Almost all kitchen appliances today will come with at least some sort of warranty, whether it's through the manufacturer or the retailer. Extended warranties are available on most items, but they will cost you a bit extra. Let's examine the facts, and decide if it's really worth it.
What does it cover?
This varies from item to item, as well as with the different manufacturers. Read the fine print to make sure you know exactly what you're getting. Typically, the coverage is similar to the manufacturer's warranty, it just lasts for a longer period of time.
Pros
Who wants to shell out full price to replace an appliance or pay for repairs if they don't have to? Buying the extended warranty gives you some comfort, knowing that your investment is covered for a longer period of time. Plus, if there is a problem, you don't have to hunt down a repairman, or shop for the best deal. You report it, they fix or replace it.
Cons
According to research data, most factory defects are going to show up early, most likely while you are still covered under the original warranty. Parts that wear out are usually going to last until after the extended warranty expires, too. Extended warranties can cost from $4 to $100 or more, depending mostly on the cost of your purchase.
Other things to consider
The retailers make a much higher profit on the extended warranty than they do on the appliance. That is why the salesperson usually pushes so hard for you to get it – he has probably been told to, and possibly makes commission on it as well. If you purchased the appliance with a credit card, there is a chance that the finance company already adds extended coverage at no extra cost. The average difference between the cost of the repairs and the cost of the extra coverage is less than 20 dollars.
If you buy the extended warranty, the period of time that is covered by the original free warranty is covered twice. Even after the original warranty expires, often the manufacturer will cover or partially cover items that are seen as factory defaults. You may have to go up the ladder a ways, but the squeaky wheel gets the grease.
Basically, extended warranties are a gamble. You are betting on whether or not that the brand new appliance is going to break down. The extended warranty gives you peace of mind, but may be a wast of money. It just comes down to which is more important to you.
