Are those payment plans/insurance deals worth it for appliances?

[golondrina]

I've got a dishwasher that's out of guarantee (3.5 years old). It acts like it's going to run a program, makes appropriate noises etc but doesn't actually wash, just hums a bit then beeps to say it's finished.
I rang the makers (can't find a local person to fix it for love nor money) and they quoted €50 call out (I'm not in the UK) and then parts, labour etc. Or....€18 a month for a year, but if it's unreparable they'll give me a new one and it'll be guaranteed for a year. A total of €215.

But, if it's a small repair, it likely wouldn't cost that much anyway and a brand new one would have a 2 year guarantee by law anyway if I just went out and bought a new one in the worst case scenario.

But before the technician will come I have to choose which payment option

Statistically they aren't worth it.
You'll find someone for whom it has worked out, but if you do a bit of research about how much it would cost you to buy a new dishwasher, then 12 x £18 (sorry, i don't have a Euro sign) = 216 euros, and it would be 'guaranteed' under the sale of goods act anyway (or whatever legislation is where you are - basic contract law that says goods must do what is expected of them for a reasonable time)) so the 'guarantee for a year' is worthless.

All that siad, the whole £50 call out, + parts + labour, when not someone that has been recommended to you, is also a lot of money.

Interesting that they are trying to sell a warranty for a broken machine. Usually the warranty sale comes either at the point of sale or after the usual years manufacturing warranty. I would investigate this further before committing.

It's a Teka dishwasher and we're in Spain, where all new appliances have a 2 year warranty by law. So, if I went out and bought a new one today it's automatically have a 2 year guarantee.
As I understand it, I can just have Teka come out and fix it (€50 call out) or I can sign up to a payment plan of €18 a month and they'll fix anything at all (multiple times if necessary) within those 12 months. Or if it's not fixable will give me a new machine and a year's guarantee. But obviously, it's only 3 years old, if it's a small repair, it's not worth it.
If it can't be repaired then with a new machine I'd get 2 year's warranty anyway?
Maybe the payment plan thing is worth having on an older machine.
But I can't find anyone else to come out and do it, so i think I'll have get them to repair and if it's dead buy a new machine myself.

My dishwasher as doing exactly the same thing a while ago, we took all the filters out and cleaned them to make sure they won’t blocked, it still wasn’t working so we turned it off at the mains for a few hours, it seemed to ‘reset’ and has worked fine since.

Thanks, I might try that, it certainly seems to be something electrical. I'll ask DH to help me after work, I'm not sure I can get it out from where it is without help.

The fact that these policies exist means that overall the insurers are making money from them so for most people they aren't a good buy but for some they will be. The problem is of course that you don't know which one you're going to be.

Personally I'd never have one but I've never had an expensive repair or trouble finding a repairman. I'd check YouTube before deciding. There are videos for most repairs

I see I could get the exact same model for €261 if I bought it new.

I've never bought an extended warranty for anything. So far, it has always proved to be the right decision. Which means if something goes wrong and needs replacing, I will just do it because I've saved plenty over the years through not taking out the insurance/extended warranties.

My current dishwasher is 9 years old. My washing machine 10 years. Microwave 8 years. I had to buy a new over last year, but previous one was around 13 years old. I have replaced TVs in much less time, but that's because of improved technology and I bought the last one from John Lewis because it comes with a free 5-year warranty.

I have quite a few policies on stuff but thats due to my circumstances. I bought my first brand new washing machine in 2005. It was a larger drum model and I paid the domestic and general charge of something like £60 for 5 years new for old cover. But having 4 kids and two rotties, that machine was totally hammered. We had it serviced every 6-12 months and then in 2009, it was uneconomical to repair so they replaced it. This was a 10kg hoover and I invested in the matching tumble drier. Again paid the policy, £110 for the washer and £80 for the drier. Had them serviced as needed and then with a month left on the policy, the drum somehow sheared off the spinning mechanism and so it was replaced again. I paid extra and now have a 13kg wireless washer (?) , a matching 10kg drier and my old drier also on the go.

I likely won't insure them once my kids have left home but for us the insurance policies have been life saving. Oh, I got an american fridge freezer 2 years ago and that was insured too. I do not bother with TVs, cookers though as to me they are replaced easily and relatively cheap in comparison to a good quality machine that can cope with 18 towels, 6 double duvets and sheets and 40+ outfits

So, the Teka guy came today and reckons it's the condensor for the motor (I think). He didn't have the right size in the van, so he's coming back tomorrow. Says it'll be €70 all in, so I'm glad I didn't go for the payment plan.

We have one for an appliance that would cost £1300 to replace. Its built into the kitchen so if it broke we would have to find the money to replace it, get a new kitchen, live with a defunct machine or big hole in our kitchen. So for that reason I think the extended warranty is worth it.

I wouldn't insure lower cost items though.