Should I buy an extended warranty? My 2004 Ford Thunderbird has almost 50,000 miles, and my warranty is about ready to expire. The dealership suggests getting another one, to cover my car to 80,000 miles, for $3000. Is that a good deal?
There is a wealth of information,opinions on this subject that can be found if you use the search feature. This subject has been beaten to death here.
You need to have $3000 in repairs in 30,000 miles to break even. Odds of that are near slim.
That is one expensive insurance policy. Save your money and skip the extended warranty.
Warranty free living is great. You never have to wait around on a phone. Buy a warranty and you will triple your junk mail. There isn’t a sucker born every minute, so they have to take advantage of the few that they have.
Good deal? I think not.
I recommend you skip the extended warranty. Put the $3,000 in the bank and let it earn interest. If you need the money for a repair, it will be there. If you don’t need it for a repair, it will still be there.
If you buy the warranty the money will be in the Ford dealer’s bank.
My (two) opinions:
- Most vehicles rarely need an extended warranty. It’s one of those “nice to have” sorts of things that may have some benefits in the way of free oil changes, chassis lubes, etc. Usually those things are pretty cheap anyway, so $3000 is probably more than you would spend for them without the warranty.
- A 2004 Ford Thunderbird is almost certainly going to be a classic car someday. Investing in it now may help keep the value of it high in the future. As long as it isn’t a daily driver (please tell me it isn’t), you should be okay - but that doesn’t change the fact that it’s a 2004 FORD THUNDERBIRD!
I would probably get the warranty based on this fact alone…
A 2004 Ford Thunderbird is almost certainly going to be a classic car someday. Investing in it now may help keep the value of it high in the future. As long as it isn’t a daily driver (please tell me it isn’t), you should be okay - but that doesn’t change the fact that it’s a 2004 FORD THUNDERBIRD!
Buying an extended warranty and keeping it well maintained are NOT the same thing. I maintain all my vehicles extremely well…and NEVER EVER had an extended warranty. The warranty is only to cover the cost of major mechanical problems if they arise within the warranty period. And this policy is probably the most expensive I’ve ever heard of. $3000 for only 30k miles. If I ever bought a car that needed that much repair in that short period of time…I’d NEVER buy one again.
The dealership or the insurance company both recommend those insurance policies (they are not warranties despite their name) because they make money on them They, on average, pay out far less money than they take in. The typical commission to the dealer and salesman is around 50% which means the insurance company must pay out less than 50? for each dollar you pay.
Some people will receive more benefits than they pay, but most people will pay far more than they get back.
It’s generally not a good idea.
They, on average, pay out far less money than they take in.
They make so much profit…The big insurance companies have created separate divisions for them.
Thanks to everyone who replied! This is the first time I’ve ever used a discussion site, and I’m really gratefull for all of your responses. I will save my money!