Should you purchase extended warranties?

 

Purchasing new appliances, lawn mower, or electronics in the near future?  If so, this is a question you will have to have to answer during your purchase, should I buy the extended warranty? It is offered on just about everything these days.  I was even offered one a $5  game I purchased.

 

Whether your purchase is big or small, an extended warranty is not something you want to spend your money on.  A warranty is like buying insurance for your appliance.  Most big ticket items come with an extended warranty that costs around $200 or more.   The chances of your appliance breaking in the time period of the warranty is very small.

 

There are many other things you can put this $200 toward, like paying off existing credit card debt, paying down on school loans or your mortgage, or increasing your emergency funds savings account.  If by chance your appliance does break, you can then take from your emergency funds.  If it doesn’t, you haven’t lost any of the $200 you would’ve if you purchased the warranty.

 

If you still feel more comfortable getting the warranty, wait until the manufacturer’s warranty expires (usually a year) to purchase it.  If you purchase up front, say a 3 year extended warranty, the warranty starts at day one, not after the one year mfg. warranty period.  If you wait until the year is up, you will have a 4 year warranty, not a 3 year.  You will usually receive reminders in the mail or via email when your year is up.

 

Even though appliances and electronics aren’t made with the same quality as years past, in my opinion, purchasing an extended warranty is not worth it.  I have been purchasing appliances and electronics for  the last 15-20 years, and have never regretted not getting an extended warranty.

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