Are extended warranties a good idea? Some people buy them with anything they purchase. But the value may not be what you think.
Most people who purchase extended warranties do so because they fear the cost of possible repairs or replacement. But, saving the money is a far better alternative!
Extended warranties are contracts for continued service at additional cost separate from any other purchase guarantees. Buyers often overestimate the quality of their coverage and underestimate the money they’ll end up spending out-of-pocket for these plans.
According to Consumer Reports, extended warranties have become a major source of complaints to the Better Business Bureau – and elsewhere. The fine print in contracts may deny coverage for almost any reason. If you don’t follow the fine print instructions for routine maintenance, your extended warranty may not cover repairs. They can deny your coverage of various parts, or because of accidental damage, or pre-existing conditions.
Many products are highly reliable and unlikely to need repair before replacement. So, most manufacturers’ warranties are sufficient. Major appliances and electronics often have a 1-year warranty and new cars typically have 36,000 mile or 3-year coverage.
So, do your research before purchasing – and keep your receipts. Maintain products as suggested by the manufacturer. If a repair is needed, try to do it yourself. Put the money you would have spent on extended warranties into a savings account. When it comes time to replace the products, use the money you’ve saved.
Solomon wisely said, “The simple believes everything, but the prudent gives thought to his steps.”
Stewarding your technology, appliances, and other belongings is important to the Lord, and can save you money in the long run. This October, Crown is hosting our annual Gathering to learn more about stewardship and celebrate all that the Lord is doing in this ministry. You’re invited to join us in beautiful Asheville, North Carolina as we discuss what total life stewardship is. Register at gathering.crown.org