Is it worth getting extended warranty?

Question

On appliances it is $129 each for 4 years for a fridge and stove, and $99 for dishwasher. Is $357 worth it for 3 appliances?

Costs like $230 for a 32" LCD TV for 2 years warranty. Is that worth it?

Answer 1

Companies offer those warranties because they know their products will easily last that long, trouble free. You are giving them more money by purchasing those warranties.

Answer 2

If buying a brand new car, it comes with at least a 3-year general warranty and at least a 4 or 5 year warranty on the drive train. So, if you think you'll trade the car during that time, there's not much need for another warranty -- unless it covers things the manufacturer's warranty does not. It's best to wait until your manufacturer's warranty expires, and then buy the extended warranty if you decide to keep the car for another 3 years or so.

Answer 3

Generally, extended warranties are just another way for a company to separate you from more of your money. Also, especially in electronics, if you are going to have problems with the item, it will show up very early in the product's life and can be taken care of under the manufacturer's warranty. These warranties do not include anything but defects in material or workmanship. Breakage, water damage, abuse and/or acts of nature are excluded.

The items you have named are not worth the extra expense. For instance TVs which are not problemistic within the first year will average over ten years before they need to be replaced. And TVs are more apt to be replaced after 5 years to gain more modern features. It is the same for almost all the items you have listed.

In certain circumstances, extended warranties actually pay for themselves. These are usually high physical usage items, usually tools and especially battery operated tools and especially if it is a replacement warranty, where the entire product is replaced.

Answer 4

We had a friend in the large appliance sales business, and he told us in confidence that extended warranties on these items - and I frankly believe it applies in general to large ticket purchases - are a waste of money. For the most part these items are thoroughly tested off the production line, and any fault that is going to develop is likely to do so way on down the road, or not at all. He said the statistics indicated that the overwhelming majority of faults that do occur, do so within the regular warranty period during which they are covered anyway. It's really like taking out an insurance policy with one hefty upfront premium, that you will never need to invoke. I actually bought a very expensive Maytag Neptune washing machine that turned out to be a lemon. After they kept on sending their official repair guys over to try and fix it, and everything failed, they simply replaced it. I had no extended warranty, and simply reminded them that they had a name and reputation that it wasn't worth the cost of replacement to risk tarnishing.

Answer 5

Not in my opinion. I figure if anything i by is faulty, I'll know about it within the first 90 days.
Those warranties are just a ploy to get even more money out of you when the repair cost could be as much if not less than the price of buying that warranty. You may notice certain stores will act like you're nuts not to get it....that's just "sales by fear", and it's a pretty bogus tactic.

Answer 6

If it wasn't for an extended warranty I wouldn't be typing this to you, my computer hard drive crashed 2 mths before the warranty run out, they replaced the hard drive, picked up and delivered my computer by courier at no cost to me.
I have also in the past had a television replaced on extended warranty. I know it may seem like wasted money if you don't use them, but I am thankful in my case that I did.
I guess it depends on the cost of a replacement where you live if your items do have problems.

Answer 7

No, not from the store. If its from the manufacture, yes. The store always finds some way to get out of it. Don't forget to send in the register card to the manufacture this is to give you warranty for at least a year sometimes more. I believe you can also do it on line these days.

Answer 8

Extended warranties are a waste of money for the consumer and a big money-maker for the retailer.

Answer 9

I never buy the warranties. The manufacturer gives you a 1 year guarantee. After that, repairs seldom cost that much. (Privately, salemen know that the warranties are rip-offs.)

Answer 10

No its not . I work at Sears and have sold electronics. We work off comission and thats where we make the most $ at. There is a lot of fine print and stipulations involved in these service agreements.