From: Jonathan Bryce 
Newsgroups: uk.finance
Subject: Re: Warranties
Date: Wed, 03 Nov 2004 18:56:55 +0000

Roland Watson wrote:

> I am buying a dishwasher from Comet and am considering their extended
> warranty. Is it best to just stick with the retailer or, like insurance
> policies in general, one could shop around and get a better deal
> elsewhere?

When I bought a washing machine from Comet, I was quoted £220 for a 5 year
warranty on a £280 machine.

I chose not to take them up on this offer for two reasons.

1.  If you put £220 in a mini cash ISA for 5 years at 5%, you will have the
£280 cost of the machine.

2.  Statistics show that the average repair cost for a washing machine is
somewhere in the region of £65, and around 93% of machines won't need a
repair in the first 5 years.  So the actual cost to Comet of providing this
warranty is around £4.55