Buying an extended warranty on a new appliance is like buying insurance on your cell phone. Though many people think they might never need it, no one knows what might happen in the future. Extended warranty plans are similar to any other type of insurance. Shoppers pay a little extra for protection that they may or may not need. When it comes to commercial oven equipment and other commercial products, customers need to think about how long that equipment will last.
Nearly every piece of commercial equipment comes with a warranty, but that warranty can last from six months to 10 years. An extended warranty takes over once the initial coverage on that product ends. Before purchasing commercial oven equipment, find out how long that product will last with regular use. If it has an average lifetime of eight years, some might find an extended warranty that covers the product for 10 or 15 years if worthwhile.
Before purchasing an extended warranty plan, ask what that plan covers. Many plans will only cover problems that come about because of issues with the equipment itself. If the oven coil burns out, the plan will often cover the problem, but if the user accidentally damages the oven door, the warranty might view that as operator error and not cover the repair.
Customers also need to consider the repair rate on that item. More than 30 percent of all computers require repairs at some point in the future, while less than 10 percent of all digital cameras sold require major repairs. Paying for repairs on commercial oven equipment can be quite expensive, but an extended warranty plan will usually cover most repairs.
Think about the cost of the plan as well. If the shopper can purchase an extended warranty plan for less than half the cost of the product, it’s often a good choice. Manufacturers will sometimes charge high costs for extended warranty plans betting that most shoppers will never take advantage of that plan. An extended warranty is worth it if it covers all types of damage, lasts longer than the product will last and is affordable.