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PFT #60 - Personal Finance Tip of the Week: The True Cost of New Appliances and Warranties

We are a society that has too much stuff and we have become accustomed to the conveniences that have made our lives easier than it did for our grandparents.


This is a great thing; however, appliances have become increasingly expensive due to the features and warranties that they offer as well as the high rate of inflation mainly due to the supply chain shortage.


With that being said, when you buy an appliance it is important to consider if there are other costs exists beyond the actual price.


The first thing is to start with the discount which creates your base price and then add any tax if it exists in your state or municipality.

After that, it is important to factor in what you are buying in that it may involve other costs beyond the straight purchase.


For example, I just purchased a new washer and dryer set that was $2,800 that was discounted to $2,200; however, I paid additional costs for hooking up the equipment which also came with parts and labor. There was also a charge to haul away the old appliances.


Lastly, I opted for a $200-five year warranty for the washer and dryer each with my logic being that the appliances would need service and would exceed $400.


All in all, my total cost was $2,878 with tax which is 31% higher than what the sticker price.


To sum things up, it is important to purchase the product that fits your needs and when you nail that down, think about the appliance protection as the odds are that you’ll pay more later for repairs if you opt out of warranty coverage.


Lastly, when you budget for major appliances, factor-in at least 25% over the discounted price.




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