Extended Warranty - worth it?

[ken h]

These scammers are using the scare tactics on the public to sell this junk. Stop and think how many times has your car over the years cost this much to repair? But if you ar e that scared that that car you paid for is junk ,then waste your money. Not to mention that a lot of these people don’t back up the claims, finding any excuse not to pay for it!

How many repairs do you think it would take to pay for the extended warranty? I got one when I bought by 2014 Subaru Forester Touring and it easily paid for itself. Two Harmon Kardon radios replaced took care of most o it. Once it ran out and I bagan paying for things out of pocket, it as time to get a new one in 2024.

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[MaverickDragon]

In the case of the Maverick, my warranty cost about the same as the replacement of one headlight.

 

[dalola]

There are many factors to consider here, but the industry statistics reveal you will lose financially, about 80% of the time, on an extended warranty. This is why mfg'rs and others love selling them, high predictable profits.

However, if you are the type who can't sleep worrying about out of warranty repair costs, can't/don't like DIY repair, or don't have a good local independent shop, then it might be worth your health if it makes you feel better having it.

Personally, I would never buy one, but that's my lifestyle decision, yours may be different. Just understand your odds/perceptions/comfort zone.

 

[Cancunbadlands]

Honestly I’ve never in my life had an extended warranty or the need for one, I don't keep my cars that long

 

[Mavtremor24]

Tell us about your situation.

What is your trim level and installed options?

What is your driving style and use-case for Maverick?

How long do you plan on owning and how many miles per year?

Do you DIY or have a garage to park in?

Do you own any other cars, what is your tolerance for downtime?

Are you rural and are there any good independent repair shops nearby?

I personally have 8yr/125k premium care for ~$2400. It has a $100 deductible. I'm at 48k with no issues. So right now I'm 50/50 if it's worth it. Answer is we really don't know yet. You said Vermont, so perhaps there are not as many independent shops, but I could be mistaken.

I have complete bumper to bumper full coverage warranty on everything. No deductible, I haven't used it other than I needed new front C. Vs.. replaced it without cost to me So definitely worth it in my book... Plus I drive about 800 to a 1000 miles a week owned my tremor since december of'23 and have 59,885 miles and I'm gonna keep it till it dont roll no mo

 

[MaverickDragon]

If you keep cars less than 3 years and travel under 12K per year, the only benefit of an extended warranty would be the premium you could charge for selling a car to a privste party with whatever warranty extension you had. You could also buy it just prior to the factory warranty termination or offer to buy it for the soon to be new owner at their cost.

As far as an extended warranty being a good deal or not, statistics are historical, and the sad fact is that "they don't make them like they used to".

My warranty covers my Mav for 7 years and more mileage than I'll use at less than the cost of a headlight. That is not an exaggeration.
The entire assembly costs $1666.67 JUST FOR THE PART ON ONE SIDE...
At a discount it's a mere $1120 for one light, still more than my warranty cost.

How does that compare to replacing a headlight on a car a few years back..
Current vehicles are a multi-site computer network rolling on tires.
Parts are not repaired, they are replaced. It's a brave new world.

While historically, manufacturer extended warranties have made money, recent financials show a much different trend.
If you buy a warranty without shopping around, you can make money for the dealership, but unlike 3rd party warranties that are rife with caveats, inclusions, exclusions and denials of coverage, manufacturer backed warranties can be a good value if they are purchased at a good price, and it doesn't take more than a 3 year old headlight burning out to come out ahead.

 

[MaverRick]

I know that I am living dangerously but extended warranties have never paid off for me! My last Truck ( 2004 Dodge Ram ) that I kept for 19 years and got by just fine without it. That Hemi just kept on ticking! ( The famous Hemi Tick )

 

[notfast]

EXACTLY! 1st new car loan was 1981. As of 2001, I have not had a car loan. I’ve had good luck with cars and that year my VCF covered my next car purchase. About ten years ago I moved my VCF to a high yield savings account.

Smart move. I used to keep my VCF in a HYSA but recently moved it into FDLXX since it's more tax advantageous for me than a HYSA.

 

[babytruk]

Some people like the security and it gives them piece of mind. Some buy flight insurance, cruise insurance. Best Buy warranty, etc
The costs for the “carrier” needs to have a guaranteed margin to stay in business.
It gives some people a warm and fuzzy blanket of security and that’s an OK thing.

 

[MaverickDragon]

If the manufacturer sells the warranty at their cost, they break even.
That's all they need, as they don't have to make money, they aren't in the warranty business like the 3rd party sellers.

The dealers have an opportunity to make money on the sale above the warranty cost, and that is an incentive for their business to offer it.

The primary difference between those two scenarios is how much the new vehicle owner pays.
As to whether it is just a needless expense or a major cost savings varies.
I've saved several times the warranty cost on a vehicle, and also never had a problem that the warranty covered.

In that regard, it's a lot like uninsured motorist insurance.

If you never had an accident, it was only a "feel good", but if a low life uninsured deadbeat driver puts you in the hospital, it was money well spent.

While it's impossible to know which scenario applies, it is possible to know that if the worst case scenario applies, you are in a better position that you were able to afford, vs a huge out of pocket that you may not be prepared for, regardless of how well you planned.

Or, as Clint Eastwood said, "Do you feel lucky?"

 

[Puppa3]

Ask ChatGPT for the right answer to your needs

 

[dusty1787]

Looking for feedback on the extended warranty for the 2025 Maverick Hybrid. Do you feel it's worth the money or just skip it?

My '23 was my first ever brand new vehicle and I opted for an extra 7yr 100k of the top tier. My dealership already offers a 20yr 200k warranty free...(if purchased brand new from them...pic added for reference), but it only covers x-amount of things...nothing electronic. Which to be honest, almost all new vehicles today are literal "computers on wheels"... so I opted for the extra insurance mainly for that reason. I figured if I get to 7yrs or 100k miles I am sure to have some dents and dings and scratches all over the vehicle... and if something electronic has a gremlin... it is just starting to show its age and I got a good amount of use out of it already.

but to each their own. I got it for the fact I want a few solid years of "stress free" driving. Something goes wrong, should be covered. once the extra coverage is up, then its on me if I really need it or not.

hope that helps!

 

[Huchipapa]

The only time I got an extended warranty in the past was with CarMax for an off-lease European convertible I bought and boy was it well worth it. But I never got one for any of my 4 other cars bought new over the years.

Last month however I did get a 7/125k extended warranty from Granger for my Lariat hybrid. At 30k miles I've had no issues with it; Ford's recall program has been outstanding. I guess just piece of mind for the next 5 years....

The Maverick has been my first domestic labeled vehicle that I've bought new. While I could nitpick about a few features (should be upgradable to Sync 4; Lariat should have memory, ventilated seats), I remain very impressed with the vehicle after 2+ years. I don't have low expectations; I just realize that my Lariat is $10k of lipstick on Ford's cheapest vehicle. I would certainly buy another one or even upgrade if the next generation adds a plug-in version.

 

[Tim d]

Looking for feedback on the extended warranty for the 2025 Maverick Hybrid. Do you feel it's worth the money or just skip it?

Been driving 50 years, never bought an extended warranty, never needed one. Save your money.

 

[babytruk]

Been driving 50 years, never bought an extended warranty, never needed one. Save your money.

When I start worrying about a vehicle is when I sold it. 46 years of a 2 or 3 car driveway and have never needed a warranty. While still have my 1983 RX7, I dumped a Mitsubishi/Chrysler at 7 months because the trans was concerning me.
Add-on coverage plans can make people feel comfy and that’s fine. It should be considered part of your cost for the vehicle. An XL with an extended plan does not cost the same as without one.

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