Extended Warranty.

[kenmyfam]

What are everyones thoughts on purchasing the extended warranty on appliances etc.
I always take the risk with most items and so far so good. The manufacturers 12 month warranty is all I ever have (as it is free) the other thing to consider as well is that most appliances etc are designed to outlast the extended warranty period with "normal" use. They are pushed by the sales people I think because they are on a commission for selling them.

 

[JRJ]

Re: Extended Warranty.

I agree with you. I've saved thousands not buying extended service contracts over the years.

 

[JB]

Re: Extended Warranty.

I have "wasted" thousands over the years on extended warranties.

On the other hand, the extended warranty on my Sony 55" rear projection lcd TV has saved me about $2,000 and counting. The optics box is going bad again (second one in 4 years) and will be replaced again. That would have been about $1600.

Back in the early 80s I bought an extended warranty on an Oldsmobile diesel. That one saved me about $4K when the engine failed.

I guess some are a good idea and some not.

 

[oops!]

Re: Extended Warranty.

it depends on the appliance......most built today are junk.....(really) they hace cheap parts stuffed into a nice shell. planned break down in a few years is certain.

years ago you could buy an appliance and odds were you would get a good one.......but today its cut cost to the bone......if they can cut costs by 2 dollars a unit.......and they make make 500,000 units.......well....they saved a million bucks !

another thing is that companies like ge built appliances to last.....they sold one or two sets to ma and pa in thier life time..........now they build then so they can sell them several sets....in the case of ge....(currently the worst washing machine on the market)...you get two years....no more.

here is an example.......fridges........the molicules in the new referigiant they are using, is smaller than the molicules in the welds. so you can be gaurenteed that in a few years the the gas will leak out and the fridge will die.

stoves.......computerized clock......put your computer on a hot....damp greasy enviroment and see how long it lasts.

i own a used appliance store, my contracts are with sears. i hear all the reports from the delevery drivers that pick up the broken product from the coustomer, ....i hear from the tech's what the problem is in the unit.....i have to buy the parts....(i just paid 280 my cost for a new clock for a 4 year old stove....repair would have been over 400 to the coustomer).
plus.....on most appliances i fix them myself....washers...dryers.....i started my company out of my carport several years ago.

having said all that,,,,,now you know why i say ....yes....buy the extended warranty

 

[NelsonQ]

Re: Extended Warranty.

....i hear from the tech's what the problem is in the unit.....i have to buy the parts....(i just paid 280 my cost for a new clock for a 4 year old stove....repair would have been over 400 to the coustomer).
plus.....on most appliances i fix them myself....washers...dryers.....i started my company out of my carport several years ago.

having said all that,,,,,now you know why i say ....yes....buy the extended warranty

Or, look for a gently used, well maintained used appliance and save some $$$ up front and skip the maintenance.

 

[Beefer]

Re: Extended Warranty.

Back in the early 80s I bought an extended warranty on an Oldsmobile diesel. That one saved me about $4K when the engine failed.

I thought my dad was the only one who bought an Olds diesel. He had the 88 I think. He got 4 yrs out of it.

I have never bought an extended warranty. I also have never had the need for one. Maybe just luck. Most of the time I figure that if something goes out, I'll upgrade to the lastest & greatest at that time.

 

[Bob_VT]

Re: Extended Warranty.

Depends on the item. Some I do and some I don't. If it costs too much to replace right away I would buy a warranty

 

[triumphrick]

Re: Extended Warranty.

The only extended warranty I ever bought was for an 80 Dodge van with a 360. The valve train failed and was repaired saving me about $1500 1980 dollars. I have yet to jinx myself again by buying another warranty!

 

[rolmops]

Re: Extended Warranty.

It really is a matter of statistics and overall investment versus replacement.
If you have six appliances with an overall value of say $6000 dollars and a life expectancy of ten years you can safely presume that 9 of those 10 appliances will last for 10 years. You can also safely presume that you will spend more on extended warranties for all ten appliances than you would spend on replacing one with your own money.Add to this that after 5 years there is probably a much nicer and better product on the market probably for less or the same money that you would have spent on the warranties.
I rest my case.

 

[kenmyfam]

Re: Extended Warranty.

It really is a matter of statistics and overall investment versus replacement.
If you have six appliances with an overall value of say $6000 dollars and a life expectancy of ten years you can safely presume that 9 of those 10 appliances will last for 10 years. You can also safely presume that you will spend more on extended warranties for all ten appliances than you would spend on replacing one with your own money.Add to this that after 5 years there is probably a much nicer and better product on the market probably for less or the same money that you would have spent on the warranties.
I rest my case.

Hear Hear !!!
That and the fact that most extended warranties are for 5 years around here anyway you save by not having it in the long run.
We bought a new washer and dryer as a package 3 years ago. Basic ones for $550 for the pair with a 12 month manufacturers warranty. Still running just fine and hopefully for another 2 years. The extended warranty for both was $240 including taxes for 5 years. So for twice the warranty price I can go and buy another new pair again if things go wrong. They wash and dry better than our previous ones that cost almost 3 times the price. My 1999 model 56 inch big screen projection TV has been used and abused for 9 years now and is still going strong. Saved a couple of hundred dollars on that one by not getting the extended warranty.
The only thing I will get an extended warranty on is a vehicle and then I talk it into the deal after we have got to the lowest price. If that does not work I go to another dealership with the price and ask to include the extended warranty in that price. Have always got it within 3 dealerships.

 

[eaglejim]

Re: Extended Warranty.

I have never bought an extended warranty,I have friends in sales in those areas and the all say that is there big money maker.

 

[fishmen111]

Re: Extended Warranty.

I have never bought an extended warranty,I have friends in sales in those areas and the all say that is there big money maker.

Very true.

 

[kenimpzoom]

Re: Extended Warranty.

It depends on if I know how to fix it and how much it costs to just buy a new one.

Sometimes they want to sell ya a 10 dollar warranty on a 50 dollar appliance. Why would anyone want that? If it breaks, just buy a new one.

However, if it is a 30 dollar warranty on a 1000 dollar item, you are probably better off buying it.

I bought a washer/dryer/refridge all at the same time at the same store. I can fix a washer&dryer but refridge (freon,compressors) are beyond my ability. I bought the warranty for the fridge, and not the washer/dryer. I alctually used the warranty on the fridge, but it was for something I could have fixed myself. Later, after the extended warranty ran out, the fridge had a a second problem with the ice maker, which I ended up fixing for about 50 bucks.

Ken

 

[Pats52]

Re: Extended Warranty.

It is almost downright a, scam.

A neighbor of mine owns an extended warranty company for exotic cars and he chuckles at the mere discussion and called them "worthless paper", they only pay out 15% of the time, there's a lot of legal mumbo jumbo buried in the warranty clause that even a fart could void it.

We always have a laugh at it and jokingly call him on it.

 

[kenmyfam]

Re: Extended Warranty.

It is almost downright a, scam.

A neighbor of mine owns an extended warranty company for exotic cars and he chuckles at the mere discussion and called them "worthless paper", they only pay out 15% of the time, there's a lot of legal mumbo jumbo buried in the warranty clause that even a fart could void it.

We always have a laugh at it and jokingly call him on it.

Ah yes, the used car warranty where the small print states that you are responsible for the diagnosis of the failure !!!! so what happens is that in reality the teardown charge for the diagnosis is exaggerated by about X2 and the warranty company chips in for the $2 seal that failed once they get to it. Mind you don't forget about your deductible !!!!
And the used car dealerships use these worthless warranties as a major selling point to their unsuspecting customers who think they are "fully covered" if anything goes wrong.

 

[tommays]

Re: Extended Warranty.

In this neck of the woods in the past the EXT were so much money i never bought them

BUT now that lowes,home depot,and a bunch of other stores are using the EXT price to compeat it makes sense in more but not all cases

 

[Philthyphil]

Re: Extended Warranty.

They would not sell it too you if they were not making money on it. IMHO

 

[jay_merrill]

Re: Extended Warranty.

They would not sell it too you if they were not making money on it. IMHO

Ding, ding, ding, ding! We have a winner!

 

[drewmitch44]

Re: Extended Warranty.

The old run around in circles warranty. Everyone points fingers as to who has to fix the problem and who is liable in paying for the repairs. The only thing I will get an Extended warranty on is a nice TV or home entertainment things that are very costly. I thought about getting the extended warranty on the riding mower I recently purchased but it did not cover anything after the normal warranty. Its a sham i think in most cases. Just my opinion.

 

[BF]

Re: Extended Warranty.

I think I paid just over $200 for 3 years of extended warranty for the $1500 washer/dryer set I bought a little over a year ago. I probably wouldn't have bought it, but it's through a big furniture & appliance place here, and the deal is that if you don't use the extended warranty, once the warranty expires, you get a gift certificate for the full amount of the warranty good for anything in the store. Now, that is brilliant marketing I think! Worked on me anyway.

I did use some of the "standard" warranty already... the washer drain pump croaked at about the 6 month mark.

Oh, and I bought an extended warranty on a car once... cost ~$1500, but got me another 5 years and up to 160K km of bumper to bumper ($50 deductible). I figure dollar-wise, I came out just ahead on that one. Car (ford contour) needed intake seals done twice, and had some other issues that were covered. When I sold that car (just out of warranty) it probably helped resale value that I had a bit envelope of the all the service records from the local dealership... guy could see it was all warranty work, and knew it had been well maintained.