Thoughts on Extended Warranty

[Davey]

We have a Hotpoint Dryer, six years old, and which was 'Fixed' under the free Prevention of Fires plan, some months ago. It works fine, but is now in what I would call the 'risky' part of its life cycle. I have received an offer from Hotpoint for an Extended Warranty, which would cost me £5.15 per month, for a contract period of one year. It allows for a replacement of the machine if it breaks down and cannot be repaired. So far, so good. But it states that, if it is replaced, at Hotpoint's discretion, then not only does the warranty cease, which is fair enough, as the new machine will have its own warranty, but that I would also be liable for the unpaid remaining months of the contract period, which seems daft. If I am not being covered, why should I pay?

Any thoughts, for or against? I can see that it is a contract, but the replacement of the machine would surely break this?

[tabbypurr]

What does a new machine cost, and how long should it last? How much is that per year? This policy is £66 a year, undoubtedly more expensive.

People should learn basic maths.

NT

[Tim+]

Against. Unless it is a fancy heatpump machine your basic electric dryer is as cheap as chips to replace. Over £60 a year would be better off in your own bank awaiting the day when you need to replace it.

On the whole dryers are pretty reliable machines (except when they're bursting into flames).

Tim

[jones_michael_groups]

I would guess that, if you examined the small print, you would find that yo u would be purchasing a whole year's warranty on credit and the monthly pay ments were actually monthly loan repayments rather than paying for each mon th individually. Therefore if the machine was replaced and the warranty com pany held that their contractual obligations were fulfilled, you would stil l have to pay off the loan.

Unless you have documentation that says so, I would not assume that you wou ld get a warranty with the replacement machine.

Mike

[Andy Burns]

If you'd stuffed a fiver a month in a shoebox since the machine's original 1 year warranty expired, you could go out and have your choice of many Hotpoint 7/8kg condenser dryers now ...

[Tim+]

Or even a proper gas one. ;-) Of course getting gas installed where you want it might make it unviable.

Tim

[Davey]

True. But not the question I posed.

Well, there is no mains gas in the village, so that's out. I don't know if they even do Calor Gas dryers, an interesting thought. But I'm happy with electric anyway.

[Davey]

Agreed, on both counts.

[Davey]

I had already assumed that any such warranty was more likely to benefit the company offering it rather than me. I have no intention of taking it up, I was mainly interested in the part about the requirement to pay unpaid premiums if they replaced the machine. I think Mike has the correct answer.

[Andy Burns]

But you should infer that I'd put the money towards a new one which will be required eventually, rather than pay a warranty.

[Clive George]

The answer given implies the answer to your question. Which is don't.

[Tim+]

Looking at the figures for heating, LPG is still way cheaper than electricity. Dunno how it would compare with a heat-pump based electric machine though. Installation cost (if you don't already have lpg would rule it out I guess. LPG machines do exist though.

Tim

[Davey]

n-gas-lpg-7kg-white.html

Interesting. We have 19kg bottles for cooking, but they are a fair way from the utility room, so would need a fair bit of piping work. I really can't be a....d.

[Davey]

No thank you.