Ford Extended Service Plan

My 2014 F150 came with a five year/60,000 mile warranty on the drivetrain and a three year/30,000 mile bumper-to-bumper warranty. I have eleven months left on the bumper-to-bumper and I'm wondering about the Extended Service Plans offered by Ford. The ESPs are available in several levels of coverage, time periods, and mileage. The prices vary according to how much protection you buy. They are only available from Ford during the bumper-to-bumper warranty period. Ford specifies that a Ford ESP will be honored at any Ford dealer regardless of where it was purchased. Normally, I shy away from extended warranties on most things but, in the case of vehicles, even Consumer Reports says they can be worth considering. They do warn, however, that only manufacturer ESPs should be considered.

So - - with all of this in mind - - I did a little digging into the Ford ESPs and I found an uncomfortable number of really unhappy people who had been "surprised" once too often. I'm wondering if these folks were a representative sample. Can anyone on this Board shed any more light on the subject of manufacturer warranties and, specifically on the ESPs sold by Ford?

I bought the extended warranty on my Ford F-250 diesel when I bought the truck. I figured in this day of electronic everything, it doesn't take much to go wrong before it pays for itself. That and the 4WD, which tends to be expensive if it breaks. If nothing goes wrong during the extended warranty period, then I'll just congratulate Ford on making a very fine truck!

On a previous Ford, the transaxle boot started leaking, and it wasn't covered under the extended warranty. They said it was an expendable part, like tires, batteries, or windshield wiper blades. Didn't seem like that to me, but I couldn"t argue with them.

On the current truck, I had a supplemental diesel tank put in by Camping World. It gravity feeds into the main tank, by cutting the fill hose and inserting a T coupling. I started noticing drips of diesel fuel on the garage floor, and could feel diesel on top of the main fuel tank, where it had leaked out of the connection with the fuel filler hose. Couldn't do anything about it myself without dropping the main diesel tank, and didn't want to do that. Went back to Camping World, who assured me they didn't touch the connection between the filler hose and the main fuel tank, which I pretty much already knew. Went to an independent diesel shop, and got an estimate of $500 to fix. Went to Ford, and got the same estimate, only they wouldn't charge me if the fuel filler connection was faulty. I thought, "Uh huh, they're just going to say the after market alteration put the main fuel tank into a continuous over-full condition, that wasn't contemplated by Ford, and that voids the warranty." But they surprised me; they repaired it at no charge, and it hasn't leaked since. In fact, they told me that diesel leaks are difficult to fix, and if it leaked again, to bring it back and they would try again.

So I guess overall, they've batted 500, but I was so pleased with their response on the fuel tank that as far as I'm concerned, they're batting 1,000.

I guess I could see the transaxle boot both ways but at least they stepped up on the diesel issue. I have a description of each ESP offered and it's pretty detailed in listing what is and is not covered under each one. I realize that there will inevitably be some misunderstandings in the details but I'm trying to convince myself yea or nay if one of the plans is a good deal overall. As you say, this thing is laden with electronics and maybe that's the aspect that concerns me most. This is my third Ford pickup since 1985, all bought used. I thought my '93 was in a different league from my '73 but the '14 is like a spaceship compared to even the '93.

When I bought my 2008 Ford Explorer used a few years back I also bought the ESP for about $2500, which expires next week. During the few years I've had it, the ESP plan has paid for itself MANY times over.

Problem is the renewal price....

I now have 98,000 miles on my Explorer. The new ESP plan would cover me to 160,000 miles or 2020, whichever comes first. It comes with a 3 year rate lock if I buy it now and can be cancelled any time with no penalty fees.

Each year, the cost would be as follows:

$100 deductible; $2710.56 or $225.88/mo

$250 deductible; $1908.26 or $ 159.02/mo

$500 deductible; $1311.12 or $109.26/mo

I know those costs are far less than most major repairs, but I still find it pretty steep. I guess its like any insurance...hate paying for it, until we need it.

Look at the difference between monthly premium cost between a $100 and a $500 deductible plan: less than 4 month's premiums and you can pocket the difference. I'd roll those dice! Of course, you wouldn't get your $100 back on a $200 repair, but for an older vehicle, many of those smaller repairs can just be left undone or do it yourself. New vehicle, different story. I don't think there is such a thing as a $200 repair on my 2015 F-250.

My concern is the $2,000 transmission, transfer case, axles, suspension parts, major engine repairs, and other high ticket items. They forked over almost $2,000 alone a few weeks ago for an a/c repair.

Look at the difference between monthly premium cost between a $100 and a $500 deductible plan: less than 4 month's premiums and you can pocket the difference. I'd roll those dice! Of course, you wouldn't get your $100 back on a $200 repair, but for an older vehicle, many of those smaller repairs can just be left undone or do it yourself. New vehicle, different story. I don't think there is such a thing as a $200 repair on my 2015 F-250.

As explained to me by a Ford dealer, the deductibles are per visit, not annual. Further, you may bundle several problems into each visit and still have only one deductible apply. In any case, those premiums are WAY higher than what has been quoted to me.

Correct on the deductibles; they are per visit.

Perhaps the premiums vary due to the age and mileage of my Explorer as compared to your vehicle.

I can't comment on the Ford program, but I decided to buy one for my Jeep Grand Cherokee Overland as soon as I saw how quickly I was racking up miles. One quick observation: in the case of Jeep (Chrysler) ESPs, the final price is set by the dealer. Shopping around saved me a few hundred bucks.

It all comes down to actuarial numbers, but the bottom line is that the manufacturers make money on these things. The question is, how willing are you to roll the dice? My ESP--unlimited mileage, lifetime coverage with a $100/service visit deductible was just over $2,000. A single major issue, related to the engine, electronics, transmission, or the complex air suspension system, could pretty easily exceed that amount.

Fortunately--for both Jeep and me--Jeep has come out ahead on the gamble. I've put around 115,000 miles on the darned thing in the past four years and it's been nearly flawless. I had one repair that exceeded the $100 deductible (by about $70-80), but my only other costs have been for routine maintenance.

Well, I was....involved with Ford for many years. I know all about the Service Plans.

First, these are NOT a warranty but instead a service agreement. What they cover is not nearly as inclusive as a true warranty.

There is a LOT of profit in them for Dealers, and Ford makes money on them too. There are a lot of different lengths and extents of coverage options.

Some vehicles are a lot more expensive to repair and the Plans are a lot more expensive. Diesel Extended Service Plans are an example.

IIRC, few plans had a Dealer cost of around $1000. Some of the longer mileage diesel plans were more. Common Plans that extended coverages to 5 or 6 years and 100,000 miles were $7-800 range. That may have gone up in the past few years.

Maintenance plans are an absolute PITA. They won't vary much on time/mileage. You will find yourself paying for maintenance before a trip for instance.

The biggest problem I see is what they DON'T cover. Read the fine print!

My take on Extended Service Plans is that they have a place in the sales/profit at Dealerships and if you want one, buy it. BUT, to my friends I will tell you this: If you are on a tight budget and cannot afford to take a chance on a major repair bill, then adding the cost of a warranty to a 5 year finance plan could save you from that bill. Otherwise, do NOT buy any Extended Warranty on anything. If it is recommended highly by those that do that sort of thing, don't buy that brand! I have saved enough over the years by not spending $5-700 per vehicle to face any repair out of pocket and still come out way ahead.

Well, I was....involved with Ford for many years. I know all about the Service Plans.

 

First, these are NOT a warranty but instead a service agreement. What they cover is not nearly as inclusive as a true warranty.

 

There is a LOT of profit in them for Dealers, and Ford makes money on them too. There are a lot of different lengths and extents of coverage options.

 

Some vehicles are a lot more expensive to repair and the Plans are a lot more expensive. Diesel Extended Service Plans are an example.

 

IIRC, few plans had a Dealer cost of around $1000. Some of the longer mileage diesel plans were more. Common Plans that extended coverages to 5 or 6 years and 100,000 miles were $7-800 range. That may have gone up in the past few years.

 

Maintenance plans are an absolute PITA. They won't vary much on time/mileage. You will find yourself paying for maintenance before a trip for instance.

 

The biggest problem I see is what they DON'T cover. Read the fine print!

 

My take on Extended Service Plans is that they have a place in the sales/profit at Dealerships and if you want one, buy it. BUT, to my friends I will tell you this: If you are on a tight budget and cannot afford to take a chance on a major repair bill, then adding the cost of a warranty to a 5 year finance plan could save you from that bill. Otherwise, do NOT buy any Extended Warranty on anything. If it is recommended highly by those that do that sort of thing, don't buy that brand! I have saved enough over the years by not spending $5-700 per vehicle to face any repair out of pocket and still come out way ahead.

Thanks for the comments. I want to make sure we're talking about the same thing. The plan options that were presented to me were Ford Extended Service Plans as opposed to Ford Maintenance Plans. I am only interested in the former which are offered in several levels, i.e., Powertrain, Base, Extra, and Premium (diesel vehicles are a separate category), and which can be purchased in an array of time and mileage options. I'm aware (now) that dealers charge whatever they can get for them and there is quite a variance between dealers in that regard for the same plan(s). I was presented with a variety of options by the Finance guy at the dealership and was told that their super low prices would only be available at the time of purchase. I should have known he was lying because his mouth was moving but I stupidly went ahead and bought a Premium plan. Two days later, I did a little more internet research and found dealers offering the same plan for considerable less than I had paid - - in at least two cases, exactly HALF of what I had paid - - whereupon, I submitted a written request for a refund which I was granted minus a $75.00 processing charge. All of that was spelled out in the Plan's fine print. So - - knowing that I am not interested in a Ford Maintenance Plan of any kind, and in consideration of the fact that I have kept my last two Ford trucks for fifteen+ years apiece, do you still feel that a Ford Premium Extended Service Plan is not a good option?

So - - knowing that I am not interested in a Ford Maintenance Plan of any kind, and in consideration of the fact that I have kept my last two Ford trucks for fifteen+ years apiece, do you still feel that a Ford Premium Extended Service Plan is not a good option?

Todays vehicles have a LOT longer life than they did 20 years ago. You just don't see engines wearing out, rarely see an automatic transmission needing work under 150,000 miles, almost never hear of a differential going bad, and so on. Yes, there are electrical gizmos that need attention. But they are getting a lot better too. A/C systems are less prone to failures it seems. Stuff is built very well now, or the company quickly loses reputation and sales fall.

Keeping a vehicle long term does not change my views on the extended service plans. If they covered the LAST 5 years of your 15 you owned it, and the LAST 100,000 miles you planned to put on it you might come out ahead. But the honest truth is that for everyone that says they came out ahead on an extended warranty, there are MANY that had no claims at all. You have the term of the factory base warranty to purchase the extended service plan. If you think you might want to go ahead and buy one, my advice is to wait till the base warranty is about up. You will pay the same price. If the vehicle has been trouble free, that might enter into your decision. If it has not been trouble free, well, that too might make your decision!

just bought a new Ford at an Albuquerque dealership. finance guy tried to upsell me an extended warranty. after a lot of blah about it all I asked the price: well upwards of $3K. when I demurred, he showed me a sheet of paper that said dealer cost of the plan was a little less than $1.2K, and he could sell me the plan for a couple of hundred more. I was impressed by the chutzpah but demurred.

this was after I refused to pay $595 for dealer prep on top of the vehicle cost and had refused all the hype about exterior and interior coatings, of which there were about a half dozen, and all sorts of protections that my insurance already covered, like broken windshields, theft insurance, etc. fortunately there was no negotiating for the vehicle price, as I bought it on the X-plan.

but oh how tedious the whole process, even though everyone there told me that they wanted to make it "enjoyable." and what was it with their offering me repeated "congratulations" when I actually wrote the check? good thing I only do this every 8 to 10 years or so.

Finance guy tried to upsell me an extended warranty. after a lot of blah about it all I asked the price: well upwards of $3K. when I demurred, he showed me a sheet of paper that said dealer cost of the plan was a little less than $1.2K, and he could sell me the plan for a couple of hundred more. I was impressed by the chutzpah but demurred.

 

 

but oh how tedious the whole process, even though everyone there told me that they wanted to make it "enjoyable." and what was it with their offering me repeated "congratulations" when I actually wrote the check? good thing I only do this every 8 to 10 years or so.

You should have asked to see the "other" Dealer Price List!

X-plan should be no hassle. Dealer actually makes more on X-plan customers than the average sales price of the car itself. Ford used to be very strict on the process. As for enjoyable, as more of the big corporations buy up the once family owned franchises there will be more and more "enjoyment" added to the buying process. There is incredible pressure on "back end" personnel to make up for profits the vehicle sale used to generate.

I've never purchased on extended warranty plan on a new vehicle. I get the insurance factor, but the manufacturers and dealers are not losing money on them.

I've never purchased on extended warranty plan on a new vehicle. I get the insurance factor, but the manufacturers and dealers are not losing money on them.

I'm not sure, but perhaps a benefit to the consumer in having an extd warranty vs pay as you go is the retail vs in-house cost of repairs. For example, it might cost me $1,000 to get something done whereas it only costs the dealer $500 to do the work. It is possible that the Co could make a profit and still be a good deal for me. Similar to medical insurance: one of the benefits of having it is that it costs you less to get something done because of the reimb rates negotiated by the ins co with the medical providers, aside from the amount of insurance coverage you might have.

My wife bought a used 2004 Acura TL (V6 manual trans, great car) back in 2010 and the dealer offered a 7 year independent service contract for $1100. Good thing she got it because it paid for over $6500 in repairs over those years -- and it still has a few months to go! All repairs were done by an Acura dealer. They'd just call the insurance company and get approval, no problem. It even paid $600 to replace the factory XM radio that went bad.