As we near the first anniversary of moving into our home, we also approach the expiration of the warranties for most typicalÂ home appliances. Before they expire, we’ll be looking carefully through all our appliances to see if any of them need any kind of servicing.
So far we’ve been fortunate in the condition of our appliances, but there have been a few problems.Â The freezer had multiple problems upon installation of the ice maker: dented door, missing parts, incorrect instruction diagram, broken part. Finally we got it working. Now the matching refrigerator has a problem with a wiggly handle. I’ll be calling the company this week to get the service scheduled, so that we don’t have to pay for it.
As for extended warranties, I just don’t believe in them. If an appliance is inherently problematic, it is most likely to breakdown in the first few months of use. If it’s not, it should last for years without service
Remember, the companies that sell extended warranties make a living by selling warranties. In other words, they make more money from the warranty than they send out in service calls. Certainly, if you’re unlucky, you’l be glad you paid for the extra cash. But in all likelihood, you’ll never use the service you paid for and it will be money down the drain.
When considering the return on investment, remember that losing an appliance isn’t like losing your life. It’s a recoverable incident. Rather than pour your money into extended warranties, put the same money in a savings account. Self insure. Then, if you have an unusual appliance incident on day 366, you’ll have the cash to replace the appliance right at hand. And if you don’t, well, you’ve got the cash for something else.