I bought a Kenmore refrigerator a year ago and the warranty just expired. I just got an offer in the mail for a service plan that costs $105/year. Is this worth it? I did have a little problem with my compressor being off balance and had a tech come in and recenter it a couple of months ago.
If they are selling it for $105.00 per year they are figuring it is going to cost them less than $50.00 to service it. In other words if you put $50.00 in the bank every year, chances are you will come out ahead. Remember they are professionals at taking your money and not providing you much service. If it needs work, good chance what ever it is is not covered or you have a $50.00 deductible on a $65.00 repair.
Are they offering it to you because they want to help you or do they want to make a profit?
Some people like extended warranty for the piece of mind, but I've never bought one and I'm many $$$ ahead.
Run! Forest, RUN!
-- Oren
"My doctor says I have a malformed public-duty gland and a natural deficiency in moral fiber, and that I am therefore excused from saving Universes."
I'd say ALL profit.
Or they buy on impulse, standing in line. They should have a lawyer with them. Once, a point was made here that they won't allow you to read the warranty standing in line at the cashier.
I tried it after that when I was offered an extended warranty. "Maybe, let me read it!"
Just the look on the cashier's face was worth it :)
-- Oren
"The voices in my head may not be real, but they have some good ideas!"
Your extended warranty should have been arranged at purchase time by using a Platinum credit card. Most will double the Mfg. warranty up to one additional year.
Putting the $52.50 into an interest bearing "appliance account" each year, as recommended earlier, will put you ahead at this point. Use a high interest account like ING Direct for even further savings.
Rob
I bought a mouse pad at Best Buy for $2.98. The check-out clerk offered me an extended warranty (one year) for $4.95.
Mutter-mutter. What to do? Why do they have to make things so COMPLICATED?
Thanks, I'll have to try that one myself. Anyway, I usually just take my chances and waive extended warranties and dont even think about it if the item is under $1000 anyway. Recently a Circuit City employee told me to make sure I intentionally "break" my Garmin in a couple years, so I can get a new one free on the warranty, after my wife insisted we needed the extended warranty. Will I remember to intentionally "break" my Garmin next year, probably not, so it was a waste of money. The salesperson suggested I just break a wire inside the unit, then make the claim, they'll replace it free with the updated map package.
Circuit City stocks are down!
-- Oren
"If things get any worse, I'll have to ask you to stop helping me."
I bought a freezer from Sears and just today I got the same kind of mail pushing service insurance. What a joke. The insyrance is only good for 3 years max. The copmpressor is guaranteed for 5 years. So what are they covering for the
3 years? The hinges and latches maybe. I thew therir offer awayI was told by the service tech that came to my house to fix my fridge that the compressors were not covered by the warranty and they are built only to last 3-5 years and to replace them costs as much as a new fridge. Planned obsolescence is what he called it. Pretty sad that I'm going to have to throw away a perfectly good fridge in a couple of years because Sears needed a way to forecast recurring profits. Does anyone know of a company that makes replacement compressors for less? Seems like a good business to start to steal away profits from these greedy short-sighted corporations.
I was going to purchase a fridge from Sears, but I wanted the extended warranty.
The Sears warranties are way overpriced. I got the fridge from Home Depot. Paid $99 for 5 years for the extended warranty. I figured I could afford $20/yr.
IMO, the service tech is full of crap. Read the warranty. Most compressors last well over 10 years. Yes, replacements are expensive and labor is high for the job as it is time consuming. If you have a cheap fridge, just buy a new one, but if it is high end, it would pay to replace it.
I did notice that Sears does not publish the warranty on their web site. They must be hiding something. Damned if I'd buy from them.
... Sears will repair the sealed system... free of charge..."
Charlie
hell no.
IMHO; no. fridges generally pretty reliable. However we do all our own repairs except refrigeration and/or a major car engine rebuild. We have a Kenmore fridge well over 20 years old that has had only one problem. The defrost timer failed. Replaced it ourselves for about $35. had to wait a week for Sears to bring in the part. Am surprised at only one year warranty! If you have bad luck the fridge may only last another 5 years. Five times $105 = at least half a new fridge. With good/normal luck you'll get 10 to 15 years out of it. Say 12 years? Twelve say times $105 = 1260. Stick $105 a year into a savings account and at end of twelve years you'll have $1260 plus interest of approx. $300. Around $1600! PS. Our fridge was originally 'Harvest Gold' (That will tell you how old it is!) it's outlasted several stoves. Mostly used ones. We had fridge repainted white some 20 years ago to match other appliances. Nowadays we stick with white ones.
Most extended warranties are GREAT money makers for the company. I'd decline.
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