Can a Ford Protect Extended Warranty Help You Beat Inflation?

[zach57x]

Not available in FL right?

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[ripperAZ]

It is not breaking news that prices are up on everything. Inflation has run high, and the federal reserve doesn’t think the battle is over yet to get inflation back down to 2%. One of the areas that has seen some of the biggest price increases is the automotive repair industry. The Federal Reserve Bank goes in detail to explain the reasons why, but it boils down to a tight workforce that is in high demand as well as a parts shortage.


I was curious to see how much that has affected our service department, so I pulled all our repair orders that were paid by an extended warranty company for 2 time periods (Jan-Apr 2020 and Jan-Apr 2024) to see how it has changed at our shop. Through the first 4 months of 2020 our average repair order covered by an extended warranty was $776, and in 2024? An eye-popping $1841! That is a 237% increase in 4 years. Admittedly we have a small sample size being only one dealership. But for the last 3 years, the federal reserve has registered a 5%, 13% and 8% rate of inflation for motor vehicle repair, well out-pacing overall CPI.

So what can be done to minimize the effects of repair inflation? One of the lesser talked about benefits of an extended warranty is that you are locking in tomorrow’s repairs at today’s repair prices. We work with both Mopar and Ford extended warranties and both of them have many actuaries that determine our cost for their plans. The feedback I’ve received from both manufacturers suggests prices will continue to rise in the future, because repair cost increases are well outpacing the reserves set up to cover them. Ford has scheduled a price increase in August of this year and Mopar just increased its prices in February and is considering doing it again.


I again was interested in seeing what increases we’ve seen over the last 2 years of selling service contracts and our average service contract price has increased 14%, much less than the 23% the CPI repair costs have increased at the same time. None of us can predict the future, but in the past inflation has proven to be sticky and takes longer than anticipated to get fully under control.


Another tool we’ve added to our websites is the ability to pay monthly. We realize increased prices have eaten away at monthly budgets and spending over $2000 on extended warranty coverage can be hard to budget for. So, we added a monthly payment option that allows our customers to pay for their warranty over an 18-month term. Our average monthly payment is taken automatically and comes out to less than $100/month.


You can find our coverage options for both Mopar and Ford on our websites.

www.buymoparwarranty.com
www.grangerfordextendedwarranty.com

Considering the fact that oil changes have pretty much doubled in the last couple years, I I purchased not only 100,000 mile no deductible maintenance agreement but also 100,000 mile service so my oil changes brake pads and all consumable parts other than tires are now covered as well
Total for both around 3500 bucks and I’m covered for the life of this vehicle. Can cancel at any time and can transfer it to anyone I want.

 

[Rcrew]

I would buy, but not available in California. From reading here the same coverage plan through any dealer costs too much.

Anyone done the purchase using an out of state address?

 

[Fred Piering]

Did you even read? Granger posted about and offers the Ford extended warranty

BUT-They don't sell plans in Florida, where I live!

 

[TKranbuhl]

Thanks to Granger Ford for posting. This Maverick will be my last vehicle. I'm still on the fence about ESP, but I still have 2 1/2 more years to worry about it. Hopefully "Bidenomics" will be a thing of the past.

 

[Oscarcat]

It is not breaking news that prices are up on everything. Inflation has run high, and the federal reserve doesn’t think the battle is over yet to get inflation back down to 2%. One of the areas that has seen some of the biggest price increases is the automotive repair industry. The Federal Reserve Bank goes in detail to explain the reasons why, but it boils down to a tight workforce that is in high demand as well as a parts shortage.


I was curious to see how much that has affected our service department, so I pulled all our repair orders that were paid by an extended warranty company for 2 time periods (Jan-Apr 2020 and Jan-Apr 2024) to see how it has changed at our shop. Through the first 4 months of 2020 our average repair order covered by an extended warranty was $776, and in 2024? An eye-popping $1841! That is a 237% increase in 4 years. Admittedly we have a small sample size being only one dealership. But for the last 3 years, the federal reserve has registered a 5%, 13% and 8% rate of inflation for motor vehicle repair, well out-pacing overall CPI.

So what can be done to minimize the effects of repair inflation? One of the lesser talked about benefits of an extended warranty is that you are locking in tomorrow’s repairs at today’s repair prices. We work with both Mopar and Ford extended warranties and both of them have many actuaries that determine our cost for their plans. The feedback I’ve received from both manufacturers suggests prices will continue to rise in the future, because repair cost increases are well outpacing the reserves set up to cover them. Ford has scheduled a price increase in August of this year and Mopar just increased its prices in February and is considering doing it again.


I again was interested in seeing what increases we’ve seen over the last 2 years of selling service contracts and our average service contract price has increased 14%, much less than the 23% the CPI repair costs have increased at the same time. None of us can predict the future, but in the past inflation has proven to be sticky and takes longer than anticipated to get fully under control.


Another tool we’ve added to our websites is the ability to pay monthly. We realize increased prices have eaten away at monthly budgets and spending over $2000 on extended warranty coverage can be hard to budget for. So, we added a monthly payment option that allows our customers to pay for their warranty over an 18-month term. Our average monthly payment is taken automatically and comes out to less than $100/month.


You can find our coverage options for both Mopar and Ford on our websites.

www.buymoparwarranty.com
www.grangerfordextendedwarranty.com

My Take: In the past decade or so, I tend to keep my vehicles just about as long as the factory warranty. I do not put a lot of miles on my vehicle. After 36 months it may have 25k- 30k miles on it.

I realize not everyone can do that. But if I factor in the cost of an extended warranty, new tires, battery and other small maintenance plus consider advances in tech, new models, advances in EV range etc, it makes sense to me.

I take good care of my vehicles, sell them myself and add about $10k+ or - for the next vehicle purchase over what I get for my used vehicle. For $10k I have a new vehicle, new factory warranty and just accept the approximate $3,333-$4k/year depreciation. Less than the cost of a lease.

 

[Oscarcat]

BUT-They don't sell plans in Florida, where I live!

... and they don't sell where I live, CA. I have seen posts where people get the Granger warranty in a state where it is sold, maybe using a friend or relative's address, and change the address as if they relocated.

My understanding is the catch is not with Granger but with state insurance regulations. Maybe the OP from Granger can elaborate on the restriction?

 

[Eggflipper]

Same as health insurance. I hope I don’t need it, however, I’ll be pretty glad if I do need it.

 

[Art Vandelay]

I just want to also give a big thumbs up to Granger. I purchased a 9 year ESP from them earlier this month for about $1,400. The local dealerships were charging more than double that amount for the same exact plan.

 

[scotty]

Hmmm why am I seeing adds on this sight? oh yeah and I don't give a rats ass about mopar. I have a 8 year 75K service warranty from Ford on both of my Mavericks.

I believe

Hmmm why am I seeing adds on this sight? oh yeah and I don't give a rats ass about mopar. I have a 8 year 75K service warranty from Ford on both of my Mavericks.

Mopar was merely included so the person who started this discussion takes into account that Ford is not the only Manufacturer with rising cost. It just merely suggests some objectivity.

I too am more concerned with Ford because that is why I own. Inflation, has cost be highly, decisions about what to purchase have been reckoned with. Entertainment things to do are no longer an option. But I understand why author includes Mopar.

 

[PNWMaverick]

This is the first vehicle I purchased an extended warranty on. The main idea behind it is that it is a first year, early build, of a new vehicle. @Granger Ford pricing just made it a lot simpler of a decision.

 

[Skandren]

I have nothing against Extended Warranties That is why when I purchased my 2 Mavericks I had them put the 8 year 60,000 mile warranty on them.. Along with the 75,000 mile service warranty @ Ford.

 

[Suzukiridr14]

Not available in FL right?

Wrong, If you give Granger an out of state (no Florida address) address they can sell you a Ford extended warranty. All transactions are made thru email addresses not home addresses. Use an address from a brother, sister, son, or daughter, that's all you need. The warranty does not list where it was purchased when it is placed in the Ford system.

 

[Blackbelt]

My brother, who has been a service manager for many years, always puts a service contract on his vehicles. I have an 8/60 on my Jeep Renegade and it has aleady paid for itself twice over, and i still have another year left on it. I knew i was going to keep my Maverick a long time, so i opted for a 10 yr/60K service contract with optional lights coverage. My dealer, who has mostly treated me well, wanted $2400 for that. I used my Ford points and ended up paying a little over $1100 to Granger. My plan is zero deductible. One major A/C repair and that pays for it. I also have first day rental coverage.

 

[Granger Ford]

Not available in FL right?

Correct, we cannot sell to a Florida address. If you have a non-Florida address we can help.

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