Ford Extended Service Plan

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FWIW my 3rd party warranty on my 95 tbird paid off in spades. It cost me 550 bucks or so, and it paid off 1750 for a tranny rebuild at 60k miles, and a
cooling fan, power antenna, and a couple things i can't remember for around 500 bucks, can't remember the mileage. The car was terrible the first 60 k miles, but amazingly has been great (except for the front brakes, they're way too small) for the last 38,000 miles. Now is the time to get rid of it, but I'm going back to school and would rather pay for a repair now and then than a car payment.
<< Subject: Re: Ford Extended Service Plan From: "Jeff" snipped-for-privacy@hotmail.com Date: Fri, Oct 10, 2003 7:06 PM
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.
Jeff

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Perhaps you should parlay your streak of luck and pay a visit to the casinos. I believe you have a better chance of losing less money there than with the purchase of extended warranty insurance contracts. Stan K.
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