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Community weekly poll: Are extended warranties worth it?
- 12/5/07 2:21 PM
It depends
by rbsjrx - 12/5/07 4:56 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
First of all, you need to understand the failure mechanisms of the specific device.
Purely electronic devices with no fragile parts will exhibit an elevated infant mortality rate, then level off to long-term reliability well within the standard warranty period. For such devices, extended warranties are a waste of money.
Devices with fragile pieces (e.g. LCD displays, key switches) may be good candidates for extended warranties if their repair or replacement cost is significant.
Devices with electromechanical components (e.g. disk drives, tape units) are usually worth the extra cost unless they're cheap enough to be considered disposable.
Finally, a lot depends on the manufacturer. For example, Sony's repair costs are so high, I'd never buy any Sony product without an extended warranty. When a Sony product breaks, if you don't have a warranty on it, you pretty much have no choice but to throw it away since the repair cost typically exceeds the replacement cost.
Depends on what is inside what you bought
by Paul Kimelman - 12/5/07 4:58 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I think extended warranties on all electronic items are usually a waste. Items with internal mechanical parts can be worth it, but only if (a) you will remember to use it, (b) it covers wear based failure, and (c) the likely lifespan of use vs. obsolescence justifies it. The latter one is why so many are a waste - people often replace items for other reasons before they fail; usually because it is obsolete technically or because their lifestyle changes.
Loss/damage ones on portable items may be a good idea if you tend to lose/damage such items a lot and the cost is acceptable - cell phones are one example where that can be a big payoff. With a cell phone on a contract, having to replace it will cost the full price (or you owe them the full price of the broken one). If you are the type to drop them a lot, sooner or later it will break (the circuit boards and plastic housings can only take so much abuse).
Depends more on product than price
by wmmead - 12/5/07 4:59 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I have bought them from time to time, depending on the product. Laptop? yes usually. Desktop computer? no. My son's gameboy? yes, cause my son will probably break it in a week. A washing machine? no. An accoustic guitar for my son? yes, see above. So it depends. You really can not be blind-sided by the question at this point though. When you are researching what you are going to buy and from whom, decided if the extra warrantee is necessary at that time. That way you have the answer when the question comes.
sort of,....
by strongwinds - 12/5/07 9:36 PM In reply to: Depends more on product than price by wmmeadI usually don't buy extended warranty on items because I can't afford them. so i usually say if anything goes wrong I'll fix it my self. 
but if you donb't know how to fix these types of item's then I say buy it!
Are extended warranties worth it - I don't think so!
by Jon Combs - 12/6/07 3:11 AM In reply to: Depends more on product than price by wmmeadIn the 1960's when extended warranties first came in over here in the UK I was an insurance broker who set these schemes up as insurance policies at Lloyd's. In those days we were charging premiums of £4 ($2US) and the clients were charging their customers between £20 and £40. Everybody loved it because there was so much money in it because of the very low risk involved.
As with any insurance there is a risk inherent in the transaction and we have all regretted not taking out the cover at some stage.
However, given the figures I have quoted, which I don't think have changed much over the years (allowing for inflation), it is probably a good idea to do something - but why not carry the risk yourself spread over all of the items you buy. Even $10 an item set aside should go a long way to covering it and you are still very much in pocket compared with open market prices.
Sometimes worth it
by kfoulk - 12/5/07 5:01 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I have young kids so I normally buy extended warranties on game systems. I did it on their gameboy and vtech system and both of those paid off. Now when they say "do you want an extended warranty" on a DVD player that cost $75, and the price of the warranty is $39 are they even thinking when they ask you? I have gotten the 5 year extended warranty on my TV that cost over $3000, my imac computer over $2000, my vacuum cleaner (which I have used 3 times in the last 2 years...the warranty that is). High end items I do not mind paying a little more for piece of mind.
Depends on what it is!!!
by mdpeterman - 12/5/07 5:07 PM In reply to: Sometimes worth it by kfoulkOn a DVD player or something a couple hundred, FORGET IT! They are usually a rip off. Now, I recently bought a MacBook Pro which cost me $2500. I bought the extended warranty because it will be going a lot of places and vibrations and things can ware out a computer fast. For $250, it can easily cover the cost of a repair so I figured for 10% of the retail price, I better get it to be safe. I recommend extended warranties for thing $1000 and up.
Extended warranties -- never!
by rdg - 12/5/07 5:05 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
In forty plus years, I have never had need for an extended warranty: either something goes wrong immediately, or not at all.
Also, so much of what we buy today, will be antiquated tomorrow.
like everything it depends
by veniceneon - 12/5/07 5:05 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
For instance if you are buying a new technology product prone to failure but you need that product then depending on the cost of the coverage and if the company producing the product is providing the coverage, then possibly yes.
Or the same product but the extended warranty is with another specialty extended, known crappy service, company like so many of them out there, then No.
And if the product is tried and true, has a reasonable track record and especially if the extended warranty company is a 3rd party specialty extended warranty company, then absolutely No.
General Reply Yes they are worth it.
by piscesgo - 12/5/07 5:05 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I just fried a laptop by plugging it into a hot USB, one month before the 3 yr. warranty expired. Although this was a good experience, I almost always buy them for two reasons. The replacement cost without a warranty is huge and secondly, goods are made to wear out or become obsolescent. With a warranty, you can get a few more years of use, instead of paying the new, going price when the product fails. I know it's tough to pay extra, after sales tax and upgrades but over the long term I think it is a net plus.
I never buy them
by rj4856k - 12/5/07 5:06 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I look at this way, I have saved hundreds (if not thousands) of dollars by not buying these warranties over the past 10 - 15 years. If by chance one or two of those products fails, the repair costs would still not exceed what I have saved. Just think back to all of the items that you have bought or will buy in the future, and think what you would have spent on the extended warranties.
As usual, you have to think before making this decision
by ElectronicToys - 12/5/07 5:14 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I always buy extended warranty's for laptops because they always break at some point or another and laptops are always very expensive to fix. I bought a 4 yr Mack warranty for $250 for my crappy Toshiba Satellite 1955-S803 which subsequently over the years required in EXCESS of $1500 in repairs (including the mother board once, the HD 3 times, 1 screen replacement, 1 screen bulb fix, and a case replacement which they have now sent out rebate forms for because it was such a problem....5 years later)!!!!!!
Now I'm looking at Camcorders. I see a lot of warranties being offered. I'm looking to spend in the area of $500 and Mack has them for $45-$55 while others have them for up to $200 (for 4 yrs)!!!!
Who in their right mind would pay $200 on a warranty for an item that costs $500? Sure the more expensive ones pay for shipping, but I try to buy reputable brands that shouldn't break down that often. I can't imagine it ever being possible that the $200 warranty will ever make up the $150 extra I would have to spend it for shipping costs. Moreover, (I've only had experience with Mack and Dell, and of course Dell is the leader in warranty exploitation) but with Mack, they did have local service centers that I could go to.
I'll pay an extra 10-15% (15% TOPS) for an extended warranty on an expensive item that lasts an additional of at least 3-4 years. But to pay upwards of 40%??? Those people have got to be out of their minds. And "NO! I do not want a 3 yr warranty for my $100 speakers for 'just' $39.99"
That being said, be warned. Often times if you see a really good low price for an item, be sure they will make it up in accessories such as warranties.Make sure if you are buying an item that might have a high failure rate (such as a camcorder since it is being transported so often) check a variety of price ranges plus the warranty to see how it all adds up.
For me, its never a good idea
by Randomaxe - 12/5/07 5:23 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Your Basically betting that you've just bought crap. While the retailer, is gambling that his products are better than a basic warranty. If you play this game its a suckers bet. I tell every salesman who tries to push an extended warranty on some item that if they really believe I'll need it. Then I'll go buy something else somewhere else. Where the sales staff is sure the product can work beyond the average life span. Lets face it, only a small percentage of products ever prematurely die. Why else would stores sell such warranties to begin with? Their making big bucks on these, its gonna break warranties, as I see it.
No with exceptions
by arijlee7 - 12/5/07 5:23 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
For the most items, I have declined the extended warranty. There has been one exception that I can remember ever buying the extended warranty on the spot. That exception was on a '95 Jeep Grand Cherokee. That paid for itself many times over. For electronics, I usually trust the products and pray that I don't drop them.
Warranties are just another money maker for the retailer
by jthelw - 12/5/07 5:27 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
My experience has usually been that the product goes bad just after the warranty expiration date! - Honest!
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