Thoughts on 5 & 10 year warranty on appliances

16 years ago

Just wondering what everyone thinks about the 5 & 10 year warranties on appliances. We have a connection into a big appliance store so the warranties are available at a lower price. Do you think they are more important on some types of appliances than other? Or are they all just a waste of money? I really like the look of the kitchenaid slide in range and have read all the problems in the past. I am hoping they have fixed it. If I decide to get that brand I may spring for the extended warranty just in case. Appreciate your opinions.

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Comments (9)

weissman
16 years ago
In general extended warranties are not a good deal - more profit for the dealer. It also depends if the warranty is from the manufacturer or a third party - third party warranty companies have been known to go out of business - leaving you high and dry. Of course, you'll hear from people who made out well on their extended warranties - but in general you're better of putting the money in the bank and using it for repairs if necessary.

One word of advice - don't buy an appliance with a bad repair record and figure that the extended warranty will make up for it. It's not just the cost of the repair but the inconvenience of not having the appliance working and having to wait to get it repaired.
cpovey
16 years ago
Ditto weissman. Remember Montgomery Wards? When they went bust, all of their warranties, regular and extended, became instantly worthless.

Consumers Reports only recommends extended warranties right now for laptop computers. Until this year, they used to recommend them for big TV's, but in general, even they have proven reliable enough to not need the extra warranties.

Keep in mind that some credit cards double the manufacturers warranty. This can be a good deal, requiring only keeping/filing some paperwork to get the coverage.
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I think what the original post says is that warranties that home buyers get, either at their expense or the seller's, to protect against the cost of repairing appliances in the home that they bought have so many small print exceptions that they, in effect, pay for nothing or very little that is likely to go wrong during the period of protection. It is nice to have a feeling that, after you plunk down a lot of your hard earned money to buy a home, that you're not suddenly going to have to spend a lot more, when you can least afford it because you're now low in cash reserves, to fix or replace a dishwasher, refrigerator, or whatever. It's nice to have that peace of mind. Apparently that peace of mind is an illusion. Insurance companies have written in small print that effectively excludes nearly all appliance repairs that are likely to come about. Lots of luck. This reminds me of the "extended warranty" hoax that the insurance industry has foisted on buyers of new cars. Those policies typically say that they will pay for all kinds of things that can go wrong after the manufacturer's warranty expires. Don't believe it. It's a scam. After paying hundred of $$$, or even more, you'll find that, when something in the car needs to get fixed, it's not on the list of things that's covered by the warranty. What's on the list? Things that never, never break.
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yesdear
16 years ago
Our very reputable appliance store is offering us a 5 year third-party warranty on an $8600 CornueFe range and $8400 Liebherr refrigerator for $99 each item. Both are beautiful, European and potentially expensive to fix. Normally I am allergic to extended warranties, but this deal seems well-priced...? Thoughts??
laney50w
16 years ago
Warranties are a good idea, DEPENDING on what you're buying, and also depending on how long you want to be trouble free.

I know, a lot of people don't buy them, and say they're a waste.....Consumer Reports said "blah blah blah"...Yeah, it's true, some warranties are not worth it, (I agree) but, some are!

I used to be an appliance dealer (18 yrs), and now work for one. We sell extended warranties. Most people tend to purchase an extended warranty on items like high-end appliances, FL Washers, and Televisions, because the repair costs on a flat screen TV can make you keel over.

It's a personal decision, but, I have them on my more expensive items. I have a 50" Flat Screen, and I purchased the best warranty I could. I also have a Duet washer pair, and got it for the washer only. Dryers are usually cheaper to repair, and less things to go wrong with them.

It was a personal decision, but, for me, it was also peace of mind. Plus, I want my washer to stick around for a long time. I love that machine!!! (Love my TV too!) :)

The problem is that in 2006, every appliance company went to a ONE YEAR WARRANTY only. No more 5 yrs on this, 10 years on that....NOTHING! Just one year, parts & labor. And, for some people, that's an issue, and they want to be protected. So, now, extended warranties are being offered.

Again, do you need to have them on everything?....Certainly not. But, it can be a good idea to get an extended warranty on SOME items.
dadoes
16 years ago
That's not correct. My neighbor bought a KitchenAid SxS refrigerator last year (2007) that has a 10-year (limited) warranty on the compressor.

Fisher & Paykel has a two-year warranty on all their products, far as I'm aware.
berryberry
16 years ago
Extended warranties are big money makers for appliance stores. They are not a good deal for consumers. A store like Best Buy makes far more profit on warranties and high priced accesories (ie overpriced speaker cable / connectors for HDTV's) than on the appliance / TV/ Etc itself.

Stay away from extended warranties. The odds are not in your favor
amirm
16 years ago
Great advice is given. If you still feel tempted, do this. Take the total amount you would spend on the Warranty and put it in a bank account. Then if you need a repair, take the money out of that. That way, you become your own insurer like most big companies and save the mark up from appliance store and people providing them. And you get to decide who fixes the unit.

Or, keep the money in your regular account with the end result of saying no to the extended warranty :).
paul_ma
16 years ago
Third party warranties are, at best, *insurance*. They spread the risk across all the buyers. On average everybody pays more than the cost of maintaining their appliance - often a *lot* more because much of the money goes into profit.

And that is the best case. Some of these outfits are really structured to make it impossible to claim on the warranty.

Insurance is still worthwhile if the cost of an improbable event would be catastrophic. But in the case of appliances, the worst cost is a total replacement. If that wouldn't be crippling to you then the warranty is probably not worthwhile.

The situation may be different with first party (manufacturer)extended warranties. The manufacturer has some stake in keeping its reputation clean. (Though you start to wonder when you see what has happened with Maytag.)
guadalupe
16 years ago
The problem with extended warranties on appliances is that the servicing company more likely than not will be A&E, even if you buy a GE extended warranty. They all seem to farm it out to A&E. Problem is A&E should be jailed, they can't fix anything, they don't show up for appointments and to top that off they are rude and talk down to you

Thoughts on 5 & 10 year warranty on appliances

Comments (9)

weissman

cpovey

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yesdear

laney50w

dadoes

berryberry

amirm

paul_ma

guadalupe

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