You Pay, They Don't FixJan 18, 2000 Write an essay on this topic.
I have purchased a lot of appliances over the years and right after you hand them your charge card they say "Would you like to but an extended service contract"? I did say yes several times then as the years went by I never ever used them.
Then I started to get phone calls from the store (usually Sears) saying that my maintenance agreement was about to expire and would I like to renew for $$$$$. I thought about it then said no thank you! I sat down and started to figure out how much you could spend on service agreements. The figure was greater than the cost of the appliance after about 10 years.
Most of my appliances lasted longer than 10 years. If they bit the dust after that then I could buy another and hopefully get my monies worth for another 10 years. It just didn't make sense to purchase a service agreement. I did have one dryer that quit after 3 months, but the regular agreement covered it and it was repaired free of charge.
When you purchase this service agreement they probably told you about the preventative maintenance that would be preformed, at no cost to you, each year. I don't remember ever having any of this "Free" service be preformed. The dealer doesn't call you and remind you about your free checkup. This was free money to them not you.
I'll bet that if you paid to have most breakdowns repaired you would spend less than the price of the extended warrantee. Don't do it!
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