In the interest of your personal finances and saving money, today I’m going to talk to you about whether or not you should purchase an extended warranty on appliances in your kitchen?
Whether or not you should buy the extended warranty on kitchen appliances, for most, is a pretty easy question to answer. “Why would you protect your investment with the reassurance of an extended warranty? Don’t you want to get the most value out of your purchase? Of course you need to buy the extended warranty on kitchen appliances, right?” The opinion on this matter varies pending the situation. Weighing the pros and cons are necessary.
Consider What Warranties Are Automatically Applied
A web blog called codysappliancerepair.com states that, “According to the Maryland County District Attorney, 80% of people who buy an extended service contract never use them.” Considering this, for most appliances there are warranties that are already applied after the purchase is complete. Any manufactures default warranties or replacement warranties cover most problematic issues and will ensure that the consumer will be covered free of charge up to one year after the product is purchased.
Do The Math
As with any other financial decision, doing the math is important. Other things to consider when looking at warranties for appliances are the length of time the warranty is effective and the cost of the warranty versus the cost of repairing the appliance. If an appliance is purchased for $80 and the extended warranty is $40, which covers an additional year, some would say this is not a wise decision. However, if the same warranty was extended to two years of protection, then it may be considered a wise investment.
“Consumer Reports have done studies on repair rates for a variety of small electronics and home appliances, and the percentages range from 5 to 37 percent”, states money.usnews.com.
Considering this, it would be wise to purchase a warranty that is equal to or less than the amount of the repair to avoid over spending.
The most important thing to analyze when deciding if the purchase of an extended warranty is worth it is to find out what it covers. There are many extended warranties that only cover components and situations. For example, one warranty may cover the replacement of major components such as the cooling component for a fridge but not the fridge door handle if it were to break. Other warranties may cover the replacement of the entire unit if it can be determined that an electrical malfunction was the cause of the problem.
In any case, whether or not to buy an extended warranty is really to the consumers’ discretion. The consumer should know the facts about the warranty and what it covers as well as determining whether the warranty is worth the money before buying.
Personally, I’m going to have a really hard time spending $500-$600 on a new fridge and not paying the additional money to get a warranty. I think what it really boils down to is how much money you initially spent on the appliance. If you spent a significant amount of money, it makes sense for you to want the extra reassurance that you can get it fixed if something goes wrong. Keep these tips in mind to protect your personal finances.
Hello! :) I'm happily married and the proud momma of an adorable little boy. One of these days I hope to make a full income from shared revenue and not have to write for so many difficult private clients.