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Extended service contract

I will be buying a used 2014 Ford Escape (Titanium). The warranty is almost up. So I can buy an extended service contract from Ford for 5 more yrs for $1795. Covers vehicle in the event of mechanical failure, roadside assistance, service loaner and trip interruption. Premium care - new 84/60000. Deductible $100. Should I buy this. I normally do not buy these contracts, however, cars are so expensive nowadays.

Be your normal self and forget the service contract! Invest the money in a mutual fund, let it grow interest and you will come out ahead. Following the service interval recommendations in your owner’s manual is the best thing you can do to stave off expensive repairs.


First search here for Escape issues. If the warranty covers frame and wheel well rust, it might be worth it. I doubt it does though.

Extended warranties don’t make much financial sense to the guy buying it

However, it’s a certified gold mine if you’re selling one

By buying one, you’re financially gambling that something will go wrong. And if something major does go wrong, maybe the car wasn’t all that great, was it?

You might want to check out the reliability ratings of the 2014 Ford Escape on consumer reports, FWIW

I’m not implying anything . . . knowledge is power

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It depends. If you are planning to keep it for a long time and you are not that guy who is mechanically inclined and wants to work on cars, then getting an extended warranty might be a good option.

Extended warranties do have their place . . .

For chronic worriers . . . I don’t know if that is the case here

For peace of mind

For cars which have abysmal reliability . . . Italian, British, to name a few example

If you plan on keeping vehicle for long tine the extended service contract will have long run out.

Ver cery few people ever get their money back. I’ve never bought one and never will

In general, the cost of an extended warranty is far more than the average payout. It is possible that you’ll come out ahead, but the odds are against it. If you want to save money in the long term, don’t buy them.

Consumer Reports said quite a while ago that that extended warranties only paid out on average 12 cents on a dollar back to the consumer of the purchase price of the warranty. They do this in part by weaseling out of paying due to the fine print, or with ones not issued by the vehicle manufacturers, they pay out large omissions to the sellers, huge salaries to the owners/executives and then letting the company go bankrupt, leaving the customer with a worthless piece of paper. A business practice favored by one of our despicable choices for president.

Extended warranties are worthless for the most part. Just put the money in the bank and you will be far better off.

I agree with CR! Have kept rack of Extended Warranties on consumer durable items I’ve bought and on some $1200 worth of warranties offered, I only would have been able to cash in on about $115 worth of paid services.

These things are big money makers for the seller and sales personnel get good commissions on pushing them.

I agree with everybody here - they’re, on average, a bad deal. Make sure you understand what your current warranties cover - there’s the emissions warranty, which covers some emissions control parts for 8 years/80,000 miles (more if you live in CA and some other states), and you probably have a corrosion/rust warranty, often for 10 years/100,000 miles.

If you put that $1,800 in a separate account for repairs, odds are most of it will be left by the time you get rid of the car.

Finally, are you SURE the contract is backed by Ford? These things are worse than worthless often when it’s from some other company.

If you decide to buy an extended warranty, only buy from Ford. You might be able to purchase a Ford warranty on line from another dealer at a lower price, or use the lower price in negotiations… I’m not certain Ford allows it.

I wouldn’t touch an extended warranty with a 10 foot pole. I won’t say they never pay off… read the link to the story below for a laugh or 2. The writer bought one of the most unreliable used cars on earth and bought the very expensive extended warranty from CarMax and took them to the cleaners.

So it DOES happen that someone makes out on the extended warranty, but it is VERY rare! Set aside the money you’d pay for this in a mutual fund or keep a credit card with at least a $3500 credit limit open so if an emergency repair is needed, you can at least pay for it.

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I’ve always felt that extended warrantees were worthless. but, I, and others, have always said to budget $500 - 1000 a year for maintenance and repairs. BUT, $1795 divided by 5 is $359. The big gotcha is how much of that typical $500-1000 would be covered, and I suspect not much.

Just as a reference, the last 5 years of my previous car (VW Passat), I had the following expenses, excluding routine maintenance.
2014 $478 (6 months)
2013 $1275
2012 $674
2011 $1650
2010 $360
2009 $841

What were the major cost areas that are included? Tires? Brakes?

What year Passat?

Hi, I have had a good amount of replies to my question> Thank you all for
that. Most answers were against buying the ext. service contract. I read
your answer and the amount of money you spend on repairs. It seems high? I
probably would not buy a VW

Take the $1795 and put it in a separate bank account. Call it your “extended warranty account”.
That way, if you SHOULD need a repair, it’ll be covered. If not you still have the money! Why give it to someone else in case you need a repair that you’ll likely may never need? These warrantees are designed to cover things when they’re at their absolute least likely to break. And they’re very selective in what they cover. They’re scams.


major problems: (leaving out tires)
2014: front brakes
2013: AC, Gas tank cap, EGR valve
2012: rear washer, engine cover, tie rod, alignment
2011: timing belt, both cat conv.
2010: alignment
2009: front and rear brakes, CV joint
2008: ignition sw, temp sensor, CV joint

Brakes m, alignment, CV joints and timing belt is considered maintenance items and NOT covered by extended warranty.

The cats and tie rods could be neglect and again wouldn’t be covered.