New Ford vehicles come with a factory warranty with bumper-to-bumper and powertrain coverage that expires after three years or 36,000 miles, whichever comes first. For additional protection, consumers have the option of purchasing an extended warranty—also known as a vehicle service contract—from either the automaker or a third-party provider.
While some people love the peace of mind that comes with an extended warranty, others don’t believe in spending extra on something they think is just another way for the manufacturer or other companies to make money. Ultimately, it’s a personal decision that is largely influenced by the price of the warranty plans.
The Ford Protect Extended Service Plan (ESP) covers thousands of components for up to eight years or 150,000 miles. This extended warranty coverage is very appealing to many new car, truck, and SUV owners because of its benefits and perks, but is it worth the extra cost?
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Types of Plans
The price of Ford’s ESP depends on a variety of factors. One is the type of plan you pick. There are four levels of coverage: PremiumCARE, ExtraCARE, BaseCARE, and PowertrainCARE.
PremiumCARE provides the most comprehensive coverage, and the automaker claims that it has the potential to save consumers between $4,000-$6,000 in estimated repair costs. It provides full coverage for more than 1,000 components, such as the engine, transmission, front-wheel drive, rear-wheel drive, steering, brakes, suspension, and electrical components.
Due to its wide span of coverage, the Ford extended warranty premium care plan costs more compared to the other ESP plans, which provide much less protection: ExtraCARE covers 113 components, BaseCARE covers 89 components, and PowertrainCARE covers just 29 components.
Ford owners must plan in advance and purchase a protection plan before their three-year/36,000-mile new vehicle limited warranty expires. Consumers can pay for a Ford extended service plan up-front or through an Installment Payment Plan (IPP) contract. Once the Ford warranty is activated, the first IPP payment is typically due within 20 days. From then on, the payment is due on the same day each month.
If an owner decides to sell his or her Ford, the ESP is transferable to a new owner as long as the IPP has been paid in full. A transfer fee also applies.
Additional Perks, Inclusions, and Vehicle History
As for third-party providers, they also provide varying levels of coverage options through their extended service plans, and some offer perks that the automaker does not, such as allowing vehicles to be serviced at non-Ford dealerships.
Basic warranties, such as Ford’s PowertrainCARE, only cover simple repairs, so they are less expensive. More extensive warranties cover more components and include benefits such as towing, roadside assistance, and rental vehicle reimbursement, but they also cost more.
Another major factor that affects extended car warranty costs is the vehicle itself, particularly its condition. Older vehicles tend to have higher mileage and require more repairs and replacements. Owners often must submit their vehicle’s odometer reading and provide the average number of miles they drive it per year.
The older the vehicle, the higher the Ford extended warranty price will be. In addition, Ford owners can select plans that have deductibles that range from zero to $100 or more. All of this influences the cost of the extended warranty.
The Bottom Line
So, what does an extended warranty for a Ford vehicle cost? This varies greatly depending on your vehicle, its history, and what type of plans the automaker or third-party company offers. Extended service plans typically cost several hundred dollars per year. Neither manufacturers nor third-party providers have a one-size-fits-all pricing program.
The best way to find out exactly much an extended warranty will cost for a Ford vehicle is to do the research. First, get some quotes from the automaker and third-party providers. Then determine how much maintenance you think your vehicle will need and whether the extra payments are worth it.
You can also research common repair costs for your vehicle, so you know what to expect, and weigh that against the cost of an extended warranty.
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