There are many people who believe that an extended warranty on home appliance sales is simply a means for a retailer to add money to the bottom lines sales. Their theory is that if the warranty is not used during its warranty period, then it is pure profit for the retailer. The extended warranty on home appliance items are like an insurance policy with you betting the appliance will fail once it passes its original warranty period.
Many question the advisability of adding to the price of an item as added protection of it breaking once the original warranty expires, and other say the extra money is well worth it. On low-priced items, under $100 for instance, with a factory warranty of 90 days, a warranty to last for an additional year, takes the warranty to 15 months. The extended warranty on home appliance items in this price range is typically around $20.
Consider many buyers will voluntarily replace an item within a year with a newer model that is a wasted $20 investment. If, however, you are the type to keep your appliances until they die, then it can be worthwhile when the item passes away in the first year. The extended warranty on home appliance sales can help if you have early troubles.
Read Fine Print Accompanying Warranty
Be sure to read the rules to qualify for warranty work when you purchase an extended warranty on home appliance purchases as some may place restrictions on the type of service they cover as well as who, where and how the appliance repairs will be conducted. Most will require you to ship the product, often in its original packaging, to a repair center. At their discretion, the item will be repaired or replaced, often with a refurbished one, and you are going to pay the shipping charges, both ways.
On more expensive items, such as computers or high-ticket printers, an extended warranty can cost up to $100 or more. It is not so much the price, but the length of time you plan to have this item before replacing it with the newest model. The extended warranty on home appliance sales for some purchases can be extremely useful, but only if you believe the costs of replacement will be higher than what you are being asked to pay for the extended warranty along with any shipping charges you will have to pay.