Aggressive extended care sales / Turbo issues?

[MathGod]

Which credit union, if you don’t mind saying?

Ouachita Valley Federal Credit Union
I have bought several cars with them.

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[Stevedbvik1]

Just a note, the dealer had to replace my turbo before it even got delivered. Engine light came on during their inspection. It would have been under warranty anyway, but glad it happened before I picked it up. I did, BTW, go ahead and get the extended from Granger. That was very reasonably priced.

It seems like the turbo issue happens right away or not at all based on reports. I’m at 600 mile fingers crossed ?

 

[Aonarch]

I wish we could all just buy direct from the manufacturer.

Tesla has been pushing this hard, but the dealer associations are too big and too powerful.

 

[AzScorpion]

They already said IF they go this route there will be a few models on dealers lots. This way you'll be able to see what features each one has and test drive it. They also said they'll still have a "some" inventory on hand, just not the large stock that we're use to seeing.

So unless somethings changed from the last articles I've read this is what they're looking to do in the future. Less dealer stock and more made to order sales. Not everyone can wait months for their vehicles and they know this so there will be limited stock and you'll now have to custom order something if you don't like wha's on the lot.

 

[Dgc333]

It seems like the turbo issue happens right away or not at all based on reports. I’m at 600 mile fingers crossed ?

FWIW, I have been driving turbo vehicles continuously since 1985 with many of them accumulating over 200,000 miles and have never had a turbo failure. The turbo would be the last thing I would worry about.

 

[Elgorr4]

Man that's a crappy experience. Can you imagine the nerve of these people to tell you the $40k vehicle you want to purchase is so unreliable you have to buy an extended warranty??

When I bought my Ranger it was late in the day. I got done with finance and left the dealership after 9pm (after getting there at 5:30pm). I was tired and hungry and just wanted to drive away with it and the finance guy is trying to sell me a $6-7k extended warranty/service plan. It was the works package where after 5 years they completely detail your vehicle, fix every scratch and dent, fumigate your A/C vents and all that. It extended the factory bumper to bumper 1yr/12k warranty to 5yr/60k and included 15 oil changes. I'm in there scratching my head trying to decide if it is worth it, hemming and hawing and the guy is really pushing it on me. Finally I asked if I could cancel it and he said oh yeah at any time before X date for a full refund. So I bought the plan. I cancelled it within 5 days of ownership after doing my research and got it all refunded.

Ford motor company isn't stupid. There is a bean counter that has run the numbers on these warranties, and they wouldn't sell them to you if Ford wasn't going to make money on average. Ford is essentially betting that their vehicle will not need any significant repairs before your extended warranty is up, and I am sure they win that bet more often than not. The house always wins...

 

[Mokume]

Man that's a crappy experience. Can you imagine the nerve of these people to tell you the $40k vehicle you want to purchase is so unreliable you have to buy an extended warranty??

When I bought my Ranger it was late in the day. I got done with finance and left the dealership after 9pm (after getting there at 5:30pm). I was tired and hungry and just wanted to drive away with it and the finance guy is trying to sell me a $6-7k extended warranty/service plan. It was the works package where after 5 years they completely detail your vehicle, fix every scratch and dent, fumigate your A/C vents and all that. It extended the factory bumper to bumper 1yr/12k warranty to 5yr/60k and included 15 oil changes. I'm in there scratching my head trying to decide if it is worth it, hemming and hawing and the guy is really pushing it on me. Finally I asked if I could cancel it and he said oh yeah at any time before X date for a full refund. So I bought the plan. I cancelled it within 5 days of ownership after doing my research and got it all refunded.

Ford motor company isn't stupid. There is a bean counter that has run the numbers on these warranties, and they wouldn't sell them to you if Ford wasn't going to make money on average. Ford is essentially betting that their vehicle will not need any significant repairs before your extended warranty is up, and I am sure they win that bet more often than not. The house always wins...

You are spot on!

When I special ordered my '20 Larait in August 2019 and purchased it through Ford's X plan 5 months later, I had made it abundantly clear to the salesperson and his particular manager that I would not tolerate any BS in the sale. (I wrenched for a Lincoln-Mercury dealership for almost 14 years and saw all kinds of sales shenanigans).

Evidently they took it to heart because when I met with the "back office guy" (aka "finance manager") on Jan. 18, 2020, he did mention an extended warranty. When I showed him the price quotes I received from Flood Ford he said he could not match their quote, that ended that subject immediately...

As it turned out the entire sales experience was great, I am convinced that Ford's X Plan is the way to go...

 

[The Last Ranger]

The finance guy didn't even bother to try to sell an extended warranty where I bought my 2021 Lariat. I believe he was irritated because I wanted Ford financing instead of their finance firm.
I had issues with this dealer, they sold the ranger I had a deposit on and offered me another with 1500.00 off msrp. I was pissed and let them know it, lets just say it was a bad break up, as I let them know how I felt in crystal clear terms. I will not go back and didn't take the free oil changes either.Its a good thing I love this vehicle.

 

[Mokume]

The finance guy didn't even bother to try to sell an extended warranty where I bought my 2021 Lariat. I believe he was irritated because I wanted Ford financing instead of their finance firm.
I had issues with this dealer, they sold the ranger I had a deposit on and offered me another with 1500.00 off msrp. I was pissed and let them know it, lets just say it was a bad break up, as I let them know how I felt in crystal clear terms. I will not go back and didn't take the free oil changes either.Its a good thing I love this vehicle.

Surprised the finance guy did not push anything else on you knowing they were losing out on the financing deal...things such as paint sealant, "anti-theft" glass etching and left hand thread light bulbs for your home...lol

 

[dtech]

.

Ford motor company isn't stupid. There is a bean counter that has run the numbers on these warranties, and they wouldn't sell them to you if Ford wasn't going to make money on average. Ford is essentially betting that their vehicle will not need any significant repairs before your extended warranty is up, and I am sure they win that bet more often than not. The house always wins...

the global extended warranty market reached a value of US$ 121.5 Billion in 2021. Looking forward, the publisher expects the market to reach a value of US$ 182.3 Billion by 2027 exhibiting a CAGR of 6.70% during 2022-2027. The global auto extended warranty market size was valued at $34.19 billion in 2020, and is projected to reach $60.82 billion by 2030, growing at a CAGR of 5.9% from 2021 to 2030.

It's only a $34B business and projected to have robust growth, why would anyone think that it's a profitable business ?

I don't buy any extended warranties, I think the home warranty stuff might be one of the most lucrative. However when I was selling my home last year part of my realtor's marketing plan was to include a 1yr warranty on the appliances - furnance, refrig, ac, etc, it cost me $400 but the house sold on the 1st day of listing at $80k over asking price, such is the utter insanity of real estate in the Denver area. and it keeps getting more expensive. I was worried that the house might be difficult to sell as a neighbors house was a mere 20' away, but in Denver a home sitting ontop of a sewage plant would sell.

 

[Mokume]

the global extended warranty market reached a value of US$ 121.5 Billion in 2021. Looking forward, the publisher expects the market to reach a value of US$ 182.3 Billion by 2027 exhibiting a CAGR of 6.70% during 2022-2027. The global auto extended warranty market size was valued at $34.19 billion in 2020, and is projected to reach $60.82 billion by 2030, growing at a CAGR of 5.9% from 2021 to 2030.

It's only a $34B business and projected to have robust growth, why would anyone think that it's a profitable business ?

I don't buy any extended warranties, I think the home warranty stuff might be one of the most lucrative. However when I was selling my home last year part of my realtor's marketing plan was to include a 1yr warranty on the appliances - furnance, refrig, ac, etc, it cost me $400 but the house sold on the 1st day of listing at $80k over asking price, such is the utter insanity of real estate in the Denver area. and it keeps getting more expensive. I was worried that the house might be difficult to sell as a neighbors house was a mere 20' away, but in Denver a home sitting ontop of a sewage plant would sell.

I bought a cheap microwave oven from a local big box store last week, the clerk tried to push an "extended warranty" on the sale for $30 or so.

She presented such a compelling and impressive sales pitch that I told her she should be selling used cars instead...

I reminded her that the appliance does come with a manufacturer's 1 year warranty and if it broke after that I would toss it in the trash.

 

[Stevedbvik1]

FWIW, I have been driving turbo vehicles continuously since 1985 with many of them accumulating over 200,000 miles and have never had a turbo failure. The turbo would be the last thing I would worry about.

Same here but a number of 2022 owners are having a specific issue and that’s what this thread is about.

 

[AzScorpion]

will they have all the available models and trims?
I highly doubt they would have sufficient stock to satisfy the buying public.

I dont want to test drive an XL when i'm looking at a Lariat and vice versa.

From what I've read they will have a trim in each but if they don't there's really nothing you (or any of us) can do especially if they're all doing it. You're just not going to see every trim in every color with mixed options just sitting there like we'e use to. Besides, they don't have any on the lots now so if you needed one today you'd be SOL. I don't see thing changing any time soon either as there's very little dealer stock on anything around here. Times are changing and just because you don't like it doesn't mean they're going to stop and reverse course.

We're so use to seeing huge discounts at the end of the year because they made way to many vehicles. I highly doubt we'll ever see those $6,000 off end of the year specials and I really don't blame them as it's not a good business practice. Minus the parts shortages if they can make more money producing less vehicles and not having a huge inventory to discount at the end of the year they're going to do it. It's no different than what I'm doing in my business now. I'm working less but charging more and still maintaining my bottom line at the end of the year. If/when that doesn't work anymore I can always go back, work smarter not harder.

 

[Megawatt]

The easiest way I have found on the last 4 vehicles I purchased in the last three years….

Go online and screen print an extended warranty package that shows cost and that it is a manufacture approved warranty (not a 3rd party). When finance guy opens his mouth show the screen print and say can you beat this price?

3 out of 4 finance guys said they can’t even get the warranty for that price from their dealership where they work. That alone saves me 10 minutes of sales pitch. The last person actually met the price and I bought it from my local dealer. It was over $1200 savings from where she stated on the sales pitch.

Nothing wrong with some 3 rd party warranties, but you will then here them says how it’s not as good as the Ford warranty and that prolongs the sales pitch.

I buy one because of all the sensors and computers, not due to turbo possible problems.

 

[P. A. Schilke]

Hi Joe,

I hear ya! I did a 3rd party one via my Michigan Credit Union where I bank. DFCU Financial only offers things of value to their customers and I have been with them for just under 50 years now! I did so due to the electronics complexity that is beyond me in my old age to diagnose or repair...

best,
Phil

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