My MMH 06 is coming up on its 3 year mark and I am pondering an extended warranty. I only have 22k on it and its been just fine. I expect to keep the car for at least another 3 years. For about $680-850 through myfordwarranty.com, I could have the premium with $50 or $100 deductible. What are your thoughts - have you used it? Been worth it? It seems to me that any major problem would cost at least that and it may be worth the price. I am assuming, of course, that Ford/Mercury will be around in some form, despite the economy.

 

If you search this site and "others" looking for issues with the vehicle you could create this:

-small electronic coolant pump will sometimes fail
-blend door issue that sometimes arises
-air conditioning lines to the hybrid battery pack may leak
-stop now warning due to several different possibilities
-the big relays in the engine compartment may fail
-others?

Try to figure out what the replacement/repair cost for the above against the warranty cost. Will the dealer refund part of your extended warranty if you purchase from them prior to the expiration of the warranty? What is the chance these items will occur in your vehicle? If it has been problem free for three years, it could be a positive sign for the future.

 

Excellent timing on this question, was going to ask about an extended warranty on a new 09. That price you mention seems pretty good to me, especially since its being offered near the end of the period in which your base warranty is expiring.

I understand extended warranties cost more if you purchase near the 3 year/36,000 mile mark vs, purchasing them when you obtain the vehicle.

On a related topic, I believe an extended warranty on a new '09 FEH/MMH is a pretty good deal, considering that these models can have lots of technology working behind the scenes, and in front of the scenes, i.e., the next gen nav system. For example, I've seen quotes at about twice what you posted for your 06. And so to extrapolate out three years from now, near the end of the base warranty, this one will likely cost (twice yours) + some more.

Might want to check/verify this for your situation: An extended warranty on an '09, purchased when you purchase the vehicle, has two features that sound appealing, if you sell the vehicle: 1-you can transfer it to a new owner, or 2-if you choose not to do #1, you can get a prorated refund. Either of these costs $50 processing fee. To clarify, #2 is only doable if you sell, not if you decide you don't want the warranty any longer. As I understand it. Item #1 will be very useful if you ever go to sell the vehicle.

 

Ford is in far better shape than the other domestic manufacturers. Quite a few folks have been burned here for not getting an extended warranty. Because your mileage is low, you're getting a good price. Seems like you're in a good situation to me!

 

Those prices you quoted made me curious. That site, and the warranty, are not directly from Ford. This is from "Flood Auto Group ESP Sales" in Narragansett, RI. See the Contact Us page. https://www.myfordwarranty.com/contact.php. The website is owned by saccucci honda in middletown, Rhode Island. See http://whois.domaintools.com/myfordwarranty.com

I know consumer reports and others say you can find lower prices warranties if you shop around. In fact they even cite an example like this, to go to a non-Ford dealer/service to price a plan for a Ford vehicle. So this is one example. To me, one of the downsides, is you probably have to pay your repair costs yourself, and then file a claim for reimbursement. But I can easily live with that if the difference is a few hundred $$$.

Also, eliminate any surprises and check that there are no restrictions in the "fine print" about using re-manufactured parts vs. OEM Motorcraft parts. Sort of like Dental Coverage in group health plans, insurance privider says the cost of a cleaning is $60, your dentist charges you $70, you pay the difference. Or in this case, you pay the $70, and your plan reimburses you $60.

Just a thought.

 

Random chance, some win, MOST don't.

 

I've never gone for extended warranty on cars, mainly because it makes my head hurt weighing the pros and cons. Bottom line, if you're an average consumer, you stand to lose more than you gain, and will likely be better off paying as you go. Otherwise the insurer would not be in business.

 

I dont mean to drag this point out, but from the website of myfordwarranty.com, in the FAQ section:

Is this the same product that is sold at my local Ford Dealership?
Yes. These ESP contracts are backed by Ford Motor Company and are sold in all Ford/Lincoln/Mercury Dealerships. Your ESP will be honored at all Ford and Lincoln Mercury Dealerships. We sell in volume and can therefore offer great discounts over your local Ford dealer.

Under another section it says "Repairs are made only with genuine Ford part by factory trained and crtified technicians."

I also see it stated "No out of pocket expenses other than the applicable deductible". I wonder how they get all Ford and LM service depts. accept this.

That sounds good.

 

I'd have a nice nest-egg if I took all the money my family has spent on extended warranties in our lifetime (usually my wife ) that never got used.

Last time I was asked about an extended warranty for a cell phone, I asked if it covered damage if I dropped it. They said no and I quickly declined.

 

IMO cell phones and other personal electronics are different beasts. For example, you can buy used cell phones off e-bay, some that originally sold for $300 new go for less than half their original price.

Compare that situation to a replacement transmission ($2-$3k), a replacement Nav system ($1.5k), A/C compressors, motors for power windows/mirrors/locks/moonroofs, ... it's a different game. Just my opinion.