Extended warranties on washer & dryer?

[Tiger926]

Originally Posted by Lewisc

Tiger926 keep drinking the kool-aid.

You say extended warranties are prevalent because circuit boards break. Last time I saw statistics less then half of consumers purchase one. The issues is retailers, who make little profit on the item, are making salespeople push the profitable warranties.

You bring up an example of your Bosh dishwasher. The unit comes with a manufacturers warranty, parts and labor, for an entire year. Circuit boards are covered for 5 years (parts). Intelligent consumers listen to publications like Consumers Reports and just say no.

You talked about appliances lasting 25 years. Why don't you price out an extended warranty for years 11-25? See what the warranty company wants to charge you after 5 years, assuming they'll even cover the item.

I'll give you an exception. You decide to buy an item which is know to be less then reliable. You buy it because it best fits the space, has some feature you can't live without or because you want to be the first on block to buy a XXXXX TV set. A new type of TV set, big screen but without a track record.

Mass production doesn't mean lower quality. Using plastic parts instead of metal parts might.

Computer program in a circuit board? If the problem is with the software it will affect every item and will led to a recall.

I'll concede the computerization means your local repairman might not be able to repair the unit. The cost to replace a circuit board isn't cheap. Fortunately the better manufactures extend the warranty for those parts so consumers don't have to purchase an extended warranty.

Some credit cards double the mfg warranty. They can do that because a unit which doesn't break during the warranty period is unlikely to break in the second year.

Goodness, how rude. I hate drinking the koolaid comment.

You also lost me at Consumer Reports. Don't read it, nor trust much of what it says.

Didn't say I would buy an extended warranty for 25 years. Who the heck would do that? Sears also lets you add extended warranties years after product has been purchased, and they now give you back the warranty cost if not used by the end of the warranty period. This is how it is for us in Canada - not sure if that is how it is there, but that is how it works here.

Already said, we have a spreadsheet and research each item before we determine if the extended warranty is useful. Don't have them on dryer, lawnmower, snowblower or treadmill for example as we paid for them on our Gold VISA (extended warranty coverage), and these items are pretty solid and reliable. Have them on the other items that have circuit boards/digital displays, such as HE washer, over range microwave and dishwasher as these have higher failure rates.

It's all about research to determine if that particular extended warranty price/coverage is worth it for that particular product.

Originally Posted by ssawka

ITA! And their products are not as good as they used to be. We replaced many of our appliances with Kenmore, because that's what my parents used to always buy. Well, we've had nothing with problems with many of them. Maybe it is just due to the "planned obsolescence" that everyone speaks of.

Kemore products are made by the major manufacturers - Samsung, Whirlpool, LG, etc. It is just like Costco's Kirkland line. You can find out with any Kenmore product who the actual manufacturer is.

Tiger

[furb & dez]

Originally Posted by Tiger926

You also lost me at Consumer Reports. Don't read it, nor trust much of what it says.

"I don't trust those people who back up their findings with facts, impartiality, research, or follow up! HUMBUG!"

[Tiger926]

Originally Posted by furb & dez

"I don't trust those people who back up their findings with facts, impartiality, research, or follow up! HUMBUG!"

Used to subscribe, but not anymore.

It's great that they aren't paid by the manufacturers and actually go out and buy the products retail, but they also only test for a very short period of time, have made some serious errors in the past (car seat debacle) and seem to be biased toward certain brands and manufacturers. I know some of their testing has resulted in manufacturers making safety improvements to products, but I think there is more room for improvement, so I don't use them as a guide in purchasing products.

OP could possibly check out CR for advice on extended warranties, but not sure if that is something that could actually be tested or validated, so not sure if that info would be available to help the OP?

Tiger

[Lewisc]

Originally Posted by Tiger926

Goodness, how rude. I hate drinking the koolaid comment.

You also lost me at Consumer Reports. Don't read it, nor trust much of what it says.

Didn't say I would buy an extended warranty for 25 years. Who the heck would do that? Sears also lets you add extended warranties years after product has been purchased, and they now give you back the warranty cost if not used by the end of the warranty period. This is how it is for us in Canada - not sure if that is how it is there, but that is how it works here.

Already said, we have a spreadsheet and research each item before we determine if the extended warranty is useful. Don't have them on dryer, lawnmower, snowblower or treadmill for example as we paid for them on our Gold VISA (extended warranty coverage), and these items are pretty solid and reliable. Have them on the other items that have circuit boards/digital displays, such as HE washer, over range microwave and dishwasher as these have higher failure rates.

It's all about research to determine if that particular extended warranty price/coverage is worth it for that particular product.

Extended warranty companies have done the research and set the prices accordingly. Products that have high failure rates are likely to have higher costs.

Treadmills have circuit boards. Many of us have treadmills which will never need to be repaired. They're unplugged and only used for storage. People I know who actually use their treadmill swear by the extended warranty. Treadmills have circuit boards. They also have parts like belts and motors which tend to wear out with use.

[Tiger926]

Originally Posted by Lewisc

Extended warranty companies have done the research and set the prices accordingly. Products that have high failure rates are likely to have higher costs.

Treadmills have circuit boards. Many of us have treadmills which will never need to be repaired. They're unplugged and only used for storage. People I know who actually use their treadmill swear by the extended warranty. Treadmills have circuit boards. They also have parts like belts and motors which tend to wear out with use.

Thanks for proving my point!

Your friends, I would assume, did their research in determining whether or not the extended warranty was a benefit to them in the purchase of their treadmill. I'm sure they considered cost of treadmill, original warranty period/coverage, cost of extended warranty, usage, etc.

We did the same thing. We got a blowout deal on our treadmill from $1600 to $700, and it came with a 2 year warranty. Sears wanted $150/year for the extended warranty, so not worth it based on price, our usage and cost of product. Our treadmill does not get heavy usage at all, and is stilll going strong after 12 years. I have family who spent $2500 on a treadmill, and based on the aforementioned factors, and the fact that the extended warranty cost was way cheaper, they opted for the extended warranty, as did your friends.

OP asked a generalized question about whether extended warranties are worth it, and so without knowing all of the factors applicable to her item (she gave us price of warranty), I can't determine whether it's worth it for her on that item or not.

There are many on here who are biased and have determined that all extended warranties are not worth it, and that is their choice to do so. I don't work through my decision making process like that - I take each item into consideration, on a case by case basis, and consider all of the factors I mentioned, as well as the fact that Sears lets us add extended warranties at any time into the product (we always add ours right before the manufacturer's warranty is up), and we determine the length of that term with the help of our spreadsheet. Perhaps this is how the OP can work out her extended warranty? We are smart consumers who use the extended warranties to our advantage.

Good luck OP! Tiger

[ilovemk76]

Originally Posted by North of Mouse

I feel like appliance warranties are a big rip-off (hence the reason they push them so much - a big money maker for them)

We have 45 yrs experience with all appliances and have never purchased, or needed, extended warranties. Don't forget that you do get warranty already that would cover a *lemon*. These things usually show up fairly quickly.

We're on our 2nd FL washer (Samsung) love it, never had any problems, odor, or otherwise.

When salesmen try to push warranties on me, I just tell them I've done my research, and if I didn't think their product wouldn't last beyond a year, I wouldn't have purchased it in the first place. That usually gets their attention, and they agree and shut up.

We never buy the warranty. Our front loaders were $2200 and are 6 years old. Not a single repair.

We have a huge capacitor on our electrical box. It will blow if we get a surge from lightening. Before we put it on we lost and air handler and DW to lightening. Our homeowners insurance took care of them.

We always use a CC with the free extra year warranty when we buy an appliance. After two years we know if we have a lemon or not.

[Lewisc]

This is the budget board. Extended warranties rarely make sense. The plans are priced in order to be very profitable to the store. Virtually every publication, including Consumers Union has the same opinion. It's not like insurance. You buy homeowners insurance because you can't afford the cost to replace your home if it's destroyed by fire. We can afford to replace our TV sets and microwaves.

I'll give you some exceptions:

1. You plan on selling your car privately. A transferable extended warranty can improve your resale value.
2. You're buying a specific brand/model with a poor history of reliability or unknown. You're buying a newly designed TV set.
3. You know you'll be using the item far more then is typical and it's an item with moving parts. Something that's likely to wear out break with use. Just check the exclusions first. My treadmill example.
4. Occasionally a retailer will offer an extended warranty at an exceptional price. Still probably not a great deal but debatable. An example. COSTCO doubles the mfg warranty to 2 years on TV sets. The extended warranty they sell starts after the 2 years. You get a total of 5 years for $100 (for sets costing over $1000)

Use a credit card which doubles the warranty. AMEX is considered the best. Buy an item which has good reliability. Chances are a lemon will break during the original mfg warranty period if not the credit card coverage gives you added protection.

Some (most?) credit cards only double the MFG warranty, not an extended warranty. Buy a 3 year service contract and you're only adding one year. The first year is covered by the mfg warranty, the second by both your credit card and extended warranty and the third year is covered by your extended warranty. The salesmen will tell you your 3 year extended warranty starts after your credit card coverage. Read the fine print. Usually not.

I've only had one circuit board break on an appliance. A Vizo TV set. HDMI port stopped working after a few weeks. Mfg sent a technician to my house. People who are having a lot of issues with appliances with circuit boards might want to check their power. May have issues.

[Tiger926]

Originally Posted by Lewisc

This is the budget board. Extended warranties rarely make sense. The plans are priced in order to be very profitable to the store. Virtually every publication, including Consumers Union has the same opinion. It's not like insurance. You buy homeowners insurance because you can't afford the cost to replace your home if it's destroyed by fire. We can afford to replace our TV sets and microwaves.

I'll give you some exceptions:

1. You plan on selling your car privately. A transferable extended warranty can improve your resale value.
2. You're buying a specific brand/model with a poor history of reliability or unknown. You're buying a newly designed TV set.
3. You know you'll be using the item far more then is typical and it's an item with moving parts. Something that's likely to wear out break with use. Just check the exclusions first. My treadmill example.
4. Occasionally a retailer will offer an extended warranty at an exceptional price. Still probably not a great deal but debatable. An example. COSTCO doubles the mfg warranty to 2 years on TV sets. The extended warranty they sell starts after the 2 years. You get a total of 5 years for $100 (for sets costing over $1000)

Use a credit card which doubles the warranty. AMEX is considered the best. Buy an item which has good reliability. Chances are a lemon will break during the original mfg warranty period if not the credit card coverage gives you added protection.

Some (most?) credit cards only double the MFG warranty, not an extended warranty. Buy a 3 year service contract and you're only adding one year. The first year is covered by the mfg warranty, the second by both your credit card and extended warranty and the third year is covered by your extended warranty. The salesmen will tell you your 3 year extended warranty starts after your credit card coverage. Read the fine print. Usually not.

I've only had one circuit board break on an appliance. A Vizo TV set. HDMI port stopped working after a few weeks. Mfg sent a technician to my house. People who are having a lot of issues with appliances with circuit boards might want to check their power. May have issues.

Why do you say AMEX is the best - VISA and Mastercard are great as well.

The thing with credit card warranties is that you must put the entire purchase on the card. If you use a gift card, promo such as scratch and save, or rewards certicates of any kind, that credit card extended warranty is null and void. This is how it is with all three of our platinum/gold VISA, AMEX and Mastercard credit cards.

So again, one has to do the math on whether or not it is worth it. I can show you our spreadsheet and the repairs and yearly maintenance we have had done, and we are ahead with our extended warranties thus far. We have made money on them up to a certain point (haven't reached that point yet on any of the appliances, but several are coming up for renewal and we will not be renewing the extended warranty due to the age of the appliance and the cost). OP would have to do a similar spreadsheet in regards to determining if it is worth it or not, as it's not good decision making to work in absolutes - it's not simple yes or no if an extended warranty is worth it or not.


And we don't buy extended warranties because we can't afford to replace our appliances, on the contrary. We don't see it being environmentally sound to continually have to replace items just because they are broken. That is the disposal way of thinking, which North American society seems to perpetuate on. We would rather get an item repaired then throw it in a landfill. Sure it may cost us more money, but it is better for the environment as well.

Good advice to check power - been there, done that, and it was the over range microwave. Been through 3 of them with very little usage, but they are notorious for problems. If we build another home, we will never put one in again.

Best of luck to OP in this informative thread! Tiger

[ssawka]

One comment about extended warranties. Even if you are considering buying one, do not let the sales person talk you into one on the spot. Most retailers will give you up to 30 days to add the extended warranty. This gives you a chance to go home and "run the numbers". When making the purchase, ask the sales person how long you have to add the warranty.

[Lewisc]

AMEX is considered the best because it gives you an extra year on top of a mfg warranty up to 5 years and will generally cover mfg refurbished items. MC doesn't extend the warranty if the mfg warranty is more then 12 months.

You can make all the spreadsheets you want. Buy an item which is reliable and the warranties don't make sense.

[North of Mouse]

Originally Posted by ssawka

One comment about extended warranties. Even if you are considering buying one, do not let the sales person talk you into one on the spot. Most retailers will give you up to 30 days to add the extended warranty. This gives you a chance to go home and "run the numbers". When making the purchase, ask the sales person how long you have to add the warranty.

I agree - also they tend to *down play* the fact that you DO have some warranty on the product without buying extra.

[ssawka]

Originally Posted by Lewisc

Extended warranties rarely make sense. The plans are priced in order to be very profitable to the store.

Just like insurance! All insurance policies are designed to be profitable to the company. The company is basically making a bet. They know that a certain percentage of all policies sold will have a claim, but if a large percentage of the policies never have a claim then the company will be more profitable. Does that mean that the policy is not beneficial to the policy holders that do have to make a claim?

It's not like insurance. You buy homeowners insurance because you can't afford the cost to replace your home if it's destroyed by fire. We can afford to replace our TV sets and microwaves.

Maybe, maybe not! Many families have to save for a long time to afford that TV set or Major appliance. If it breaks, how long are they willing to go without the item while they save to replace it? At least with a long extended warranty, they can repair or replace the item fairly quickly.

That being said, we do not buy extended warranties on most items, but we do on some. We look at a number of factors: how much is the warranty in comparison to the cost of the item? How long are we willing to go without the item if it should break? Also, with a renewable warranty, how long have we had the item?

For example, we had an extended warranty on our refrigerator because you don't only have to worry about the cost of the refrigerator, because you can only go so long without a refrigerator. For us, the extended warranties have been a mixed bag. Some of the products we were really glad we bought the warranty, for others not so much!

[Tiger926]

Originally Posted by Lewisc

AMEX is considered the best because it gives you an extra year on top of a mfg warranty up to 5 years and will generally cover mfg refurbished items. MC doesn't extend the warranty if the mfg warranty is more then 12 months.

You can make all the spreadsheets you want. Buy an item which is reliable and the warranties don't make sense.

Our Gold Visa does the same - but that is here in Canada.

We only buy reliable items, and yes, despite your disbelief, they still do have issues.

Tiger