I'm curious if anyone here could relate how purchasing an ESP on their MMH/FEH has saved them money on expensive repairs. This info might help determine the value of these.

 

Extended service plans on anything - cars, appliances, etc are a real money makers for manufacturers. On average, chances are that you will not have expenses equal to the fee for the coverage. If that were not true, they would lose money on the policies. (Hint, they don't).

There will always be anecdotal tales of someone that bought one and came out ahead, just like there are lottery winners. That is what sells lottery tickets.

I never insure my self against any loss I can afford to incur and have saved a lot of money over the years. My suggestion is to put any money you think you need to spend on an extended warranty in a high interest money market fund and use it to pay for any repairs.

 

I have saved BIG $$ having extended warranties on several GM products!

 

You are the exception. On average, it doesn't pay, for the reason I stated.

 

Does www.fordwarrantys.com or www.myfordwarranty.com charge sales tax on their plans? I'm seriously considering one of the ESP plans for my 05 FEH.

Anyone have comments about dealing with either vendor?

 

The latest issue of Consumer Reports has an article on extended warranties with some convincing statistics. Bottom line, on average people spend about $300 more for the warranty than they ever get back.

 

One item not brought up yet--the potential positive effect it can have as part of a car sale. If you own a vehicle with a manufactures extended warranty still in effect, it could "help" sell your vehicle as the potential new owner realizes a warranty exists and they might be able to extend the existing warranty if they want. These warranties can transfer from owner to owner.

 

If you sell a car with an unexpired warranty you should get more for it - you paid for an extended warranty and then got rid of the car before you reached the high mileage where the warranty had a much higher value. You still lose.

 

I used to sell insurance in Florida at a large agency that sold warranties. the warranty cost us $25.00 per car and we could tack on whatever we wanted. It was the worst product ever. they never paid claims! the contract was so full of holes. We bought our ESP because basically I have no faith in American production especially the big 3. there is so much animosity between corporate and the worker. We basically bought our for "down the road" when things go wrong with older vehicles, primarily the batteries. We paid $1000 for it and financed it at zero interest with FOMOCREDCO ($16.66 per month) so it is for the peace of mind and trade in factor. Nutshell, read the contract and find out what they really cover. MFG warranty is usually the best but more expensive.

 

I notice that on the Ford site their ESP 500 Premium Care plan is the only one that covers the Hybrid parts and it excluded the HV battery. Since the HV battery has a 10 year warranty this may not be an issue.

I just ran the numbers on Ford's site and on my 2006 FEH with current 32000 miles and $50 deductible and 7 years / 75000 miles it is $2100.