Extended warranty options

[Atthelake152]

One option - take the $ you would spend on an extended warranty and put it in a money market or mutual fund account. When your factory warranty expires, you'll have a nice little nest egg to cover any unexpected repairs.

If you're intent on purchasing a warranty, know what you're getting. Extended Service Plan (ESP) is not the same as a warranty, though the sales person may try to convince you otherwise. In CA, they're generally called 'Mechanical Breakdown Insurance' (MBI) products. But whatever the name, read the contract thoroughly and know what's covered. More importantly, know what is NOT covered.

As mentioned, you can use Granger pricing as a negotiating tool, but most CA sales people will know you can't actually purchase from Granger so expect to pay slightly more. Also be aware you don't need to buy from a dealer. Just about any insurance rep licensed in the state can sell you MBI. Shop around before purchasing.

Good Luck!

To me this model no longer works. Things cost so much now for the littlest things. This is also why the Ford warranties have been noticeably increasing YOY as well. For instance on my 22 Navigator Black Label I had both front headrests stop working. It has the massaging seats. The quote for each headrest was around $2k. I paid around $4k for my warranty that goes for 11 years and 175k miles and this made the warranty pay for itself and I still have 7 years and 100k left in my warranty.

On my Bronco I paid $2,600 for up to 100k and this year had the full front axle replaced, front camera, and list of other minor things. That also paid for itself and I still have plenty of coverage left.

I think people only think it pays for the tough mechanical stuff but here are some much electronics in modern vehicles the cost of repairs will out pace the mentality of putting the $3k in a good investment for say 10-15% return YOY. Sure it may in some cases, but given the complexities and costs of parts today, I would never go without the PremiumCare product. Other third party warranties I would pass on.

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[GnormalGnome]

To me this model no longer works. Things cost so much now for the littlest things. This is also why the Ford warranties have been noticeably increasing YOY as well. For instance on my 22 Navigator Black Label I had both front headrests stop working. It has the massaging seats. The quote for each headrest was around $2k. I paid around $4k for my warranty that goes for 11 years and 175k miles and this made the warranty pay for itself and I still have 7 years and 100k left in my warranty.

On my Bronco I paid $2,600 for up to 100k and this year had the full front axle replaced, front camera, and list of other minor things. That also paid for itself and I still have plenty of coverage left.

I think people only think it pays for the tough mechanical stuff but here are some much electronics in modern vehicles the cost of repairs will out pace the mentality of putting the $3k in a good investment for say 10-15% return YOY. Sure it may in some cases, but given the complexities and costs of parts today, I would never go without the PremiumCare product. Other third party warranties I would pass on.

I hear ya!

Modern vehicles are intentionally prohibitive for DIY’ers to perform many repairs. And agreed, the electronics coverage alone can make extra coverage worthwhile.

Full disclosure – that is precisely why I added a ‘wrap’ product when I purchased my Bronco. In my area, it is common for dealers to offer extended coverage on new vehicles at no extra charge, commonly power train coverage for as long as you own the vehicle. The wrap product adds (almost) everything else to that coverage, effectively providing a lifetime bumper-to-bumper warranty.

So I am not anti-extended warranty by any means. But I am also for consumers being aware of options and being fully informed. Added coverage is still not an automatic purchase for everyone. And the industry is still full of crap products pushed by unscrupulous sales people. While not perfect, CA regulations do go a long ways in weeding out the worst of the worst and provide consumers some recourse if there are shenanigans. (I’m not a CA resident but am familiar with the regs and live in a similarly restrictive area).

Extended warranty is a term that is thrown around a lot these days, but not everything under that umbrella is actually a warranty. Actual coverage provided can vary a lot. And just because something is 3rd party doesn't make it bad. Terms and definitions matter. Read all of the fine print, ask questions...and negotiate.

 

[GI_Jo_Nathan]

Assuming you mean Granger: They don't sell to CA

I've bought from Granger multiple times, I live in Florida. Literally all you have to do is use any address that's not in California or Florida . They do not ever send anything to the address.

Also assuming you're doing any financing, it's never a good idea to finance an extended warranty at the time of purchase. Good way to waste money. You have all the way up until you're current warranty expires to buy the extended warranty.

 

[Motovita]

Assuming you mean Granger: They don't sell to CA

I had a similar problem with a Mercedes van warranty, I was able to buy it in another state. There's lots of weird state restrictions and varying dealer policies involved.

 

[razehound]

I've bought from Granger multiple times, I live in Florida. Literally all you have to do is use any address that's not in California or Florida . They do not ever send anything to the address.

Also assuming you're doing any financing, it's never a good idea to finance an extended warranty at the time of purchase. Good way to waste money. You have all the way up until you're current warranty expires to buy the extended warranty.

LOL I've also heard of people doing this OP.

For reference with your original question, I was quoted $5200 for 10/100k in SoCal.

 

[Motovita]

I've bought from Granger multiple times, I live in Florida. Literally all you have to do is use any address that's not in California or Florida . They do not ever send anything to the address.

Also assuming you're doing any financing, it's never a good idea to finance an extended warranty at the time of purchase. Good way to waste money. You have all the way up until you're current warranty expires to buy the extended warranty.

The one time I bought an ext warranty out of state I used my actual address, it was only the location of the selling dealer that made a difference.

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