Is buying extended warranties frugal?

**fixer** · 02-23-2009, 12:37 PM

I ask this question because I got caught today at the tire store. I purchased new tires two months ago for Dw's car. Last week, she put a nail through the sidewall of one of the tires. It was not repairable. It cost another two-hundred and forty dollars to replace. Had I spent eighty dollars at the time of purchase, it would have been replaced free of charge. I know I have saved that much over the years by not buying extended coverage on anything, but I would like to hear you opinion.

**homesteadmamma** · 02-23-2009, 12:50 PM

In most cases, NO. You are only giving the saleperson more money in their pocket. We learnt the hard way. We took out an extended warranty on a fridge. It costs us a huge amount (can't remember off hand the exact amount). The fridge never needed fixing and we were out that money. If you read anything on extended warranties, most will say not to purchase them.

**DJ1972** · 02-23-2009, 01:09 PM

My DH's motto: Never buy an extended warranty, if they didn't make money off of it they wouldn't be trying so hard to get you to buy it. His dad is a GM mechanic and he also says to never buy them, he says even with the extended warranty they will find some loop hole to where it isn't covered.

**Pianolady** · 02-23-2009, 03:23 PM

Usually I do not, however I do on the flat panel tvs, they are prone to problems. You really have to watch it though, some stores charge $130 for the same warranty a competitor provides for $30. Shop around.

We did buy a warranty on a high mileage car we purchased, and so far have used about half the cost of the warranty, with a bit less than a year to go on it. I have a bad feeling it'll pay for itself, and am glad we got it.

**Spirit Deer** · 02-23-2009, 03:41 PM

Originally Posted by DJ1972

My DH's motto: Never buy an extended warranty, if they didn't make money off of it they wouldn't be trying so hard to get you to buy it.

That's our philosophy, too. Besides, most things purchased new have an implied warranty already, so how much coverage are you really getting?

**rainbowgc** · 02-23-2009, 04:15 PM

I don't think a warranty would have covered your situation anyway if it makes you feel any better!

**Debbie-cat** · 02-23-2009, 04:18 PM

I don't buy extended warranties. The item always seems to break the day after the warranty is done anyway.

**Grayce** · 02-23-2009, 07:39 PM

I don't think extended warranties are worth it.

**Grainlady** · 02-24-2009, 08:26 AM

No extended warranties here, either. That's what our emergency fund is for - we self-insure for those kinds of purchases.

If it would make you feel better, take the amount you would have spent on a warranty and stick it in your emergency fund. Now think how many things have NEVER needed an extended warranty that you could have purchased one for - not just the one time it might have paid out, which is exactly why they are a rip-off.

**craftypam** · 02-24-2009, 08:36 AM

We don't normally buy an extended warranty; but we did with our washing machine. It has alot of electronic parts on it. We are glad we did in this instance because it did need fixing. Our machine is NOT a top loading machine; it was expensive, but worth it because it uses 1/3 of the water, 1/2 half of the soap and spins so fast needs alot less drying time.

**old_lady_in_the_shoe** · 02-24-2009, 11:45 PM

I guess I am in the minority here... cause we usually do purchase the extended warrenty on mose all electronics, or large appliances. We do watch the place of purchase and the warrently amount...cause they do vary alot... one store will charge you $170 for a two year extended warrently, but another will charge you only $45... you just have to watch it and judge it for yourself.

I have had some really pay off and other, not so much. I payed $90 for our extended warrenty on our big screen tv...and after having it for over a year, the lamp went out...I dug out the extended warrently and read it...called the repair number...they sent a repair man and the lamp was going to cost us $289 ...yikes!!! With the extended warrenty, we paid $0... and it was great. After I read the full warrenty, I realized that 1. the warrenty usually startes after the original warrenty runs our (not everywhere, but some) so if you have a 90 day warrenty, and then add a 2 year extended warrently, then you have 2 year and 90 days under warrenty.

We also took an extended warrenty out on our new freezer from sears and it worked out well too. The freezer warrenty was about $139 extra, but the SUPER GREAT thing is that I can cancel this, before the 1st year and get my full money back if I never use the extended portion of the warrenty. I can even have them come out and "check it out" before the extended warrenty starts and I feel everything is ok, then I can cancel and get the full refund...but if I have had trouble with it, or need repairs on it, then I can keep the extended warrenty. We still have the warrenty because i only had the freezer for 3 wks and it quit working..they fixed it and the cost was $289 but I paid $0

I have also purchased an extended warrenty on a counter top convection/toaster oven from lowes...had trouble with it, called the # for help but NEVER, NEVER got any help or got it fixed...

So, it can work, or it may not, but it really depends.

I like what grainlady said about taking the amount of $$ for the warrenty and putting in into an EF... At least you have some options if something happens. As for me, I think I will take the extra precaution when it is an appliance, or high $$ electronics...but for the smaller things or the warrenties that seem like to much money, I will put in the EF.

I guess it is just your own preference...

**gardening momma** · 02-25-2009, 04:53 PM

The last set of tires that dh bought had a warranty that went with them from the tire store. I don't know how long that warranty was, but we had an air leak in one tire, and the shop repaired it a couple of times, and then when it was obvious that wasn't working, they replaced the tire for free. No extended warranty needed. I'm sure we'll get all our tires there.

**gardening momma** · 02-25-2009, 04:56 PM

Several years ago I bought a used truck from a dealership and bought the extended warranty. The selling point for me was that if I didn't use the warranty, I could get my money refunded to me in full if I requested it within 30 days of the end of the warranty period. What I didn't know, but figured out when I started reading the paperwork near the end of the warranty period, was that to be eligible for this refund, I needed to have had regular tune-ups, oil changes, tire rotation, etc... and have kept all the paperwork to prove it. I hadn't done that. I had done oil changes, but hadn't kept any paperwork. So I couldn't get my money back. I never used the warranty either.

**Judi Dial** · 02-25-2009, 05:04 PM

When I worked briefly fixing washing machines, for a common problem there were two solutions for some problems, one for warranty service, the other for nonwarranty service. (This is what I was taught, I only worked there like 4 months.)

A mixing valve is what mixes the hot and cold water coming in your washer. If you were under warranty? We had a "rebuild kit" and fixed it that way, the part cost less and the rebuild was easy and took less time. If you weren't under warranty? We replaced the entire valve, which took longer and cost more.

Because of my experience whenever we get something repaired we ask if there's a replacement or rebuild piece that could do the job rather than simply replacing the part if we don't know.

But I don't buy extended warranties either!

Judi

**thesightofoneself** · 02-25-2009, 05:09 PM

i think of warranties as investments. you have to make a personal decision if its worth the money to you. i usually get the warranty "just in case". its usually not much in comparsion to the cost of the item. if i'm blowing money already whats a little more.