If one intends to buy an extended service plan it is generally
best to buy one offered by the vehicle manufacture rather than
one from an after market company. Be sure to buy one that best
matches you miles/years goal. I should point out that
historically less than ONE PERCENT of all EXP's sold ever pay out
more than the cost of the plan and the deductible. IMO one is
better served by asking the F&I man the total cost of the loan,
with and without the ESP, then placing the cost difference into
an interest bearing account and pay for any repairs from that
account and adding the deductible amount from current income..
John Keiser wrote:
I negotiated hard and got both plans at about 60% or list when I bought the
car (they were a high markup item for the dealer).
1989 Mustang 5.0 - Plan $789
Payout A/C replaced at 24K/4 years = ?,
new paint at 50K/7 years = $2500-3000.
1995 Windstar LX Plan $860
Payout New Transmission 37K/3 years, New
Engine 61K/4.5 years.
I consider the ESP plans to be as fundamental to owning a Ford as putting
oil in the car.
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com ).
Agreed 100%; my wife's Escape with 24k is in the shop as we speak getting
its tranny fixed. My father in law's BRAND NEW Lincoln LS had to have it's
tranny completely replaced at 15k.
Picking up my wife from the dealer yesterday, we looked at a new Freestar.
I like the dash, but could not BE-LIEVE the cheapness of the interior. The
passenger seating in back looked like Ford spent approx. $5 for each bench.
I thought they'd learned their lessons about cost cutting from the reign of
"Jac the Knife"?
That's seems odd to me, the 5 speed tranny in the Lincoln is made
by Getrag and used by several luxury brands. I'm on my third
Lincoln LS, after owning three Lexus LS's. I own a '04 lincoln
LS now but I never had ANY problems with ANY of either brand. In
any event the warranty is 3/36 on the Escape and 4/50 on the
Lincoln and the tranny fixes were covered so an ESP would be
I don't even buy new vehicles, and even if I did, I wouldnt get an extended
plan.. I don't get extended plans for ANYTHING I buy. If their standard
warranty isnt long enough, I buy something that is.
I would rather someone else take the huge costs in depreciation, and buy a
2 or 3 year old vehicle for nearly half of what it would have cost new.
If it were not for buyers like you, us folks that buy new
often could not afford to buy our new vehicles, thanks. Do
you buy used appliances, furniture and clothing as well?
If you do, call me, I can start saving big time on the stuff
my wife buys. ;)
Well I just looked at a new Van which would cost about 40K. Thats more than
half my years income. An appliance at 1k is a lot different than something
that is 25-40k. The fact of the matter is that for right or wrong reasons
new cars are very expensive. The auto industry it self is worried about this
because they know that buying a new car is expensive. That most people find
it out of their reach. Thus US automaker sales are down 20%. If people do
buy a car they are trying to get the most reliable. I will not argue the
point but, the perception real or imagined is that Japanize make the best
cars. It may interest people to know that GM made more money selling
morgages than on cars last year
Since 1964 me and members of my immeadiate family have purchased 29 new Fords.
Not one have ever required an out of warranty repair as expensive as the ESP
1962 F100 - 85,000 miles, traded, brake line failed, rusted rear fenders
1964 Fairlane 500 Station Wagon - 85,000 miles, traded, no repairs
1964 Fairlane 4 Door Sedan - 60,000 miles, traded, I bent a valve in the
engine, but I assume the ESP wouldn't have covered it since I was ...hmmm...
doing something stupid
1967 F100 - 60K miles, traded, no repairs
1969 Ford Country Sedan - Totaled at 85,000 miles, brake rotors replaced
1972 F100 - 50K miles - needed a clutch at 50k miles, traded
1972 Ford Country Squire Wagon - 93,000 miles, traded, distributor ground
strap added at around 60k miles, no other repairs
1972 Ford Pinto - 90,000 miles, sold, required a started at around 30,000
(after I filled the tank with several gallons of water)
1973 Ford Pinto - 80,000 miles, sold, required transmission rebuild at 75,000
miles ($500, Sister's car, she never checked anythng until it was too late)
1975 F100 - 40,000 miles, traded, no repairs ever
1978 Ford Fairmont - 30,000 miles, sold, horrible car, but never required any
out of warranty repairs
1978 Ford Fiesta - 130,000 miles, sold, burned a piston at 110,000 miles
(again I was doing something stupid, $300 repair), alternator and radiator at
1979 Ford Country Squire Wagon - 50,000 miles, totaled
1979 Ford Courier - 60,000 miles, sold - horrible truck, required one vaccum
1982 Ford Country Squire Wagon - 95,000 miles, one brake rotor replaced
1983 Ford Ranger "S" - 50,000 miles, 4 cyclinder and gutless but never failed
1986 Ford Ranger - 80,000 miles, sold after wreck, one ignition module
1986 Mercury Sable - 135,000 sold, brake rotors, CV joint boots every 40,000
miles, heater core at 110,000 miles, A/C O-rings at 50,000 miles
1989 Ford Taurus Wagon - went with the ex-wife, no problems while I still
1989 Ford Ranger - 75,000 miles - sold, no repairs
1992 F150 - 93,000 miles, still owned, alternator failed, fuel pump failed
1992 Ford Ranger - 90,000 miles sold, no repairs
1992 Mercury Grand Marquis - 85,000 miles, sold, no reapirs
1996 Ford Explorer - 34,000 miles, sold, no repairs
1997 Ford Expedition - 149,000 miles, traded in, alternator, 1 coil pack
1999 Ford Ranger - 45,000 miles, still owned, no repairs
2001 Ford Mustang GT - 40,000 miles, traded in
2001 Mercury Grand Marquis - 40,000 miles, still owned
2001 Ford Escape - 35,000 miles, still owned
2003 Ford Expedition -35,000 miles, still owned (and under the original
I know that the ESP plan is a bad bet. Ford has a pretty good idea of the
failure rate of their vehicles, so they know about what they can expect to
spend on fixing them. Ford and the dealers cover the cost of administrating
the plan, advertising the plan, and paying for repairs and still make a boat
load of money on the plans. It is like buying a lottery ticket, you know on
the average you are a loser, but if it pays off you feel so good......
BTW, I have purchased ESP plans on my last two new Fords (2001 Mustang and
2003 Expedition). The Mustang plan never payed a dime. The Expedition is still
under the original warranty. I bought the plans so that I could just not care
if something failed. In case of a problem, I'll just have the vehicle hauled
to the Ford dealer and let them sort it out. This was done as a convenience
and not a cost saving measure.
John Keiser wrote:
I may be wrong but the individuals that have had warranty service done on
their cars in this thread would have had the warranty done w/ or w/o an
extended warranty plan. I think ford covers transmission and engine at the
15k or 24k miles they were driven. It was not the extened warranty that
I was once told by a transmision guy at AMCO when my ford tramission was
being replaced at my cost that when dealers call them with a car under
warranty that they tell them to fix only the part that is broken and will
get them past the warranty. Dont fix anything else, or do any preventivive
maintenance. Just get them pass the warranty. So thats what a warranty is
The other thing is, what the Ford dealer says something would cost under the
ESP plan, and what you might pay realistically whether you get the dealer to
do it or another place, Alot of times it can be done cheaper for the same
amount of work. It works like this for insurance claims also. It would never
cost me X amount of dollars the insurnace co. got charged to fix something
if I brought it in myself and paid out my pocket.
Well I suppose it wouldn't be the first time the mechanic lied. Which I
suppose makes me wonder about the mechanics at the dealers when they say
this or that needs replacing. W/o a lie detector your at their mercy.
My father's company rebuilds engines. When an engine comes in under
warranty, he is told only to fix what has to be fixed. For example, if a rod
bearing is bad and has to be fixed, he is allowed to replace the rod
bearing. However, he is not allowed to replace any other rod bearings, even
if they are badly worn, though serviceable. If a set of piston rings is bad
on one piston, but the others serviceable (even if they should be replaced),
only the one set of piston rings get replaced. For warranty work by the car
makers, they usually fix what should be fixed. A lot of times, they will
just go for a new short block rather than have the car tied up and risk
Hate to tell you but your father lied to you. Our fleet repair
shops do warranty repairs for every manufacture and I have never
heard of anything like that. Think about it, why in the world
would any manufacture want to take a chance on doing a partial
repair while the vehicle is still under warranty and the new
parts are warranted for 12/12? The manufactures cost for rings
and bearing is negligible. The labor cost to replace another
bearing or ring set would be far greater. Insurance companies do
things like that, but they are not on the hook for a subsequent
failure, as is the manufacture. A partial repair
for a manufacture would not make sense.
A better name for this would be "After warranty repair insurance." All you
are doing is buying insurance. Ford and the other car makers don't sell this
at a loss. And the dealers get a cut of the cost too. Which means most of
the cost, on average, is not paid out.
You are a lot better putting the money I-series savings bonds -- which are
guaranteed to beat inflation (before the end of Oct., while the rates are
higher). In the event you need the money for a repair, the money will be
there. Otherwise, you will be able to get the money out when it is time to
buy another one, in 7-10 years.
Another advantage of not buying a ESP is that Ford and the other car makers
sometimes have what are sometimes know as silent warranties. When there is a
known problem (like an particular engine that blows head gaskets after
warranty, but in an unreasonably short time), the car makers will either fix
the problem (after the warranty expires) at a discount or even for free. If
you have the ESP, it will look like the ESP is paying for it, when you would
really get it fixed for free or less money.
In general, you are better saving your money in your bank account. You will
have to spend money every now and then to fix something, but you are very
likely to put in more money over several years than you put in (this not
applies to cars, but washers, dishwashers, TVs, computers).
BTW, if you do buy an ESP, get the one from the dealer (and shop around --
the dealers would rather discount the warranty than not make money) rather
than an independent warranty company. If the warranty company goes out of
business or hassles you for a particular repair, you have less recourse than
if you get the warranty from the car maker.
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