My buddy has an 05 GT and he bought the 6 year 75,000 ESP warranty. We were talking today and he said he might cancel the ESP b/c he's modded his GT so much that Ford would probably just reject the claim. I'm not sure if the dealer figured the return wrong or what but when he asked how much his refund would be he was told 95 cents LOL. So much for paying 1500 dollars for an ESP and basically not using it (since the factory warranty is still has about 5,000 miles left on it).
He literally laughed out loud when the dealer told him the refund amount. I knew it wasn't going to be good then lol
That isn't right. The ESP refund is supposed to be pro-rated. Should be quite a bit more than that. He needs to check into it deeper.
I have gotten a refund on an extended warranty. It should be prorated. You should get more than a $1,000 at least, especially if the factory warranty is in effect. Tell your dealer you want to talk to a customer service representative from Ford if he keeps telling you the same crap.
The dealer told him $1495(price of the warranty) / 75,000 (number of miles the plan covered) * 42 (number of months he had left on the plan) which is actually 83 cents?
The dealer will be hesitant to refund any amount left on the warranty term, since they have derived income from it. This is why they call any refund amount the "unearned portion" of the warranty . It really depends on the warranty refund terms. Some do not even allow pro-ration after 30 or 60 days. Who is the warranty company? Does your buddy have the actual contract that he received? When I requested a refund, I submitted an email to both the issuing dealer AND the extended warranty company. As Tony and Stan mentioned, there should be a refund. The pro-ration is usually based on miles driven or months remaining whichever yields a smaller refund of the dealers "unearned" portion of the premium paid. Also, if there is a loan on the vehicle, any refund is usually sent to a lien holder for principal pay-down. Most of us have found out that the extended warranties are usually more a gimmick than useful. I usually get them when I get a used car to cover most items while I ensure the vehicle is not going to blow-up. Once, it has been given the one-over, I cancel the coverage and apply the refund to the principal on the loan.
I was assuming it was a Genuine Ford Warranty. That is the only kind I would even consider if you want your dealer to honor it.
Not sure, Stan. I came to it thinking it was a brokered ESP. Fang, there are companies that will cover vehicles with over 100,000k. Rare, but they do exist and people will spend considerable money on them. http://www.carwarranty.com/ is one of the best. They carry reinsurance with A.M. Best Insurance Company - who is "A" rated in the industry and they are rated and verified with Duns & Bradstreet. Other then them, I would personally consider the residual junk and you would be better served saving money to pay for repairs.
I agree with that. Buy the ford warranty or bank the money for possible repairs. Then again, I generally don't believe in extended warranties.
