Just bought a 2020 :) - Warranty Question / Opinions...

[GordoJay]

I agree. I keep reading folks saying extended warranties aren't worth it even on some of the flood ford threads. Seems like it would more than pay for itself after one big time repair involving the trans / engine. I recall my local dealer saying the cam phaser service bill is in the neighborhood of $4k if it's not under warranty. Maybe we're missing something though?

Ford makes money selling extended warranties. To do that, the average cost to repair must be less than the cost of the warranty. So for every big repair, there must be quite a few trucks that never have a problem. Also, $4k is what your bill would be for a cam phaser repair. What FMC pays the dealer is quite a lot lower. The other thing that comes to my mind is that the cam phaser problem is a design problem and the failure rate was unknown when the warranty was priced. Ford may well have a policy of not suddenly raising extended warranty prices when a product has more problems than anticipated. I can think of several plausible reasons that they might do this. Fanboy me says it's because they're stand-up guys. Cynical me says it's a legal issue because it becomes evidence. Corporate me says they just fire someone and make it up on another product. Investor me wonders if they even noticed that they're bleeding money.

 

[CHMP]

Ford makes money selling extended warranties. To do that, the average cost to repair must be less than the cost of the warranty. So for every big repair, there must be quite a few trucks that never have a problem. Also, $4k is what your bill would be for a cam phaser repair. What FMC pays the dealer is quite a lot lower. The other thing that comes to my mind is that the cam phaser problem is a design problem and the failure rate was unknown when the warranty was priced. Ford may well have a policy of not suddenly raising extended warranty prices when a product has more problems than anticipated. I can think of several plausible reasons that they might do this. Fanboy me says it's because they're stand-up guys. Cynical me says it's a legal issue because it becomes evidence. Corporate me says they just fire someone and make it up on another product. Investor me wonders if they even noticed that they're bleeding money.

Got it. Sounds like ultimately of in planning to hold onto this truck for the long haul Flood Ford is probably a good move. I want to believe I'll ha e my truck for a decade but something tells me a year or two after the gen3 comes out I'll probably jump ship.