This is a companion to my other thread about Kenmore vs. Whirlpool
washers, where I also posted this question:
What do the experts -- you out there who actually have hands-on
experience! -- think of the usefulness of extended warranties?
Thanks for your input.
I don't buy extended warranties for anything. I consider myself, self
insured for these matters.
They are high profit items for the sellers. Why do you think they are
always bugging you to buy them?
:> This is a companion to my other thread about Kenmore vs. Whirlpool:> washers, where I also posted this question:
:> What do the experts -- you out there who actually have hands-on:> experience! -- think of the usefulness of extended warranties?
:I don't buy extended warranties for anything. I consider myself, self
:insured for these matters.
:They are high profit items for the sellers. Why do you think they are
:always bugging you to buy them?
The only extended warranty I ever bought was for my HDTV. The warranty
included a free lamp replacement, which represented 70% of the cost. So that
seemed prudent, given the newness of the technology.
For items such as washers, dryers, ranges etc., those warranties are
generally a waste of money. I'd avoid them.
<aspasia> wrote in message > What do the experts -- you out there who actually have hands-on
Consider this. Everyone wants to sell you an extended "warrantee". The
dealer and sales person get about 50% of what they charge you right off the
top. The other 50% goes to the insurance company. Yea, it is an insurance
company because it is not really a warrantee, just an insurance policy. Now
the insurance company takes are few more dollars out for their operating
expenses and profit. The little bet left is what they have to make good on
the policies. There are a lot of companies out there doing this and most
are making good money.
They know far better than you want is it going to cost them to cover the
insurance cost. Most of the money you spend on those goes into someone
else's pocket not back to customers. They are poor idea.
I've heard that retailers make about as much profit from selling you
extended warranties as they make from the product, so that's why they
often pressure you to buy them. I never do, and I don't think I have
once regretted that decision. I don't recall a single time when an
extended warranty would have been of any benefit to me.
I have to disagree- partly. While in general I agree with what's been
posted(and Consumer Reports recommends against them), I have bought
them for a couple of appliances, and been glad I did. My wife wanted a
new style fridge a few years ago, and we got 5 yr warranty at a
discount. My family is hard on things- 3 kids, harder than training
dogs... I've had the fridge repaired 3-4 times already, partly due to
defective design- as I said, a new style(french door, bottom freezer),
but also due to careless treatment. I think I'm already well ahead,
with over 2 yrs left on the warranty.
Had a similar experience with a dishwasher, which I must admit was
largely due to poor purchase choice on my part- Maytag. Again,
though, they offered me discounted warranty, and though I'd have been
happier if I'd just bought a reliable machine, at least I haven't had
to pay for the repairs.
I'd consider them with new models of unknown reliability, or if
your kids are as rough on things as mine have sometimes been. If you
do, see if they'll give it to you at reduced rate.
I generally agree with the others about extended warranties on
appliances. I also have heard that the stores make more on the EW sale
than on the appliance. However, my folks had some friends who had a
service contract on a Sears refrigerator that was about $80-90/yr. My
mother said they never got a year out of an ice maker in it before it
had to be replaced. Dunno exactly what it would have cost to have a ref
IM replaced, but I'm sure it would probably be at least double the cost
of the contract--possibly triple. BTW, to the OP, $170 for a top load
washer lid switch assembly seems awfully high. That should be a fairly
easy DIY, and I would think the part would be about $25 or so. Larry
On Sat, 30 Sep 2006 19:26:12 -0500, email@example.com (lp13-30) wrote:
:mother said they never got a year out of an ice maker in it before it
:had to be replaced.
I wouldn't buy an icemaker with my refrigerator. They are notorious for
failure and I don't live where it's that hot, anyway most of the time. I
get all the ice I need from good old fashioned trays.
Taking my weekly paycheck to the casino and placing it all on a roulette wheel
bet would be a stupid thing to do. The fact that a few guys can tell a story
where they did just that and won does not change the fact that it is a stupid
thing to do.
Nobody would make the point that buying an extended warranty will NEVER pay off.
However; it is certainly true that if you NEVER buy them for anything that all
of the money saved will be more than the one or two times that you have a
failure that would have been covered. They cover the timespan where the
appliance is least likely to have a failure.
Generally product protection plans and maintenance agreements are a rip
except in a few cases. If you know how to do it, you can really stick
it to the man. I used to work at Sears selling computers and hardware
for a few years and they strongly pressured us to sell them. I sucked
at pushing them because I didn't believe in them - mostly. They used
to hold special (MA/PPP) meetings with charts and graphs and sales
percentages by name. That crap always annoyed me to no end. That, and
our 21% interest store card. Those things are just predatory.
So here's my rule of thumb. Some products will need to have parts
replaced through normal use. These products include items like
cordless tool batteries, table saw blades, roller blade brakes, wet/dry
vac filters, etc. When asked about the protection plan, ask if the
expendable parts are covered too - they usually are. If yes, then look
at the cost of the plan, the cost of the replacement part, and the
number of times you think you'll need that part over the plan's
lifespan. Also check to see if the plan includes full product
replacement or just part replacement.
In 1994 I bought a craftsman cordless drill with a protection plan and
returned it every two years for a new one because the batteries were
losing capacity. The computer system at the time would automatically
offer me the ability to buy a plan with every exchange and I always
said yes and shelled out the $15.00 for another two years. The plan
was a full replacement, so I kept getting the latest cordless drill
models. I did this until 2002 when I finally had to quit because the
sales guy wouldn't sell the new plan to me. He said it was against the
rules or something stupid like that.
Lastly, if you buy one, don't ever lose your receipt. This is most
important because the store isn't going to try to keep your plan on
:I have to disagree- partly. While in general I agree with what's been
:posted(and Consumer Reports recommends against them), I have bought
:them for a couple of appliances, and been glad I did. My wife wanted a
:new style fridge a few years ago, and we got 5 yr warranty at a
:discount. My family is hard on things- 3 kids, harder than training
:dogs... I've had the fridge repaired 3-4 times already, partly due to
:defective design- as I said, a new style(french door, bottom freezer),
:but also due to careless treatment. I think I'm already well ahead,
:with over 2 yrs left on the warranty.
: Had a similar experience with a dishwasher, which I must admit was
:largely due to poor purchase choice on my part- Maytag. Again,
:though, they offered me discounted warranty, and though I'd have been
:happier if I'd just bought a reliable machine, at least I haven't had
:to pay for the repairs.
: I'd consider them with new models of unknown reliability, or if
:your kids are as rough on things as mine have sometimes been. If you
:do, see if they'll give it to you at reduced rate.
In my case, I tend to be careful with my purchases and in most cases
won't be overusing them. In particular this goes for my refrigerator.
I've had mine ~ 6 years and I figure on a scale of 1-10 my usage is
around a 2. If I had a big family, etc. I might consider it for some
purchases, such as you suggest.
Of course, the fact is that with most items, if there's a problem in the
manufacture of it, it will become known to the purchaser before the
original warantee expires. Most warantees I've seen stipulate that they
cover defects in manufacturing only, not failure due to usage. An
extended warantee then seems pretty dumb unless it's practically for
Once had my department manager tell my that if I couldn't sell an extended
warranty with the appliance, not to sell the appliance as the company lost
money on the sale. I've seen fellow salesmen walk away from the customer
and not return when it became obvious that the customer would not buy the
Good example of why I <hate> dealing with big-box appliance dealers. Buying
a dishwasher last year, just going around checking prices on entry-level
units, and one sales droid insisted on giving me a high-pressure pitch to
'buy today'. As I was walking away, he said 'You'll be back- they always
come back'. I ended up buying elsewhere, probably for ten bucks more or so,
simply because he pissed me off. It was worth it to deny him his commission.
In my experience, and in previous threads on line, the consensus seems to be
that sales droids are required to pitch the warranty 3 times per sale. It
gets absurd at times- I have been pitched warrantys on 10-buck remote
controls and 20-buck box fans. Yeah, right.
The only time extended warranties <might> make sense is on goods that are
sold installed, or are bleeding-edge technology. Otherwise, 'self insure' by
keeping enough cash in the bank to replace the item with a different brand
if it craps out. Very much a profit center for the dealer. If you can't
afford the risk exposure of repairing an item you buy, well, mebbe you
should rethink the purchase.
I have heard this from friends kids who worked at places like Best Buy
where they pay Walmart class wages. They said they had to count on
getting their $2~5 share of the extended warranty to make any money and
if it looked like someone didn't want to bite they would ignore them.
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