How Many Really Use Them?
Published on June 11, 2010 By KFC Kickin For Christ In Blogging

We make it a point NOT to get sucked into spending our hard-earned dollars on these extended warranties.  We know quite well they are pushed for good reason.  They make good money for the one's pushing them.  Most of the time whatever you've purchased has a warranty attached for a year or two anyhow. 

We bought a Hyundai because it has a 10 year warranty, the best out there for cars.  No extra extended warranty needed.   Who knows if we'll even have the car that long? 

But now we've run into something a bit different.  It involves our Air Conditioning. 

When we moved into our new house over two years ago, we knew the brand new heating and cooling system was guaranteed for 2 years labor and five years parts.  So we said no to the extended warranty.  My husband's co-workers said an AC unit should last without troubles for 10-15 years.  None of them seemed to have any problems.  Since we don't use our AC heavy like many we know we thought we'd forgo forking over the extra money.   

Well that turned out to be a mistake.  This is one of those times we're finding out when it's good to get the extended warranty.  Who knew?

We asked around and was told it's a gamble.  You may be fine, you may not be and at about $800 for an extended warranty we figured we'd take our chances. 

Last weekend the AC started making a grumbling grinding noise when it was put on.  A few times it sounded so bad we didn't think it was going to kick in.  So we started running it and then shutting it off to rest inbetween times.  We even went two nights with no AC after cooling the house down as best we could waiting to call Monday morning.   Why does everything happen on the weekend? 

Since it was time for the annual maintenance I called for an appointment first thing Monday morning and told them the problem.  They said they couldn't clean it if there was a problem, but would have to do a diagnostic test first which would cost us $74 just to come out. 

Well he came out and said the module in the fan motor is bad and he's going to have to order a new motor since they don't carry this particular part in the warehouse.  Great!  And since we're still under warranty for parts the part will be free but the labor will be $221.  So now we're out $295 before the yearly maintenance. 

He advised we get the extended warranty which covers labor and parts for 10 years.  He said it would also cover the diagnostic check that was $74.  So had we gotten the extended warranty last year when they came out for a cleaning advising us to, we wouldn't be spending this $295 right now. 

The extended warranty will be $731.  So now with the $295 charge just for today we'll be behind $1,026 on a brand new AC.  To me this is sort of like the government circumvented our taxes.  We think we're good and then we get nichol and dimed to death.  We feel like we have no choice but to buy this extended warranty.  I hate that! 

Two of my neighbors, one just this week also had problems with his AC which made me think this is all a set up.  His AC problem was worse than ours.  He said yesterday his was going to be about $700 for the labor.  So now if they get the extended warranty it's going to cost them double really because of the cost of this fix. 

Funny how we lived in the frigid cold north with a heating system  in three different homes with no problems.  Two of the homes we lived in for over 10 years.   We never had to do anything.   In all my years of living up North I only knew of one person who lost their heat due to a system just dying out.  Already down here in two years we're the third couple in my small circle of friends I know who had AC problems. 

Does anyone else have any extended warranty stories they'd like to share?

 

 

 

 


Comments
on Jun 11, 2010

Sounds like he saw you coming a mile down the road!

But on some things, and now that I am older and have a little bit more cash, I do buy these maintenance plans.  Not because they save a dime, but because we are then first on the list to get it fixed.  And my wife would die with no AC!

But I still would not buy one.  If I need it, then the product stinks and I will tell them that they will never get a referral from me.

on Jun 11, 2010

Sounds like he saw you coming a mile down the road!

how so?  I didn't buy the warranty when I was first asked last year.  We skipped it. 

I feel stuck between a rock and hard place.  We don't seem to have a choice now knowing what we do. 

If we don't buy the warranty, we may end up with the same problem our next door neighbor is going thru now.  He's spending $700 (labor only) on a problem that is totally different than what we have now.  They have the same system we do. 

So we either take another chance and hope nothing happens in the next 10 years or we spend the $731 now and everything will be covered for 10 years.  

What other choice do I have? 

 

on Jun 11, 2010

My A/C went out two years ago (compressor). I paid $1050 to have it replaced (It was 6 years old). Things happen. The people that service these things know how long they typically last. When you buy a service agreement, you are betting the product will fail while the seller is betting it will last through the warranty (remember they know when most items will fail). It boils down to do you feel "unlucky". The warranty sellers know a small percentage of items will fail, but not enough to cause a monetary loss.

Do this, ask yourself how many things do you have in your home that have passed the life of any warranty. I have a color NEC 15" monitor (don't use it much anymore, but it makes a good emergency TV) I bought in 1984, my Sony TV is 8 years old. Never bought a warranty for these and if I have it would have been money wasted. In most cases will the warranty company even be around? Seems most stores try selling a "protection" plan for everything these days, even software.

If you do feel the need for a warranty shop around, you might be able to save some cash. You can also do yearly plans that cover most anything.

 

on Jun 11, 2010

Back in the 1920s was when the appliance revolution so to speak started.  In 50s and 60s, was when it took off.  Many companies learned something from the 20s.  In the 20s companies made products that last.  Now, when I say last I mean they last.  I've seen several appliances from the the late 20s that still work and can be used if they weren't antiques.  Most of them have been used, so its not like a lack of use for still working.

During the 50s and 60s, companies realized they could make more money if the appliance didn't last forever.  Then they also realized there is money to be made for warranties.

Like Nitro said, this is very much science and math at its best (or worst depending on your perspective) when it comes down to warranties and products.  Most manufactors can accurately esimate how long their average product should last.  Some products are going to be duds/lemons that give out way way too early and then some will be on that other end that last longer then they should.

We could easily make products that last for who knows how long but there is no money in that if you have to buy that product once in a lifetime.

I think Toyota has a lifetime warranty offer now.  I'm not sure how much it is but this is very very wise move considering the acceleration pedal problem and all the bad publicity that gave Toyota.

Which leads me to a question not entirely related to this post.  I feel that the only reason that this (the acceleration pedal problem) was brought to the forefront was the fact that the government runs the U.S. auto industry now.  Think about it, its been going on since I think 1996.  Granted, I guess the problem could have just snowballed and got worse.  Thoughts?

on Jun 11, 2010

Warranties are always interesting topic of discussion.

on Jun 12, 2010

'We bought a Hyundai'  That's as far as I could make it through the article.

on Jun 12, 2010

Anthony R
'We bought a Hyundai'  That's as far as I could make it through the article.

HAAHAHHAHA, I guess it wasn't a good/sweet driving experience?

on Jun 12, 2010

My A/C went out two years ago (compressor). I paid $1050 to have it replaced (It was 6 years old).

I thought we were told that the new home warranty originally said our compressor was good for 10 years.  I do know that parts are good for five and labor for two (we're now 2 1/2 years into this) but I'll have to check on just the compressor.  So this time we're only paying for labor for this module problem.  The part would have been around $300 he said.  So thankfully we're not paying that.   

If you do feel the need for a warranty shop around, you might be able to save some cash. You can also do yearly plans that cover most anything.

That's what we're doing now.  In the meantime my AC is NOT fixed yet and sounds very sick.  It's now doing a skipping noise.  Another weekend to go through and it's supposed to be very very hot.  Hopefully we'll make it thru this weekend with air.  So even when this does get fixed I'm wondering the two weeks of running rough might jar or wear out another part somewhere along the line causing us more trouble later. 

I did call one  Home Warranty place and they quoted me $485 a year with a $100 deductible.  That would include all the appliances in the house plus air and heating system.  I mean what's the chances I'll lose my fridge or microwave?  And if so, $485 a year (minus the deductible even making it $585) is over $5,000 in 10 years.   I could buy quite a few appliances outright with that money saved. 

But still thinking the $731 for 10 years for just the air is a good gamble because they seem to be so suseptible to problems and we use it for a good part of the year. 

Warranties are always interesting topic of discussion.

yes, to buy or not to buy.  I've pretty much avoided them this far.  My friend down here just bought a camera and got the two year extended warranty for $35 bucks.  I told him I'd bed him dollars to donunts he wasted his money.  He told me I sounded just like a Yankee! 

We could easily make products that last for who knows how long but there is no money in that if you have to buy that product once in a lifetime.

I had a Kenmore Washing Machine that lasted and lasted and lasted.  The barrel was rusting out  but she still worked.  I bought it when my eldest son was newborn and got rid of it when he was in college.  It worked fine right up to the end.  I also had a large counter microwave (another Kenmore) that lasted and lasted.  I actually was waiting for it to die for a few years before it did because then I was planning on buying another that went over the stove.   We were too frugal to just go and buy the other with a perfectly good one still in working condition. 

'We bought a Hyundai' That's as far as I could make it through the article.

why is that bad Anthony?  We bought it for two reasons.  Gas mileage and warranty. 

on Jun 12, 2010

Another thing I just thought of.  When we bought this home all the appliances were warranteed two years completely.  Right from the get go I had problems with my DW.  It was making a loud grinding noise and wasn't cleaning my dishes properly.  I kept calling GE to come and fix it after each guy tried their best at replacing some small part. 

Nothing was working.  I kept telling them I thought it was the motor but they kept thinking it was another thing and would order a diff part and come a week later to put it in.  This happened about a half dozen times over a few months until the last guy who came the last few times did put in a new motor.   He said he was bound and determined to get my DW working.  I was thinking maybe I just needed to get another new DW.  But it was the motor afterall.  The grinding noise stopped. 

It's been working ever since but it's still not great at cleaning my dishes like I think it should.  So I've got this new DW with a whole bunch of new parts including a motor.  It's quiet but I always seem to have a few dishes in there that have food on them still.   

It's true they're not making em' like they used to.   

on Jun 12, 2010

My home came with all GE appliances (and I added a refrigerator and washer dryer) the products are OK, but I believe I will look elsewhere as I replace things. I have replaced the cheap GE DW with a Bosch, one of the best moves I ever made. I can barely hear it operate and it does a fantastic job. Besides I'm not thrilled with GE's recent political motivations and the fact that they were selling to Iran while the Iranians were sending IEDs to Iraq.

I try to read a lot of user reviews on various sites. One can get a pretty good idea about the reliability of a product before buying. I believe that is the best you can really do. I was reading about some issues with Samsung refrigerators. When a few people mention the same issues, that sends up a red flag. A/C is supposed to be a durable item, I would expect a name brand to stand behind there product. 

on Jun 13, 2010

got some interesting news. 

Like I said the extended warranty we've been offered is $731 and we're thinking of it while we're waiting for the part to come in.  They should be here next week hopefully to put the part in and talk about whether or not we want to get the extra warranty. 

Unexpectedly, yesterday, we got a certified check in the mail for almost exactly that amount from someone who owed us that money 10 years ago!!!!  We never expected to see that money again.  It seems as tho we've got our answer.  

God is good! 

on Jun 14, 2010

and the news just keeps on coming...

Woke up today with NO air at all.  It died this morning.  Thankfully we made it thru the weekend.  Hopefully they'll be coming out soon.  Today is supposed to be blistering hot out. 

 

on Jun 14, 2010

how so? I didn't buy the warranty when I was first asked last year. We skipped it.

Not the warranty, the repair.  They are going to "teach you a lesson".

on Jun 14, 2010

Back in the 1920s was when the appliance revolution so to speak started. In 50s and 60s, was when it took off. Many companies learned something from the 20s. In the 20s companies made products that last. Now, when I say last I mean they last. I've seen several appliances from the the late 20s that still work and can be used if they weren't antiques. Most of them have been used, so its not like a lack of use for still working.

Computers were later, but the ones that never seem to die are the originals!  IBM PC XT and ATs, and Apples II series!  I had people 10 years later refusing to give them up because of how much they cost and because they were still running!!!!!