Extended Warranty Timing and Pricing

[topher10]

Question: Does the cost of a new vehicle extended warranty (Granger) increase with mileage/usage, making it more cost-effective to buy early?

Context: I am sure this topic has been covered previously, but my search hasn't found my answer. I just purchased a 2024 Flash, and will be purchasing an extended warranty from Granger. Is there any reason to purchase it now, or can I wait until early 2025 after all the dust has settled for Christmas? I think I can purchase the warranty anytime until 3yr/36,000 miles. but there is an annual cost increase each September/October. Therefore, the more specific question is whether there is any increase in cost between now and ~September 2025.

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[Pioneer74]

After 1 year of service it goes up $100.

 

[Maquis]

If you wait, there are also typically annual price increases across the board.

 

[broncoaz]

I have seen price increases early in the year previously. I purchase within the first year and get the $50 deductible as I feel it’s the best deal and I’m gambling the truck will have between 3 and 7 extended warranty events.

 

[ijustice]

I’m at 35500 miles and may pull the trigger on the extended. Anyone out there actually use the extended warranty and for what?

 

[RocketGhost]

I’m at 35500 miles and may pull the trigger on the extended. Anyone out there actually use the extended warranty and for what?

I used it on my ICE F150 to repair a broken sunroof module that would have cost more than I paid for the warranty. I also used it on that truck for a broken horn and failed cellular modem.

I don't know if it's still the case but there was a grace period where you could buy it a little past the 3/36 warranty.

On my Lightning I'm going to get it next year before the 3/36 runs out. $2,500 for virtually bumper to bumper (Premiumcare) for 10/100 seems like a good deal. Lots of expensive things on this truck, and we're pretty much stuck with the dealer for repairs. Independent shops can't do much with these trucks.

 

[broncoaz]

I’m at 35500 miles and may pull the trigger on the extended. Anyone out there actually use the extended warranty and for what?

Every automotive extended warranty I’ve purchased has ended up at least paying for itself if I kept the vehicle long enough. @RocketGhost is correct, these trucks are rolling computers with lots of high dollar sensors, screens, and components. Something as simple as the front or rear LED bar going out, a headlight or taillight having some LED’s fail, the radio screen failing, etc; any of these would likely cost as much as the warranty to repair. I would certainly buy the LED light coverage and the first day loaner (these trucks tend to sit at the dealership a few days), key coverage is optional but cheap at $120. I always buy a couple spare keys (online and program myself) when I purchase the truck.

This guy’s video (no affiliation, never seen one of his videos before) demonstrates the cost of a taillight.

 

[Lightning Rod]

Every automotive extended warranty I’ve purchased has ended up at least paying for itself if I kept the vehicle long enough. @RocketGhost is correct, these trucks are rolling computers with lots of high dollar sensors, screens, and components. Something as simple as the front or rear LED bar going out, a headlight or taillight having some LED’s fail, the radio screen failing, etc; any of these would likely cost as much as the warranty to repair. I would certainly buy the LED light coverage and the first day loaner (these trucks tend to sit at the dealership a few days), key coverage is optional but cheap at $120. I always buy a couple spare keys (online and program myself) when I purchase the truck.

This guy’s video (no affiliation, never seen one of his videos before) demonstrates the cost of a taillight.

I like your reasoning, but how much of these issues does the extended warranty cover? Will it cover sensors, wiper motor replacement, cpu need replaced... I'm wondering what all is covered with these warranties. I was going to purchase one before the 1 year was up but that's too late now, now I'm eyeing buying one before 3/36.

Thanks.

 

[broncoaz]

I like your reasoning, but how much of these issues does the extended warranty cover? Will it cover sensors, wiper motor replacement, cpu need replaced... I'm wondering what all is covered with these warranties.

In my experience with various vehicles the top level warranty covers anything that is not a wear item or something impacted by exterior forces like rodent damage or any kind of accident. I have had power seat motors, power trunk struts, radio screen, radar sensors, etc replaced by the extended warranty. They will not cover cosmetic issues like a worn seat cover or exterior paint issues. I doubt they would cover brake rust issues from lack of use, but likely would cover any caliper or emergency brake issues.

As a fleet manager in my last job I stopped buying extended warranties as they didn’t make financial sense on a fleet of 150 trucks, it was cheaper to self insure with that many units, but as an individual with n=1 I will always buy the warranty.

Here is the EV coverage list:
https://www.floodfordesp.com/pdf/ESP_Parts_Coverage_EV.pdf

 

[RickLightning]

Question: Does the cost of a new vehicle extended warranty (Granger) increase with mileage/usage, making it more cost-effective to buy early?

Context: I am sure this topic has been covered previously, but my search hasn't found my answer. I just purchased a 2024 Flash, and will be purchasing an extended warranty from Granger. Is there any reason to purchase it now, or can I wait until early 2025 after all the dust has settled for Christmas? I think I can purchase the warranty anytime until 3yr/36,000 miles. but there is an annual cost increase each September/October. Therefore, the more specific question is whether there is any increase in cost between now and ~September 2025.

Yes, there is a MINOR cost increase after 12 months / 12,000 miles (absent annual price increases).

So, if Ford did not raise prices, and you waited until say 35 months to buy it, it would cost roughly $100 more.

As far as "cost-effective to buy early", an extended warranty is never cost-effective period for most people. The house wins, i.e. Ford makes a ton of money, and the dealership (Granger) makes a small amount since they sell so close to their cost.

If I was going to buy one, I would wait until just before the 3 year mark.

 

[broncoaz]

As far as "cost-effective to buy early", an extended warranty is never cost-effective period for most people. The house wins, i.e. Ford makes a ton of money, and the dealership (Granger) makes a small amount since they sell so close to their cost.

Statistically you are correct that the warranty doesn’t pay itself off, but spending ~4% of the cost of the truck to make sure I won’t face $$$$ repair bills is worth the piece of mind for me. I loosely follow Dave Ramsey’s suggestions and have plenty of emergency funds on hand to pay for repairs, but if I pay up front I don’t have to even think about it. It’s just like any other insurance, you can choose to risk the premium to offset later losses or you can cover the losses out of pocket if they occur.

I’m probably still scarred from owning four VW diesels in a row, the extended warranties paid out 3-5x during my ownership on those cars.

 

[Steely]

I was looking at this the other day and wondering the same question. Should you wait to buy it until after the 3/36 runs out or not. If I understand it right when you buy it before the warranty expires, you're adding time from the in-service date of the vehicle, but if you buy it during the grace period after the 3-year 36,000 mile warranty runs out, you're just buying time from that day forward. The question is is if the cost goes up significantly during that grace time period or not? If it doesn't then it seems like it would be worth waiting because you'll be effectively purchasing 10 years of warranty from that time onward instead of the original in service date. So you could maximize coverage if you can project yearly mileage and not pay for years or miles you won't use.

Hopefully someone has done what I'm saying and can speak to their experience with it.

 

[broncoaz]

I was looking at this the other day and wondering the same question. Should you wait to buy it until after the 3/36 runs out or not. If I understand it right when you buy it before the warranty expires, you're adding time from the in-service date of the vehicle, but if you buy it during the grace period after the 3-year 36,000 mile warranty runs out, you're just buying time from that day forward. The question is is if the cost goes up significantly during that grace time period or not? If it doesn't then it seems like it would be worth waiting because you'll be effectively purchasing 10 years of warranty from that time onward instead of the original in service date. So you could maximize coverage if you can project yearly mileage and not pay for years or miles you won't use.

Hopefully someone has done what I'm saying and can speak to their experience with it.

That starting from the grace period would be interesting, but I don’t think it works that way. Hopefully I’m wrong.

 

[Steely]

That starting from the grace period would be interesting, but I don’t think it works that way. Hopefully I’m wrong.

From the webpage
https://www.grangerfordextendedwarranty.com/faq/

If your Ford is within 41 months of its warranty start date (the date the vehicle was delivered to its original owner) and has less than 41,000 miles, you can purchase a new vehicle plan.

For example: Your vehicle’s warranty start date is July 1, 2022 and your odometer reads 37,000 miles. You purchase a 5-Year / 60,000-Mile PremiumCare plan on May 1, 2024. Your coverage starts on May 1, 2024 and expires on April 30, 2029 or when your odometer reads 97,000 miles, which occurs first.

So if you don't this way is the price significantly more expensive???

 

[broncoaz]

From the webpage
https://www.grangerfordextendedwarranty.com/faq/

If your Ford is within 41 months of its warranty start date (the date the vehicle was delivered to its original owner) and has less than 41,000 miles, you can purchase a new vehicle plan.

For example: Your vehicle’s warranty start date is July 1, 2022 and your odometer reads 37,000 miles. You purchase a 5-Year / 60,000-Mile PremiumCare plan on May 1, 2024. Your coverage starts on May 1, 2024 and expires on April 30, 2029 or when your odometer reads 97,000 miles, which occurs first.

So if you don't this way is the price significantly more expensive???

My Bronco just went out of warranty last week, I can price it and see.

On Flood Ford‘s site it still shows from the original in service date.

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