Extended warranty

[c9zx]

Does someone have experience with OEM or aftermarket extended warranties? I'm considering buying one for my 2020 Edge ST. I keep new cars a LONG time. The car is rolling LAN of electronics, sensors, $1700 headlights, turbocharged, and AWD. Soooo many expensive things that can fail. Some say the Ford ESP is the only one worth buying and other seems happy with aftermarket plans. Is it a waste of money? Do any of them go more than 5 years after factory 3 year warranty expires? Any and all input is appreciated. Chuck

 

[tpj71mach]

I have been in the car business for over 40 years and I believe that service contracts are well worth the investment, especially now as technology forces repair prices up. The advise I always give is buy the manufacturer's service contract. If you own a Toyota buy the Toyota Extra Care, Nissan has Securtity-Plus, General Motors has GMPP, Ford has the Ford Protect and so on. The after-market contracts may be a little cheaper, often not or minimally at best, but they make make it more difficult at repair time. The after-market contracts all require pre-approval before any work can be completed, this slows down repair time. They often require an inspection before the approval of a repair. Per the contracts, they have to right to have an "independent" inspector come out within 72 hours to inspect the vehicle, mostly to see if there was some thing the owner did that allows them to deny the claim. I have seen claims be denied because the customer had after-market wheels or an alarm or radio installed. In any case, approval or denial, your car is down and your waiting on the inspector. The other concern with aftermarket service contracts is some dealers may not honor them and you have to go back to the dealer that sold it to you. This could be a problem if you're on a vacation out of state. I've seen people have to pay for the repair and try to get the money back from the service contract provider when they couldn't find a shop where they broke down to accept their after-market service contract. If you have a manufacturer backed contract and you are in California you just need to pull in to the California Ford dealership and they will honor your contract. If the your contract includes the part that failed, it is covered, and the repair can be completed right away, no need to wait for an inspection. Finance managers will tell you that the after-market contracts are better, that's somewhat true, they are better for the finance managers and the dealership. They cost the dealer much less than the factory contracts (sometimes half) so they can hold a stronger gross profit. They can sell you an after-market service contract for $2000.00 that they paid $1200.00 and make $800.00. Or they can sell you a factory backed service contract for $2300.00 that cost them $1900.00 and make $400.00 and cut there profit in half. The customer thinks they are saving money but they simply purchased something of far less value for a little less money. The other problem with after-market contracts if the variance in quality. The company goes out of business and the contract you purchased is not worth the paper it was printed on. There are also many contracts that we would not accept because they didn't pay timely or they short paid us. The biggest problem I encountered with many after-market contracts in the years I managed dealership parts & service departments was they approve only used parts. Often they would want a junkyard engine or transmission installed in stead of a new or manufacture rebuilt part. I wouldn't allow this in my shops and sometimes they would fold and allow the factory part but at no markup to the dealer. I would often forgo this profit to make sure my customer's car was fixed right, but most shops are not willing to do that. Often aftermarkets would tell me to offer the customer the new engine if the customer paid the difference between the junkyard part price and the new part price. That's really bad customer service in my opinion but the contracts allow for like kind and quality parts and because the car isn't new the contract is not obligated to replace the part with a new part.

The other advise I tell people is to be aware of how much driving they plan to do. If you drive 10,000 miles a year don't buy a contract that is good for 70,000 more miles but only three more years. Also I see people buy 7 more years but only 30,000 miles additional. Gauge out how many more miles do you plan to drive in how many years and buy a contract based on your planned usage. I have often seen where a contract is expired by time and the customer says but there is 40,000 miles left on the contract. The contracts expire by time and mileage which ever comes first, so it is best if you can estimate how many more miles in how much more time you will need.

The other thing many people are not aware of, a 8 year / 120,000 mile service contract is not eight more years or 120,000 more miles in most cases. Most service contracts with the high numbers are based on the the date the car was delivered new and zero miles. There are contracts that manufacturers offer that are additional miles and additional time based on the current date and miles. Just be aware of which type you are buying and confirm the expiration date and the expiration miles before you buy. Make sure you enter the expiration date in your calendar or set up a reminder in your phone a month before the expiration to get the car in and checked over to see if the car needs anything before the contract expires. Sorry to make this so wordy, just wanted to share my experiences. Hopefully this will help someone thinking of buying an extended contract.

 

[c9zx]

TPJ71Mach,
Thank you very much for a very fact based, and very helpful response. It confirms many of the things I suspected. Thanks for taking the time. I see some dealerships all over the country claiming to sell the Ford Protect cheaper than other dealerships. It sounds like some of the claims might be valid if the dealership is willing to lower their profit margin.
My biggest concern is all the electronic whistles and bells on the car and the modules and sensors. The PDU and the complicated and small rear differential. And it seems they ship coolant everywhere, trans, PDU, turbos, and places I haven't found yet. I'll contact some dealers tomorrow to see what kind of cost we are talking about.
Thanks Again,
Chuck

 

[midlife]

From a higher point of view (e.g. reliability, statistics, insurance coverage, etc.), if you have sufficient funds to cover repairs without the warranty, then don't get the warranty. From the insurer's point of view, they have to make money across all of their products. To do so, the predicted costs during the warranty time period has to be less than the cost of the warranty when considering all of the warranties sold. It's a crap shoot when dealing with a single warranty---you could pay more or pay less than the cost of coverage. On average, however, you'll pay more for the warranty than paying for the repairs outright.

 

[Kilgon]

It's the old dilemma - dam if you do, dam if you don't. I purchased one when I got my 2016 Ram 3500 due to all the electronics and it being a diesel engine. I purchased the 5 year 125,000-mile warranty for $2,300. Here it is 6 years later and only had to use it once to fix my cruise control. Total bill was $300 minus $100 deductible I had to pay so my $2,300 saved me $200 - whoopie! Of course, it could have been a major problem like the engine or tranny and then I would be praising how great they are.

 

[JJU9507]

Would not buy a car that requires 1700$ headlighjts.

 

[delawarebill]

i leased my 2019 ford ranger that is up next month (3yrs). with the price of new trucks i said no way... so i bought it. i did get the bumper to bumper, 60k miles and 5 yr extended warr. it has a $100 deductible for $2200. its a lariat with FX4 package so it has a ton of stuff that kill your wallet if some electronics breaks. i asked if they take any other company and said no. so just check with your dealer to see if they take another company or not. it's a piece of mine for me.

 

[mrgmhale]

Tpj71mach and hemikiller (and others that offered their thoughts) have all made great points. Nothing I would say would be all that new. But what I can do is reiterate the position that it is always better to get a factory extended warranty. Over the years, where’re beginning in 1985 or so, I began to look at and watch the extended warranty market, I have seen a few aftermarket warranty companies go belly up. For that reason alone I would suggeSt only getting the manufacturers extended warranty. Even then you will shocked at some of the gotchas that will disqualify you from being covered. But at least they won’t be going belly up on you.

So what kind of got has are there? A big one is a failure may need to have been caused by an internally lubricated part. Another is that any failure caused by the failure of a pipe or hose is not covered. Any kind of pipe or hose. The language of even the manufacturer extended warranties tend to be written in favor of the manufacturer.

That said, there are only two things I get extended warranties for. High end computers/laptops, and automobiles. It is still a crap shoot. Overall I have gained more in covered repair costs that qualified for manufacturer extended warranty payment, as opposed to the premiums I have paid. Not by a lot as a Suzuki extended warranty refused to repair a power steering pump issue as one of the hydraulic hoses had to be repaired. They claimed it caused the failure. I did not agree but my please dell in deaf ears. It was not worth it for me to go to arbitration. I simply sold the car and asked for them to return my unused premium payment, which you can do if you choose to terminate your coverage before the term of coverage is up. Nobody is going to tell you that. It is up to you to know it and apply for a partial refund if you sell/trade/or lose the vehicle due to not being totaled before the contract is scheduled to end.

I tend to get the higher end coverages for the longest term possible. And within a year of expiration info still have the car I look to get additional coverage with a new contract that picks up when the current one is about to expire. For me it has worked out to just a bit better than break even, but I rest easier knowing the odds are that I may avoid a large repair bill in the event there is a costly failure that is covered.

 

[Stanglover]

Well, I do not usually buy extended warranties on anything for many of the reasons mentioned above. There are some things I might consider, but if I figure the cost of a warranty over the cost of repair over a period of time and if it is something I can maybe fix myself, then no. Our Whirlpool Cabrio washer and dryer are a prime example, but no time to expand on that here now.
However, way back in 1994 (if I remember correctly) I bought an "executive" Ford Thunderbird from a local dealer. The car was about 8 months old with about 25 K kilometers on it. The salesman whom I knew, convinced me to buy the "extended warranty" for an extra $1200 (Cdn) I was leasing the car and as repairs were on me, I fell for it and as it turned out, glad of it. During the remainder of the factory warranty, I had suspension parts replaced as well as many other smaller items all on warranty. Then after that, thing really got expensive. The motor needed a new head (V6 3.8 motor), new exhaust manifolds, and the list grew. All-in-all, there was over 10 grand in repair bills over the period of about 3 years. I had that car for a total of 13 years and actually spent very little on it after it was "fixed'. I got rid of it when the body started to rot, and I still got 2 grand for it.

 

[c9zx]

My thanks to all who took the time to respond, the input is appreciated. I'm still going to do some shopping around for pricing on Ford Protect plans and then make a decision. It may come down to a coin toss. Chuck

 

[c9zx]

Just to wrap this up, I got a quote from the dealer I bought the car from, For 8 years, from date of purchase, which is really 5 years after the 3 year bumper to bumper Ford warranty, and 3 years for the power train, after the 5 year/ 50,000 mile Ford warranty, the price is $1,650 for up to 60,000 miles on the car or, $2,050 for up to 75,000 miles on the car. I was looking for a really EXTENDED warranty. This is not for me, I'll roll the dice. Thanks to everyone. Chuck

 

[secluff]

Hello Chuck,
You’ve already received a lot of great information. It’s also great to hear from tpj71mach, who can also relate experiences from a Dealer standpoint. The aftermarket warranty experiences had become really bad at our dealership. After our weekly managers’ meeting, the dealer principal (Owner) held me, the service, and the F&I manager behind, and we had what you could say was a “Come to Jesus” meeting. Between the junkyard parts, long wait times for repair approval, wanting me to sell them Ford parts at cost or below, only wanting to pay half the labor rate the techs made, and then not paying the total amount of the bill, he had enough. He was already aware of my confrontations with them when they (making good on the threat to go over my head) would call him about me not wanting to give his parts away at cost or below !! (I can’t repeat here what he told them)!
He did tell the F&I manager if he wrote any extended warranty contract that was not Ford, he would be looking for a new job. The service writers and manager got the same news if they wrote a repair order in the service drive on any non-Ford warranty. I was safe from that skirmish since he had already received calls from these knuckleheads complaining about me not wanting to give his parts away.
$1700. Headlights! You bet. If your vehicle has HID lamps or the now more common LED headlights, you may not want to know what kind of money is riding in front of your vehicle.
To use Chuck’s Edge ST as an example. Headlights, $1666.67, Turbos, $928.95 and 937.20, Transaxle Assm $3476-5294, EEC V ECM (Engine Control Module) $868-1,136, 2.7L long block, $6765. These prices are in the same price range you’ll see on any similarly equipped vehicle from other major manufacturers. I checked with a couple of friends who are parts and service managers at a Chevrolet and Dodge/Ram dealership. They agree with the similarly priced parts and also do not honor any aftermarket warranties.
As previously posted, some people will purchase the extended warranty and never use it. Others can be on a trip and have a catastrophic transmission or engine failure and spend all their vacation money on a repair or tell the service writer, “I have Ford ESP!
The F&I folks don’t charge to talk and have many different plans and coverages. It’s called piece of mind!
*EDIT*...Sorry Chuck, With continuing computer problems, I couldn't get my response to post. When it finally did, you had already posted about your Dealer visit. Sorry it didn't work out. Don't let the prices I posted scare you. The ST versions of the Edge and Explorer have been solid, reliable performers.

 

[Stanglover]

Hello Chuck,
You’ve already received a lot of great information. It’s also great to hear from tpj71mach, who can also relate experiences from a Dealer standpoint. The aftermarket warranty experiences had become really bad at our dealership. After our weekly managers’ meeting, the dealer principal (Owner) held me, the service, and the F&I manager behind, and we had what you could say was a “Come to Jesus” meeting. Between the junkyard parts, long wait times for repair approval, wanting me to sell them Ford parts at cost or below, only wanting to pay half the labor rate the techs made, and then not paying the total amount of the bill, he had enough. He was already aware of my confrontations with them when they (making good on the threat to go over my head) would call him about me not wanting to give his parts away at cost or below !! (I can’t repeat here what he told them)!
He did tell the F&I manager if he wrote any extended warranty contract that was not Ford, he would be looking for a new job. The service writers and manager got the same news if they wrote a repair order in the service drive on any non-Ford warranty. I was safe from that skirmish since he had already received calls from these knuckleheads complaining about me not wanting to give his parts away.
$1700. Headlights! You bet. If your vehicle has HID lamps or the now more common LED headlights, you may not want to know what kind of money is riding in front of your vehicle.
To use Chuck’s Edge ST as an example. Headlights, $1666.67, Turbos, $928.95 and 937.20, Transaxle Assm $3476-5294, EEC V ECM (Engine Control Module) $868-1,136, 2.7L long block, $6765. These prices are in the same price range you’ll see on any similarly equipped vehicle from other major manufacturers. I checked with a couple of friends who are parts and service managers at a Chevrolet and Dodge/Ram dealership. They agree with the similarly priced parts and also do not honor any aftermarket warranties.
As previously posted, some people will purchase the extended warranty and never use it. Others can be on a trip and have a catastrophic transmission or engine failure and spend all their vacation money on a repair or tell the service writer, “I have Ford ESP!
The F&I folks don’t charge to talk and have many different plans and coverages. It’s called piece of mind!

Interesting. So, what you're saying is all these ads we see on tv for aftermarket warranties aren't worth the paper they're written on........ or the powder to blow 'em up so to speak, at dealerships especially.
To be honest, warranties really are the minimum manufacturers can get away with. The big stuff usually screws up after the warranty is up and they know it.

 

[c9zx]

Steve, Thanks for taking the time to respond with helpful information, as always. Yeah, it seems to me the whole extended warranty business is close to, if not an outright scam. The 2.7 engine is a proven solid piece. It is all the glamor bits that concern me, I was a Lincoln Mercury mechanic at one time. Anyway, I've made my decision. It is time to move on to other decisions to be made, like how much to ask for the Mach1 on BaT or other sites. Chuck

 

[secluff]

Interesting. So, what you're saying is all these ads we see on tv for aftermarket warranties aren't worth the paper they're written on........ or the powder to blow 'em up so to speak, at dealerships especially.
To be honest, warranties really are the minimum manufacturers can get away with. The big stuff usually screws up after the warranty is up and they know it.

Hey Geoff,
I know there are a couple of advertisements on TV almost nonstop. They all paint a picture of happy people sitting around a campfire singing Kum-Ba-Ya. The reality is, as tpj71mach posted, it's a maddening process of a tear down for the inspection and then waiting for repair approval. Occasionally you receive it in a short time; more often, you played the wait and wait some more game. Meanwhile, you have a line tech with his lift-rack/stall tied up, he’s not making any money (or the Dealer), and the Snap-On Truck just pulled up looking for payments from the techs on all their high-dollar tools. (Something I knew Chuck would understand as a former Lincoln/Mercury tech) They want you to use their parts which are normally salvage yard or half A$$ quality Chinese parts. Those usually did not work or fit or were made for a spaceship cause they definitely did not fit the vehicle they were sent for. So, after the vehicle has sat in the tech's stall for X amount of days, everyone in the shop had reached a critical mass level. That’s when I’m approached, and the request is to sell them a Ford part under cost. The dealer allowed employees to purchase Ford/Motorcraft parts at cost +10%. I had a problem selling the same parts to a company below cost that was also wanting the shop to cut the labor rate in half. And, of course, when the time came for the A$$ Hat warranty Company to pay the bill, it was always short. The dealership lost an absolute ton of money dealing with these knuckleheads. This affected everyone’s pay and commissions at the Dealer. In my quest to break as many of my cars and related parts as possible, I needed my $$ to pay on my account at work and the local speed shop!
As confirmed by my GM and Mopar Dealer contacts, they were experiencing the exact same thing. That’s why a large majority of any dealer you ask now will not honor any extended warranty other than the manufactures warranty.
I know it’s a double-edged since you do want to try to help people that may be traveling and stranded. But the Dealer can’t pay his line techs or his Ford parts bill with IOU’s!

 

[Stanglover]

Hey Geoff,
I know there are a couple of advertisements on TV almost nonstop. They all paint a picture of happy people sitting around a campfire singing Kum-Ba-Ya. The reality is, as tpj71mach posted, it's a maddening process of a tear down for the inspection and then waiting for repair approval. Occasionally you receive it in a short time; more often, you played the wait and wait some more game. Meanwhile, you have a line tech with his lift-rack/stall tied up, he’s not making any money (or the Dealer), and the Snap-On Truck just pulled up looking for payments from the techs on all their high-dollar tools. (Something I knew Chuck would understand as a former Lincoln/Mercury tech) They want you to use their parts which are normally salvage yard or half A$$ quality Chinese parts. Those usually did not work or fit or were made for a spaceship cause they definitely did not fit the vehicle they were sent for. So, after the vehicle has sat in the tech's stall for X amount of days, everyone in the shop had reached a critical mass level. That’s when I’m approached, and the request is to sell them a Ford part under cost. The dealer allowed employees to purchase Ford/Motorcraft parts at cost +10%. I had a problem selling the same parts to a company below cost that was also wanting the shop to cut the labor rate in half. And, of course, when the time came for the A$$ Hat warranty Company to pay the bill, it was always short. The dealership lost an absolute ton of money dealing with these knuckleheads. This affected everyone’s pay and commissions at the Dealer. In my quest to break as many of my cars and related parts as possible, I needed my $$ to pay on my account at work and the local speed shop!
As confirmed by my GM and Mopar Dealer contacts, they were experiencing the exact same thing. That’s why a large majority of any dealer you ask now will not honor any extended warranty other than the manufactures warranty.
I know it’s a double-edged since you do want to try to help people that may be traveling and stranded. But the Dealer can’t pay his line techs or his Ford parts bill with IOU’s!

Steve,
An interesting read and insight.
I don't think we have much in the way of "aftermarket warranties" here in Canada, that or we just don't see them advertised. but I've often wondered about the ones we do see on US TV. They all seem to be too good to be true for sure and suck thousands of people in yearly.
If a person put the same money into an account, chances are they would be able to pay for repairs as needed and at the end of the day, still have money in THEIR own bank.
Now Steve, have a coffee and calm down eh!

 

[MikeGriese]

I find it amusing that most of the discussions around extended warranties or insurance companies are front end loaded. By that I mean people focus on what they pay. What you pay is really irrelevant. What matters is what happens when you need that provider to pay out. It has been touched on more in this thread than pretty much anywhere else I have seen, but think about it - if you save $400 or $500 or whatever on the front end and you wind up having to rent a car or go without a car for 3 or 4 days, or have to have your car towed to another facility while your warranty is sorted out, are you really money ahead?

If you can't find any real information (by that I mean information that is not provided by the warranty company), look for another provider.

 

[DAverkamp]

I agree with most of everyone’s comments on the extended warranty and I didn’t feel like taking a gamble with our newest addition last year, basically a driving computer and does needs 91 premium (which may have changed my mind before brandon’s decision to start killing FF).
Anyway, we rolled in a lifetime, transferrable warranty or a credit back with them (if its a future trade-in) to keep the resale value high as possible..

 

[mrgmhale]

I have only found one aftermarket extended warranty that was worth a hoot. It may not be available any longer, but... It was the Interstate "Diamond" policy (no longer offered, they have several other plans though). What was nice was they covered leaking gaskets and seals, as opposed to most such policies covering gaskets and seals only if a covered repair was made where said gaskets and seals were needed. If a gasket or seal is only leaking, no matter how badly, most policies exclude that as a covered repair - to include many manufacturer extended policies (contracts). It was such an unusual inclusion that when I had a leaking transaxle on a Suzuki XL-7 4x4 front end I read and re-read the contract several times before going into the local Suzuki dealer (before Suzuki Automotive left the US) to have them work up an estimate. At that, I asked the service advisor to be sure to tell whoever would be coming out to inspect the vehicle for coverage that "the customer" (me) was well versed in the auto repair industry, holds degrees in both Auto Repair Technology and in Business, and works with a lot of attorneys across the country who specialize in warranty and CP related repairs. I got absolutely no blowback or marginalizing with the entire front end being replaced, as it turned out to be less costly to get a new front transaxle as opposed to ours being resealed/rebuilt. $50 or $100 deductible was all I paid. That is the only aftermarket contract I ever got, as it was wrapped into a wholesale purchase where I asked a friend brokering the deal to get me a high quality extended warranty, but was not clear in preferring to get a factory policy. It turns out the factory policy would not have covered a leaking seal or gasket without being related to a larger repair.

But, I did have to agree to an initial teardown and inspection fee. That was fine with me, as I was confident I would get whatever was needed covered. But, I was prepared to pull in one of the attorneys I knew were it necessary, with no hesitation were I to have been given any pushback at all. Unfortunately, for a lot of these aftermarket policies they tend to dink around with the covered repairs, wanting to use wrecking yard parts, cheap parts, etc., as opposed to doing a truly solid repair. Hey, it's just business, you know - but, that cuts both ways. My advantage is I am very familiar with the antics these folks try to pull off (I did an industry paper on the subject back in the 80s), and am very familiar with the auto repair industry, having work as a technician at a Lincoln-Mercury and a Ford set of dealerships. Later on I had a position as a corporate liaison where I worked closely with a lot of dealership and third party auto repair shops, so I got to see the inner workings of independent repair shops as well as new car dealership repair facilities. Most, nearly all, were well run with honest owners and good technicians. The ones who cut corners did not tend to last. One side piece of info, I could tell how business owners felt about their customers based on how their restroom facilities looked. Single ply paper was a dead giveaway that the customer was not held in very high esteem. Just sayin'...

 

[tpj71mach]

I have only found one aftermarket extended warranty that was worth a hoot. It may not be available any longer, but... It was the Interstate "Diamond" policy (no longer offered, they have several other plans though). What was nice was they covered leaking gaskets and seals, as opposed to most such policies covering gaskets and seals only if a covered repair was made where said gaskets and seals were needed. If a gasket or seal is only leaking, no matter how badly, most policies exclude that as a covered repair - to include many manufacturer extended policies (contracts). It was such an unusual inclusion that when I had a leaking transaxle on a Suzuki XL-7 4x4 front end I read and re-read the contract several times before going into the local Suzuki dealer (before Suzuki Automotive left the US) to have them work up an estimate. At that, I asked the service advisor to be sure to tell whoever would be coming out to inspect the vehicle for coverage that "the customer" (me) was well versed in the auto repair industry, holds degrees in both Auto Repair Technology and in Business, and works with a lot of attorneys across the country who specialize in warranty and CP related repairs. I got absolutely no blowback or marginalizing with the entire front end being replaced, as it turned out to be less costly to get a new front transaxle as opposed to ours being resealed/rebuilt. $50 or $100 deductible was all I paid. That is the only aftermarket contract I ever got, as it was wrapped into a wholesale purchase where I asked a friend brokering the deal to get me a high quality extended warranty, but was not clear in preferring to get a factory policy. It turns out the factory policy would not have covered a leaking seal or gasket without being related to a larger repair.

But, I did have to agree to an initial teardown and inspection fee. That was fine with me, as I was confident I would get whatever was needed covered. But, I was prepared to pull in one of the attorneys I knew were it necessary, with no hesitation were I to have been given any pushback at all. Unfortunately, for a lot of these aftermarket policies they tend to dink around with the covered repairs, wanting to use wrecking yard parts, cheap parts, etc., as opposed to doing a truly solid repair. Hey, it's just business, you know - but, that cuts both ways. My advantage is I am very familiar with the antics these folks try to pull off (I did an industry paper on the subject back in the 80s), and am very familiar with the auto repair industry, having work as a technician at a Lincoln-Mercury and a Ford set of dealerships. Later on I had a position as a corporate liaison where I worked closely with a lot of dealership and third party auto repair shops, so I got to see the inner workings of independent repair shops as well as new car dealership repair facilities. Most, nearly all, were well run with honest owners and good technicians. The ones who cut corners did not tend to last. One side piece of info, I could tell how business owners felt about their customers based on how their restroom facilities looked. Single ply paper was a dead giveaway that the customer was not held in very high esteem. Just sayin'...

In my experience I have never seen a manufacturer-backed service contract not cover seals and gaskets. Aftermarket contracts also can cover them but most often it is an upgrade and added expense when you buy the contract for seal and gasket coverage. I have also seen many aftermarket service contracts charge extra for hi-tech coverage and 4WD coverage.
It all boils down to the the misnomer of "extended warranty" there really is no such thing. The only one that can warranty a product is the manufacturer of that product. We are discussing extended service contracts, they are much like an insurance policy and most are underwritten by insurance companies. If the contract states a specific part is covered , it is covered under contractual obligation, if it is not listed in the contract it is not covered. If you don't have flood insurance on your home, your insurance company will not repair flood damage. Make sure to read the contract thoroughly before you buy the contract to insure you understand all of the terms and limitations, and you won't have any unfortunate surprises in the future. Don't listen to the finance manager when he tells you it's "bumper to bumper coverage", there is no such contract out there. In the 40 years I have been running dealership parts and service departments I can't count how many finance managers I have had to break of the habit of saying bumper to bumper they love saying that and it is simply not true and it's misleading to customers.