Mt wife has a 2022 Edge and the warranty will expire next month. Yesterday I purchased a Ford top of the line extended warranty or service contract for an additional 5 years. I bought it online from Lombard Ford. I thought the price was very fair. My wife is a low mileage driver and an 8 year (five remaining) or a total of 65000 miles was only $1833 with a $100 deductible. I was in the car business for 21 years and still do dealer trades and other trips for a dealership. It is not uncommon for such a warranty to have a mark up of 100%.

I only recommend warranties from the manufacturer. If you purchase the warranty while the vehicle is still under the original warranty, it will be much cheaper. There is no need to purchase the warranty from the dealer when the vehicle is new. I recommend you wait until there is only a month or two left or the allowed mileage is getting close. The third party contracts are not good in my opinion as well as many other people.

I have no ties to this dealership, I just thought it was a good deal.

When I bought my 2013 Taurus, I paid for the maximum extended warranty at a dealership. That extension has expired without me ever using it. I consider them a waste of money.

quote:

Originally posted by Orguss:
When I bought my 2013 Taurus, I paid for the maximum extended warranty at a dealership. That extension has expired without me ever using it. I consider them a waste of money.

Most extended warranties are a waste of money for the majority of buyers. The warranty company gambles nothing will happen during the warranty period and the great percentage of time they are correct. With that said occasionally extended warranties work in favor of the buyer.

$1833 is easily the cost of one repair job... That does sound like a good deal.

I did that when I purchased my truck and very glad I did I had cam phasers and transmission issues and it easily paid for itself.

quote:

Originally posted by Orguss:
When I bought my 2013 Taurus, I paid for the maximum extended warranty at a dealership. That extension has expired without me ever using it. I consider them a waste of money.

To be fair, Ford's current engine, tranny, and electrical system quality control nightmare weren't going on in 2013. The OP's 2022 is right in the thick of problem era.

I have an extended factory warranty on my Jeep good for 75K miles. Cost $750 with $100 deductible. One major repair will make the $750 look like a bargain!
And I would only recommend OEM factory warranties. Avoid third party warranties.

If you are trying to decide on buying oen, look up repair histories for your model. There are many notorious for failures. Diesel Cp3 pumps, Ford Ecoboost nightmares. Ford 5.3 engine problems etc.

There are probably YouTubers and Tiktockers that are telling about the problems with your particular model. There is free info all over that you can base your decision on.

They are a type of insurance. Don't insure yourself against an affordable loss. [eta] They are also like gambling in that the odds always favor the "house."

good advice, but, of course, what's an affordable loss varies. On my superduty the going rate for a relatively common failure is $15-20K and the cost to insure that risk (plus all others) is just a bit under $2K in total for an extension period of 3 years. I consider that a pretty decent ratio even if I can ultimately afford the loss.

quote:

Originally posted by Orguss:
When I bought my 2013 Taurus, I paid for the maximum extended warranty at a dealership. That extension has expired without me ever using it. I consider them a waste of money.

I was the recipient of a factory reman transmission at 101,000 including the 30,000 mile warranty.

I was a couple months from the end of my 5 years. I was beginning to think “screwed again”

I don't get that? you had an extended warranty and it bought you a $5-10K transmission and you considered you were screwed?

So would I rather pay mechanic or the bank for service or product not yet needed? For me it's always been a tight call.

I suspect that there are many undisclosed "conditions" inherent in these products. Things like not-quite-OEM-quality parts used in the repair, etc. Who gets to decide when the repair is completed satisfactorily? Who pays when the warrantied repair fails prematurely? What happens when their "approved" mechanic finds other non-covered needed repairs?

They aren't going to disclose the "gotchas" before you give them your money. The insurance business model is ripe for kickbacks from service and parts providers, and I am cynical enough to believe that, if so, they must not only exist, but be part of "standard" business practice.

Bottom line, the companies offering aftermarket warranties are making money on them or they wouldn't exist. That means that the premiums paid in are greater than the claims paid out, and guess who's making up the difference?

Sure, these companies are in business to make money. And you can describe any business using terms like "kickbacks" and make it sound nefarious. However, this isn't through a "third" party, but directly from Ford. Ford states up front that they only use OEM parts. And my experience when using my factory warranty with Ford is that they fix it until its done right without arguing about a "premature" failure (Ford isn't Chrysler). A replaced part wore out on my old truck after 6 months - they replaced it again, no questions asked, for free.

Glass is half full for me I guess.. lol