I just bought a 2021 MachE Select (thanks to advice from this forum!) and the dealer convinced me to get an extended bumper-to-bumper warranty. They gave me “employee pricing” at around $1800 for 3 years/36k miles and said it’s refundable anytime, so I decided to grab it while I think about it more.
I know warranties like this often end up costing more than they save, but the price didn’t seem too bad, and I like the idea of having peace of mind for repairs. For context, the car already has 54k miles on it.
Is $1800 a good deal for this, or should I cancel it and save my money?
Finn said:
It really depends. Some people never need to use these warranties, but others get way more value out of them than they paid.
Exactly. The dealer makes money on these, so statistically, you’ll likely lose money. That said, only you can decide if the peace of mind is worth it, and sometimes these warranties do pay off big.
Finn said: @Evan
Totally agree. Out of curiosity, is this a Ford warranty or third-party?
It’s from the Chevy dealership I bought the car from, so it’s a third-party warranty.
I’d recommend canceling and going with a first-party Ford warranty. It cuts out the middleman, and you can usually get a better deal through places like Granger or Flood Ford.
Ford’s warranties aren’t bad for what they cost and cover. They’re not amazing, but they’re decent enough that most people will break even or come close to it. And if you’re unlucky and need major repairs, they can save you a lot.
That said, $1800 for 3 years sounds expensive. Especially since a bumper-to-bumper for a new vehicle covering 10 years/100k miles runs around $2200.
Is this warranty actually bumper-to-bumper? Did you check the fine print for exclusions? Third-party warranties can be hit or miss and sometimes have too many exceptions to be worth it.