When you purchase an appliance – a dryer, refrigerator, or dishwasher – chances are the salesperson will invite you to add an extended warranty. Extended warranties have become extremely common for appliance retailers as they provide extra protection for costly purchases and extends the length of the product’s original warranty period. They have become popular towards thrifty customers who are hoping to get the most out of their large investment. However, are they really as good as they seem to be? Here are some of the pros and cons of getting an extended protection plan for your home appliances to consider before deciding if it is worth the money.
COSTLY APPLIANCES
The appliances in the market today are much smarter than the ones ten or twenty years ago. Most appliances now are more complicated and include sensors and computer boards. Many appliances such as water heaters have gone digital as well. As a result of these appliances becoming more hi-tech, it is now more expensive to purchase, repair, or replace them. Replacement parts can be relatively costly, as they often require expensive electronic parts to get it functioning again, such as sensors, displays, and computer boards.
PROTECTING HI-TECH APPLIANCES
Since the cost of replacing and repairing new appliances has increased significantly, many repair services encourage customers to purchase extended warranties for appliances that cost more than $800 to get a replacement. Extended warranties are especially important if the appliances have digital or electronic parts. This is because it could cost more than $200 just to repair one component. Also, a service call for a modern refrigerator can be up to $200 to $400 on average. This means that one single repair could cost as much as the extended warranty.
In many instances, a failing appliance will send many warning signals before completely breaking down. It will be ideal to service it when your appliance starts vibrating, making strange noises, or just not functioning as efficiently as before. It is cheaper and easier to fix a refrigerator that is not staying as cool as before than a refrigerator that has broken down entirely. Hence, remember not to let any problems linger and deal with them instantly to save repair costs.
WHEN WARRANTIES ARE NOT WORTH THE MONEY…
However, there are some cases where an extended warranty is simply not worth it. For appliances that are less costly, they may be unnecessary. It is definitely not worth protecting an appliance that costs around $400 with a $200 warranty. These appliances will not only be less costly to repair, but the replacement parts will be cheaper as well.
Another sign to look out for is if the salesperson is hard selling you the extended warranty, as most of them do make commissions on these warranties. They may convince you that the appliance will most likely break down a short while after the manufacturer warranty is over. Hence, if you sense that something is amiss with their sales tactic or they are being too pushy, feel free to turn them down. Do remember to also read the service contract and extended warranty properly, including the fine print. Although it makes sense to protect the costly appliances, you do not want to end up paying for a warranty you do not need.
Warranties may appear to be relatively important and essential for your home appliances. However, remember that these warranties are also calculated carefully so the company profits from your purchase. Hence, before you agree to insure your new dishwasher or microwave, do sufficient research on the cost to repair and replace, and consider how likely is the product to fail before the original warranty ends.
