Purchasing new appliances typically goes hand in hand with buying a new home. When making large purchases like furniture, appliances, and electronics, you’ve probably been asked about an extended warranty by a store associate. Many are skeptical about the value of extended warranties, so in this blog, we’re going to explore the benefits and downfalls.
What is an Extended Warranty?
The purpose of an extended warranty is to cover repair costs and damages related to the product malfunctioning. Store and manufacturer warranties typically cover relatively short periods of time in relation to the product’s expected lifespan; extended warranties help keep you covered for longer. Usually, warranties do not cover user errors, but the terms of each warranty are different. The more that a warranty covers, the higher the cost will be.
The Case Against Extended Warranties
Rapidly moving technology has made it more difficult to assess the value of an extended warranty. Pretty much every modern appliance or other household device has some sort of electronic component. If the product comes with a year-long warranty from the store or manufacturer, any component failures will likely happen within a year of usage.
Often, when an appliance fails, it’s worth considering an upgrade to the newest features. Not every new feature is worth a whole new appliance, but a washing machine that can clean clothes in half the time of your old one is a sensible feature to splurge on.
When are Extended Warranties Worth It?
Determining the value of an extended warranty depends on how costly and inconvenient the product would be to replace. This can apply to your oven, washing machine, or television. These items should undoubtedly last longer than the warranty that they come with. Repairs will be much more convenient with an extended warranty, and you won’t have to open your wallet for thousands of dollars. Once again, it’s important to know your warranty terms and not do anything to void them. Typically, the more you pay for a warranty, the more it will cover in the event of future product failure. It’s difficult to know the extent of repair needed as a layperson, but if you’re covered by a warranty, you won’t have to worry about tinkering.
Whether or not an extended product warranty is worth it to you should be decided on a case-by-case basis. It’s crucial to know what is covered by store and manufacturer warranties. From there, you should decide on the acceptable lifespan for that product. If those warranties are sufficient, you can save some money. The more expensive the item, the more likely it will be that you’ll want to keep it protected by a more comprehensive warranty.