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[Field Marshal Dr. Opti]

Bought a new microwave the other day in the sale. Reduced from £119 down to £69, so well pleased.

The kid who sells it to me, asked if I wanted their Gold 5 year extended warranty, for only £120. Explains I'll be covered for 5 years if it breaks down. I tell him politely "no thanks", but he persists. So I tell him slightly less politely "f***off I don't want it". The kid gets upset tells me he is under instruction from his manager to sell these warranties, and would get a boll*****g if he doesn't sell any.

When I get home, I look at WHICH? online, which tells me that only 7% of people claim on these extended warranties, and most of those are in the 1st year which would be covered by the manufacturers warranty anyway.

So in simple terms 93% of all monies spent on extended warranties is wasted.

Bit like the pet insurance thread I did the other week. If you are worried best to put a bit away, you'll most likely not need it.

 

[Mr Skrunts]

At £69 I would take the risk, you have 12 months use under a standard warranty, then you have £59 worth of discount towards a replacement.

Now based on the cost, you didnt buy a cheapie to start with, so in thery, it should easily see 5 years use.  if not, you add £10 to your £59 saving, buy a differnt brand and overall save yourself £50.

Why but a warranty in the 1st place.


Mate of mine bought a 32" Phillips TV froma well known company.  Paid the £180 tube warranty for 5 years, only to find that Phillips put a guarantee card inside to upgrade from 12 months to 60 months cover for just £18 directly with them.


Only take a warranty if they offer to pay it back after the time period if you dont make a claim.

Richersounds Hifi offer this on thier warranties.

[Golfbuddy]

I had a similar experience at Currys about 15 years ago.  I have never bought anything from either Dixons or Curries ever since. They tried to tell me that 50% of all CRT tubes fail within 3 years and, for that reason, I should buy their worthless guarantee.

As you can imagine, I made my feelings clear and left the shop with the £1000 worth of goods sitting on the counter with the paperwork half filled in. After all, would you buy something that had such a high chance of breakdown?

[Martin_1962]

8.5 years old and tube just starting to fade!

[Vamps]

It is really an insurance not a warranty and the young lad wanted the commission and his bos the bonus, I always say no, I will take the risk, I usually say if it goes wrong Iwill return it to them anyway.

[Martin_1962]

We had a fridge freezer discounted the full cost of the warantee to sell it, and it was already in a sale - Bosch too and still works fine at 10 years old

[Dusty]

It is really an insurance not a warranty and the young lad wanted the commission and his bos the bonus, I always say no, I will take the risk, I usually say if it goes wrong Iwill return it to them anyway.

Yes I agree. Extended warranties only benefit the insurance company

[Albatross]

During a period of working as a consultant to Comet at their head office in Rickmansworth their Finance Director at the time said to me...

"Extended warranties are the biggest rip-off and the greatest discovery we've made in the last 10 years. I'd rather we sold those all day than the stuff off the shevles...easy money"

I was young and niaive at the time and he genuinely shocked me.

[Mr Skrunts]

There was a big uproar about them a while back.  cant remeber if they changed over to offer a refung if there hadnt been a claim made.

They still dont lose. they could have banked the warranties in an high interest account and mde it pay. they would not lose either way.