Various Topics on Ford

..cq.. ....

Price it at www.mid-statesford.com

When I got an ESP on my '99 Explorer they beat every other dealer hands down.

.. .. ..i..

Extended service plans are just a form of insurance. Ford
(and everyone else) who sells them has better information on
the claims rate than you do. With this superior information,
they should know how to price them so that they make money.
Most extended service plans have very high profit margins. I
have heard that dealers make as much as 50% right off the
top. Then there is the cost of administering the plan,
advertising the plan, and finally paying actual claims. I
doubt if more than 40% of the money paid in for the policies
actually goes towards paying for repairs (probably a lot
less). This implies that for the "average" person, extended
service plans are a very very bad deal. You get a better pay
out playing blackjack in Vegas.

Does this mean you shouldn't buy an extended service plan?
Well no. That still depends on you. I have bought them on
several vehicles and never gotten a cent out of them (1981
Audi, 2001 Mustang, 2003 Expedition). In fact I have never
owned a vehicle where an extended service plan was a
"winner" for me. So why did I buy them? My explanations
(rationalizations?) are as follows -

'81 Audi Coupe - I loved the car, but friends (including two
Audi owners) warned me that they were maintenance
nightmares. So, I bought the extended warranty. At 50K
miles, the car was running fine, but I was tired of it and
sold it. No claim was ever made against the extended
warranty.

2001 Mustang GT - When I bought the car I expected to only
keep it for 2 to 3 years. However I drive a lot (20K miles a
year on this one car). So I looked at the extended warranty
as a sales tool for the used car (3 year old car with 60K
miles). In the end I traded the car in at around 40K miles.
I had the Ford ESP and they rebated me about 35% of the
original cost of the ESP when I canceled it.

2003 Expedition - This was the first year of the "new"
version Expedition. I had a 1997 Expedition that in 148,000
miles only required about $500 total of out of warranty
repairs (one coil pack, one alternator). However, given the
changes in the 2003 (IRS, smaller transmission, more
powerful engine, etc.), I believed there was increased risk
that the vehicle might suffer from some unforeseen problems.
So far (50K miles), these fears have proven groundless.
However, I still don't feel too bad about the money spent.

In the end, extended warranties are like any other insurance
policy. They mitigate risk. Compared to policies for some
other areas (home owners, or even regular car insurance)
they are way over priced (at least in my opinion). The
dealers mark them up way too much. I also won't touch a
policy from a third party. I know some are just fine, but if
I am going to spend the money, I am going to buy it from the
vehicle manufacturer. If you want a policy, you should also
negotiate the price. The dealers have a lot of room to lower
the price on these policies without affecting the coverage.
If having the insurance makes you more comfortable, then I
say spend the money. Just don't expect it to make financial
sense on its own merits. I am very sure I if I had put the
money in the bank for the three policies I have bought, I'd
be ahead financially. On the other hand, if the engine in my
Expedition goes south tomorrow, I may decide I did the right
thing. I am getting a significant "warm feeling" because I
have the ESP. So far I still think it was worth the cost.

Ed



"Tom C." wrote:
>
> Have any of you bought an extended warranty from one of the online websites?
> Looking to get a 7yr./100k mile Extended Service Plan for my '02 Explorer.
>
> So far, I've priced them here:
> http://www.fordwarrantys.com/
> http://www.fordesp.com/
>
> Thoughts?
> Suggestions?
>
> Thanks-

.. .. ..i..

Extended service plans are just a form of insurance. Ford
(and everyone else) who sells them has better information on
the claims rate than you do. With this superior information,
they should know how to price them so that they make money.
Most extended service plans have very high profit margins. I
have heard that dealers make as much as 50% right off the
top. Then there is the cost of administering the plan,
advertising the plan, and finally paying actual claims. I
doubt if more than 40% of the money paid in for the policies
actually goes towards paying for repairs (probably a lot
less). This implies that for the "average" person, extended
service plans are a very very bad deal. You get a better pay
out playing blackjack in Vegas.

Does this mean you shouldn't buy an extended service plan?
Well no. That still depends on you. I have bought them on
several vehicles and never gotten a cent out of them (1981
Audi, 2001 Mustang, 2003 Expedition). In fact I have never
owned a vehicle where an extended service plan was a
"winner" for me. So why did I buy them? My explanations
(rationalizations?) are as follows -

'81 Audi Coupe - I loved the car, but friends (including two
Audi owners) warned me that they were maintenance
nightmares. So, I bought the extended warranty. At 50K
miles, the car was running fine, but I was tired of it and
sold it. No claim was ever made against the extended
warranty.

2001 Mustang GT - When I bought the car I expected to only
keep it for 2 to 3 years. However I drive a lot (20K miles a
year on this one car). So I looked at the extended warranty
as a sales tool for the used car (3 year old car with 60K
miles). In the end I traded the car in at around 40K miles.
I had the Ford ESP and they rebated me about 35% of the
original cost of the ESP when I canceled it.

2003 Expedition - This was the first year of the "new"
version Expedition. I had a 1997 Expedition that in 148,000
miles only required about $500 total of out of warranty
repairs (one coil pack, one alternator). However, given the
changes in the 2003 (IRS, smaller transmission, more
powerful engine, etc.), I believed there was increased risk
that the vehicle might suffer from some unforeseen problems.
So far (50K miles), these fears have proven groundless.
However, I still don't feel too bad about the money spent.

In the end, extended warranties are like any other insurance
policy. They mitigate risk. Compared to policies for some
other areas (home owners, or even regular car insurance)
they are way over priced (at least in my opinion). The
dealers mark them up way too much. I also won't touch a
policy from a third party. I know some are just fine, but if
I am going to spend the money, I am going to buy it from the
vehicle manufacturer. If you want a policy, you should also
negotiate the price. The dealers have a lot of room to lower
the price on these policies without affecting the coverage.
If having the insurance makes you more comfortable, then I
say spend the money. Just don't expect it to make financial
sense on its own merits. I am very sure I if I had put the
money in the bank for the three policies I have bought, I'd
be ahead financially. On the other hand, if the engine in my
Expedition goes south tomorrow, I may decide I did the right
thing. I am getting a significant "warm feeling" because I
have the ESP. So far I still think it was worth the cost.

Ed



"Tom C." wrote:
>
> Have any of you bought an extended warranty from one of the online websites?
> Looking to get a 7yr./100k mile Extended Service Plan for my '02 Explorer.
>
> So far, I've priced them here:
> http://www.fordwarrantys.com/
> http://www.fordesp.com/
>
> Thoughts?
> Suggestions?
>
> Thanks-

.... ..ffr..

Tom C. wrote:

> Have any of you bought an extended warranty from one of the online websites?
> Looking to get a 7yr./100k mile Extended Service Plan for my '02 Explorer.
>
> So far, I've priced them here:
> http://www.fordwarrantys.com/
> http://www.fordesp.com/

I agree with most of the posts so far. Extended warranties are almost
always overpriced, and seldom pay for themselves (the clerk at Office
Depot tried to sell me an extended warranty for a $20 answering machine
the other day. Couldn't understand why I wouldn't buy it. Cost of the
warranty? $20!) I make it a policy NEVER to buy them.

However, there is one question that no one has yet asked. Do you have
any signs of incipient failures?

When I bought my 02 Explorer V-8 XLT, I refused the extended warranty
even though the dealer pushed it hard. I haggled with him a while (I
wanted to see where he would go), and he cut his price substantially. I
had no intention of buying it, but I kept his paperwork and his quote.

However, by 30,000 miles, I experienced the infamous "howling rear end",
had the rear end replaced at Ford's expense, and had the new rear end
begin to howl. In addition, I began to have transmission problems that
everyone ***ured me were "not a problem". At 35,000 miles, I got
nervous, bit the bullet, and bought the ESP Plan direct fgrom Ford.
Haven't used it yet (65K miles), but I feel a lot more comfortable. The
rear end continues to howl (which may not be a problem), but the
transmission continues to deteriorate, and I may yet need it.

Interesting detail - I bought the plan directly from Ford, and paid $400
less than the dealer's "best" price. On a $1000 policy, that's a lot.

The second link you provided gets you the Ford plan, but through a
dealer. You can bet that he takes a big bite as your money p***es
through him.

Bill

.... ..ffr..

Tom C. wrote:

> Have any of you bought an extended warranty from one of the online websites?
> Looking to get a 7yr./100k mile Extended Service Plan for my '02 Explorer.
>
> So far, I've priced them here:
> http://www.fordwarrantys.com/
> http://www.fordesp.com/

I agree with most of the posts so far. Extended warranties are almost
always overpriced, and seldom pay for themselves (the clerk at Office
Depot tried to sell me an extended warranty for a $20 answering machine
the other day. Couldn't understand why I wouldn't buy it. Cost of the
warranty? $20!) I make it a policy NEVER to buy them.

However, there is one question that no one has yet asked. Do you have
any signs of incipient failures?

When I bought my 02 Explorer V-8 XLT, I refused the extended warranty
even though the dealer pushed it hard. I haggled with him a while (I
wanted to see where he would go), and he cut his price substantially. I
had no intention of buying it, but I kept his paperwork and his quote.

However, by 30,000 miles, I experienced the infamous "howling rear end",
had the rear end replaced at Ford's expense, and had the new rear end
begin to howl. In addition, I began to have transmission problems that
everyone ***ured me were "not a problem". At 35,000 miles, I got
nervous, bit the bullet, and bought the ESP Plan direct fgrom Ford.
Haven't used it yet (65K miles), but I feel a lot more comfortable. The
rear end continues to howl (which may not be a problem), but the
transmission continues to deteriorate, and I may yet need it.

Interesting detail - I bought the plan directly from Ford, and paid $400
less than the dealer's "best" price. On a $1000 policy, that's a lot.

The second link you provided gets you the Ford plan, but through a
dealer. You can bet that he takes a big bite as your money p***es
through him.

Bill

....

<MikeHunt2@mailcity.com> wrote in message
news:40D0D990.94305EF5@mailcity.com...
> Save your money, preferably in a bank. Historically less than
> one percent of ALL Ford extended service plans ever
> pay out more than their cost plus any deductibles
>

Can you cite references for this claim rate?

Jeff

> mike hunt
>
>
>
> "Tom C." wrote:
> >
> > Have any of you bought an extended warranty from one of the online
websites?
> > Looking to get a 7yr./100k mile Extended Service Plan for my '02
Explorer.
> >
> > So far, I've priced them here:
> > http://www.fordwarrantys.com/
> > http://www.fordesp.com/
> >
> > Thoughts?
> > Suggestions?
> >
> > Thanks-

....

<MikeHunt2@mailcity.com> wrote in message
news:40D0D990.94305EF5@mailcity.com...
> Save your money, preferably in a bank. Historically less than
> one percent of ALL Ford extended service plans ever
> pay out more than their cost plus any deductibles
>

Can you cite references for this claim rate?

Jeff

> mike hunt
>
>
>
> "Tom C." wrote:
> >
> > Have any of you bought an extended warranty from one of the online
websites?
> > Looking to get a 7yr./100k mile Extended Service Plan for my '02
Explorer.
> >
> > So far, I've priced them here:
> > http://www.fordwarrantys.com/
> > http://www.fordesp.com/
> >
> > Thoughts?
> > Suggestions?
> >
> > Thanks-

....

"Tom C." <tomcNO@SPAMfastnetit.com> wrote in message
news:caqeuq01v6b@enews3.newsguy.com...
> Have any of you bought an extended warranty from one of the online
websites?
> Looking to get a 7yr./100k mile Extended Service Plan for my '02 Explorer.

I would take the money and put it in the bank. If you do this for every
vehicle you own, you will come out ahead. If I put $1000 for the ESP in my
bank account on my 1997 Contour, I would have about $1150 there now.

Jeff

> So far, I've priced them here:
> http://www.fordwarrantys.com/
> http://www.fordesp.com/
>
> Thoughts?
> Suggestions?
>
> Thanks-
>
>

....

"Tom C." <tomcNO@SPAMfastnetit.com> wrote in message
news:caqeuq01v6b@enews3.newsguy.com...
> Have any of you bought an extended warranty from one of the online
websites?
> Looking to get a 7yr./100k mile Extended Service Plan for my '02 Explorer.

I would take the money and put it in the bank. If you do this for every
vehicle you own, you will come out ahead. If I put $1000 for the ESP in my
bank account on my 1997 Contour, I would have about $1150 there now.

Jeff

> So far, I've priced them here:
> http://www.fordwarrantys.com/
> http://www.fordesp.com/
>
> Thoughts?
> Suggestions?
>
> Thanks-
>
>

..ank-in-..ron..

On Thu, 17 Jun 2004 20:07:23 -0400, "Jeff" <kidsdoc2000@hotmail.com>
wrote:

>
>"Tom C." <tomcNO@SPAMfastnetit.com> wrote in message
>news:caqeuq01v6b@enews3.newsguy.com...
>> Have any of you bought an extended warranty from one of the online
>websites?
>> Looking to get a 7yr./100k mile Extended Service Plan for my '02 Explorer.
>
>I would take the money and put it in the bank. If you do this for every
>vehicle you own, you will come out ahead. If I put $1000 for the ESP in my
>bank account on my 1997 Contour, I would have about $1150 there now.
sure. but you didn't. most people don't have cash lying around.
they finance this expense too. it doesn't just buy repairs.
it buys peace-of-mind. it's like locking in your mortgage rate.
it may be higher than it needs to be, but you KNOW you
can carry it. same with the ESP. i always recommend it.

what i do just before it expires is go to the NHTSA web
site and review all the TSBs for my vehicle. then i go
to the dealership and pretend i feel some of the symptoms.
they check and sometimes i get stuff fixed that hadn't
yet shown up.
....thehick