Thunderbird Extended Warranties … Should I Buy One?. Almost every new-car buyer is offered an extended warranty or ESP (Extended Service Plan) when they purchase their car. Typical factory new car warranties are good for 36 months or 36,000 miles, however, many auto and truck manufacturers now include warranties for longer periods and more miles, in some cases up to 100,000 miles. Regardless of how long your standard warranty lasts, an additional warranty or service plan is almost always available … at an additional cost.
So the question is: “Should I buy one?” As with most questions regarding automobiles there is no simple answer. New car buyers don’t always consider what repairs might cost years after their purchase and are satisfied with the factory warranty. Even if a buyer doesn’t purchase one when he or she first buys the car, however, an extended warranty or service plan can often be purchased at a later date.
Extended warranties are for all intents and purposes, a form of insurance; you buy one to avoid the expense of sometimes costly repairs. Like other forms of insurance, extended warranties do provide some peace of mind, but they are not always a good investment. Extended warranties are an additional ‘profit center’ for car dealers and auto manufacturers. They offer them expecting that the ‘premiums’ they collect will exceed the amount of money they must pay out for covered repairs. Because selling extended warranties are a business, both auto makers and private companies selling them have a pretty good idea of how much they will have to pay out over time. If they were not profitable, companies would not sell them.
The question then becomes: “Are you better off paying for and having an extended warranty or saving the cost in hopes your Thunderbird won’t need expensive repairs?” Of course, no one knows the answer to that question in advance. Some T-Bird owners are more than willing to pay for an extended warranty, while others decide to essentially ‘self-insure,’ that is, bet that the cost of repairs over a given period of time will be less than the cost of an extended warranty.
There are a number of factors to consider when buying an extended warranty, including; the cost of the warranty or service plan, what is and what is not covered, how many miles you drive, and how long you intend to keep the car. Another important consideration is the reliability of the company selling the warranty and their track record for covering and paying claims in a timely manner. New car manufacturers tend to be more dependable and more customer service oriented, than private companies, but that is not always the case.
If you did not purchase an extended warranty or service plan when your Thunderbird was new you may still be able to purchase one later. It’s too late to purchase a Ford ESP for all 2002-2004 Thunderbirds, however, 2005 Thunderbirds may qualify for one if purchased within the next few months (as of August 2015). Even if your Thunderbird is not eligible for a Ford extended service plan, you can probably buy one from any number of private companies. Most all service plans and extended warranties require an inspection prior to issuance. The fee for the inspection varies, but $ 100 is typical. If your Thunderbird passes the inspection, your warranty will provide coverage for the specified period of time and for covered repairs. Items like tires, brakes, belts and hoses are typically excluded by aftermarket extended warranties. Other items like interior trim, paint, convertible soft tops and other appearance items are also typically excluded.
Most buyers of extended warranties and service plans are seeking coverage for major mechanical components such as engines, transmissions, suspension and electrical components and systems, which can cost thousands of dollars to repair. Owners must also pay a deductible of $ 100-150 or more depending on the plan, when repairs are done. Another consideration is that during the period of coverage, owners are usually required to perform regular maintenance and service. For factory warranties, the terms may specify that such service and maintenance must be performed by an authorized dealer, often at a higher cost than an independent shop or mechanic.
Some Thunderbird owners are very happy that they purchased extended service plans, having saved hundreds and in some cases, many thousands of dollars. Others consider the purchase of ESPs to be a waste of money, preferring instead to save what they would have otherwise spent and pay for repairs when and if they are needed. Some Thunderbird owners sleep better at night knowing they have coverage and won’t be shocked by the need for and expense of costly major repairs. For them, the peace of mind they get is worth all they pay.
I don’t recommend any specific private auto warranty companies; there are simply too many different plans at too many different prices, with wide variations in coverage. However, an ESP issued by Ford is almost always the best choice if it is still available for your Thunderbird. One of the more popular sources for Ford extended service plans, including the ‘Premium Care’ plan is Lombard Ford: https://www.lombardfordwarrantys.com
As with any major purchase, and extended warranties can cost up to $ 3,000 or more depending on the age and mileage of your Thunderbird, do your homework. Check with other Thunderbird owners through clubs, online forums and internet reviews and complaint boards. Speak with a representative one or more companies and ask how they handle claims, how long it takes to receive reimbursement, and how long they’ve been in business. Many states do not regulate companies that sell auto and truck warranties and service plans. And keep in mind that the representative you speak to before buying a plan is a salesperson. They have a vested interest in making their policy and service sound like a good value will assure you of good service when and if you ever file a claim.
The decision to buy or not buy an extended service plan or warranty for your Thunderbird will depend on your own personal comfort level and your finances. For some, the cost of a plan for a higher-mileage Thunderbird may be prohibitive. Shop around and make an informed decision. As always, knowledge is power.
