Home audio & video: Extended Warranty.........are they worth it????
Dell Definetely holds true to Extended Warranty Contract!
by moushie89 - 12/5/07 6:56 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI had bought a Compaq (now HP) Presario Desktop PC in 2005 and had 1 year warranty parts and labor 3 days after the warranty expired the hard drive dies and the northbridge cooler chipset heatsink sauders come out of the motherboard. I called HP and they wanted $400 just to sauder 2 small bits back into the motherboard for the heatsink so I decided to buy a new Dell laptop instead w/ 1 year warranty in summer 06' and extended the warranty for $99 until summer 08' I needed the recovery disks to perform a system recovery awhile back and normally you would have to pay $65 "in" and "out" of warranty for them but I got them for *Free* I didnt have to pay a dime! and my LCD is going bad on me from excessive use and has "white spots" at certain angles and they are going to put in a new LCD no questions asked!! This is definetely a good company with good warranty standards and well worth it! I say go for it! Good Job Michael Dell!!! You have satisfied a customer to buy your products for as long as your business survives compared to HP/Compaq whom I will never buy their brand of products again.
Play the odds on warranties
by HKatzman - 12/5/07 6:58 PM In reply to: Extended Warranty.........are they worth it???? by jraggie"Your first reaction is to say no, but the salesperson starts going on and on about the benefits and the things that could go wrong with the product."
I always wonder, when the salesperson starts going on and on about the things that could go wrong... I start to wonder why I am buying this product in the first place if it is so unreliable.
If you buy an extended warranty do not buy it from the store, when you open the product manual the manufacturer offers it also, and often cheaper. If the product ends up being a lemon, there is a record of all the problems that the manufacturer sees that can bolster any claims.
I bought one for a Toshiba laptop -- a total lemon. I was using it for world-wide work and needed the security of repairs. It ended up that the machine was in the shop for a total of over half the time of the extended warranty. After the warranty expired, they returned it and it went bad within 3 months. Because it was a third-party warranty, Toshiba had no record and the warranty company would not supply the history.
Think of the cost of the extended warranty, what percentage of the purchase price is it? If it is 10% of the cost, that means that they think that 1 out of 10 will need full repair during the duration of the warranty. Are you willing to gamble these same odds? Check out online the repair record of the product and stay away from products with many complaints.
Electronics should last a long time without problems, but these days the quality seems to be so shoddy. If enough people track the quality of products before they but, maybe manufacturers will be more conscientous about the quality of the products they sell.
SHOP AROUND
by faceman31 - 12/5/07 7:08 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI BOUGHT A PLAY STATION 3 FROM BESTBUY AND THEY WANTED $100.00 FOR A TWO YEAR REPLACMENT WARRANTY. I JUST SPENT $500.00 ON THIS THING AND THOUGHT THAT WAS A BIT MUCH. CHECKED WITH SONY AND GOT A THREE YEAR WARRANTY FOR $45.00. THAT I PAID FOR, IF NEEDED I HAVE TO SEND THIS OUT FOR REPAIR BUT I GOT AN EXTRA YEAR FOR HALF THE PRICE.
NEVER
by Sid Gibson - 12/5/07 7:10 PM In reply to: Extended Warranty.........are they worth it???? by jraggieSince the profit margins on electronics is so small to retailers, they put a big bonus in their pocket on extended warrantees. As for a computer, if something is going to go wrong it will most likely occur in the first year. I have not purchased thousands of bucks of electronics from a "Brick and Mortar" for more than 10 years. I buy online and don't get the hard sell on extended warrantees. My last experience with a cell phone in 1997 ended my retail buying. The sales rep didn't understand "NO"--I walked out without a cell phone. There's an old saying, "You don't build a $50 fence around a $5 cow".
Is Extended Warranty worth it?
by bryanall - 12/5/07 7:10 PM In reply to: Extended Warranty.........are they worth it???? by jraggieHi CNET,
In January 1996 I purchased a new 68cm Mesuda TV, a brand I had never heard of. It was on special for AU$999.00. The salesman tried every trick in the book to sell me a 2 year extended warranty, at a cost of AU$80.00. The hard luck stories he related from people who had not purchased the warranty almost brought me to tears. I declined the offer. Shortly after the 12 month factory warranty had expired the TV developed a fault. I rang the Company that the salesman had told me did all their warranty work and was told in no uncertain fashion ' what I could do with my TV set '. Long before I purchased the TV, the repair Company had refused to do any further work for them,.
My second experience was with Pioneer. I recently purchased a 50 inch Pioneer Plasma TV. Wall installation was free. It has a 5 year warranty, and other Pioneer equipment that I have purchased in the last 18 months also has the factory warranty extended to 5 years FOC. It would be hard to beat that for service.
My third experience is with a near new Apple Powerbook bought on Ebay. After 3 weeks of very limited use it began playing up. It still had 6 months factory warranty left. I had previously discovered a few emails still in the system and one was from the previous owner to a colleague saying he was going to put the Powerbook on Ebay. He had just received it back from Apple for the third time, he was fed up with it constantly going wrong and intended buying one of the new Macbooks. I returned the Powerbook to Apple and I think they did rather an over kill on the repair work. Anyway it was all FOC. Again I was offered a 2 year extended warranty for AU$500 but declined. I have now had 3 years usage with no problems whatsoever. I think it's all a matter of luck. I always do as much research as I can on a product before purchasing, and try to read between the lines of feedback from owners experiences. This is the reason why Cnet has to be the source for one of, if not the best references. please keep up the good work. Bryan
Extended Warranty
by jpoole - 12/5/07 7:13 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI buy many things for myself and clients - as I run a small computer consulting company. I find I will purchase extended warranties on big ticket items such as TV's, Fridges, Stoves, Computers etc; items that have a large repair/replacement cost. This goes double whith client computer purchases as I will be the one with egg on my face if the systems fail just after a year of use (laptops are notorious for this).
I think it takes experience and research with products that you are intending to purchase to know whether it is worth having the warranty. I purchased a fridge about 2 years ago and with the knowledge of a repair person/friend of mine, they suggested the warranty as the newer fridges maybe more efficient BUT the motors/compressors are not as strong/sturdy as a fridge say about 20 or so years ago. I'm glad I purchase a 3 year warranty since the fridge had a leak which could not by fixed (as fridges are now sealed units) and had to be replaced - that would have been expensive - not to mention the cost of the repair person to try and fix it in the first place ($280) - all under warranty.
Jim
Warranty for PSP
by ziggy27w - 12/5/07 7:17 PM In reply to: Extended Warranty.........are they worth it???? by jraggieThe first and only extended warranty I ever bought was on the PSP from EB Games. My wife made me get it. I have had to use the warranty 3 times. However you have to repurchase the warranty when you get a new PSP. The warranty was only $20.00. After the second time I didn't renew it. But every time I brought it in they gave me a refurbished PSP. So im not sure if it was worth it or not.
Really dont think so.....
by wrenchit - 12/5/07 7:18 PM In reply to: Extended Warranty.........are they worth it???? by jraggieAfter buying a PC tower at the local BestBuy Store, I signed up for the extended "In House service warranty". Upon getting home, and hooking up the cables and firing it up, I found out that the DVD rewriter was DOA. OK so I call best buy, they tell me to call the manufacturer.... So I did, they tell me to take out the DVD and send it to them and they will replace it, but not before charging my credit card ANOTHER 75.00 to insure that I sent the old on back (they were going to send a prepaid shipping label, so why wouldnt i?) I guess I missed the small print that says that YOU put a deposit on the defective part, and when the new one comes, you install it yourself. A week later I had a working PC. It was also the last time I would ever even CONSIDER any type of extra store bought warranty.
WRENCHIT ur issue is with manafutured warranty not extended
by gus738 - 12/5/07 7:33 PM In reply to: Really dont think so..... by wrenchitwrenchit your getting it all wrong you delt with MANFACTURE warranty with is a PICE OF S@!T example is what happend to you, the moron that works in bestbuy just assumed you didnt get extended warranty, as show throught the entire thread more people benefit from extend warrantys then the fools who dont get it, its quite simple you buy a 3,000 tv and get a 500 dollar warranty it breaks and its servied and re servied/ to the point its a new one > a new better higher end one would be 500 rather then spending another 3g again, so whats better spending 500 or 3,000? theirs your answer..... reason why a new higher end one would be 3g? cuz over time the current tv would be cheaper so the highest end tv right now would be even more expensive thus warranty paying off..... i personaly think its worth it for the most part AND hey say tv didnt go bad? well it was worth spening some money to be sure that you didnt risk the big bill tv out of no where....
another final example > they service parts right? ok well when they replace the parts before the warranty expires then your tv will be new again therefore lasting longer before breaking down. i bet parts would of cost you cloe to the warranty cost if not MORE why? parts + labor
its a no brainer to get warranty, i laugh of people who right away say no but those that are nice enough to let me finish explaing the warranty i just wish them luck on risking their new tv...
i work at sears btw
Extended Warranty
by meriwapomwa - 12/5/07 7:21 PM In reply to: Extended Warranty.........are they worth it???? by jraggieA while ag I bought a refurbished camera and I felt (no solid evidence) I should buy the extended warranty. Guess what? The camera failed and I have a whole Alaska cruise set of pictures with a blurred spot. As the camera was not available any more I got a full refund and decided to buy a new (really new) camera without the extended warranty. That camera (a Panasonic) served me outstandingly on a cruise and a trip to Egypt. I guess I made the right decisions in both cases.
Constant luck to all of you!
In New Zealand they are a right royal total rip-off.
by Tintop - 12/5/07 7:21 PM In reply to: Extended Warranty.........are they worth it???? by jraggieRetailers try to push these things, but they give no more protection than our 'Consumer Guarantees Act'
This act requires (amongst other things) that the goods are suitable for the use intended and that they are of good quality.
In the case of a dispute, we have a Tribunal system that cost very little to enter into and cases heard by the tribunal have established some quite long periods where the retailer must continue to support the product. For whiteware this can be around 7 years which is far longer than any 'extended warranty' would go. Mobile phones are less, stereo and audio systems are between mobile phones and whiteware.
A number of retailers try to convince buyers that if they purchase an extended warranty that a faulty product will be fixed faster. This is illegal, but they manage to fool a lot of buyers with this line.
Personally, I never take an extended warranty and if a retailer tries too much with the hard sell, and they persist after I tell them that the goods are covered by the Act, I just leave the stuff on the counter and walk away. Retailing here is too competitive to argue with retailing staff.
You buy insurance to cover costs you can't cover on your own
by drm - 12/5/07 7:22 PM In reply to: Extended Warranty.........are they worth it???? by jraggieWith an extended warranty what you are buying is really better called insurance. Extended warranties are pushed by retailers and even some online sites because of their high profit margins. The retailer doesn't generally insure them themselves, but often it is through a third party that also plans to profit from your purchase. That being said, for me I have to decide if the peace of mind that comes with an extended warranty is worth me giving a premium to those that are selling it.
For most consumer items, I don't believe that they are worth it. I don't believe that I can beat the professionals that are evaluating the risk and setting the price. I believe that they will pay out considerably less than they take in on these warranties, so for me to come out ahead I have to beat the odds, and do so consistently.
That being said, I do buy Insurance regularly for some things. I can't afford to replace my house if it burns down, so I buy insurance. The same with a new car. On the other hand, if my kids car is only worth $2000. I will risk them totaling it instead of paying for that coverage.
There is also the significant issue with electronic items of future value. For instance, I recently priced a laptop online that was about $800. A four year warranty was about $350. Unless it were to break in the second year I figured that I would lose out. Why? Because in three or four years, I will be able to buy a better laptop than this one for that same $350. So even if I get "lucky" and I get a new laptop in 3 years, I really didn't do better than if I had just kept the money in the first place, plus I don't get to pick the next laptop and apply the $350 to what I want at that time.
It is all about risk tolerance. Can I buy a new iPod if mine breaks 366 days after I get it? Or would I rather prepay $50. for the next one just in case it breaks in the window between the manufacturer's warranty and the extended coverage.
The answer is a little different for everyone, but on average if you put the money in the bank instead you will come out way ahead in the long run.
Anyone want to discuss the pros and cons of buying a time share... 
Extended Warranty.........are they worth it????
by Ldebarge - 12/5/07 7:26 PM In reply to: Extended Warranty.........are they worth it???? by jraggieWell I certainly wont buy one at the store, way to much markup. I Buy a Mack warranty if it is a big ticket item for peace of mind. I dont mind paying leas than 10% more for a 4 year warranty on a $2k plasma hdtv. if it is less than 200 bucks I forgo a warranty as it will be outdated in a couple years anyway.
Extended Warranties
by MustangOneVA - 12/5/07 7:27 PM In reply to: Extended Warranty.........are they worth it???? by jraggieDid you ever bring up a sore subject asking about the worth of Extended Warranties!
I spent almost $5,000, including $300.00 for a two- year extended warranty, for a 52" Mitsubishi (Diamond) TV (from the Big Screen TV Store in Sterling, VA, headquartered in Baltimore, MD). Over two months ago it stopped working and I have gone through hell trying to get it repaired under my still active Extended Warranty contract. As of this writing it has been out of service for 62 days with no end in sight! That includes the entire football season and most of the great Fall TV shows. The Christmas shows and New Year Bowl games now appear likely candidates not to be seen as well. Oh well, I can watch all these, as I have so far, on a much smaller TV set.
After being referred to a Warranty Service in Texas (the TV Set and I live in VA!) and being lied to, ignored, and treated like I was dirt by that Warranty Co., including being required to fax them 10 pages of sales receipts, warranties, etc. THREE TIMES. Each time a different person would answer the phone, have no record of my previous calls, claimed they never received my Faxes, it took over a month to learn from The Big Screen TV store that they erroneously sent me to the WRONG Warranty Company—one they use now but weren’t using when they sold me MY TV set! Wouldn't you think that "wrong" Warranty Co. would have known that long before ME telling them that after was I given the name of another Warranty Company by The Big Screen TV Store?
Calling the "new" company (this time one in MD) I was told I did not have a two-year warranty but only ONE! After two days of calls from me back and forth, and numerous emails, did the "new" Warranty Co. call to say they were "mistaken" and that I do indeed have a two-year warranty. Meanwhile I called a THIRD Warranty Company (this one in VA) given to me by the Big Screen TV Company, and three weeks ago that new company sent a repairman to my home. I told my wife Hurray, finally I’m getting it fixed. I’m afraid I was still prematurely hopeful! He took the entire set apart “testing” etc., then put it back together again. When I asked him what the problem was he said it was an "electrical part," adding they didn't have it in stock and would have to "order" it.
Letting a whole week go by, on Nov. 26th I called to ask the status on the part. I was told Mitsubishi was “shipping it on Nov. 29th.” That day and the following week came and went. On Dec. 4th I called again and was told it was “estimated to be shipped on December 6th from Chicago.”
I'm still waiting. The two-year warranty expires in January, which is probably when they will have fixed my set.
This has been an intolerable and inexcusable experience that I wouldn't wish on anyone. Certainly not the way the Warranty contract was explained to me by the Salesman—“you’ll get it fixed if anything happens to it or we’ll give you a new one,” he said. Ironically, the repairman told me the same thing!
The Headquarters of the Big Screen TV store should have sent me a new TV set after one month of waiting, fixed the old one and sold it as a second hand set.
Stay tuned to see IF the "part" (chassis they call it) even works! If it doesn't, I will start numerous Letters to the Editors of my local newspapers along the lines of this story, including the Better Business Bureau, the FTC, and anyone else I can think of. I may even have to “picket” the TV store with a sign lamenting my horrible experiences!
I am going to copy your article and this response and send it tonight to The Big Screen TV store and to the Mitsubishi Corp. (who I previously emailed and never even got a response from them). At this stage I wonder if they even care. Friends have been advising me to get an attorney and/or take them to Small Claims Court. That is another consideration and bridge I will cross if necessary.
So I'll leave it up to individual readers of this story to determine for themselves the answer to your question: “Extended Warranties—Are They Worth It?"
Warranty companies
by katzorama - 12/9/07 2:23 PM In reply to: Extended Warranties by MustangOneVAAfter one month of this nonsense or being treated badly twice over the phone, I always immediately write the BBB and the Corporate headquarters of the company(ies) involved. Then I normally call the company(ies) providing the bad service and talk to person after person, going up the ladder, reapeatedly asking for their supervisor if I don't get the answer I want. I start off nicely and gradually become a total b the longer it takes.
I expect a professional to do their job and I make sure they know that. The minute they talk to me like I'm an idiot, I tell them not to insult my intelligence and ask for their superior. So far, I've gotten everything fixed much faster that way, gotten several replacements and refunds of the customary charges involved in shipping things, etc. Trust me, don't take it from them, give it to them!
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