Ford ESP - I'm feeling like i was scamed
07-09-2014, 08:29 PM
#21
Senior Member
07-09-2014, 08:57 PM
#22
I just took the money they wanted for the warranty and put it into a conservative mutual fund....I call it it my extended warranty fund. Guess I will just wait and see it I need it.
07-10-2014, 11:13 PM
#25
I think the original poster is complaining that he had a powertrain repair between 36K and 50K so his ESP was a waste. (Ford having a 50K powertrain warranty).
I don't see the exploitation. But yeah, people kind of forget that the esp is dead money through the factory warranty period. I thought the 7yr 100K "Base" warranty with a $50 deductible was the best bang for the buck for me. That's because I have a "Basic" truck. The warranty is transferrable, so I have a leg up if I go to sell my truck at 6 years with 20K or so left.
Ford makes money on the warranties. As a practical matter they couldn't deliberately price them as a loss leader even if they wanted to. That's would be a form of securities fraud when you think about it. They would show profits today, and then big losses tomorrow when the claims come due, defrauding their investors.
Its pretty clear Ford prices the warranties close to the bone, though. Their 10-K says that they constantly make actuarial reevaluations on their costs for the warranties. If they were ripping everyone off, with high-priced policies they wouldn't bother. A $880 policy for 7 yrs 100K for an Ecoboost and the six speed 4X4? plus the alternator, water pump, mastercylinder and other running gear? I can believe they make a hundred or a hundred fifty bucks off that policy, maybe on average. Much more than that? No way. Our trucks are good but not that good.
The policies help them sell their vehicles and they make enough bucks to make it worth their while. I don't begrudge them their puny profit margin on the policies.
P.S. Don't let anyone tell you the Premium policy is "bumper to bumper" Its not. weird stuff, like the return spring on the gas tank isn't covered.
I don't see the exploitation. But yeah, people kind of forget that the esp is dead money through the factory warranty period. I thought the 7yr 100K "Base" warranty with a $50 deductible was the best bang for the buck for me. That's because I have a "Basic" truck. The warranty is transferrable, so I have a leg up if I go to sell my truck at 6 years with 20K or so left.
Ford makes money on the warranties. As a practical matter they couldn't deliberately price them as a loss leader even if they wanted to. That's would be a form of securities fraud when you think about it. They would show profits today, and then big losses tomorrow when the claims come due, defrauding their investors.
Its pretty clear Ford prices the warranties close to the bone, though. Their 10-K says that they constantly make actuarial reevaluations on their costs for the warranties. If they were ripping everyone off, with high-priced policies they wouldn't bother. A $880 policy for 7 yrs 100K for an Ecoboost and the six speed 4X4? plus the alternator, water pump, mastercylinder and other running gear? I can believe they make a hundred or a hundred fifty bucks off that policy, maybe on average. Much more than that? No way. Our trucks are good but not that good.
The policies help them sell their vehicles and they make enough bucks to make it worth their while. I don't begrudge them their puny profit margin on the policies.
P.S. Don't let anyone tell you the Premium policy is "bumper to bumper" Its not. weird stuff, like the return spring on the gas tank isn't covered.
Last edited by shazam; 07-10-2014 at 11:18 PM.
07-11-2014, 09:29 AM
#26
Tell that to the several people that had their engines, transmissions, wiring harness, a/c compressor etc replaced under an ESP that came thru my shop alone much less world wide.
Your ESP needs recalibrating. Just my professional $0.02 and yes I bought one with my truck for just such an occurrence.
Cheap insurance.
.
Your ESP needs recalibrating. Just my professional $0.02 and yes I bought one with my truck for just such an occurrence.
Cheap insurance.
.
07-11-2014, 09:41 AM
#27
Batteries Not Included
I never purchased the extended warranty or any service contract. In my case, it just didn't make any sense. I have had the truck 13 months and have only accumulated 4,500kms (2,800mi). I change the oil once per year on my vehicles because they never see the mileage intervals. If I put more miles on I might have considered an extended warranty depending on the service the truck would see, but in my past 25 years of vehicle ownership I have never bought one nor have I ever needed one. Everyone's situation is different, and I truly don't think they are a scam, but they just don't suit every one's needs. Just my opinion.
07-11-2014, 10:49 PM
#28
Senior Member
Hey Rnlcomp,I have the 2014 knocker. And my warranty was extended to 5/100k on the power train. Not a-lot of help as I don't believe I will drive 100k in 5 yrs! So, I think I can ,"recalibrate", to a 7yr/125k and pay the difference? This plan makes more sense for me. Maybe I can do online at ford.support.com or go to a dealer? Thanks
07-11-2014, 10:54 PM
#30
Senior Member
Don't they all? Mine sounds like a diesel, is that a problem?