Sometimes it's a good idea
Feb 28 '00
Should you buy an appliance warranty? Well sometimes it may be a good idea. There are 3 factors involved in my decisions to buy an appliance warranty. They are 1)price, 2)Frequency of use of the appliance and 3)Track record of the appliance. Sometimes one of these 3 factors is enough for me to make a decision.
1)Price of the product Vs price of the warranty - My rule of thumb, is that if the warranty is greater than 15% of the product, it isn't economicaly viable to purchase the warranty. For example, if you purchase an appliance for $50 and the warranty is $25, then forget about the warranty and take the risk.
2)Frequency of use - If the appliance is used frequently and the warranty is less than 15% of the value of the appliance then is probably is a smart idea to purchase the warranty. Many larger appliances that are used frequently break down and are very costly to repair. One incident comes to mind. A few years ago my parents bought a new dishwasher from a major manufacturer. They also purchased the extended warranty for $75.00 Canadian. About a year after purchase the dishwasher broke down and the cost to repair the machine was $200. The warranty was a 3 year deal, so they were saved an expensive cost.
3)Track record of the particular product - When purchasing a major appliance, I do my research. I search the web (and EPINIONS) for product reviews of the particular product as well as checking out consumer reports. If the appliance has a fantastic record, I may choose to turn down the product warranty. One thing to keep in mind is that you can always find a lemon even with the most reliable of manufacturers.
The approach of using the above 3 factors has worked for me. It gives me a plan of action in my decision of purchasing a product warranty. It is very important to be armed and ready for the salesperson at the store, because they will always try to push the warranty on the consumer.
The pro to having a product warranty, is that it gives you peace of mind that you are protected and gives your wallet a break if you actually have to use it. The con is that you may spend money on a warranty and may never use it or worse the fine print could make your particular repair null and void. So pay particular attention to the fine print of your warranty.
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Epinions.com ID:
abloch
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