Did I get 'humped'?
Discussion
So, I never, ever take extended warranties on anything! They're usually a rip off.
However, had a call today from the supplier of my last washer/dryer (AEG at £600) that for £6.99/month I could get a policy that would give me free manufacturer-approved-personnel repairs for life and the replacement of a new for old washer/dryer no matter how old, or how it failed whether accidental damage, wear'n'tear or just complete failure...no matter what.
Given that my last one went on fire and the previous one didn't make 5 years, what's the real catch?
Anyone?
However, had a call today from the supplier of my last washer/dryer (AEG at £600) that for £6.99/month I could get a policy that would give me free manufacturer-approved-personnel repairs for life and the replacement of a new for old washer/dryer no matter how old, or how it failed whether accidental damage, wear'n'tear or just complete failure...no matter what.
Given that my last one went on fire and the previous one didn't make 5 years, what's the real catch?
Anyone?
CraigVmax said:
If you take out the policy and claim after 3 years you have spent £250, it costs them less than that to give you a new one, if you have it and the policy (which after 3 years you are unlikely to not continue with) for 5 years you have spend just over £400. low risk for them.
The difference is, I don't notice £6.99 leave my bank, but I do notice £250 for a new machine every 3 years 
Not forgetting, they can make them for nothing like what they sell for. So it'd cost you a lot more to replace outright, than for them.
Edited by illmonkey on Tuesday 14th December 15:41
illmonkey said:
CraigVmax said:
If you take out the policy and claim after 3 years you have spent £250, it costs them less than that to give you a new one, if you have it and the policy (which after 3 years you are unlikely to not continue with) for 5 years you have spend just over £400. low risk for them.
The difference is, I don't notice £6.99 leave my bank, but I do notice £250 for a new machine every 3 years Not forgetting, they can make them for nothing like what they sell for. So it'd cost you a lot more to replace outright, than for them.
Edited by illmonkey on Tuesday 14th December 15:41
thepeoplespal said:
illmonkey said:
CraigVmax said:
If you take out the policy and claim after 3 years you have spent £250, it costs them less than that to give you a new one, if you have it and the policy (which after 3 years you are unlikely to not continue with) for 5 years you have spend just over £400. low risk for them.
The difference is, I don't notice £6.99 leave my bank, but I do notice £250 for a new machine every 3 years Not forgetting, they can make them for nothing like what they sell for. So it'd cost you a lot more to replace outright, than for them.
Edited by illmonkey on Tuesday 14th December 15:41
First washing machine we had lasted 8 or 9 years. Current one has just died after 10 years, new one with 2 year guarantee arrives on Friday. 6.99 a month saved for 8 years produces 670 odd quid. New machine (washer only) cost 450 quid.
Edited by IainZ on Wednesday 15th December 00:38
thepeoplespal said:
illmonkey said:
CraigVmax said:
If you take out the policy and claim after 3 years you have spent £250, it costs them less than that to give you a new one, if you have it and the policy (which after 3 years you are unlikely to not continue with) for 5 years you have spend just over £400. low risk for them.
The difference is, I don't notice £6.99 leave my bank, but I do notice £250 for a new machine every 3 years Not forgetting, they can make them for nothing like what they sell for. So it'd cost you a lot more to replace outright, than for them.
Edited by illmonkey on Tuesday 14th December 15:41
jshell said:
Suppose that's true IF it doesn't breakdown or get damaged, which is where the advantage of the policy comes in. Repaired free, no 'excess' charges etc....
For the first 2-3 years it's under warranty anyway so thats £250 wasted if you buy an additional warranty.My neighbour has that "repair for life" warranty on her washer and it's failed twice recently, each time we would be helping her out for 1-2 weeks at a time while the repair company sorted out new PCB's etc and the usual failing to turn up to booked appointments. Repaired free ends up being a right pain in the arse especially when your rusty 15 year old machine still grinds and whirrs in the corner.
Keep alive warranty:
Self insure:
So, you have to imagine, it's an insurance company and it needs to make money.
it calculates the average risk/cost of the maintenance/replacement of the machines per month, let's call that average r.
So they need to charge r+margin /month.
On average, you pay the margin extra. If you have bad luck (more bad luck than the average +margin!), you can save some money, if you are at average, you pay extra because of the margin and if you can keep your machines longer (yes, my machine is still in perfect shape after 5years, the previous one I got from my parents, lasted 20 years), you're just paying way too much.
it calculates the average risk/cost of the maintenance/replacement of the machines per month, let's call that average r.
So they need to charge r+margin /month.
On average, you pay the margin extra. If you have bad luck (more bad luck than the average +margin!), you can save some money, if you are at average, you pay extra because of the margin and if you can keep your machines longer (yes, my machine is still in perfect shape after 5years, the previous one I got from my parents, lasted 20 years), you're just paying way too much.
j3gme said:
Had nothing but trouble with my AEG washer bloody crap !
Next time has to be Mile
Miele?Next time has to be Mile
Yes, very good but you pay the price.
Siemens are a very decent runner-up at two thirds the price!
AEG/Electrolux are fairly know in repairers circles as being a great source of income for them.
I've worked in the repair business as a help a couple of years ago, generally we would say get Miele if you can pay the price, but if you want great reliability/VFM we'd always advice Siemens and Bosh.
Our workshop was filled with 3-5y old AEG/Electrolux/Whirlpool washers, the odd Miele, Bosh and Siemens that came in were generally much older and better put together (although that could be related as well)
Our workshop was filled with 3-5y old AEG/Electrolux/Whirlpool washers, the odd Miele, Bosh and Siemens that came in were generally much older and better put together (although that could be related as well
)These insurances are fine until there is something major at fault (the spares prices are inflated to make this a real possibility) An engineer will come around, estimate the job (say bearings on a Electrolux Aeg involes fitting a new tub at around £300) The insurers will deem it as BER, pay you some of your premium back and you are still left with a duff washing machine.
Fine if you get a string of minor fautls though.
Better option is to buy something decent with a long warranty such as an ISE which comes with a 10 year parts and labour warranty.
Fine if you get a string of minor fautls though.
Better option is to buy something decent with a long warranty such as an ISE which comes with a 10 year parts and labour warranty.
Edited by eastlmark on Friday 17th December 18:03
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