Extended Warranty- Should I, or shouldn't I?

So you've finally bitten the bullet and decided it is time to upgrade that refrigerator, or laundry appliance, or old noisy dishwasher and you've spent countless hours contemplating what brand, what color, what bells and whistles you need or want. You have FINALLY come  to a decision and are hesitant but willing to pay the price - and just as  you reluctantly pull the plastic  card from your wallet, the cashier drops a bombshell. "Do you want to purchase the extended warrantly?"  You stop, look at the cashier with uncertainty and confusion, and wittingly say... "Huh?".

 

So here's the thing: you know that you have chosen a good product, you've done the research, read the reviews, done all of your homework on the subject and are prepared to make your purchase knowing that you have chosen a product that you believe will be better than the one you are replacing. The thought of something going wrong with it is likely the furthest thing from your mind. Or maybe it isn't. Either way, you will need to make the decision whether to purchase the extended warranty on the product. Most major home appliances come with a ONE year warranty from the manufacturer. Will you need the extended warranty?  Is it worth the cost? Will you actually USE it? 

Unfortunately, the answer to most of those questions is likely YES! Now, keep in mind that this definitely depends on WHERE you are buying your appliance, WHAT warranty you are purchasing and HOW MUCH it costs. For the purpose of this article, let's assume you're purchasing your appliance from Lowes  (no, we're not specifically endorsing Lowes over any one else, just using it as an example). 

Lowes offers a 5 year protection plan for usually around $150. This warranty goes into effect AFTER your one year manufactuer warranty runs out, which is one year exactly from the date you PURCHASE your appliance. During that one year, if something goes awry with your unit, simply call your service company (APPLIANCE PRO) and your repair will be made at no cost to you as long as it is something that is covered under the manufactuer's warranty. (Most things are during the first year, but be sure to check your warranty for details). 

Let's say, however, that you did NOT purchase the 5 year extended plan. Hypothetically, a week after your manufacturer warranty has run out, your machine starts acting strange and you need to call for service. You call APPLIANCE PRO and give us your contact info, model & serial # and purchase date, and we come out and discover that there is a problem with your unit. It is $90 for us to come to your home, inspect your unit, and inform you of what the problem is and what it will take to repair it. Let's just say, for instance, that your washer in not draining, and needs a new drain pump. The cost of the labor for the repair will be $140 (this INCLUDES the $90 diagnosis fee) and the pump will cost you roughly $50-60, but can sometimes be upwards of $100 depending on your unit. You have already spent the cost of your 5 year warranty and it is only a week into the 5 years. So had you purchased the warranty, this repair would have cost you $0, you would have saved the cost of your warranty already, and have 5 years left in case anything else goes wrong. 

In a nutshell, the extended warranty, provided it is a good one, is worth its  weight in gold, and then some in most cases.