Home audio & video: Extended Warranty.........are they worth it????
Almost always, no!
by thorrall - 12/5/07 5:57 PM In reply to: Extended Warranty.........are they worth it???? by jraggieAbout the only thing that would justify an extended warranty is if you are buying something that you could not, under any likely circumstance, afford to have repaired if it should die. Insurance companies are not in the game for their health, they make money on these warranties, and a lot of it. Sure, you might be unlucky enough to encounter one particular piece of equipment where the long term warranty paid off, but the odds are heavily stacked against it. If you make a habit of buying long term warranties you almost certainly will spend more than repairs on any one, or even two or three, items. Insurance should only be used to pay for catastrophic expense. Anything else is just a waste of good money.
Never a good ideal
by damon417 - 12/5/07 6:01 PM In reply to: Extended Warranty.........are they worth it???? by jraggieIt's a probability game. What is the probability that an item will fail? Industry standards would suggest 3-5% is an acceptable amount of defects. Does the warranty cover accidental damage like a remote thrown in anger, cell phone taking the deep six in your favorite beverage or toilet? If it does then it may be bargain b/c I dropped my cell in plenty of liquid over the years, but managed to never buy a warranty. All that to say, it's purely profit for the retailer.
Dave Ramsey quoted some statistics, specifically in the new car buying industry that says that almost 80% of all dealership profits come from extra options added on at the end, and guess what? Warranty.
http://nashville.about.com/library/blank/davesays/bldavesays33a.htm
Manufacturers worth their weight in salt will stand behind a product during it's warranty life cycle. If you just save up ahead of time for emergencies and always pay cash for an item, you are more likely to say no, with a smile, to the next salesperson that tries to offer the warranty. Personally, being an IT manager, the warranty process for busted hardware was so much more of the hassle to get honored and in place than just ordering a new part and doing it myself.
For some things, yes
by LaurieEm - 12/5/07 6:01 PM In reply to: Extended Warranty.........are they worth it???? by jraggieFor years, I've told friends who ask me (and I tend to be asked) that there are three things I think should be given this coverage: laptop computers, digital cameras, and LCD monitors. (I don't try to answer for home entertainment.) Nowadays, as prices have come down and installed base has gone up, I'd go without the coverage on the lower third of the price range on the cameras and monitors. But, laptops are evil and I wouldn't go without coverage there. There's so much crammed in there, with heat issues, vibration, and the models and components and configurations change constantly. You can get a lemon from a premium brand.
yes a scam, but it is worth it
by mcauleycssp - 12/5/07 6:01 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI know the extended warrenty pitch is coming and I am generally ready to buy it anyway on products that are worth over about $500 but I act reluctant and ignorant with the sales person and usually because they are desparate to sell, I get a discount. Dozens of times over the years, I have brought back computers, monitors, digital cameras and camcorders for fixing, and on three occassions for replacement. The thing i like about them is the peace of mind and the fact that mostly everything is covered. Sure, it is a bit of a cash cow...but is it not better to just return your laptop to the store up the road and get a few hundred dollars worth of repairs, rather than going to the bother of packing up your laptop, bringing it to the post, sending it registered mail (and paying for it) then waiting months from the manufacturer only to be told that it is not under warrenty and such and such will cost so much to fix?
Extended Warranties
by RolliePJ - 12/5/07 6:01 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI purchased a 52" Toshiba DLP from Sears and purchased an extented warranty at the same time. I am glad I did as 1 year later the projection lamp blew out. I called Sears and Toshiba and Sears sent out a tech and later sent me a new lamp as did Toshiba also. I have two back ups on hand now but haven't had to replace the one that Sears sent me. The cost of the lamp and the service call would have been over $400, but the extended warranty covered everything. The cost of the extended coverage was $300 for three years, so I feel I have received the best of the deal so far. I guess it depends on how much it cost for the original product and how much the extended warrenty costs. In this case I feel it was worth it.
Extended warranties
by ibasnazy1 - 12/5/07 6:03 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI love my Mitsubishi DLP TV but a weak point is the light bulb. I've had mine replaced twice in 3 years. Both of these replacements have been done under the extended warranty that I purchased with the TV. Bulb replacement was pointed out when I bought the set and if you have to shell out of pocket for one, it will set you back around $175. The extended warranty costs $150 for 6 years so I've already made my money back and I still have 3 years to go. This one worked to my advantage. One thing is true. The number one objective of any business is to make a profit and companies that sell extended warranties must have customers that never use their warranty. I've gone both ways but I have to say in the long run, they are worth it.
Extended Warranties...SAVE YOUR MONEY AND TIME!
by registry - 12/5/07 6:05 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI almost never buy extended warranties. However, when I have bought them, I've found them to be laborious, highly inconvenient and definitely NOT worth the money. Here's why. If you use something enough to view it as a necessity and think that you would want to be warranteed against it not working when you need it most, then you'll be in a for a rude awakening when you try to utilize the warranty. I purchased an extended warranty for a laptop (one of the few items experts recommend considering purchasing an extended warranty for). My Toshiba laptop broke (the battery would no longer charge because the connector pin had come loose due to poor sautering) and when I went to return it to Circuit City to repair, I found that there is virtually NOTHING that they can do in house to make computer repairs. They told me it was covered under warranty and they would send it back to the factory. Estimated time to repair? 8-10 weeks. I can't due without a laptop for 8-10 weeks. Also, they told me I should buy a data recovery warranty (another 60 dollars) in case I lose any information on the hard drive when the factory makes the repair. FORGET IT! I bought another portable hard drive and transferred the data to the new hard drive. I turned in the computer for warranty work, and proceeded to go buy a new laptop anyway. The old computer was repaired and lasted another several months before having the pin come loose again. Warranties are a scam, repairs are not timely and do not respect the immediate needs of the customer, and it's another way for retailers and manufacturers to get you to PAY OUT OF POCKET for poor quality control. It's a profit center and a financial incentive for manufacturers to make shoddy products. The only extended warranty I'll buy will be built into the purchase cost of the equipment and will be backed up with reputation for producing quality in the first place. Buy the better product, pay a little more money for quality, and hopefully have piece of mind knowing you bought the best from a manufacturer that produces quality.
Depending on the Product.
by ice82 - 12/5/07 6:05 PM In reply to: Extended Warranty.........are they worth it???? by jraggieFor things like laptops which could be very costly to repair, I think extended warranty is totally worth it. I personally had problems with my laptop just after a year, but the extended warranty allow me to get a slightly better model for $100 less. Even before the manufacturer's warranty is over, people at BB treats you better when you have their extended warranty.
That being said, I just purchased extended warranty on my AV Receiver(5 yrs), speakers(9 yrs), and Cable STB(3 yrs). I don't know if I made a good decision, only time will tell... but for an extra $10-13 paid a year for each of the three things that I purchased, I think the peace of mind is worth it. And if they break down during those years, you'll get a newer model!
They're worth it for _some_ items
by caldodge - 12/5/07 6:05 PM In reply to: Extended Warranty.........are they worth it???? by jraggieIn my experience, extended warranties are good things if you're buying a laptop. And according to Consumer Reports, they're good to have if you buy a DLP TV (much higher repair rate than LCD or plasma screens).
But aside from those types of equipment, I wouldn't bother with extended warranties.
Definately worth it for a laptop
by DYIenthusiast - 12/5/07 6:06 PM In reply to: Extended Warranty.........are they worth it???? by jraggieJust chiming in that extended warranties for a laptop are well worth it. The average batteries for laptops are only good for a little over a year if constantly used and definately won't outlast a 3 year warranty.
So basically the price of the warranty will cover the cost of the inevitable battery replacement plus anything that else that could go wrong with it within the 3 years.
Good for High Tech
by Fredmoore - 12/5/07 6:10 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI never used to buy extended warranties since things used to last forever. And from the way the salespeople pushed them, they obviously made lots of profit.
But I've had good experience with the "I want a new one" type warranties sold by Best Buy, Office Max, and Staples. Basically, they promise to repair or replace the item or refund your original purchase price if the item goes bad (your call) within the extended period. Since most Technology items won't be around 2 years from now, they won't be able to test or replace them, so you get store credit for your original purchase price and can buy something newer and better (at a cost of about 15%.)
I'm on my 3rd cordless phone system ($800) and 2nd printer ($300) using this. Only gotcha is you need to have the original receipt in hand to read them all the transaction numbers. So register online or scan the receipt (in case it fades) and write the warranty expiration date on a calendar so you won't forget it!
extended warranty
by jkatz122 - 12/5/07 6:13 PM In reply to: Extended Warranty.........are they worth it???? by jraggiedepends what it covers .. for example at b&h photo they sell the sagemax warrenty it covers far more than the manufacturer covers including dropping from handling say you bought your shint brand new digital camera it drops or bangs into something now the lens wont extend or the lcd cracks sagemax will fix it or send you a check for the amount you spent on the camera or other electronic doodad
the company behind the service plan is called NEW or national electronic warrenty .. the same people behind the walmart plan or best buy .. each store that offers it has their own coverage worked out with new .. so the walmart or best buy or b&h photo plan are not exactly the same exact .. even though the same company is behind them
Yes, on some items....my digital camera experience
by ArthurJS - 12/5/07 6:16 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI bought it on my Nikon D40 d-SLR. The retailer, Ritz Camera, basically covers everything with their plan.Right after I bought it, I made the mistake of changing lenses on the beach in Florida while down there on a long weekend. Of course, I got dust on the sensor. Live and learn! Rather than to have it out for service for weeks, and as it was less than a month, they gave me a new body. The next time, I got dust spots in the viewfinder-they sent it out. It came back, supposedly set, but then the spots reappeared. Once again, they replaced the body.
For the heavy use this wonderful camera has seen, in my opinion, the extended warranty more than paid for itself. Just make sure your retailer does indeed have comprehensive coverage, such as accidental dropping, cosmetic damage, etc. This is more likely available at a specialty retailer, and costs a few dollars more. But typically covers a LOT more.
Third party warrantees make the insurance company rich.
by 77ladd - 12/5/07 6:16 PM In reply to: Extended Warranty.........are they worth it???? by jraggieBecause, especially electronic products, the technology is advancing rapidly repairing or replacing an older product does not make much sense. Most products come with a manufacturers warrantee of 90 days to one year to cover initial failures. By the time the manufacturers warrantee expires you will want the new technology.
Extended Warrantee
by mainehamop - 12/5/07 6:17 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI have bought 2 in my entire life and both on cars. I am reminded of 2 sayings 1) "There is a sucker born every minute".
2) "A fool and his money are soon parted".
When it comes to electronics and the like, it is a waste of money. Instead, open a savings club at your bank (like a Christmas Club) and put in a bit of money each week. In that way, if it dies an early death, you will have some money put aside to buy a new one or have the old one repaired. And as a bonus, YOU earn the interest on the money!!
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