Buying Extended Warranty with Whitegoods

• 

  ESEMCE on 05/01/2016 - 08:39

  +5

  Extended Warranties are money in the bank for the retailer.
  Australian Consumer Law covers your for a "reasonable" service life.
  5 years should easily fit into a reasonable service life for a domestic TV (ie not in a restaurant/shop turned on 24/7).
  When the salesperson asks to sell you an extended warranty the reply should be "So you have so little confidence in your stock that you expect to break down in 12 months time?"

  • 

    oscargamer on 05/01/2016 - 09:14

    x2

  • 

    ItsMeAgro on 05/01/2016 - 09:59

    +1

    Basically, if your $2000 TV breaks down within a ridiculously short amount of time, like less than 5 years, you call up the manufacturer to get repair under warranty. When they say it's no longer under warranty, you use the magic words "statutory warranty" and they send someone to fix it to avoid the legal costs etc.

    • 

      Cheeper on 05/01/2016 - 10:43

      and the distributor arranges for an inspection and quote and if the tv is uneconomical to repair they offer you the chance to buy another set at a reduced price… Rarely are they economical to repair.
      Happened to me with a less than 2yr old Panasonic set.
      Mention the magic words statutory warranty and they will laugh at you as you have to take the retailer to a tribunal to get any enforceable action. You also pay for that. They know this puts 99% of people off.
      In my case HN, the retailer, just ignored me and DOFT NSW.
      The ACL is just a list of "wishes", nothing enforceable.

      • 

        ESEMCE on 05/01/2016 - 11:53

        How much was the changeover cost to replace?

      • 

        Cheeper on 06/01/2016 - 01:27

        @scubacoles:
        $400 for a 50" 50hz lcd bare bones version. It was either that or nothing they said.
        So much for ACL.. we have no consumer laws.
        As much as I hate extended warranties they can be worthwhile if they are through a reputable insurer and the conditions are clearly stated.

• 

  thehub on 05/01/2016 - 09:23

  +1

  I usually avoid those warranties, as they're quite expensive.

  The only circumstance where I would take them up is if they're heavily discounted, which I've done probably once or twice that I can remember.

  The last time it actually turned out to be quite handy. Bought a cheap 32" Palsonic TV from JB Hifi with the extended warranty (can't remember how much the warranty cost, but it was negligible). The TV failed within about 18 months and I took it back to JB. They gave me a free replacement, and because they no longer stocked the Palsonic model, I was allowed to choose a Samsung 32".

  Sure, theoretically the ACL might give you rights beyond the express 1-year warranty, but the extended warranty just makes it an easier process. So if it's cheap enough, I would take it up.

• 

  PartyNextDoor on 05/01/2016 - 09:48

  I think it's a waste of money but check your credit card to see if one of the benefits is extended warranty for purchases made on the card if you want the piece of mind.

  Amex has a $0 annual fee card with a pretty good purchase interest rate that extends manufacture's warranty for 12 months.

  https://www.americanexpress.com/au/content/essential-credit-…

  "Buyer’s Advantage – extends the manufacturer’s warranty by up to 12 months for up to $7,000 per claim and $7,000 per year, with no excess"

• 

  livingoracle on 05/01/2016 - 10:44

  Guys, thanks for all your comments, has anyone got ACCC to confirm what their interpretation for reasonable service life is ?

  I assume like you that reasonable period would be 5 years for a home used TV unit, however cant say what that would be in Black and white ink in the pages of law.

  • 

    ItsMeAgro on 05/01/2016 - 10:49

    I think, as is usually the case, the law states a "principal" using words open to interpretation like "reasonable" so that a court or tribunal can determine what is reasonable on a case-by-case basis. I don't think you will find anything saying "TVs should last X years".

  • 

    PartyNextDoor on 05/01/2016 - 12:42

    Depends on the price you pay too e.g. if you paid $3,000 expecting five years it's reasonable but if the unit costs $300 it is probably not expected to last as long

    • 

      livingoracle on 05/01/2016 - 12:56

      -1

      hi mate, im looking to buy a 55 inch uhd tv from TGG and its costing me 1396 and im expecting 5 years without trouble, is that reasonable home use ?

      • 

        PartyNextDoor on 05/01/2016 - 14:13

        +1

        Not sure, I'm not qualified to make that judgement. It's very subjective since the laws are so vague. KaTst3R below makes an excellent point though, purchasing warranty will give you piece of mind but claiming is a whole other story and there are many companies that will make the process difficult to discourage customers going down that path.

      • 

        ItsMeAgro on 05/01/2016 - 15:32

        Seriously? We literally just explained how and why no answer to that question exists…

• 

  KaTst3R on 05/01/2016 - 11:40

  Just a side note on the JB HIFI extended warranty (the yellow booklet I believe). Consumers are actually buying a retail warranty from Lumley Insurance. JB won't help you if things break down and Lumley are the worst bunch of people to deal with. From experience, they don't respond to your emails and always promise to call you back but they never did. And when I proved that my white good (tv in this case) was eligible for claim, they tried all sort of stupid things to discredit me, like saying the terms and condition booklet that JB gave was wrong and outdated so my claim was invalid (good thing I actually kept the booklet). It was hell for about a month and half before they had no choice but to pay up when I threatened ACCC. If you read reviews on them online, some people had it much worse. Just to let you guys know what you are getting yourself into when you purchase that warranty.