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Appliances: Cash back or extended warranty?

Mami_Love8110 136 17 February 1, 2016 at 03:43 PM
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I am about to buy two major appliances, Fridge- Samsung and Wall Oven: Whirlpool, and I had planned on getting gift cards at my local grocery stores to buy them to get 6% cash back.

But I then thought about warranties. I believe both come with only 1 year on parts and labor. Using my card to pay direct would mean a one year extension. If I buy with gift cards, I don't get that extension.

My question is, would it be better to get the $230sh in cash back, or the extended warranty? I have read that extended warranties are a rip off in most cases, but it would be free. I've read reviews of both appliances, both 4.5 out of 5 and the bad ones are breaking down issues within a year sometimes two of purchase.

I was originally going to buy both appliances at IKEA as they have a 5 year warranty, but I didn't like their fridges. The oven is what I would consider still getting, and both are made by Whirlpool. I have read the drawback to the IKEA Nutid is the self cleaning which I never use.

Thoughts?

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#2
Check the price of SquareTrade warranties, as they are much cheaper than the extended warranties offered by the merchant. I think SDs come up for them pretty often, too. You'll probably be able to get 5-year warranties for both for less than the $230 in cashback you'll get. Most credit cards offer a max extension of 1 year on the warranty anyway, so with SquareTrade you can probably get the best of both worlds.
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Marshall: Have the rest of you guys figured out by now that mmathis is the smartest guy on SlickDeals?
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#3
Quote from mmathis View Post :
Check the price of SquareTrade warranties, as they are much cheaper than the extended warranties offered by the merchant. I think SDs come up for them pretty often, too. You'll probably be able to get 5-year warranties for both for less than the $230 in cashback you'll get. Most credit cards offer a max extension of 1 year on the warranty anyway, so with SquareTrade you can probably get the best of both worlds.
I appreciate the tip, took a look at my fridge, that alone is $375 for a 5 year. May not be worth it in this case. Thank you!
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Quote from Mami_Love8110 View Post :
I am about to buy two major appliances, Fridge- Samsung and Wall Oven: Whirlpool, and I had planned on getting gift cards at my local grocery stores to buy them to get 6% cash back.

But I then thought about warranties. I believe both come with only 1 year on parts and labor. Using my card to pay direct would mean a one year extension. If I buy with gift cards, I don't get that extension.

My question is, would it be better to get the $230sh in cash back, or the extended warranty? I have read that extended warranties are a rip off in most cases, but it would be free. I've read reviews of both appliances, both 4.5 out of 5 and the bad ones are breaking down issues within a year sometimes two of purchase.

I was originally going to buy both appliances at IKEA as they have a 5 year warranty, but I didn't like their fridges. The oven is what I would consider still getting, and both are made by Whirlpool. I have read the drawback to the IKEA Nutid is the self cleaning which I never use.

Thoughts?
Technically, your cc should give you at least 1% back in rewards, and up to 2% or more depending on which cc you have. So you should subtract that from your 6% in cash back to get a better idea. In other words, you're asking whether that 1-year extension is worth 5% or so of the total purchase price. To me, that sounds like a reasonable price, but the value of "peace of mind" (aka insurance) is very subjective, of course.
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#5
Quote from godfather927 View Post :
Technically, your cc should give you at least 1% back in rewards, and up to 2% or more depending on which cc you have. So you should subtract that from your 6% in cash back to get a better idea. In other words, you're asking whether that 1-year extension is worth 5% or so of the total purchase price. To me, that sounds like a reasonable price, but the value of "peace of mind" (aka insurance) is very subjective, of course.
Excellent point thank you.

I actually ended up going g with the GC because it gave me $259 cash back, $195 in fuel rewards and $130 though Chase rewards mall. Total of $585 back in some way. And the fridge comes with a free Samsung TV so like another $300.
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If an appliance is going to break, 98% of the time, it will break during the first 6 months. Actually more like first 30 days. Statistically, extended warranties are not worth the cost. Of course for the very low percent of the time when you need them, they are. Play the odds, don't get the extended warranty.
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#7
Where are you buying them? Discover has 5% CB @ Homedepot.com. If the item is for delivery, you can CSR chat HD and have them apply a Lowe's 10% off coupon.

This way you get the cash back, coupon AND benefits of the card - for Discover the extended warranty is +1 yr on manuf warranties of 3yrs or less.
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