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The extended warranty (Reply to this comment)
by glen22
I liked your article, and generally agree with your point of view. The factory standard warranty is your clue as to how long the manufacturer expects your appliance to last without major repairs. Buying an extended warranty in essence eliminates the company's motivation to make a more durable product - after all, if most consumers are willing to purchase extended warranties as a matter of routine, why bother to make appliances any more durable?
I would only add to your advice that the decision on buying any extended warranty REQUIRES a close look at several factors: 1) the manufacturer's current business conditions (are they in the process of being bought out, getting out of the business, etc.), 2) the warranting company's reputation for service and support (warranty coverage, parts availability, quality of work); 3) the product itself (simple or complex? mature design, or brand-new?), and 4) reports on expected longterm reliability based on recent experience.
Research before buying the product OR its extended warranty can help prevent a nightmare of repeat service calls, uncaring customer service managers, and unheeded demands to honor the warranty provisions. Some brands are so bad and have so many 'dud' products that even product replacement or an offer to trade up is worthless.
One other thing to watch out for - a well-known appliance manufacturer may float advance indicators that they are getting out of the business altogether. Nothing like buying an appliance that becames an 'orphan', with your warranty service obligations sold off to a third party using cut-rate shops and a dwindling supply of parts.
To get a handle on long-term appliance reliability, (besides checking the Consumer Reports owner reports), you can ask appliance repairmen who actually have to fix them. Thanks to the internet, you can learn quite a bit by visiting their web pages. For one example, see: http://www.allbrandservicenaperville.com/products-washer.html
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Jun 08 '09
3:22 pm PDT
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Fascinating (Reply to this comment)
by randis4927
You say you used to be responsible for selling Protection Agreements, yet you leave out the majority of what they actually do!
1: Up to 5 years of coverage, rather than manufacturer's 1 year
2: All parts and labor covered for repairs due to defects or normal wear and tear (manufacturers only cover defects in materials and workmanship)
3: No trip charges (trip charges are not covered by manufacturer's warranties)
4: Repairs due to power surges are covered (manufacturers do not cover, nor do power companies)
5: Replacement with new model (or different model of choice within price range) if there are 4 functional failures in a year, or if repair is not possible or worthwhile
6: Reinstallation covered for appliances originally installed by Sears, and delivery if appliance was originally delivered
7: Rental reimbursement if repairs take longer than predicted
8: Annual preventive maintenance checks, to ensure proper function and to detect potential problems and fix them at no additional charge
9: 10% discount on non-covered repair parts and installation (e.g., damage due to abuse)
10: Applicable to appliances used for commercial or rental purposes (except coin-op laundry, sewing machines, and vacuums)
11: Up to $250 in annual food loss coverage due to malfunction (for refrigerators and freezers)
12: No registration process; begins automatically on date of receipt of item
13: Transferable without any need to write letters or make calls
14: Follows you wherever you take it (within continental US and Canada) without having to write letters or make calls
15: 24/7 phone support and service appointment hotline
16: 1 year risk-free trial; if not satisfied with maintenance check and service, cancel prior to end of first year for 100% refund, no deductions, no pro-rating
I could go on. What you're giving is the inside whine. The inside story would include things like, you know, facts and information.
And, when you say that the manufacturer covers you for one year, so you're only getting 2 years, that's also not true, because the Protection Agreement covers so much more and gives the check-ups to boot. Why make the customer wait a year to start using a service they've purchased? Why tell them they have to wade through the bare-bones for a year to get to be able to be covered by the increased protection and services they're expecting? Wouldn't you think that is silly?
Generally, the odds are in your favor if you DO purchase a protection agreement. Every maintenance check costs Sears $150 ($75 for the visit, $75 for diagnostics). In fact, let me tell you a little story:
I had a customer in mid-November purchase a refrigerator. It was malfunctioning, and the freezer wasn't working right. She had decided against purchasing a Protection Agreement. She lost all the food she had purchased for Thanksgiving, and was going to have to buy everything over again. Would the manufacturer pay her for the food? Nope. Would Sears? Nope. There is no warranty, express or implied, that covers food loss. Only the Protection Agreement does that. She was disappointed, but she also knew that she had decided to roll the dice. This time, she got snake-eyes. If she had it, her food replacement would have been almost the cost of the Agreement, and everything subsequent to that would have been gravy.
That said, I don't pressure people into buying anything. I sell lots of Protection Agreements because there are compelling reasons to purchase them. Does everyone buy them? No, absolutely not. The "Hell no" group doesn't buy them and won't buy them. But, the "absolutely" and "maybe" group constitutes a big portion of the population, and when they weigh the benefits versus the cost, the benefits win out more often than not.
Is there profit in Protection Agreements? Yes. Most people forget their annual check-ups. I always recommend people to put it into their Outlook or phone reminders or email reminders, so they'll remember to call for their maintenance checks. Forgotten check-ups is about the only way Sears doesn't lose money across the board on Protection Agreements.
Oh, and you don't have to worry about paperwork. It's all in a national database where you call to set up appointments.
Now, if you had included any of this information in your rant, it might be a useful article. As it stands, it's a screechy screed by someone who sounds disgruntled and out to get their former employer.
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Jan 22 '09
6:55 pm PST
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Use your credit card (Reply to this comment)
by jwbreit
Many times you can extend the original warranty by up to a year by using a credit card with extended warranty protection. Many major credit cards such as VISA or MASTERCARD will extend the original manufacturers warranty with no warranty registration necessary. Just keep your receipts and a statement proving that the item was charged to your credit card. Contact the credit card company if a repair is necessary after expiration of the manufacturers warranty. Now you have two years of warranty instead of one.
Buying a three year extended warranty from the store or an outside company would only be like getting one additional year at a high cost.
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Feb 16 '06
9:38 am PST
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Thanks! (Reply to this comment)
by dabrain
You truly are a sweet one Sue. This was very well put, you definintely helped confirm my suspicions on these add on sale items!
Sincerely
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Dec 02 '02
8:42 am PST
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Re: Kenmore+brands (Reply to this comment)
by lagkiller
As a Best Buy employee, I feel I must comment. I sell appliances there, and really, I will have anywhere from 5-20 people call me each day saying, 'My unit is so many years old and it needs repair, what are you going to do for me?' All I can say is, you have nothing, call a repair man and get it fixed, and honestly, I belive that they are the best and most worthwhile investments one can make. $140 will cover a washer and dryer. Otherwise, you pay a repair man about $100 to come out, and another $50-$100 to diagnose the problem, on top of that you pay for the parts and labor to fix it. What a deal, I pay $100 for the repair when I could have spent $140 for the service plan, oh thats right, I just shelled out $300 cause I had to get him out here first. The lady who wrote this article obviously did not have a true repair company come out and do it or she would know the real cost of repairing an item. I both sell and repair appliances, so I know the costs, and I know how it works, it is well worth the money, and I guaruantee 90% of today's appliances will not last more than 10 years, I give refrigerators about 5.
Think about it
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Jun 05 '01
12:55 am PDT
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Thanks! (Reply to this comment)
by willeftk
This was VERY useful information, as always when you write! Thanks!!! :)
~Kelly~
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Mar 15 '01
9:55 am PST
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And then there are people like me... (Reply to this comment)
by solleks
...who buy the extended warranties and can't locate the paperwork when I need it.
I finally learned the hard way it's cheaper just to pay for the repairs.
Great epinion, by the way. Very well thought out and presented.
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Mar 10 '01
8:34 pm PST
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tks (Reply to this comment)
by CyndiA
The only one I got was the one on this computer. I was worried about replacement, so I went with that one for piece of mind. That may have been a mistake though, but I do feel safer knowing that I'm covered one this one purchase which was a really big one for me.
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Mar 10 '01
5:16 pm PST
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Kenmore brands (Reply to this comment)
by viper1963
Did you know that major appliance manufacturers actually make Kenmore products?
I tell people to stay away from these. One time I went into a Best Buy store and the guy tried to push this extended warranty on me. I blurted out, "Well, the way you are pushing this extended warranty, this tells me this product is junk. I think I won't make the purchase". The sales manager came out and I explained that if they don't have confidence in their product, why should I? I walked!
Excellent advice!
Steve
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Mar 10 '01
4:20 pm PST
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Warranties (Reply to this comment)
by nagels
If the extended warranty benefitted the consumer, the stores wouldn't push them so hard. You are right that the odds are overwhelming that you will come out ahead by buying an extended warranty. I would only buy one if I didn't have a lot of faith in the product.Then again, if that were the case, maybe I should be looking at other models.
Enjoyed your review.
spudman
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Mar 10 '01
3:52 pm PST
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