The APH Team reviews extended warranties
Gone are the days where a cooker or TV would last 30 years and would be very expensive to replace. There is a belief today that goods are built to a higher standard, but they don’t seem to last as long as the good old days, but according to Which? you can expect your goods to last a minimum five years.
It may be true that technology has advanced significantly, but at the same time electrical goods have fallen considerably in price over the years creating a throw-way society. Due to the cost of repairing technology, in most cases it becomes unaffordable to repair damaged goods making it cheaper just to replace the item.
Thanks to consumer rights in the UK, consumers already have statutory rights which offer consumers a high level of protection. The 1979 Sale of Goods Act is a powerful piece of legislation which states that goods should be of satisfactory quality, fit to do the job intended and last a reasonable length of time.
In fact, you’re legally allowed to return goods up to six years after you buy them – though it gets harder to prove that a fault and not normal wear and tear is the cause of any problem.
There are certain items you buy which are out of date as soon as you buy them. This is typical with computers where prices drop like a stone as soon as you take it home. With other items such as TV’s, washing machines and hi-fi’s you may intend to keep these items for in excess of five years but the warranties can cost over that period more than fifty percent of the total value of the goods.
I would suggest you look for a retailer who offers extended warranties for free. John Lewis for example not only offer extended warranties for free put they also price match. Last Christmas we bought a smart TV from John Lewis which also matched the price of Curry’s and then threw in the warranty for five years.
This meant we saved £230.00 (warranty) and £80 for the price match. I expect we will have our TV for many years (last TV we had for 10 years) and if it was to break we have the guarantee it will be repaired or replaced for a new one. After the warranty expires it will most likely be cheaper to replace it and buy a far superior one due to technological advances.
You will always pay a premium on the high street so we would suggest looking at the secondary market where you can also insure multiple items on one policy. A few years back Comet was making more more from selling extended warranties than it did from selling electrical goods.
Also, beware of the policies where you pay monthly and then can cancel. These premiums will come out of your bank account until you cancel and can be very expensive, especially when you consider the value if you goods as they get older.
Do your research and wherever possible find a retailer who offers extended warranties for free. The Co-op announced recently that they would not profit from the sale of extended warranties, but comparing the retail cost of their goods they may not be the cheapest option.