarely pay out the way they’re advertised. Ford—and warranty companies in general—are laughing all the way to the bank. It’s no different than overpriced add-ons like carpet or paint protection, which frequently don’t cover what buyers think they do.


I learned this the hard way. I bought a new 2015 Prius that came with paint protection (the promotion required it). Two years later, I had paint chips—and guess what? Not covered. All they really did was wax the car and charge an extra $500 for “protection” that turned out to be meaningless.

Too many people don't do the math and that is quite fine with me. I just want to let people be aware of the scams that are sold on a daily basis at Dealerships. (that is how they make the "big coin".)

Better for me in the end.

 

[SolarAB]

I was thinking of buying an extended warranty. I do a little over 18,000 miles a year and I just hit 36,000 miles on my 2023 Mustang Mach e GT.

On Ford’s website it’s around $2500 for 3 years or 75,000 miles. Funny the dealership wants $5500 for the same thing. No issues with my car so far but I’m always worried cause it’s an EV. Any suggestions or thoughts are welcome thanks for the help.

More often than not, the extended warranty isn't needed. Since the main EV components are already warrantied for 8 years, you're really considering the longevity of the non-EV components.

 

[StevenC56]

You already have a factory warranty of 3 years/36k miles. An extended warranty only applies after that period, so if you plan to keep the car for just 3–5 years, it honestly makes no sense to buy one. You’d essentially be paying for coverage you’ll never use.


The EV components are already covered for 8 years/100k miles. Even if you keep the car longer than that, the math still doesn’t work. By the time you’re past 8 years, the car is often worth far less than the cost of the extended warranty—especially the $4k ones many people buy.


If a rock hits your headlights or something “nature-related” happens, that’s what insurance is for. Any comprehensive policy should already cover that.


In reality, extended warranties are more often than not useless and rarely pay out the way they’re advertised. Ford—and warranty companies in general—are laughing all the way to the bank. It’s no different than overpriced add-ons like carpet or paint protection, which frequently don’t cover what buyers think they do.


I learned this the hard way. I bought a new 2015 Prius that came with paint protection (the promotion required it). Two years later, I had paint chips—and guess what? Not covered. All they really did was wax the car and charge an extra $500 for “protection” that turned out to be meaningless.

Too many people don't do the math and that is quite fine with me. I just want to let people be aware of the scams that are sold on a daily basis at Dealerships. (that is how they make the "big coin".)

Better for me in the end.

Your first paragraph is exactly what I said. There are hundred of components on the vehicle that are not part of the 8 year EV component warranty. As far as "Paint Protection" and other worthless add ons that slimy dealers push to pack their profit, those are not at all the same as a Factory extended warranty.

 

[superdave80]

No, I think his point was he doesn't want to live in an earthquake or flood zone, not to avoid buying the insurance.

No, I don't think that was his point.

My logic is if you live in a place that you need Earthquake, or flood insurance you should probably move.

 

[MacherAWD]

No, I don't think that was his point.

I mean the royal "you", like including myself in that.

In New England we considered a house near the beach in our city, it was a barrier sandbar island. Houses occasionally fall into the ocean, flood insurance was going up. My wife and I factored that into our house buying, sure we liked this small Ocean front new construction on stilts but thought the risks/headaches/costs was not worth it so we live in the suburbs.....

When I was offered a job in LA a factor was "why would I base my family in a desert and have to consider water supply....."

Its also a bit of a joke folks, I almost wrote "who would be crazy enough to live on an active volcano....But I really like Hawaii.

 

[RickMachE]

No, I don't think that was his point.

He already said that was his point.

Myself, during my career I had lots of opportunities to move elsewhere in the country for jobs. If I was approached for a job in California, I usually declined any further discussion immediately. When I searched for jobs myself, I excluded California from any search. Our youngest lives there. We visit, we would never consider moving there.

I also excluded lots of other states. Some for climate, some for hazards, some for politics / historical bent, ... I'd list them, but there's too many.

We considered relocating in retirement. Printed a map of the US, then took a marker and X'd off a bunch of states right off the bat. Had reason codes - P for politics, C for climate, E for economic reasons, F for financial (like state estate taxes)... What was left was less than 20 but more than 10 states.

A funny story - I interviewed with a company that was located in a state that was right over the line in the south. They took me on a driving tour on the way to lunch. "Here's a statue of Lee"... "Here's a commemorative plaque for the battle of ___, where ____ (fill in the name of a southern general) won."

After a few of these, we got to lunch. I asked a simple question - "Didn't the south lose?". The talking stopped, and people stared.

I told the CEO it wasn't a good fit. He wasn't happy, him and I got along great, but working there would have been uncomfortable.

 

[devmach-e]

I think we all know the odds, and if you only keep your vehicles 3-5 years it probably makes no sense. But if you keep your vehicles 7-10 years, then I'll bet the possibility of component failure increases.

I keep my vehicles 7 to 10 years. Not once in those 8 cars would an extended warranty have paid off. Especially the ones that have gone over 10 years. No extended warranty will cover the number of years and miles that I drive my cars.

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