First off guys thanks for a great forum. I have been having a blast looking over the work you all have done on your trucks - some awesome stuff.

I brought home a new to me 05 ranger edge 4x4 two nights ago. Bought it from a dealer, so I got the usual financing offers with an extended warranty plan included (they never seem to mention that you can opt out of this). Anyway, I read the fine print on it and noticed I could cancel within 5 days for a full refund of the $2,200 the coverage cost me, so I figured I'd drive the truck for a couple days and mull it over. So far so good - it's a great little low mileage truck and everything seems to be running and working great. Simple fact is, I'm no mechanic. The warranty did give me some peace of mind, as I know I won't be comfortable breaking anything down and building it back up if there is a problem that requires anything beyond new spark plugs or valve lifters. Truck has 28k miles on it (and from the looks of it they were very easy miles...maybe on a treadmill in someone's garage), and the warranty only covers me to 76k. The way I see it, problems should be starting after the coverage ends anyway. Should I take my chances and hope I don't need $2,200 in repairs over the next 3 or 4 years?

For what it's worth, I have an uncle I'm fairly close to who has an associate's as an auto mechanic and put almost 400k on a ranger 4.0 back in the day. Chances are he could give me a hand if I needed it.

Keep the coverage or dump it and get my money back?

 

I would cancel the coverage if you plan to do any modding. If you plan to keep it stock then its a gamble. I am a gambling man so personally I would cancel sense it only covers too 76k miles. Are they going too give you $2200 back or take it off the amount owned. I would try and refinance it because that is roughly $40/month lower payment.

 

It'll probably stay stock at least until I'm done paying it off. They would just send me a check for the $2,200 and I'd have to refinance myself. The loan is through a major bank so a refinance with more money down would probably not be a big hassle.

 

id cancell it. i had that done to me on my '93. applied the refund to the balance of my loan. got it paid off a little quicker. the only garbage i would consider keeping from the stealership would be the gap coverage. basically its depriciation insurance, in the event the truck is totaled in a wreck, gap coverage would pay the balance between whats owed and blue book value (what insurance will pay) say your truck is totalled and you owe 12K on it, if blue book syas its only worth 10K then gap would cover the 2K difference. as fast as vechicles lose value, you could easily owe more than its worth in just a few years time. but extended warrantys are just a ploy to get more money. maintain your truck, dont abuse it and it will more than likely go the distance.

 

I would cancel it. Then take the $2,200 and put it back on the truck. If your fine with the payments now then I wouldn't worry about refinancing and just use the $2,200 to pay it off quicker.

 

Yeah thanks guys called to cancel it. I put a pretty good chunk down so I don't think I'd use the gap coverage. Payments are pretty comfortable and interest rate is lower than my mortgage - probably put the cash towards the house.

Finance guy is out on Wednesdays at the dealer I bought from, so my coverage should be canceled tomorrow morning...I'll probably be back here tomorrow afternoon with questions on how to repair something:)

 

You did good cancelling the optional coverage. Universally known that dealer offered extended coverage plans are pricey and full of fine print.

 

Odds are, at best, one in three that this plan would have been worth it. I'd have canceled it.

 

How long do you have to cancel it? I regret getting mine, I voided 90% of it already.

 

You can get alot of repairs for $2200, or if you do it yourself, you can get alot of parts for $2200.

 

Small print on the back says you have 5 days to refuse coverage, if you refuse coverage within 5 days the warranty is void and you are entitled to a full refund. If you don't refuse coverage within 5 days you have accepted the terms of the contract.

The salesman I dealt with said you can cancel it at any time and it is prorated by mileage, which may be worth checking into...but I don't see anything about that on the document so he very well may have been full of it

 

Yeah the more I think about it the more obvious that seems. I work for a family business, so I can grab a work truck to commute in if something comes up that I need to tie the ranger up for a couple days over. Probably best to just grab the chilton's and if something goes wrong buy the parts and get to it.

 

Good job cancelling that warranty. We bought one for our F250 (not from Ford, but a warranty company), when one of my brakes locked up on me, they didn't cover much of it. Apparently only some items are covered, and even though the brake pads were screwed because of this, we still had to pay for new ones because they're "wearable items." Its a bunch of BS.

 

I would get it Ford's suck so you will need it.

 

All our work trucks are F-350s of some variety and that's what I've been commuting in for the past 3 years or so. I'm sticking with the $2,200 buys a lot of parts or service train of thought...but you don't have to tell me how quick a ford service shop can eat up $2,200 bucks when something goes wrong.

I'm hoping a good maintenance schedule, the fact that my foot on the floor days are behind me, and some luck will make the cancelation a good call.

 

Aw crap, I hope he was right. I'll give them a call soon

 

I wouldn't mention you voided 90% of it

 

I got the warranty on my truck.

I used 3 times. Once for full gasket set on the top of the engine. And 2 new drive shafts.

I probably broke even.

 

With most of them you can get a prorated refund.

The BS part of this is that even if you cancel within the original warranty period, such that they were never at risk of paying a claim, the refund is prorated from the day of purchase, not the day the original warranty expired.

 

Extended warranties are a gamble, like playing at a casino or paying car insurance.
Sometimes you break even or come out ahead, but in the end the house always wins.
I bought a warranty when I bought my ranger (didn't pay anywhere near that much, you know they are negotiable right?) and I got one lower balljoint out of it.

 

I passed on mine... it didn't make any sense for me. I get parts cheap through work and do most work myself. For the stuff I can't do I know quite a few people who can!

Good choice on cancelling it, just make sure you keep up on maintenance and you'll be fine!

 

i didn't get one when i bought mine.

i can't belive they gave an extended warrenty on a truck that is 5 years old.

that 2200 could go towards a lift and some tires.....

 

Im assuming hes gonna finance that 2200 so its not really cash out of his pocket right now. Its cash out his pockets next 4/5/6 years.