HARVEY NORMAN - 5 YEAR EXTENTED WARRANTY

I am looking at buying every appliance needed for new home.

I have been pricing items at harvey norman and they are selling me the 5 year replacement warranty.

They tell me that they will replace the item with no questions asked.

I am considering paying the extra amount for peace of mind.

I am interested to find out if anyone out there has had dealing with them and how they found them to be.

Thanks
paula

Most items will follow a bathtub curve of failure. The rate of failure will either be high at first, then drops off rapidly (one end of the bath), plateaus to very unlikely to fail for years and years (the bottom part of the tub, and where their warranty covers), then goes up again many years down the track (other end of bath).

They are covering you for the absolute least likely time of failure. Hence, I wouldn't bother. Remember, they make money out of the warranties.

4

I wouldn't bother.

First, electrical appliances are far more reliable than they used to be. If whatever you've bought doesn't break down in the first few months, chances are you're going to get 5 years out of it.

Second, read the fine print very carefully. There are usually enough escape clauses in these things to keep Harvey Norman from ever having to replace anything.

They wouldn't be offering these warranties if they're weren't making money out of them.

I do agree with you.. I have had extended warranty in the past and haven't used them.

I read reviews on items and there is always something going wrong.

The only reason I am considering is we are located in the country and the hassle to get things repaired would be huge.

They assured me any problem they will just replace it.

Anyway I am going to call the information line and read the fine line and see how I go.

I was just curious if people out there has had any problems with them.

Thanks
paula

If there are problems, they will attempt to repair it first.

They aren't going to replace a whole dishwasher if it only a problem with the seal.

If it's not repairable they will replace it with the same model if available or an equivalent one.

Use the money you save not purchasing it to buy a better brand or put the money in the bank account to self insure.

Personally I've never purchased extended warranty, well apart from the free extra year warranty I get using my credit card.

I bought a computer from Domayne earlier in the year and paid extra for a 2 year replacement warranty. The computer hard drive was rubbish and they replaced the entire computer through that warranty rather than going through the whole repair process. If I hadn't have had that, I'm pretty sure it still would have been replaced, but after they have spend weeks trying to repair it.... Totally up to you, if you feel better having that warranty, then do it.

I think if you look into it the warranty is not actually by Harvey Norman but another company. HN just earns the insurance commission for selling the warranties. I kinda agree with the bathtub analogy. My mother took an extended 5 year warranty for her convection microwave and about a month before the extended 5 yrs was up the magnatron (the micro waving part) failed. They claimed all sorts of excuses to my 70+ year old mum. I am not so easy and said that the warranty had been paid for and I suggest they look into it otherwise the next inquiry will be written and from my lawyer. They took it away for some time and never left a replacement oven for her, after another round of complaints we finally got the oven back and all is good.

I think you have to weight up the cost and the hassle factor. If the item is heavy electronics then I would probably get it. Since you are looking at the whole household see if they can do a deal. The selling commission on warranties would be staggering, probably more than 25% of the warranty cost.

Keep the board informed, I am in your exact same shoes but about 12 months out.

Cheers
MArk

Thanks Mark

I am getting washing machine $99 warranty , condenser dryer $99 warranty and a fridge $270warranty.

I was seriously considering it because we are outside metropolitan area. And the headache & cost of getting technician would be huge.

Also these days quality is not a priority. It is sad that we have to worry about warranty on products.

they totally promote the replacement of the product with no cost of travel which makes it attractive.

I am going to call the insurance line and read the fine line and see how i go.

It would be good if public exposed these stories about issues with extended warranty.

It might make them stand up and take responsibility so people like your mother has proper service.


Paula

I think those are worth it as they are heavy use items. fridges now days also tend to give up fairly easily and minor repairs and call outs would soon be more than the cost of warranty. look to see if they have anything that provides a loaner while said item gets repaired. also for fridge is there any compensation for spoiled foods.

cheers
mark

Hi Mark

we have decided not to go ahead with the extended warranty.

we have 2 years with the manufacturer and because i used my AMEX we got extra 12 months.

the cost for all 3 items was under $500 for the insurance.

so that would cover travel if I end up getting someone.

Appreciate your feedback
paula

Depends on the price IMO. You only need to use the warranty once and its worth it.

These days some products don't last - and you need to replace them. Mind you - this often happens in the first 3-6 months.

But - I must say we've benefited from the extended warranties - on white goods and our car.

It is just a personal decision you make - take the chance or take the warranty.

Agree on value though - odds are you may break even over a number of products.

I agree it's a personal decision, and it can be great if you need to claim.

But the way insurance works is, odds are the premiums will be more than the claim. Otherwise insurance underwriters will go bankrupt if they don't make money.

I am going to go against the grain and say that they are worth it.

We bought the replacement warranty for our side by side fridge. It was the display model and when it was delivered it had a nice dent under the energy rating sticker. As it was display there was nothing we could do.

From day one the ice maker did not work. We were told by Bosch that the replacement warranty did not kick in until after the initial warranty runs out. The repair person said that was not correct and as the ice maker was faulty the fridge would be replaced.

It was replaced with a new one. We also noticed with the old one no matter what we did the water tasted gross, but with the new one it is fine. The ice maker works and we are now dent free.

Definitely worth the extra money. We got a good price and bargained the guy down on the replacement warranty price.

I decided not to get the replacement warranty.

I rang the insurance and it was not clear cut.

I rang consumer affairs. They told me that the manufacturer have obligation to make sure the product works even after the warranty expires.

if the product fails more than once you are in your rights to ask for your money back or get replacement.

I think these days these manufacturers have to step up especially due to the internet reviews and the prices we pay for our products we should expect good quality products and shouldn't have to spend extra money for warranty.

good luck with your new home
paula

We were "given" a 5 year extra warranty with our Holden Calais. 8 years all up - so long as we serviced the car at the place we bought it. OK - I thought - sounds good. 2 months after the initial 3 years expired a rear bearing started to go - cost $750. Covered by extra warranty.

Mind you our older car with more klms has never had a bearing issue.

Still - a lesson of sorts. We have used this extra warranty on other cars and found it good. BUT - it is not cheap.

i just got warranty on the fridge - as reading around reviews of all the popular fridges on the internet it seems that there is alot of failures!

I understand it gives you piece of mind. I was tempted too but when
I spoke to consumer affair and they told me that the manufacturers has obligation to make sure that they repair or replace the product.
even if its outside warranty. I decided not to take the chance.

I think when you spend so much money on a fridge or appliance we should expect them to work.

My warranty was $270 on the fridge and at the moment i have 3 years. so i decided not to.

I have had warranty in the past and have never used them.. and when the occasion i did call them they made the process difficult.

i was really interested in finding out about Harvey Norman replacement warranty.

their warranty apparently is very different to other warranty..They say that replacement gets organized regardless of the fault.

I did ring the insurance and its not that straight forward.

they have process.. so again i didn't want the headache to deal with them.

anyway all the best
paula