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Recently purchased a brand new Samsung HE top loading washer and dryer set from Lowes. Like most FWers, I was not going to get the extended warranty as Discover doubles the original warranty period (i.e., 1 yr for manufacturer plus 1 yr from Discover so 2 yrs total). In any case, the first washer unit that was delivered worked for about 10 minutes (filled with water) then died completely. Had to empty out the water by hand before Lowes would take it back to exchange for another unit. Luckily, the second unit seems to be working fine thus far (only been 24 hrs, so fingers crossed). Anyway, seeing the death of the first unit gave me pause on my decision to not get the extended warranty. Am now wondering if purchasing an extended warranty plan for these 'new-age' washer/dryer with all their fancy/schmancy electronics may actually be a good idea? What do FWers think? If so, should I go with Lowes or SquareTrade then?

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the votes are in....BUY THE 5 YEAR EXT WARRANTY!

pay now or pay later. you either pay the costs up front or down the ro... (more)

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You sleep better if you have a guarantee. Also you sleep better if you buy it from a place near you so you can come in m... (more)

handyguy (Apr. 06, 2013 @ 11:35a) |

Thanks all for the helpful discussion. Went ahead and got a 5-yr protection plan for both the washer and the dryer throu... (more)

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Electronics tend to die quickly or last a long long time. Look up "Failure Bathtub Curve".

http://www.cablefax.com/images/articles/33190_1230149105.gif

The manufacturers warranty covers the failures in the early life stage. Failures are low in the useful life stage - and warranty companies know this, so extended warranties a huge money maker for them. By wear-out, your extended warranty has also expired - again because they know it is going to die and they don't want to cover it.

I never buy extended warranties. Sure one may pay off every once and awhile, but in the long run you will be much farther ahead by never buying them.

1) extended warranties are an extremely high margin business
2) you provided nowhere near enough information in the original post for anyone here to provide a detailed response

No. Here's how I look at these extended warranties:

Purchase price of warranty = Amount set aside for warranty claims + administrative costs + profit for extended warranty company + kickbacks for sales

The amount set aside for warranty claims takes into consideration the cost of repair and the likelihood of failure. The extended warranty company knows the failure rate for the product and prices it into the plan accordingly.
There are a lot of administrative costs with having to hire admin staff to handle claims, process them and send checks.
This is a very lucrative business. Profits are large as are kickbacks.

Over your lifetime, you will make a lot of purchases where you have the option of buying an extended warranty plan. Sure, some of these products will fail during the time period where the extended warranty would have been useful, but in the grand scheme of things you end up further ahead then if you were to buy the extended warranty. The extended warranty company spreads out the risk of failure over a large number of units. They know that for example 10% of the units will have a problem within 2 years that need replacement. You're essentially able to do the same, you're able to spread out the risk over a large number of units over your lifetime.

The only instance where it makes sense to purchase an extended warranty is if you believe that it is extremely under priced (i.e. $10 for a $2000 washer and dryer)

nasheedb said:   No. Here's how I look at these extended warranties:

Purchase price of warranty = Amount set aside for warranty claims + administrative costs + profit for extended warranty company + kickbacks for sales

The amount set aside for warranty claims takes into consideration the cost of repair and the likelihood of failure. The extended warranty company knows the failure rate for the product and prices it into the plan accordingly.
There are a lot of administrative costs with having to hire admin staff to handle claims, process them and send checks.
This is a very lucrative business. Profits are large as are kickbacks.

Over your lifetime, you will make a lot of purchases where you have the option of buying an extended warranty plan. Sure, some of these products will fail during the time period where the extended warranty would have been useful, but in the grand scheme of things you end up further ahead then if you were to buy the extended warranty. The extended warranty company spreads out the risk of failure over a large number of units. They know that for example 10% of the units will have a problem within 2 years that need replacement. You're essentially able to do the same, you're able to spread out the risk over a large number of units over your lifetime.

The only instance where it makes sense to purchase an extended warranty is if you believe that it is extremely under priced (i.e. $10 for a $2000 washer and dryer)


Not always true. I purchased an extended warranty for my auto - a used german car. The price for this warranty was the same regardless of make/model. In other words, the warranty company sold the same coverage for a used honda. That would suggest that they are not pricing in the actual cost of expected repairs into the warranty.

Back to my original point a few posts up - we have no way to answer OP's questions since there is no information on costs, duration, underwriter, etc. It's possible the warranty could be a good deal to offer peace of mind. More likely it's not though.

Not cool, FW! While I was typing my response, apparently this thread was moved from FWF to deal discussion ... my reply disappeared. argh!

retyped (probably not a eloquent):

Generally, don't buy it. On the average they are losing propositions for the average consumer.

There are a few reasons why it might be beneficial:
- you have a history of washer/dryer breakdowns (not just one unit, but over your lifetime you just know you tend to kill them)
- you will be running the units 12/hrs every day (extreme usage)
- you live paycheck to paycheck, and don't know if you'll have enough money (in an emergency fund or credit card) to pay for repair or replacement if needed in the future - however you have enough money now for the warranty

If you know you can comfortably afford to fix or replace, it's generally best to not buy a warranty.

Consider this: you have an extended warranty and it will take 4 weeks for the part to arrive. Nearest laundromat is 20 minutes away. If no extended warranty, you might just decide it's not worth it to pay for a repair and just buy a new one. If you prepaid for the repair (via extended warranty) it makes it a much tougher decision.

kwest said:   Not always true. I purchased an extended warranty for my auto - a used german car. The price for this warranty was the same regardless of make/model. In other words, the warranty company sold the same coverage for a used honda. That would suggest that they are not pricing in the actual cost of expected repairs into the warranty.

In your example, they are still pricing the expected repair cost, but instead it's over a broader spectrum. They are averaging repair costs for Honda, BMW, Toyota, etc. The value the Honda buyer will get from the warranty will be lower than the BMW owner because the BMW will generally cost more to repair.

With electronics/appliances, unless the extended warranty is directly from the manufacturer, the cost is usually not priced by the particular item (even then, it may not be since they won't have enough data on that particular model). It's usually a set price depending on the purchase price (i.e. $500-599 = $50, $600-699 = $$75, etc - fyi numbers are made up).

return
costco them
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always returnable

I got an extended warranty for my LG front loaders from Sears. Every year we had one free service call where the guy came and inspected/cleaned everything. One year (after 2 years of ownership) the dryer started making funny noises. Free service call + free repair. It was well worth the $250 for 5 years of extended warranty.

Here's my rules:

If it has water running through it: washer, dishwasher.
If it runs on gas: snowblower, generator
If it has coolant: AC, refridgerator
If it is too large to take to a repair shop: TV

NEVER, NEVER, NEVER purchase an extended warranty from Sears. They are overly expensive (well over 10% of the cost of a new item). Typically Menards, Lowe's, Home Depot have reasonablely priced service contracts. I'm mechnically and fiscally inclined enough to replaces switches, panels, and plastic parts what I won't do is replace condensors, pumps, refridgerant coils, etc.

Every single item listed above I've used the service contract and at least had the return value of parts alone (at internet discounted prices: repairclinic.com). I'm not using the service guys inflated costs to judge my value.

Disclaimer: There's exceptions to everything

For washers I always get an extended warranty. For everything else I don't. The washers they make nowadays are nowhere near as resilient as they used to be due in part to replacing metal parts with plastic parts.

There are people who always by the extended warranty, and there are people who never buy the extended warranty. Which one are you?

I've found that it is easier to make this decision early in life and apply it forever after that. Probably works out about the same in the end, but it saves a lot of time evaluating the options at each purchase.

Personally, I'm in the "never buy 'em" camp.

I bought an LG front loading washer from Home Depot in 2009, I normally would not take out an extended warranty. Luckily, this time I did. A repairman was here yesterday and replaced the water pump, no charge. I had called around getting estimates for repair before I realized I had an extended warranty. The cost of the warranty was less that the estimates I was getting for repair.

Cost of Washer $703.00 Cost of 5 year Warranty $99.95

The only extended warranty I ever purchased was on a DLP rear projection, due to expensive replacement of board failures, Never used it in the last 3.5 years.

I bought a Samsung washer and dryer from Lowes last year($1100) from a FW deal. Purchased warranty for $179 for both. Both items going strong and didn't use the warranty. It is good for 4 years.

What is the point of my post? Who the **** knows?

But how much is it & how much is your washing set?

I got one from HD for $99, four years. If anything happens, I get a NEW machine or a refund. Cool.

The washer/dryer set was $970.38 ($485.19 each) via an awesome sale + 10% mover's coupon + FW CB. It would be $180 for a 4-yr plan from Lowes if I get a plan to cover the set or $110 for just the washer. It would be $120 per appliance, but for 5 years, if I go the SquareTrade route.

Be married to the warranty company can be a hassle versus being able to pick the repair company of your choice. Avoiding frustration can be worth something. You can put that warranty money aside just in case. If the machine doesn't break, you'll have the money for the next set of machines.

PsychoFan said:   The washer/dryer set was $970.38 ($485.19 each) via an awesome sale + 10% mover's coupon + FW CB. It would be $180 for a 4-yr plan from Lowes if I get a plan to cover the set or $110 for just the washer. It would be $120 per appliance, but for 5 years, if I go the SquareTrade route.

That's helpful. Though the warranty options are $180 for years 3 and 4 via Sears, or $240 for years 3, 4 and 5 via SquareTrade. So almost 20% of the cost for 2 years of extra coverage, and 25% for 3 years of extra coverage. Certainly the Sears option seems expensive, so between the two I'd choose SquareTrade. I believe the ST warranty can also be cancelled/pro-rata refunded in the future as well.

Does Discover also sell extended warranties directly like Visa does? What's their cost?

If you feel better knowing the warranty will cover repairs then get it (remember that the extended warranty will kick in after the first year but you already have coverage for the second year on your credit card so a 3 year extended warranty is really only for year 3 and 4 or two years). Otherwise most are not worth it.

We bought new Maytag HE stuff a year or 2 back. Was tempted but declined the extended warranty. I'll echo what was said earlier, it'll either die quick, or last a long time, and then wear out. The quick will be with the first year, and covered, the wear, will happen long after the extended is expired. Our HE washer started squealing within 3 months. After repair bills exceeding the purchase price of the unit (covered by warranty, and probably inflated) it works flawlessly. Repair man claimed too much soap, tore out the bearings, which meant new shaft, tub, seals, o-rings and bearings. Now we are careful what amount of soap is in loads. It works like a dream, and so does it's dryer friend. Our last Maytag set conventional, was used when we got it from in-laws as move in present, we abused them for 9 years before washer bottom literally corroded away from tub and transmission interface. I'd say everyone got their use out of those, and i know my in-laws bought extended warranties, he's a sucker for every one of them.

If I were you, I'd buy it. To me, it's not only the dollars but also the peace of mind. I usually don't buy extended warranty but for washer and dryer, I think I would. I think the new models these days are not as durable and their prices are not getting cheaper (unlike LCD TVs or a laptops or smart phones). Also, what does it say about the cost of transport the unit? If they come to my house and I don't have to lift a finger, that'd be another plus. I don't have a truck or an SUV and I don't think it will fit in my compact's trunk.

Check with Squaretrade They have coupons for 30% upto max of $30. I returned Sears warranty and went with Square trade for Washer/Dryer and Fridge. for 5 year extended warranty the cost was half of that of Sears.

I don't care about years maintenance as I can do some of the stuff they said they will do.

These HE washers spin so much faster that they're much more prone to breakdown & failure than older machines. Personally, I wouldn't buy another front loading HE washer. Fortunately, I have been able to fix mine as needed (jammed drain, broken hose [and the model was so new that it took 5 suppliers to find one who had the hose]. Dryer too - replace belt tensioner and drum rollers. To answer your question, I'd get the extended warranty (through SquareTrade).

No if you buy from Costco. I bought a washer 5 years ago and it had a problem so I called for the fun of it and Costco said to bring it back. I put it in my pickup and when I got there they took it off and in and I picked a similar model in the store and we had to adjust the final cost to me at $19.57.

I buy the washer + dryer sets that go for $500-$600. It is almost never worthwhile to purchase the extended warranties for them. They have less electronics in them so less things to go wrong and simpler to operate. They are also much cheaper to repair too though a replacement might cost just the same. I hate Costco so I just might have to go the Costco route and get a set there for their "lifetime" warranty.

How good are you at fixing things?

Its Hit or Miss;

Sears as others has stated charge way to much, but they have fastest and sometime the best service people, that said, I always buy extended warranties from places like HomeDepot and Lowes. Its 99.00 for 4 years for each item I got, refrig, dishwasher, washer and dryer.

So for example, my mother and I both bought the same dishwasher and I got the warranty and she didn't... A few years later the lights went out on the touch control panel on hers, it ran about 135 + for the repair... A few months later my panel went out ( turns out maytag has an issue with the front panel light blowing out ), I called Home Depot and they had someone out within a week and replaced it for free. Of course 6 months later it blew out again, but that's a different issue with mayHAG.

So I still have a few years left on my warranty if anything else happens and the repair will be free. I think the AVG service cal is 100.0 plus plus parts, so its a roll of the dice, but for 99.00 bucks yes, not like Sears which was some insane amount like almost 300.00 for the same warranty.

Dil

Consumer Reports advises to never buy extended warranties. I did decades ago and they were an awful investment.

Do service through Sears. I had issue with my washer. I checked with Sears and other local suppliers. Sears had this once price includes part service call that covered the appliance for plus 1(Or 2) year after the repair plus parts for costs up to $250. Repair through local shop was $200. So $50 extra would have gotten me the warranty on a already 5 year old washer. Was going to go that route then Sears said did not sell my brand so they would not repair or offer that warranty/service call deal. Just my 2 cents. Not sure if it made cents(sense)

I don't buy an extended warranty, but I am surprised at the issues with washers, I've had my Kenmore washer and dryer for 26 years with no issues. I guess I'm glad I didn't get a brand name for big bucks..

If it breaks out of warranty, I'll try and fix it myself or buy a new one. I'm still waiting for something to break. My savings account thanks me for every extended warranty I have not purchased.

I bought one 3-year extended warranty for two $75 GPS' for $13. The way it was rung up, there was no way of knowing which GPS the warranty was for. I figured, whichever breaks first is the I will use the extended warranty for. Two years and 10 months later one broke and the company awarded me $75 for the broken GPS. Even with that story, the extended warranty was overpriced initially - almost 20% of the cost of the one product is expensive.

You are better off putting all money into a savings account and using that account for repairs - self-made warranty.

A washer with a computer board will eventually die earlier than a washer without a computer. Keep the product simple, the repairs will be less. I bought a Speed Queen, after my 7 year old washer died and I was unsuccessful in reparing it. In retrospect, looking at my old washer with its fancy bells and whistles, I now endorse that saying - all that glitter ain't gold!

Thanks for pointing out that Discover adds up to 1 year to warranty. I was aware of American Express and Visa but this is first I knew of Discover

On Washer & Dryer, definitely a buy on extended warranty. For less than $100 for 4/5 years is a no brainer. We use our units at least 3 times a week. The cost to repair them after the first year is averaging around $200 - $300 each time. I have used my extended warranty repairs 3 times already. Had the motor replaced, spin tub replaced, etc. IMHO

ps - Have a Whirlpool Cabrio washer and Frigidaire Affinity dryer.

Temecula1 said:   On Washer & Dryer, definitely a buy on extended warranty. For less than $100 for 4/5 years is a no brainer. We use our units at least 3 times a week. The cost to repair them after the first year is averaging around $200 - $300 each time. I have used my extended warranty repairs 3 times already. Had the motor replaced, spin tub replaced, etc. IMHO

ps - Have a Whirlpool Cabrio washer and Frigidaire Affinity dryer.


Their reliability doesn't sound very good at all. And what happens after the 5 years?

pietromoon said:   return
costco them
remain member
always returnable


It's one heck of a workout to return a washer/dryer back to the store.

LongDongSilver said:   pietromoon said:   return
costco them
remain member
always returnable


It's one heck of a workout to return a washer/dryer back to the store.


The point here is you get to decide what a reasonable life for your machine is

To move it, hire a mule from Craig

ComputeThis said:   A washer with a computer board will eventually die earlier than a washer without a computer. Keep the product simple, the repairs will be less. I bought a Speed Queen, after my 7 year old washer died and I was unsuccessful in reparing it. In retrospect, looking at my old washer with its fancy bells and whistles, I now endorse that saying - all that glitter ain't gold!Agree. I also bought a Speed Queen after my 25+ year old old school Whirlpool died. IMHO, KISS is the way to go with appliances.

Skipping 5 Messages...
Thanks all for the helpful discussion. Went ahead and got a 5-yr protection plan for both the washer and the dryer through SquareTrade. Final cost was $84.99 per appliance or approx $179 total for 5 yrs. Would probably pay for itself after just one repair visit in the next 5 yrs (granted that the first 2 yrs would be concurrent with the manufacturer and Discover Card warranties).



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