Community weekly poll: Are extended warranties worth it?
- 12/5/07 2:21 PM
It Depends on the Product
by adecena - 12/5/07 5:28 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Depending on the product you purchase will determine if you should buy the extended warranty. Typically if the product is gong to fail, it will fail within the normal warranty. I tend to stay away from ext. warranties myself, but I have purchased them in the past. It's basically insurance for product. We bought a washer and dryer (LG Front End Loader combo) a year ago. I did my research and found that the particular model of washer has a tendency to have issues due to the high rate of speed during the spin cycle. Of course with more moving parts and high rpm's during the spin cycle, there is a chance for product failure. Now since the dryer isn't as complicated, product issues are less. So I bought the extended warranty for the washer, but not the dryer. It's been a little over a year and no issues to date.
Another thing to thing to consider... that extra money for the extended warranty is better served if invested. If you need to repair the item, at least you'll have something saved or better yet your product runs its normal life cycle and needs replacement, and you'll have the money for it... okay, okay, I have issues saving in this manner also. I'm just thinking out loud.
Insurance companies want to make money
by danquerry - 12/5/07 5:36 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Therefore, they very carefully arrange things so that they will ALWAYS take in more money in premiums than they have to pay out in claims. The house always wins in the long run.
If you always put the money you would spend on a warranty in a basket and always pay repair/replacement costs out of the basket, I believe you will have money in the basket when you die.
Duh!
by psyraver - 12/5/07 5:42 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Yeah I always buy extended warranties. I hate hearing of those people that don't buy them, then something goes wrong and its not there fault! Once people buy something its yours! Your responsible for it! Not the company that made it.
are extended warrantys worth it
by craver1 - 12/5/07 5:46 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
so here we go i have found that it depends on the price of the eitem. and if its electronic.like a tv that costs you 1000.00 or more you should buy the extended worranty.cause the bulbs could burn out or there could be an electrical surge that you didnt plan on.and a buld could cost you 500.00 or more on a big screen tv .and you are caught off gard and not have the money.to pay for the repair this way you have the warranty that will pay for the repair.allso depends on how much they want for the warranty .ok here is a forencestance if you buy a vcr or ahead phones and maybe a small radio. and it costs you less than 100.00 and the clerk tells you that they have a warranty that will fix it .for 35.00 or 50.00 you should say no.cause there is a manufactory warranty on it for one year on parts and labor.and since you paid a lot less for it it could not break for three years or so .and you got your moneys worth out of it.so you could buy the newer version latter.and upgrade to some thing you wanted better.i hope this answer s your question,thank you donald
The warrenty seller does not intend to lose money
by Bageech - 12/5/07 5:46 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I would only buy an extended warrenty if the potential cost of repair would be totally unafordable. The warrenty sellers intend to make money. So I self insure. So far I am way ahead.
always purchase them
by ejzndz - 12/5/07 5:49 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I have bought them on my Pro-scan large screen TV, which payed off. I went thru 3 TVs in 5 years and always got a better TV because my TV model was no longer made by the company. I also purchase the warranty on my Olympus digital camera and I went thru 3 of them in two years and also got the next higher model. I have used my Dell computer warranty also. I have had to have the technician come to my home 4 times and fix problems, such as fans and motherboards. So I think they are worth the extra cash. Usually with the company plan, they will most of the time repair it and not give you a new item unlike with the extended warranty plan.
They've done the math ...
by clearlyf - 12/5/07 5:53 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
you haven't. Let's face it, no reputable company would offer an extended warranty on a product unless they thought that by doing so they'd make a profit, for the math impaired that means they've calculated the likelihood that something will require service, the likelihood that you'll be able to find your paperwork, the likelihood that you've dotted all your i's and crossed all your t's, the likelihood that the needed repair will actually be covered (and not exempted by some fine print clause you didn't read at the store), the likelihood that you were already looking to replace the broken item with something newer, the likelihood that you're willing to wait (possibly missing work) for the repair guy to show (only to find he doesn't have the part and needs to order it and re-schedule), ... and a 1000 other factors we haven't considered here.
And that's only for the reputable businesses. Factor in the: "we have no record of your having purchased the extended warranty"; the "I'm sorry sir the problem is your g-frame widget and that's not covered by the extended warranty"; or "the number you have reached is not in service" excuses of the disreputable businesses and you're still an extended warranty loser.
This forum is like Vegas, there's always someone willing to claim that an extended warranty really came thru for them (big winner), but for most of us, averaged over our lifetime an extended warranty is a loser. Vegas didn't get built by the big winners, but their free advertising sure helped.
Don't even get me started on rebates.
Are extended warranties worth it?
by martinburger - 12/5/07 5:54 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Worthless! I paid for an extended warrantee for an exercise bike from Sports Authority. The computer failed and needed to be replaced. The company wanted $100 for the part. To replace it required unscrewing 4 screws and disconnecting one wire. Sports Authority wanted to send over someone to replace it under warrantee for $135! I told them, send me the part and I will replace it myself. They said no.
Bottom line $100 without warrantee, $135 with warrantee - RIP OFF! Never again!
More than on factor.
by Sparhawk3 - 12/5/07 6:00 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
While price can be a factor, there are other considerations. A $200 printer is not going to get my warranty dollar. I always get the extended warranty on a portable. High quality desk tops such as Apple I usually do not purchase the warranty. Another consideration is the scope of the warranty. One company actually respecs the item when it is sent in. This enhances the value of the warranty. If the warranty is $700 on a $2,500 item I would question purchasing the item. Remember, warranties are very profitable for most companies. Make your decision on these variables if you can. If fear of failure is paramount, purchasing a warranty may be worth the peace of mind.
Consumer Reports says...
by sharee100 - 12/5/07 6:01 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
If the item is something you will replace within 3-5 years, don't get the extended warranty.
No - "be self-insured"
by lalasrj - 12/5/07 6:02 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Either manufacturers extend warranties when a significant amount of products were defective or by the time the product need repair, it's very likely that a next two or three generations of the product is in the market.
Not buying an extended warranty is like being self-insured. I mean, isn some cases, instead of paying for an extended warranty, the saved money can be used towards a new product or if desired, to pay for the repair.
Do the math... how much would you have to pay in exteded warranties for all the electronics under your roof? To me... not worthy.
YES, YES, YES !!
by ClissaT - 12/5/07 6:07 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I have always bought extended warranties EW's. They have been available in Australia for many years & I remember the first time I bought one on a portable stereo (boom box). The hooks that held the components together came out of the housing & they sent me a totally new unit.
I have had to claim on the EW of most of the products I've bought. I always try to buy the best value product I can afford, top of the range if the pocket will allow. I see the EW as insurance like house & contents insurance.
The last time was for a top of range DVD recorder/player with harddrive. It failed 2 days after original warranty expired & although it had to be away 3wks, I got it back with a totally new guts. That's 3yrs ago now & it's STILL under the same EW as I always buy 5yrs. So if the same thing happens again, I'll get a new guts again. Same,same, for my TV, this computer, printer, fridge, VCR(which has been in 4 times over 10yrs at no cost to me other than transport costs). Money very well spent I'd say.
As I sit here I'm mentally adding up the costs of the things I've just mentioned here (there are more), & it amounts to aprox $4500!! for an outlay of about $500. To my mind that's good value. There are products I've never had to use the EW of, but they are few. I feel today's technology is so iffy that you'd be silly not to insure yourself against the inevitable breakdown.
cheers,
ClissaT
Depends on the item...
by JWilliams06 - 12/5/07 6:14 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Usually I don't buy an extended warranty... however depending on the size of the item and how many components are involved usually influences whether or not I purchase an additional warranty.
For laptops, I try to end up buying the longest warranty available. A major reason I keep dealing Dell Computer Corp. is that they're very good with their warranty, they'll ship the part to you next day if it's user replaceable or within 3-5 days they'll get someone out to your house to fix the problems. From big issues such as a motherboard to wireless cards, to small exterior plastics -- Dell has been very generous on fixing their computers.
I tremble inside wondering how warranty support is from huge corporations like Sony, which manufacture tons of items.
Still, I believe buying an extended warranty is entirely based off of the individual item.
Yes, sometimes, let me explain.
by RedAlert2_fan - 12/5/07 6:14 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
When ever new products come out it's definitely worth it to me. It might just be a little ignorance. Example: The UMDs were still kinda new. It looked like the permanent plastic case the disk never comes out of was durable. But one day I put them in my backpack. And the clear center pieces broke. I had extended warranties on all my disks (from circuit city and Game Stop,). I had them replaced no problem (circuit city provides you with a UPS label, and Game Stop replaced mine in store,).
And for expensive items. Because you probably spend only about $100 on warranties before you have to replace something that would normally cost you about $1,000. The only time I wouldn't get an extended warranty is; an item that cost less than $50 and I already know how to care for it (remember the UMDs).
Extended warranties
by billsixty - 12/5/07 6:16 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
For the most part extended waranties are a rip off. I normally do not consider them unless I'm pruchasing a high ticket item. It's very much like life or auto insurance, we don't really want it but, it sure comes in handy if and when the crap hits the fan. We pay and hope we never have to cash in. We are just buying a sense of security hoping that our purchas choice is correct and that our home work has paid off. ie Consumers Report for example.
Bill
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