Extended service plan?? Worth it??

[BLKBEARKLR]

I have a 2008 F250 6.4L diesel 4x4, it has 21,000 miles on it. They sent me a paper saying I can extend the manafacture warranty, till 60,000 miles or 2015 whatever comes first. For 2185.00 bumper to bumper.

So I know I have a power/drive train warranty already that goes to 60,000. So is it worth it to get this added on? They said they would take over that also once it expires at 5 years which would be sep 2013.

What are your thoughts? Ever had one before? Is it like some of these other ones where they say o sorry your not covered under this one?

Thanks
Joe

[h20hunter]

Here is one thing to consider....everything is negotiable. I would ask for a better price and see where they go. Example. I purchased a new FJ cruiser. They offered me an extended contract in finance, 8 year/100k for $3999.00. I said yes and paid 2k for it. I ended up getting the contract a couple hundred over the dealer cost. Now, extended you may not see that kind of discount but if you can get it down it could pay for itself easily.

[jackelope]

STOP!!!
Who is the contract through?
If it's not a Ford ESP, throw it away.
There's an aftermarket service contract scammer soliciting people via the mail lately. They were on the news. I've had a few run ins with this service contract company before. They don't cover chit.
I'm a big supporter of service contracts, but only when they come from the manufacturer. Ford would be referred to as a Ford ESP contract.
Also consider the time and miles of the term and make sure that fits your style of driving. Don't pay extra for a 5 year 100k mile contract if you're only driving 10k miles a year. Buy a 5 year 50k mile contract...or whatever the case may be. Also don't pay for extra coverage that you  probably may already have....that diesel maybe has 5 year 100k mile engine warranty..don't pay extra on a service contract for engine coverage in other words.
Note-
I don't know the warranty on Ford's diesel engines so don't use what I said specifically.

[jackelope]

And read the fine print as far as whats covered and whats not and know what you're getting.

99% of the frustration people have with service contracts in my opinion is because they think something should be covered but it is not. The contracts are very very specific as far as covered components. In other words...a powertrain contract that covers internally lubricated powertrain components won't cover a power steering pump or something silly like that. When it says the contract covers manually operated switches...that doesn't mean it will cover a 4x4 actuator, even though it is a switch and it is, at some point, manually operated.

[littlemac]

STOP!!!
Who is the contract through?
If it's not a Ford ESP, throw it away.
There's an aftermarket service contract scammer soliciting people via the mail lately. They were on the news. I've had a few run ins with this service contract company before. They don't cover chit.
I'm a big supporter of service contracts, but only when they come from the manufacturer. Ford would be referred to as a Ford ESP contract.
Also consider the time and miles of the term and make sure that fits your style of driving. Don't pay extra for a 5 year 100k mile contract if you're only driving 10k miles a year. Buy a 5 year 50k mile contract...or whatever the case may be. Also don't pay for extra coverage that you  probably may already have....that diesel maybe has 5 year 100k mile engine warranty..don't pay extra on a service contract for engine coverage in other words.
Note-
I don't know the warranty on Ford's diesel engines so don't use what I said specifically.

I second the Manufacturer Warranty plan.  Watch out for the bougus companies mailings that come all the time.  Check the AG website, they have closed down a few of them.

[JackOfAllTrades]

I agree with Jackalope!

I'm 'anti-service contract', type, but if there's one to have it should be from or sponsored by the manufacture.  That said, My 04 PSD had 100,000 mile contract for the engine. (long past over) And there are a few 'emissions' things that are not covered beyond 60k but they spell most of it out. Thing is... They'll extend to 60K? How much warranty is still left on your 2008? Miles/years?

-Steve

[h20hunter]

You could also PM Buckmark, he is in the know about this topic.

[Woodchuck]

I deal with them very regularly and also believe they are for the most part a scam. Basically they are an insurance company and they only stay in business by paying out less than they take in.
I tell people this, That is a nice new truck so I would guess you will see no major repairs in the near future. Take the money per month you would pay out for that contract and tuck it away for repairs and that way if you don't use it on repairs it is still your money. 

[Mike450r]

A similar topic was on here awhile back.  I have purchased a lot of vehicles.  25 or so in the last 20 years.  I love my toys.

Extended warranties can be good sometimes but usually cost more than the repairs on average.  If you do it my recommendation is to not add it into the loan, pay cash for anything like that or you will find yourself upside down and that is not what you want when trade in time comes.  Always strive for a balance that is less than trade in book.

[BLKBEARKLR]

ok maybe I was not specific, for that I apologize.

It is my truck I bought it new in 2008 and paid it off 6 months later. I have owned the truck since it had 2 miles on it. It is a Ford Extended Service plan, I am coming up on my 36,000 miles or 36 month warranty.

I just did not know if 2185.00 is worth dropping into a truck that is still under a power train/ drive train warranty. I mean I know a lot of other small things can go wrong.

Joe

[Buckmark]

Wow jackelope said it just like i would have. I like sticking to them when i get to and i am sure he does also.
But i would never ever buy one, just me but i have very very rarely seen were anyone has come out ahead with one.
I say give me 2185 of your money i will fix your vehicle of it breaks down, if it is a covered repair....
 

[Buckmark]

If you do decide to buy it and it is truley from Ford, read the thing well before purchase or have an independent service advisor read over it with you to see what it really covers, there is alot that is not covered and alot of the contracts are filled with "fluff" to make you think they are covering alot, also quite a few do not cover shop supplies, cleaners, fluids (ie: coolant) which on some vehicles can be costly, that ford gold is not real cheap. Some as in all i can think of also do not pay sales tax on the repair, but you the customer has to.
So a "covered" repair may still cost you a few bucks (see hundreds) out of pocket..
If it makes you fell all warm fuzzy and safe then buy it, put it under your pillow and maybe the warranty fairy will come...

[jackelope]

The sales tax thing is new the last couple years in this state...the customer pays sales tax on the purchase of the contract which makes it (now) illegal to charge sales tax to the service contract on the repairs. We don't charge the customer sales tax either. Buckmark...you might want to look into that law. I don't recall the exact verbage of it but I'm pretty sure there's a reason we don't charge the customer tax. It's been this way at 2 different dealerships.

Joe-
If your powertrain has coverage to 100k I would not buy a service contract on the truck as long as you don't mind fixing a window motor or something small now and then. The way people get their money back on them is when a motor or transmission goes south.
 
When it's a  factory service contract, everything is covered if the repair is covered. If a guy has a tranny go south and it's covered by a Chrysler service contract with a $100 deductible, he pays $100 and leaves when the car is done. No shop supplies, no coolant, no fluff, no tax. Thats the A#1 reason I recommend manufacturers service contracts.
I deal with 3-5 service contracts a day every day. I love service contracts and love bending a service contract over whenever I get the opportunity.

[CAMPMEAT]

I just bought a 2011 Silverado, the finance guy tried the sales pitch on me, $ 2495 down to $1500. Heck no I said.

[JackOfAllTrades]

The way people get their money back on them is when a motor or transmission goes south.

Engine.. More than $ you want to know. Transmission... I priced a 'replacement' tranny when I thought about an extended service plan.. About the same price as the contract.  Differentials.. I can rebuild them myself.

Computer... Now there's something to think about.... Just the diag is a spendy option. Wiring and electrics.. you're gambling on that one.

Anything else is handled by me. The rest by insurance, because if she's goin south in a hurry, I'm gonna start leaving it over night at the boat launch!   

-Steve

[Buckmark]

Yes i should have been more specific, factory extended warranties cover 100%, less a deductable if there is one. The sales tax i was refering to is levied on parts/labor etc not covered on some contracts, the one mentioned by the OP is by his account a factory contract....
Jackelope has alot of experience with these companies because the cars they sell always break down...
**Just kidding ** kinda.
One thing as an fyi to anyone that has a contract or is thinking of purchasing one, follow the manufactures recommeded service intervals to a T and keep good, detailed organized records of maintinance (receipts, not just journal saying something was done) you can do all services yourself just make sure to keep parts receipts. Nothing worse than having an engine fail and not having any LOF records,,, the warranty companies count on people not doing the maintinace and or having records...

[Bean Counter]

I'm not one for service contracts, be it for a microwave, a computer, a tv or a truck. Sounds like Jack has some good advice though. In the case of automobiles, I just buy Japanese 

[twistiron]

well since you have a post 7.3L powerstroke i doubt it will still be running when you exceed factory  warranty! i am just bashing! in all honesty how long do you plan to keep this truck? are you planning on modding or upgrading the truck? i believe only the original manufatures warrenty is covered under magnuson moss warranty act (allowing you to mod and still be covered ). my  would be forget it put the money in the bank should pay for the head gaskets or egr system down the road.  good luck i hope you got a good one.

[jackelope]

The way people get their money back on them is when a motor or transmission goes south.

Engine.. More than $ you want to know. Transmission... I priced a 'replacement' tranny when I thought about an extended service plan.. About the same price as the contract.  Differentials.. I can rebuild them myself.

Computer... Now there's something to think about.... Just the diag is a spendy option. Wiring and electrics.. you're gambling on that one.

Anything else is handled by me. The rest by insurance, because if she's goin south in a hurry, I'm gonna start leaving it over night at the boat launch!   

-Steve

Just did a replacement reman trans in a 2003 Grand Cherokee... $3800+tax.

Diag for a Check Engine light in the high rent district of Bellevue is $125.00. A new PCM in a Grand Cherokee will cost about $900 or so but it's covered under the Federl Emissions Standards warranty for 8 years or 80k miles by every manufacturer. It's a federal must. You can't charge anyone to replace it, reprogram it, etc. if it's under 8/80.

Most water pumps now adays will cost with labor close to $500.00.

It doesn't take long to recoop the $2k you spend on a service contract, especially if you're driving a full size domestic truck. I don't care what brand it is.

Jackelope has alot of experience with these companies because the cars they sell always break down...
**Just kidding ** kinda.

You don't have to be kidding.
I don't know why a service advisor who is paid full commission pay would ever want to work at a Toyota dealer.
 

Sounds like Jack has some good advice though.

I'm a lot better with this kind of stuff than I am with the mechanics.

Fortunately a lot of guys on this kind of site tend to be mechanically inclined and some even enjoy working on their cars and trucks. Thats great. We like to sell parts too. For those who don't work on cars or don't have the time or the space or whatever...service contracts can be good.

[Bofire]

 :)Consumer report says do not buy. Rarely do the covered repairs cost what the warranty does.
Carl

[TheHunt]

Build a spreadsheet on your consumption and estimations like others have said.

I do not buy them unless I get a smok'en deal.  I have had only two.  One was for the wife's Lexus and a Toyota pickup in 1985.  The Toyota was fantastic because it was a 10 year unlimited milage warrentee. I sold that truck with 377,000 miles on it. 

[pianoman9701]

extended warranties or service plans are rarely a good deal on anything. They sell them with fear and almost always reap the entire cost to you. Take that same money and put it into a CD or even a stock. Chances are, by the time you need it, there will be plenty for repairs.

[MikeWalking]

Those Aftermarket extended warranties come in waves.   I'll get 5 or 6 every year in the same month.  All Bogus.   There is a radio ad selling break down/repair insurance, haven't looked into it yet.

I bought the Chrysler extended warranty when I bought my 2004 Grand Cherokee in May of 07 with 36600 on it, an extra $8 a month (or $3?  the warranty and Gap Insurance were $13something together).    Glad I did, Jackalope's Dealer treated me very well when the water pump went.  A water pump I can replace myself and have but with my work schedule, Zero Bus service and a requirement to have my own transport to work  letting the dealer do it and taking a loaner was IT.