Appliance Replacement Plans

[Trevor Ewen]

We're buying a whole lot of appliances from Lowe's this weekend. For the set of appliances we've chosen for the units, Lowe's has 5 year replacement plans available. According to our numbers, these are running at about 25% the cost of the appliance itself.

i.e. Dishwasher: $1000, 5 Year Plan: $250

Psychologically, my problem is if it goes down in year 6, we're still in trouble. What have you typically found with these things? Is it better to roll the dice and assume that the first 5 years will be the good ones? 

[Steve Vaughan]

If they were losing money on these, they wouldn't offer them, like @Justin Foxpoints out.  I sometimes opt for the much cheaper 12-month plan.  Once past the first year of tenant abuse or not knowing how to work it properly, they're usually good to go!

My 'appliance plan' is in my shop/garage.  Pick up extras sometimes as they come up cheaply on CL.   Just replaced a fridge today!  Cheers!