FEH Extended Warranty Options
Just to let everyone know, Ford's extended warranty can be purchased without being part of the finance deal. Of course you can purchase it outright, but did you know they have a special going where you put down 10% and for 17 months it is zero percent, billed to you.
Buy, throw it in the contract, or zero percent over 17 months....
Some options just in case you did not know.
I'm curious what folks are
I'm curious what folks are paying for their warranty? I have a 2009 FEH on order. I've been a ford customer for over 20 years. I never knew until a few months ago, that you could do the above. I always did (and will do) the ESP. But I've always built it into the contract. I never knew and as far as I know, no salesmen ever told me you could wait. I also never even thought about shopping around to see if you could get a better deal either online or from someone other than the selling dealer. As I said, I plan to do the ESP, but right now, will not be doing it as part of the contract. I'll prob. wait 6 months to a year before doing it. Perhaps if the deal is still going when I do my contract, I'll think about taking the deal.
The smart money (i.e., most
The smart money (i.e., most experts) have always advised NOT buying extended warranties.
I think that is still good advice.
I just aquired my 2009 FEH
I just aquired my 2009 FEH and I was NOT going to get an extended maintenance agreement, As I have always agreed with mdensch's statement above, - and in general I still agree with it. I have never purchased one on over 10 new and untold used vehicles. -Till Now
I do feel that buyers of hybrids are still sort of "early adopters". This is not 100 year old technology with a century of maturity. Also the Dealer did provide me with some compelling options... I chose a plan that extends the OEM 3/36 bumper to bumper coverage to 6/72 ( it is a third party plan - but a reputable co, - Fidelty Warranty) It has no deductable for any services performed at the selling dealer and $50 per service if I get it serviced at another Ford dealer while traveling etc.. The Best thing is, that If I dont use it - at the end of 6 years or 72k miles (whichever comes first) - I Get a full refund (minus a $50 service fee) ... the cost was ~1600 bucks. and I did add this to my financing, but I put more than 50% down on the car at a loan rate of 4.1%, so this will help limit the finance charges on both the car and this extra adder.
So, the net is: if I dont use this service plan - it will cost me 50 bucks plus around ~200 bucks for the financing interest charges over the term(depending on how fast I pay off the loan). All for an extra three years of peace of mind....
If in year 5 the CVT (transmission) smokes, thats easy - make a claim and I chose wisely to get the Plan! as I would expect that to be a $5000 repair....
The hard one is if say, in year 4 It needs a $400 or $600 dollar repair... Hmmmm, use the plan and hope? for more uses of the plan over the next 2 years --- or pay cash for the service and hold out on any claims to get a full refund for the plan.... Oh well thats 3 years away, plenty of time to procrastinate. I suppose if I am not careful this could result in the plan being a poor choice - but also I can be VERY picky and take the car in for every minor thing if I need to, to make up for the cost of the plan.
And if nothing major happens between year 3 and 6 (as I am expecting) and there are no claims, - I feel I also chose wisely as the 250 bucks or so that the plan will have cost me (after a $1550 refund) is not a ton of money and It alowed me to feel good knowing "what-if" especially as there is a 30 gig HD in the dash/nav and a crap load of ECU's that each prob cost $2k and a fancy electric motor/CVT etc etc.... If this car does break down, I would expect the average repair to cost MORE than the average repair of a standard ICE old-tech car. Also dealers are not selling cars, (not making money for next 4 years till technology refreshes) thus they will resort to making more and more money from service operations (as the national average age of vehicles increases) - AND I fully expect servicers to ratchet up their margins on service as well - and blame it on inflation... so my vision of a $2000 repair today could cost $3000 ish in 2014 Right?? So also I guess I am somewhat inflation protected as well......
Just my opinions on Service contracts -
Shop wisely knowing the dealer has a LOT of options and vendors (OEM & NON) and they typically have a LOT of profit range, so be a hard negotiator and be sure to choose a reputable warranter... CHEERS - Cougar