You’re preparing to pay the bill for your new dishwasher when you hear the infamous question: “Would you like to buy a warranty?” Sure, you’d like to purchase one. Who doesn’t want that peace of mind? But should you?
In most cases, warranties have too many downsides to even make them worth the money. Plus, there are other forms of purchase protection to put your mind and wallet at ease.
With that said, U.S. News and World Report presents six reasons warranties aren’t worth buying:
1. The Manufacturer’s Warranty Is Often Sufficient
Most products on the market come with a manufacturer’s warranty, which lasts about a year. The majority of minor malfunctions occur within the year the product was purchased, U.S. News and World Report says. Major problems are likely to happen much later, beyond the reach of an extended warranty’s term.
2. Extended Warranties Are Not Always Effective
Warranties won’t cover everything that goes wrong with your purchase. The terms and conditions of these agreements are full of fine print and exclusions.
3. Consumer Products Depreciate in Value
What you paid for your Blu-Ray DVD player isn’t what people will be paying in a few more years. Skip the warranty and buy a new DVD player in a few years, should yours break – it’ll be much cheaper.
4. The Necessity of Repairs Is Rare
Consumer Reports has studied repair rates, and percentages range from just 5 to 37 percent, which indicates you’re unlikely to need a repair. It probably makes more sense to skip the expense of a warranty and have a product repaired instead, in the rare event it needs to be fixed.
5. Warranties Are Not Cost Effective
As previously mentioned, the extended warranty often overlaps the manufacturer’s protection. You may purchase a two-year extended warranty, but with the manufacturer’s protection covering the first year, you end up paying a two-year rate for only one additional year of coverage, as noted by U.S. News and World Report.
6. Credit Cards Can Offer Better Protection
Some cash-back rewards credit cards offer to double the life of manufacturer’ s warranty, which should be more than enough coverage.
The opinions expressed are solely those of the author and do not necessarily reflect the views of XFINITY.