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KLS KLS is offline
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Default Lowes extended warranty for appliances - Any good?

On Sun, 6 May 2007 09:51:44 -0400, Stan Brown
wrote:

Sun, 06 May 2007 12:30:11 GMT from KLS :
On Sat, 5 May 2007 17:33:14 -0400, Stan Brown
wrote:
Extended warranties in general are a bad idea. That's particularly
true for "white goods".


True, with the exception of front-load washing machines, which are
worth buying extended warranties on since their transmission design is
favorable for breakage.


"Prone to breakage" does *not* make the extended warranty a good
deal.

Think about it. The appliance company is not going to sell the
extended warranty at a loss. Therefore if something is prone to
breakage, the extended warranty will be increased in price or reduced
in coverage so that it remains a good deal for the company -- which
means it is a bad deal for the consumer.

Now, all this is general principles. I don't deny that some companies
may occasionally underprice an extended warranty, just as some gas
stations sell milk below their cost to get you to purchase other
things. But you need to do the math and decide whether something is a
good deal based on (a) probability of breakage, (b) cost of repair,
(c) cost of replacement, (d) cost of warranty.


All points taken, Stan.