How do you feel about extended warranties?

Extended warranties are often pushed as an add on at the checkout, but the Australian Consumer Law can offer protection even after a warranty has expired.

How do you feel about purchasing extended warranties?


Some feelings! :wink:

Add up the potential cost of all the offers refused over time and you are betting one in 4 products turns into a dud?

Experience of one from way back is that it was not really an extended warranty. It was a product failure insurance policy that gives you cash to buy a replacement, brand not restricted. To be effective for the provider such policies are stacked in favour over time of the insurer along with the sales commissions earned by the retailer.

The term extended warranties needs to be removed legally if what is being sold is closer to insurance and that is how they function. For the ACCC and government to action?

Of course the benefit to the retailer and supplier in each instance is they are unlikely to wear any costs under the ACL, for faulty or defective products where claims are made against the policy. Everyone wins including the consumer who is paying for the prize, albeit at several times the price it’s really worth.

I can see but one weak argument for them. If the manufacturer of your dud product does not have a reliable fix or has left the country, a payout over the counter on presenting the dud product might be the most painless solution. Consumers often love convenience, which is how several have recently explained the great decision the extended warranty (insurance plan) has been.

Betting you always make a poor purchase decision every time seems so human, for everything else there is hopefully a Choice review! :slightly_smiling_face:


When we bought all new appliances for our current home in early 2015 we bought extended warranties only on the LG fridge and the Bosch washer and dryer at $169 each They have now expired without any extended warranty claims.

When the Bosch washer developed some rust bubbles on the front panel after 2 years, I read the extended warranty policy and saw that it excluded corrosion so I contacted Bosch and requested it be repaired under the ACL, which they did.

The existing SMEG dishwasher was still covered by an extended warranty purchased by the previous owner, and we had it repaired twice under it.

Appliance sales people certainly try hard to sell extended warranties, even on things like toasters, as both the stores and the sales people get a fat chunk of the premiums.


Only did once about 20 years ago, possibly due to naivety. Since then I haven’t as it doesn’t offer anything really in addition to that offered under the ACL.

I have asked on occasion when extended warranties are pushed at the point of sale, what they offer in addition to the ACL. The number of difference answers is surprising from something line the ACL doesn’t do more than what the manufacturer can offer (which is fiction) - to blank stares from the sales staff.

I prefer to keep my own hard earned dollars in my own wallet, rather than giving some up for something which has little merit and covered by the ACL.


Well I already know my consumer rights, I brought a micro acer desktop that the mainboard blew up a few months after the acer warranty ran out, acer tried telling me that I should of got an extended warranty, I said no, as their devices should last longer than a few months after the warranty runs out, specially for a $900 computer, that does not come with a monitor. They agreed to fix it, came back in worse condition, and another 8 months or so later, the mainboard blew up again, and it came back again in a worse condition, on the report it stated new mainboard, when it clearly was not, was asked by acer this time to take it into one of their Hobart repair centers instead of sending it back, did that was told that they will have to get a new mainboard, and I told this shop just wack it back together, as I will be taking the rubbish back to office works for a full refund. Just after having it for around 2 years, I demanded a refund, I was told by our local office of fair trading to call them from office works, if they do not give me the refund, and they will explain the laws to them, that they must give my money back, repair it and or replace it, but in my case a full refund, as it has been sent to repair shops 3 times

So what do I think of extended warranties, that they are costly, and give you no more protection than what you already get under our current laws, but some times it can be an exception, I had a mobile with a extended coverage for free from a phone manufacture, that covered the screen even for damage.


I have to wonder if the so called extended warranties may actually also give you an idea, how long a product should last, and still be covered under the australian consumer law fir for purpose, under the Australian Guarantee statutory warranty


I have never bought one as I always felt I could rely on consumer protections to rectify any faults.

As others have indicated, it is often clear that the sales staff have very limited or no knowledge about the ACL, & they actually believe they are selling you a good product.

Perhaps there should be a legal requirement for sales staff to inform shoppers of the ACL BEFORE they try to sell extended warranties.


Got my vote, although it’s likely the sales training is carefully crafted already to skirt the edges. My suggestion is it should also be clearly written in large bold print on the top of the front page and at the signing panel for the extended warranty.

I still think many are not a warranty at all, and should be called a product insurance policy. Especially those that cover failure or damage for any reason or cause.

I suspect that might require a significant change to how they can be sold.

Should we be asking if there is a deal between some big retailers and the brand. One where a discounted or lower wholesale price is based on most consumers opting for the extended warranty. In return the large retailer offers to indemnify the brand for any warranty claims under ACL not protected by an extended warranty. One reason why making claims under the ACL with certain large retailers might be strenuously evaded. I just made that up. Hope it is not possible.


I’ve only ever bought one, and that was on a portable a/c which stopped functioning after a) the warranty had expired and b) the company went bust. Never have, ever since.

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Some of the companies I have had to invoke the ACL on seemed to have the manufacturer warranty as their base, then an additional period when the shop staff have complete discretion to honour the ACL, but beyond that it goes to corporate and where going formal is usually required. From my experience inside double the manufacturer’s warranty may be the discretionary period for the shop staff for many companies.

There is, in a way, although with weasel word ‘should’…


I used to buy extended warranties, for years I’ve never made a claim on any of them, I bought a new TV in 2009 and bought 3 year extended warranty from the Good Guys, 5 years later the Tv had no picture but their was sound and I figured out their was no backlight as their was still a picture! It was a $100 part to change out and since then the tv work fine and I still use it today!

At EB games I used pay an extra $3 per game for disk cover on second hand games and last year I bought a PlayStation console and I offered a protection package I declined it!


So many companies have actually been fined, for not honoring the Australian Consumer Statutory Warranties, can remember a few Harvey Norman’s franchisees got fines. Again it was reported the other day, that if you pay certain amount for something then you would expect it to last past the manufacture warranty. If you brought a $1000 tv you would expect it to last some years, not just after a 12 month manufacture warranty runs out. The 2nd in charge of the ACCC was talking about this again few days ago on tv.

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Why can’t they just allow all consumers to bring back the purchases for a, replacement or repair. The consumer law can work. Ive been conned into buying a extended warranty it seems pointless to me since the product works fine.


It is a con, to get you to part with more of your money. They build the cost of any repairs into the price of the goods anyway, and after having bought one extended warranty will never bother again, and it has not caused any issues.


I’ve been conned into it on something a, while ago. Im not sure what you think about the retailer or manufacturer but they are both oit to get more money. The consumer law works with some products but not all. Ive had a bad experience with the law, failing.

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