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Extended warranties on appliances...

  • justincredible
    Do you get them or not?

    We'll be buying a new washer, dryer, and potentially a new stove in the 2-3 weeks and as I research pricing online I'm seeing the option to buy extended warranties of 3 or 5 years. It's been a while since we've bought new appliances, I'm not sure if I bought the extended warranties last time around. I'd lean towards no, but the washer and dryer I like the best have electronic control panels, instead of dials and knobs. I would imagine a repair would be rather expensive.
  • Sonofanump
    If it is more than 15% per year cost, the economic decision is to not purchase.
  • justincredible
    Sonofanump;1853899 wrote:If it is more than 15% per year cost, the economic decision is to not purchase.
    I'm not sure I follow this. On a $720 appliance, I can get a 3 year warranty for $80, or a 5 year warranty for $125, or if I buy with my discover I get an extra year tacked on to the manufacturers warranty for free.
  • Zunardo
    justincredible;1853903 wrote:I'm not sure I follow this. On a $720 appliance, I can get a 3 year warranty for $80, or a 5 year warranty for $125, or if I buy with my discover I get an extra year tacked on to the manufacturers warranty for free.
    So all of those options are much less than 15% of the appliance cost per year. Your 3-year and 5-year options are something like 5% of the cost per year, and the Discover card option costs you nothing.

    I'm not familiar with the 15% rule of thumb, but a warranty for that amount is a substantial amount extra to pay.

    I don't think I've ever gotten extended warranties on any of my appliances. I've had a guy out twice to tweak the icemaker on my fridge in the last 10 years, and someone out twice to clean out the drain filter in my washer in the last 8 years, so I made the right decision.
  • sleeper
    To answer your question, no. Do not buy extended warranties.

    Why? The business selling you the appliance has already done the math and added a hefty premium to cover your unit failing and they ALWAYS come out on top. As a general rule, you should only buy insurance if you cannot reasonably replace the insured product if it were to fail(house, car, etc).
  • queencitybuckeye
    I don't, and of all the appliances we bought, have had trouble only with the dishwasher. "Self-insuring" allowed us the money to replace it, as we never cared for its performance anyway.
  • Sonofanump
    I very rarely will purchase the warranty, but at $21 a year, that is hard to pass up.

    15% is the approximation for risk aversion.
  • Ironman92
    Once in a middle of the line sweeper because they seem to not last and always on furniture.

    Nothing else
  • justincredible
    Sonofanump;1853910 wrote:I very rarely will purchase the warranty, but at $21 a year, that is hard to pass up.

    15% is the approximation for risk aversion.
    I want to make sure I'm understanding the equation.

    Do I take the yearly cost of the warranty ($25/year for the 5 year warranty) and make sure it's not more than 15% of the total purchase price of the appliance? Meaning, this warranty would be worthwhile at $107/year (on a $720 appliance)?
  • sleeper
    justincredible;1853937 wrote:I want to make sure I'm understanding the equation.

    Do I take the yearly cost of the warranty ($25/year for the 5 year warranty) and make sure it's not more than 15% of the total purchase price of the appliance? Meaning, this warranty would be worthwhile at $107/year (on a $720 appliance)?
    I don't know the answer to this question(but it sounds entirely made up, 15% risk aversion????), but this isn't a debate. Don't take the warranty.
  • Belly35
    Do not buy a whirlpool CABRIO ... the worst ..
    Our first washer and dryer last 20 years with minor repairs that i was able to do.
    The CABRIO lasted 5 years , the cost to repair was 1/2 the pricie of the machine and in my opinion every really did a good job..

    Because it just the wife and I we when back to old school washer

    Top Load Washer with the Deep Fill Option and PowerWash® Cycle – 4.7 cu. ft.
    4.6
    1050 ReviewsWrite a Review
    Best Cleaning in its Class Driven by the PowerWash® Cycle1
    PowerWash® Cycle
    PowerWash® Agitator
    Color: White - MVWB765FW

    Washer and dryer and made for about 7 years standard type usage ........... if anything going to go wrong it will happen in the first three year...
    i dont buy warrenties .. but in this case of the washer i did get the three year ... i did not buy a warrenty on the dryer..
  • justincredible
    Reviews on the Cabrio line are about the best I've seen overall.
  • Sonofanump
    There is not hard rule of thumb, it is a preference of risk. If a person is risk adverse they would be more likely to take on a warranty. Economically speaking, if the warranty is more than approx 15% of the cost, even being risk adverse, it is still not wise to take. Other factors need to be considered; service dept, other warranties. I misread your post, I (as would a risk neutral) would buy with the credit card that extends the manufacture warranty.
  • Belly35
    justincredible;1853965 wrote:Reviews on the Cabrio line are about the best I've seen overall.



    Cabrio spin your cloths two or three time durning the wash cycle your cloths come out all twisted up and in knots.

    If you have kids and your loads are big, with heavy clothing like jeans... not a good machine to buy. Go old school Agitator
    with our Cabrio some of our heavy clothing didnt even get wet...

    with kids get a 5.3 or bigger save time, water and effort

    deep fill wash get your cloth clearner ...
  • Sonofanump
    We don't problem with our Cabrio. All clothes come out clean. Works well with large heavy blankets.
  • salto
    justincredible;1853903 wrote: or if I buy with my discover I get an extra year tacked on to the manufacturers warranty for free.
    imo that is your best option.
  • gut
    I have to agree with Sleeper here. Anything electronic will usually fail, if it fails, in the first 90 days and that is almost always fully covered under manufacturer warranty.

    Now, maybe more risk of something mechanical on things like a washer/dryer or refrigerator. But, again, after installing these things usually aren't being moved and you'll usually find out anything defective very quickly. Most manufacturing now is at high enough tolerances and defect rates that there's really no logical reason to spend any money on an extended warranty.

    If there was a warranty rate of 2-3% for a product, I'd consider that fairly high....but that would be roughly my expected failure so I would not pay more than 2-3% for an extended warranty on anything. Most people probably will have a claim at some point on all the things they buy, but if you add it all up you're almost assuredly coming out behind unless you are lucky in unluck.

    If you can't afford to replace an $800 washing machine, then buy a $400 one and ditch the extended warranty.
  • Ironman92
    Belly35;1853986 wrote:Cabrio spin your cloths two or three time durning the wash cycle your cloths come out all twisted up and in knots.

    If you have kids and your loads are big, with heavy clothing like jeans... not a good machine to buy. Go old school Agitator
    with our Cabrio some of our heavy clothing didnt even get wet...

    with kids get a 5.3 or bigger save time, water and effort

    deep fill wash get your cloth clearner ...
    Are you speaking circa 1862 or do you not know how to spell clothes?