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2013 Ford F-150 XLT: This best-seller now offers the acclaimed SYNC(R) voice-activated communications and entertainment system as standard equipment. (6/2/2012)
2013 Ford F-150 XLT: This best-seller now offers the acclaimed SYNC(R) voice-activated communications and entertainment system as standard equipment. (6/2/2012)

YOU & YOUR CAR

Should I buy an extended warranty for my vehicle? Add to ...

We recently purchased a new 2013 Ford F-150 with the EcoBoost engine. I am concerned about this new technology since I will run the truck a lot, accumulating approximately 50,000 kilometres per year. What do you think about extended warranties? We purchased a “lifetime” one from a Chrysler dealer on a Ram truck a while back and subsequently learned it only covered manufacturer errors. I am looking for one that covers everything major – i.e., mechanical. Is there such a thing, and if so, do you recommend it? – Lisa

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In a word, no. Extended warranties are basically insurance policies. The company providing the coverage is betting you won’t make a claim while you are willing to pay in case you need it.

In order for the company to stay in business they have to be right more times than the customer.

The trick is the fine print. What is the company? How long has it been in business – not the company that sold you the warranty, but the one providing the backing or coverage? Check it out with the Better Business Bureau. Is there a mileage restriction? How much is the deductible? What exactly is covered? Parts? Labour? Or both? Service to be provided by whom? Read it closely. Or take that money and put it in the bank or a shoebox (it’s about the same interest rate these days) to let it accumulate. Chances are you’ll have enough to pay for repairs should they be needed when the time comes.

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