Extended Electrical Appliance Warranties - Mis-selling

An extended warranty can sometimes be a form of insurance policy that covers you for repair costs after the manufacturer's or retailer's guarantee has expired. But are they worth the money? Extended warranties can be expensive, most new goods are made to a high standard and you already have statutory rights which give a high level of protection. If your Electrical Appliance already had a manufactures guarantee when you purchased it you probably never needed to take out an extended warranty on your purchase:

You would have been covered already:

The Consumer Rights Act 2015 is already on your side.

It says that goods should be of satisfactory quality, fit to do the job intended and last a reasonable length of time.

If you buy a new TV, washing machine or any other electrical goods and it breaks down within six months, you can take it straight back to the shop.

It's up to them to prove that the appliance was not faulty when you bought it.

Under some circumstances you might be legally allowed to return goods up to six years after you buy them.

Although, this usually depends on whether you are able to prove that a fault was present when you bought it and that normal wear and tear wasn't the cause of any problem.

Check the manufacturer's and retailer's existing guarantees

Before you think about paying for an extended warranty, remember that manufacturers often guarantee their goods for up to 12 months (and in some cases longer).

Plus, some retailers will top up the period of guarantee on top of that of the manufacturer - for free.

This can add up to five years total cover, and it's all included in the price.

Credit card protection

If you pay by credit card, you're automatically covered on any goods valued between £100 and £30,000.

The law says that the card company has to cover you if goods are faulty or not as described, or if they're not provided under the contract - this is under Section 75 of the consumer credit act.

Are extended warranties for electrical appliances value for money?

There are reasons why an extended warranty might not be, including:

  • most electrical goods and appliances are getting cheaper over time
  • they're also getting more reliable, so you're less likely to need a warranty
  • at the same time, repairing is getting more expensive as appliances get more complex - so it can be cheaper to buy new than repair
  • technology is advancing, so replacement goods are not only usually cheaper, but are often going to be better than the one you had before - perhaps more energy efficient and so cheaper to run, or with the latest features included in the price.

Which Magazine discovered that most new electrical goods and appliances are actually very reliable and have a very low chance of needing repair in the first five years.

They also found that extended warranties for everyday appliances from some suppliers were expensive.

For example, the cost of an extended warranty on one £260 washing machine was £170 - more than half the cost price.

Mis-selling check list - tick all that apply: