Extended service plans are all over the place now, and you can get them on just about anything you buy. Extended service plans are one of the good ways you can save money, if your appliance happened to break down during the contract period. However, extended service plans can be a double edged sword because you can also lose money, provided that your appliance suffers no need for repairs during your contract period. A lot of people ask, "Do I really need an extended service plan?" Well, the answer is both yes and no. A good guide to use in determining if you need an extended service plan is this; percentages. For example, if you purchase a $500 appliance and the extended service plan is $100, then that's 20% of the price. You can make up your own percentage threshold when determining if to purchase or not. Obviously, the lesser the cost to repair/replace the appliance, if it breaks down, can be a determining factor as well. Here's an example; Would I buy an extended service plan on a $100 microwave? No. However, would I buy an extended service plan on a $2500 refrigerator? Yes, because it's a little more difficult for to come up with $2500 in replacement costs, than it is $100, see?
The truth is only about 30% of buyers ever need extended service plans. The dollar amounts for extended service plans will vary from seller to seller, and services covered will vary from plan to plan. So you want to be sure to look at each individual service plan's fine print, depending on where you purchase your appliance from. The extended service plans can come in handy if your appliance breaks down. However, on the downside, if your appliance never breaks down then you've lost money. Extended service plans are both a blessing and a curse. Consider the extended service plans as a type of insurance. You may never need it, but if you do then you're glad you're covered.
WORDS OF WISDOM; Appliances made today are being made with more plastic parts, less metal parts, and made with thinner materials, and here's why; This is done as an effort by manufacturers to stay competitive in the market. If manufacturers don't stay price competitive in the market, then they run the risk of their appliances being overpriced, and not purchased. Most consumers buy based on affordable dollar amount, and not quality.
