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Community weekly poll: Are extended warranties worth it?
- 12/6/05 12:18 PM
Most extented warranties are rip offs,but not always!!!!!
by Harry Richman - 12/6/05 8:02 PM In reply to: Are extended warranties worth it? by Marc Bennett
July 2004,purchased an expensive digital camera from a well known dealer on EBAY at a great price and was offered a 5 year warranty for $125.00.It is rare for me to buy an extended warrany,but this was a complex camera and took the warranty. 15 months later the camera died.I contacted the dealer and was told to return the camera under the extended warranty.4 weeks later i received a NEW camera with an explanation that the camera problem was too costly to repair,therefor as stipulated in the contract,i received a new one.I was still entitled to 47 months on this camera under the extended warranty.It is rare for me to purchase ANY extended warranty because they are usually a rip off.What made me bite this time is still a mystery,but i am glad i took the bait this time!! hrcolt45@comcast.net
As I've told a number of high pressure commission salesmen..
by n5gar - 12/6/05 8:06 PM In reply to: Are extended warranties worth it? by Marc Bennett
As I've told a number of high pressure commission salesmen, over the years, if the product is so bad I would have to have an extended warranty, I don't want it at all.
Manufacturers warranties are not what they used to be
by aaronius - 12/6/05 8:19 PM In reply to: As I've told a number of high pressure commission salesmen.. by n5garTelevisions used to have long warranties from the manufacturer. These days we're lucky if we get a year, and the warranties are far more limited as to what is covered.
The manufacturers have, over time reduced the warranties in order to reduce costs and suggested retail price. This is necessary to remain competitive.
That leaves the purchaser with two options. Pay what the product should cost if it were expected to be reliable. Or...Buy a price tag without regard for quality, and hope everything works out.
yes, I've seen the same thing in computers and appliances
by SherryB - 12/7/05 9:06 AM In reply to: Manufacturers warranties are not what they used to be by aaroniusI buy computers for a medium-sized business. 7-8 years ago a 3 year warranty was standard on any computer, often with lifetime tech support. Now you're lucky to get a year of both, the cheaper computers will only come with 90 days. While that's long enough to cover the most obvious manufacturing defects, its not long enough to cover things like DVD and CD burners, which almost always fail from wear at about a year old if you use them much. Also power supplies, and hard disks tend to go about 2 years before a wear-related failure. 3 years is a "sweet spot" for most PCs, if they last that long, they will last forever.
I'm sure that's true in a lot of industries, in order to lower the product cost, the manufacturers cut back the warranties.
And in general, expected longevity of *everything* has gone downhill in the past few years. My appliance repair man says more and more delicate plastic parts are in the drive mechanisms of new model washing machines, more delicate defrost elements in new fridges, poor quality bearing assemblies in new dryers. All cost-cutting measures by the manufacturers.
You can't trust branding anymore, all midrange appliances are made at 3 or 4 factories, mostly in Mexico where costs are the least, then the brand labels are slapped on them. It used to be that you could say for example, Maytags are always the most dependable. Nowadays they are made at the same factories as all the other brands.
If that us true why does Roles Royce sell them?
by DStrong - 12/7/05 2:43 PM In reply to: As I've told a number of high pressure commission salesmen.. by n5garRoles Royce are arguably the best built car on the road, yet they need service too.
you don't need one, though
by wresnick - 12/8/05 9:08 AM In reply to: If that us true why does Roles Royce sell them? by DStrongThe OP said that if the product is bad enough that you need one, you should not buy the product. If Rolls Royce offers one, it does not mean that you need it. If you can't afford to fix your Rolls, buy a Buick. If you can afford a Rolls, chances are that you will spend less on repairs over the period that would have been covered by the warranty than the warranty costs.
A warranty on a Rolls is a convenience feature. With my car, I get a free loaner while it's in the shop. Even with my minivan, I get a free ride there and back on a shuttle. I assume that Rolls Royce will deliver a loaner to you, take yours back to fix it, and return it and pick up the loaner at your convenience. Or at least it should be that way. If that's the case, somebody who can afford a Rolls might do it just to avoid the hassle of dealing with repairs.
Not at All!
by What The Deuce - 12/6/05 8:19 PM In reply to: Are extended warranties worth it? by Marc Bennett
Extended warranties are, for the most part, pure profit for the seller. Most things that a person would want an extended warranity on are rather expensive; usually they are built well and the user will take care of it like a child. How often does the buy use the extended warranty? Granted, if you need the extended warranty because of a defect and you failed to buy into this scam...well you're up that proverbial creek. Overall, I think it is a rip-off.
They can be worth it.
by jkienlen - 12/6/05 8:31 PM In reply to: Are extended warranties worth it? by Marc Bennett
Speaking from experience working in computer repair for a few years at a retail store (unnamed) that offered extended warranties, I can honestly say that they can be extremely worth it. I noticed this most when it came to notebooks that needed repair. Many times the cost of the repair would exceed the cost of a new notebook. When the customer was paying at most 3-400 dollars for the top-of-the-line warranty, they would get a brand new computer for absolutely nothing, even after 2-3 years. Bottom line, if you're paying a lot of money for anything, you want to have some kind of extended warranty, computers or otherwise. I've seen it first hand, many, many times.
You didn't talk percentages
by wresnick - 12/8/05 9:14 AM In reply to: They can be worth it. by jkienlenYou may have seen it all the time, but it's your job to see the ones that failed, not the ones that work. If, for each one that failed, there are a dozen others that do not fail, then on average the consumers are not ahead by buying the warranty. Also, if they bought it with a credit card, they would get reimbursed for the cost of anything between the standard warranty's expiration and its own extended period, which is up to an extra year. You wouldn't see that part because the customer would get the authorization directly from the credit card company, and they would pay the bill.
So even if that consumer would have lost on that individual laptop, if he gets a new laptop every 3-4 years, then either he will spend more over his lifetime on extended warranties than that repair would have cost, or he would save even more than the cost of that repair by never buying the warranties in the first place.
warrantees
by alexbellringer - 12/6/05 8:48 PM In reply to: Are extended warranties worth it? by Marc Bennett
the oject of mfging a product , is to make a profit .
if you make it selling insurance for the product , its called a piece of junk and you should get out of business and open an ins. co
Answedr to are extended warranties worth it.
by stpw1 - 12/6/05 8:58 PM In reply to: Are extended warranties worth it? by Marc Bennett
Glad to give you my opion.I know can be expensive BUT machine(any brand or unit)ar near end of a warrant like 3 yrs coming up it could cost more than new unit but gets fixed free.I buy on the expensive items as because i tv servive many years ago (The good old days to be in buiness)Repair a 5 year od tv then costmaybe $ 200 .00 but avarage 160.00.that was good .Now as manufactures and big dealers taken the independent service man out the picture the charge what they want to as have no compition.I got out as saw what coming.Manfactures told how much a monthe to buy and stock and charges enormus sums for the ManualsNow its worse.I have a compaq and dealer i got does some repair but i call as something more than he can do and have credit card ready as charge me to talk on fone with.Even under warrant only cover parts and all high labor.My experience with Staples and Best Buy been i think fair.i had a modium line surge knocked out 2 yrs old and free and cleaned unneeded programs out.Orginal cost for the 3 yrs was $259.It runs out in March as ends my 3 yrs.Renewal almost $ 300.BUT Just saw a $680 Compaq sale with all the bells and whistles $ 460 and free 4in 1 and software.That price mite rethink as goes bad get another.Manufactures not giving a GOOD Warranty any More!(Then charge calling on the phone and not understand as not Speak English which is the language Americans speak I supposed OR Comes from India.All around thinks gives buyer peace of mind not have spend a lot to repair and get faster or some times loaner have wait for parts.Thanks chance talk. stuart
Of Course not; use the collective money to fix problems
by anbudmor - 12/6/05 9:26 PM In reply to: Are extended warranties worth it? by Marc Bennett
If you never get a warranty then you effectively have created your own insurance fund when something does go wrong. You just take the money that you would have paid on a warranty and pay to have it fixed. Warranties are a type of insurance; so just self insure.
The other thing to do is to sue. In CA we can go to Small Claims Court for up to $5,000. It is a very efficient system. If my new $3,000 TV only had a 3 month warranty and it broke down in month 4 or even in year 3 I would demand the retailer fix it and if not I'd sue them.
THe Real Scoop on Extended Warranties
by Like, Totally - 12/6/05 9:26 PM In reply to: Are extended warranties worth it? by Marc Bennett
I worked for CompUSA for five years and during that time I was exposed to the extended warranty phenomenom on every level. Computer stores like Comp run on razor thin margins on most things, especially PCs and printers. Sometimes they actually lose money on a promoted item, so the have to make it up somewhere. They do this on things like printer cables that cost them less than $3.00, which they sell for $39.95. You gotta have a cable, right? But the biggest profit product of all are the warranties. They devise every imaginable tactic to get their poorly paid sales staff to jam them down every customer's throat. The sales staff get decent bonus cash, and the whole management chain, right up to the Regional Managers get decent bonus from these sales. Conversely, if a sales person consistently underperforms on this duty, they usually wind up terminated, after many sessions of hounding, theatening and such.
As far as the valus of these warranties, you just better be very careful in determining exactly what it covers, and under what circumstances. They are craftily worded and designed to make it nearly impossible to get something repaired or replaced in a timely manner, and thats the whole game, in a nutshell.
After all the sales people, management, and the store chain has realized profit from your little warranty purchase, if they really had to stand behind it like they try to tell you they will, they would lose money here also, and believe me, they don't lose money here.
Take some advice from the inside - if you really like the way your sales person worked with you, just slip him $5.00 and get the hell out of there.
high end electronics (plasma tv's) = yes
by alternapop - 12/6/05 9:30 PM In reply to: Are extended warranties worth it? by Marc Bennett
imagine if you buy a medium to high end, $5000 plasma tv, and 3 months out of the 1 year warranty it malfunctions. you take it to have it repaired and they tell you that the most expensive part of the tv needs to be replaced and it'll cost $2500.
at this point you either pay to have it repaired or you have a product that should've lasted 10 years now serving as a very expensive doorstop.
i'd pay the extra few hundred dollars in this case for a full 5 year warranty.
do your research... many follow the same logic.
I love my extended warranties
by mholzworth1 - 12/6/05 9:53 PM In reply to: Are extended warranties worth it? by Marc Bennett
I almost always buy an extended warranty on electronics. i have had many times where I bought something and after the manufaccturers warranty expired, the extended warranty saved me and I have either gotten my electronic device replaced or repaired.
Many of them also come with a yearly check up that you can have them perform for you, but you have to call them to set up the appointment. Not too bad of a thing to do in my book. After I purchase my product, I add to my calendar a reminder to call the company about 9-11 months out to get my yearly check up if the warranty I bought comes with one. You get them to open up the electronic device and clean it out, replace belts etc., or anything that is beginning to wear out.
If you know how to get the most out of your warranty, then I say to buy them as long as the electronic device you are purchasing is more than 150.00 and the warranty price is less than 1/3 of the value of the electronic device you are buying. They will always try to push a multi 3 or 4 year warranty on you first, but get the one or two year extended warrantry only, nothing beyond that. 
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