Purchasing a brand new appliance is never easy. After hours of research and shopping you finally find the right model and just when you finish paying more than you were hoping to spend, the proprietor suddenly asks you if you would like to purchase an extended warranty. Minutes before he told you that this was the most reliable product on the market and now he is suggesting that it may break sometime in the next few years! The last thing you want to do is lay out more money and the farthest thing from your mind is that your brand new baby should break so fast!

Nonetheless, according to many experts in the retail field, it isn’t uncommon for an appliance to require some type of repairs during the first five years of its lifespan, especially since most appliances nowadays only have a life-expectancy of 8-10 years. Some say that the percentage of appliances that end up needing a service call during the first five years is as high 70%, making an extended warranty a worthwhile investment indeed!

When deciding whether or not to purchase an extended warranty, there are a couple of factors that must be examined in order to make the best, most educated decision.

Stay protected with an extended warranty.

Is it Worth it?

Most appliances come with a limited manufacturers warranty for the first year. Manufacturers used to offer an additional warranty for as much as five years that covered major components, however this was recently discontinued by all the main brands.

Your average extended warranty costs between $30 and $60 per year, depending on the appliance, and covers everything from house calls, parts, labor, and delivery. Some refrigerator warranties also provide rebates of up to $100 for food loss caused by product malfunction. Considering that an average repairman charges between $70 and $100 just for knocking on your door, not to mention parts and labor which could come out to much more, a five year extended warranty is quite likely to save you money in the long run. One expert suggested that the total cost of the warranty should not exceed more than 25% of the value of the appliance.

Other Factors

• Reliability of the appliance brand
• The type of item
• How well you plan on caring for it
• Whether it will get light or heavy duty use in your home

In regards to product reliability it’s a good idea to take a look at Consumer Reports, especially before deciding to purchase the appliance. They can give you a fairly accurate depiction of how often the type of product you are buying is likely to malfunction. Obviously, certain brand names have better reputations than others—something that you should definitely research before deciding what product to purchase. Certain types of appliances are also more likely to need servicing. For example, items that involve water such as washing machines, dishwashers, and freezers with ice makers are more likely to require repairs over the course of their lifespan. Items with electrical control panels such as ovens, ranges, washing machines, and microwaves can be seriously damaged by fairly frequent electrical surges, leading to costly service charges.

Furthermore certain environmental factors may make it more likely that an appliance will necessitate more frequent repairs. Refrigerators or freezers that receive direct sunlight will require more energy to keep cool and will not live to their full lifespan. Similarly, a house with hard water will have to frequently repair water appliances such as dishwashers and washing machines that will get clogged up with sediment. A washer and dryer in a musty basement may develop mildew over time as well.

Product mismanagement or overuse is entirely up to you. If you carefully read the product manual and do your best to follow it you should be okay. There’s a better chance that a family with lots of young children will be using their washer and dryer more frequently than a small family, which increases the chance of malfunction.

Buy Only from a Trusted Source

It is not necessary to buy extended warranties directly from the manufacturers. Third parties may offer extended warranties for less than the manufacturer’s price. When using a third party, however, it is essential to research the company to make sure that they are trustworthy. Of course, the best source for extended coverage is from the manufacturer or from a licensed repair person who has been trained to handle that particular appliance.

Keeping all these factors in mind should give you the basic tools to be able to decide if purchasing an extended warranty is the right thing for you. Remember, sometimes it’s worth it to pay extra just for a little peace of mind!

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