With the reduced inventory and higher prices of vehicles for sale today, it’s more critical now than ever to get the most out of your automobile. The next car you purchase or vehicle you currently own needs to last as long as possible. While a new or certified pre-owned vehicle may have a solid warranty, that plan doesn’t cover regular repairs or will eventually run out. That’s where a manufacturer’s extended warranty comes into play.
What Is an Extended Warranty?
A vehicle service contract, or extended warranty, is coverage that picks up where the original manufacturer’s warranty ends. These service contracts can be purchased at various times but can be most beneficial right when you purchase your next car.
Take the Ford extended warranty, for example. Ford is known for having one of the most comprehensive and inclusive service contracts on the market. Ford’s regular warranty is pretty on par with most auto brands: three years/36,000-miles bumper-to-bumper and five years/60,000-miles powertrain coverage. When this plan ends, owners are on the hook for any and all repairs.
On average, Ford owners pay about $775 in annual repair costs. With a Ford extended warranty, the majority of those repair costs are fully covered. That means no major surprise when your car needs to go to the shop.
Warranty Coverages
If you look for a Ford extended warranty, you’ll run across multiple coverage plans. These four plans can last as long as eight years or 150,000 miles.
- PowertrainCARE: covers 29 components mainly associated with the powertrain
- BaseCARE” Covers 84 components with partial coverage of the engine, transmission, drivetrain, suspension, HVAC, and steering
- ExtraCARE: covers 113 components and acts like an extension of Ford’s original warranty
- PremiumCARE: covers 1,000 components and acts as an extension of the original warranty
Ford Extended Warranty Perks
On top of being transferrable if you sell your car, Ford extended warranty plans come with the following perks:
- 24/7 roadside assistance
- Towing reimbursement up to $100 per town
- Travel expense reimbursement up to $1000
- Rental car reimbursement up to $30 per day up to 10 days
- Tire changes
- Lockout assistance
- Fluid delivery
What Does It Cost?
The cost of a Ford extended warranty depends on several factors, including which plan you choose, the model of your Ford, its age, and its mileage. As you can imagine, longer plans cost more than shorter plans. You can also play with your deductible amount to change your total price. If your vehicle is currently under warranty, you can also get a lower price for the service contract.
Drivers can often find Ford service contracts between $2,200 and $4,300. A Ford warranty on a 2019 vehicle can often get PremiumCARE between $900 and $1,545. Of course, there are so many factors that play into the final price that you’ll want to get a quote from your preferred Ford dealership.
Are Extended Warranties Worth It?
Ultimately, whether you’re looking at a Ford extended warranty, a service contract from Hyundai, or any other extended coverage, you want to know if it’s worth the cost.
Imagine that you own a Ford F-150, and the radiator goes out. Replacing this component could cost anywhere on average, between $637 and $1,143, depending on where you go and the cost of parts at that time. Maybe the head gasket goes out on your Ford Ranger, or you need a fuel pump need to be replaced on your old Taurus. These repairs could cost, on average, up to $1,847 or $2,757, respectfully. A $2,000 or $3,000 extended warranty would practically pay for itself in a single repair.
If you need your next vehicle to last, it certainly makes sense to explore service contracts to ensure you’re covered for repairs that may come your way. Plus, the extra peace of mind knowing you won’t be caught off guard definitely makes the right extended warranty plan worth every penny.
Learn more about your options at your local auto dealership or online.
This post may contain affiliate links. Meaning a commission is given should you decide to make a purchase through these links, at no cost to you. All products shown are researched and tested to give an accurate review for you.
