Home audio & video: Extended Warranty.........are they worth it????
No Way!!
by logcabiny - 12/5/07 9:54 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI've talked to people who worked in situations where they were trained to sell extended warranties, and without exception they told me that the warranties were not worth the cost based on the high profit margin built into them. Also the companies often find ways not to pay for the repair when it is needed. In addition, the extended warranty can make it difficult to get service due to limited approved service centers and having to get the repair pre-approved etc etc etc. No way they are getting my money again on any item for any reason. Thanks for asking.
Warranties
by nomadd74 - 12/5/07 10:01 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI would only purchase a warranty on a used car since they sre so unreliable, otherwise I never take out used warranties with other products.
It's a way for companies to make extra money at your expense.
Never - they are gravy for the retailer.
by tim platts - 12/5/07 10:07 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI have worked in retail for many years and I can tell you retailers push extended warranties for one reason - most people never need them and the company gets to pocket the extra cash. The sales person is trained to always push the extra warranty and a lot of companies pay bonuses to the sales staff who sell the most extended warranties. Just make sure the product you're buying has a good manufacturer's warranty, send in the registration card, keep your original receipt in a safe place and spend the extra money on something you really need.
My experience is no.
by justfred - 12/5/07 10:12 PM In reply to: Extended Warranty.........are they worth it???? by jraggieUsually when asked about the extended warranty my reply is 'if (name the entity) is willing to bet on the product, so am I'.
However, I didn't take my admice one time and when I purchased a Sony VAIO laptop from CompUSA several years ago I decided to get the warranty because the sales person went out of his way to tell me that their 'extended warranty' covered the battery while the manufacturer's warranty did not.
Ninety days later the battery went out. I took it to the store expecting a replacement and was told that it wasn't covered because the unit was still under the manufacturer's warranty and my 'extended' warranty didn't kick in until after the manufacturers warranty expired.
Never purchased another extended warranty or anything from CompUSA.
most of the time
by thepoetrydude - 12/5/07 10:27 PM In reply to: Extended Warranty.........are they worth it???? by jraggieIt all depends on whether they offer you a extended warranty( which covers what the limited manufacter warranty covers) or a service plan (which covers a whole lot more).Personally, I get the service plans on major electroics, especially those that have moving parts(more chance that something could go wrong). I get them on printers, and on average my printers have lasted about 2 years, I've bought many top brands like HP, Epson, etc. On my computers, especially, I work on them on the side and why do I want to pay for parts, if I can not only get the parts, but the labor covered. On most laptops, the lowest priced component is around $50-70 bucks and thats the keyboard, add in the service charge of roughly $100(thats what I charge, I think big box is still more) bucks and your ussually paying more or about the same as if you had gotten the service plan. The newer tvs have a lot of complicated parts now, like computer chips and such. I had my previous tv repair, had the front screen replaced. most lcd and plasmas don't have many repairable parts. And the replacement plans on the small stuff like printers and mp3 players are nice. I recently had my pda and western digital 500gb mybook replaced and a lot of retailers make those very easy on you. And you may wonder, I am a salesman in retail, but I come from the technician side of the fence. I don't sell just to sell, I give out the facts to the best of my ability and knowledge and unfortunately not all retail sales people are like me. I make sure we don't misrepresent in my store. In conclusion, the only real reason not to get a service plan would be if it cost as much or almost as much as the unit. It's alot like a car with most electronics, the more you use it- the more likely something may wear out. Hopelfully I am helpful here.
Depends what you are buying
by burge105 - 12/5/07 10:30 PM In reply to: Extended Warranty.........are they worth it???? by jraggieHow long is the warantee for? What are you buying? ie a playstation 3 if the system heats up on you and it is good for 3 years it is well worth looking at. a refurbished computer is in my opinion worth it for peace of mind 90 days is not enough I saved 600.00 so the etra 200 is worth it for the 3 years. The problem comes if they will honour there word
Not worth it
by Walter Plinge - 12/5/07 10:32 PM In reply to: Extended Warranty.........are they worth it???? by jraggieFirst, extended warranties are a nice little earner for the retailer -- they're at least 50% commission.
Second, if something is going to go wrong with an electronic item it will generally to do shortly after purchase and almost certainly within the 12 month 'included' guarantee period.
In the 35-odd years I've been buying electronic goods I've never had to make a warranty claim. I've had a great digital camera for two years. If it failed now I'd replace it with a newer model as the current equivalent is 2/3 the price and better specified.
I am glad I bought one for my Palm E2
by Denisellen - 12/5/07 10:32 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI bought a $29.99 extended warranty/replacement contract from OfficeMax for a Palm E2 I purchased there. I don't generally buy these but I must have had a premonition because it failed after less than one year of use. I sent it back and received check (well, actually a gift card for OfficeMax) for the purchase amount including sales tax. That time it was worth it.Buying stuff that can - and given enough time - probably will fail is a calculated risk that I take.
Sometimes Yes
by efxpert - 12/5/07 11:19 PM In reply to: Extended Warranty.........are they worth it???? by jraggieWe've kept a policy on our car and refridgerator plus other items. As has been said before, the cost to replace has to exceed the cost of the insurance. I can't say we've broken even but we've made extensive use of warranties with failed items. The refer has had the motor and the ice maker replaced. The car has had the fan clutch and the CV boot replaced. Neither of these reached the approximate cost of the insurance policies, about $1500 for 2 years on the car and 10 years on the refer. I try to buy as much as possible at Costco as they offer extended warrenties and have replaced a camera and last week a 2 year old phone system. Plus, they took back a pot and pan set that was a year and a half old. My wife is big on policies, me not so much. Nice to have but frequently more expensive then the repairs needed. Hope this helps.
extended guaranties... why?
by pedro cosmo - 12/5/07 11:19 PM In reply to: Extended Warranty.........are they worth it???? by jraggieThe best guaranty you can get is doing a good homework BEFORE you buy. If you get an item from a good reputable place... and is from a good reputable manuf.... and is not too advanced that will blow you away with complexity... then do no buy extended nothing.. But if you buy BECAUSE IS CHEAP! or if it is refurbish... then use your gut and decide ... is the cost at front so much that you will be very sorry if it fail the day after manuf. guarantee expires..???
My personal track record is great! I only bought ONE extended guarantee... was for a tile saw ... made in China.. (that alone made me wonder what the extended did get me? if it failed... more of the same bad product?.. but being that this unit works under constant water spray.... I decided to get extra protection.. well... The table where you install the tiles started getting wobbly after 7 months (manuf guarantee was 3 mo.) so I complained to the place where I bought the unit... and sure enough they told me to return it for an exchange!! So I got a new unit after using the old one a lot... Once I got the "new" one I modified the bushings and now after 3 years still is going great.. with no more problems. so having luck some times is better than manuf. guarantees...
Do your research
by eviltodd - 12/5/07 11:25 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI bought an extended warranty years ago on a 27 inch television. I paid $277 for the set and about $40 for the extended warranty. My TV did fail after about 1 1/2 years, so, I brought it in and had it serviced for free (still under extended warranty). They gave me an invoice that added up to over $900 in repair costs even though they were advertising my exact television for $250 (new). I believe that they were jacking up the costs for ignorant people.
I recently bought a plasma TV that came with a full manufacturers warranty for two years. I believe that, if the manufacturer doesn't believe in it, why should I?
If your asking about other types of electronic equipment, don't bother extending the warranty. A good local repair shop can fix anything, much cheaper than the warranty cost. Or, you could replace it with newer equipment and sell the old stuff for parts.
Automobiles? Yes, buy it if it is from the manufacturer and the standard warranty is less than 50,000 miles. All cars have faults, unfortunately.
Extended Warranties??? . Here is the low down.
by jgely000 - 12/5/07 11:31 PM In reply to: Extended Warranty.........are they worth it???? by jraggieThis only MY opinion. I am a consumer electro-phile, old and gray(43). I base it on a EE and, 20+ years as a technician in consumer electronics repair, R&D and custom manufacturing.
Philosophy: Do your research. If you are purchasing "cutting edge technology" like plasmas were 10 years ago, with no time in the the field, then you are most likely well-to-do and money does not matter. Therefore warranties don't matter. If you are like the rest of us and wait for the prices to drop, then the item has history, competition, reliability record, and most of the "bugs have been worked out". If losing the item will break you, then you should not afford it, let alone the warranty.
My suggestions are these: DON'T BUY THE EXTENDED WARRANTY unless:
(1)It covers lightening strikes, in home repairs, and does not have a valuation clause.
(2)You are OCD or can't sleep "knowing" (this is no joke).
(3)Your wife tells you to. (this is no joke either) yes it is.
Always unplug your high dollar(you decide)loved ones during electrical storms(preferably prior). If you live where T-storms are the afternoon rule, get used to disconnecting before you go to work. That power strip/surge protector won't do jack. Don't forget to unscrew the coax too. Use "slip" connector
Don't use chargers or AC/DC adapters with the wrong voltage or polarity. Don't lend it if you like it.
Plug it in and leave it on 24/7 for the first month or two. Make sure it gets as hot as it ever will...and use it like it's rented, early during the warranty period. Power cycle (turn it on/off) it as often as you can, making sure to let it fully heat up and cool down. Most consumer electronics devices will fail soon if there is any defect in manufacturing. Aside from camcorders and hard drives, most consumer electronics devices are non-mechanical in nature and most failures occur within the components,from cold solder joints, or in the firmware logic. Your unit should resist normal shock and vibration. So make sure it gets it during the warranty period. Defects will reveal themselves, which is all they will cover anyway.
Dutch solution
by panseketel - 12/5/07 11:34 PM In reply to: Extended Warranty.........are they worth it???? by jraggieIn The Netherlands you don't need extended warranty. If you are a consumer, you are protected by the law. A product has to do his thing right for the time you migth expect from such a product. For example: A normal tv will last for about 10 years. If your tv breaks down after 4 years, you only have to pay 40% of the repair costs.
extended warrantys
by tomher - 12/5/07 11:38 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI do not believe extended warranty's are worth the money.
I went to a store to buy a new under counter microwave oven,my wife and I had made our chose and the salesman went to get the unit. When he returned with a manager who looked like he was 16 years old. He began to sale me the extended warranty, I told him that I did not want it. He insisted that I purchase it, he said that microwaves have problems sometimes and it could fail. I then told him that until he had told me that, I was purchasing it. But since he didn't have faith in his product I didn't want the microwave. His sales person was standing there holding the oven I just looked at the manager and walked out. I went to another store and bought the same oven, that was 4 years ago and the micro still works fine. "BUT" I bought a new Preius and I bought the extended warranty, because if something goes wrong its would cost a fortune to repair.Tom
Protect your investment, buy a warranty!
by Job Taker - 12/5/07 11:46 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI work at a local retail (Best Buy) store which offers service contracts, I see probably a good 75% of all computers that are sent out for repair, returning with a higher cost to repair than the original value of the computer. for example you buy a new notebook pc, for say $750 the value decrease about 25% annually, say 2 years into owning the machine, the motherboard goes bad, the average cost is around $400 to repair. Now think of how your luck is, (if yours is like mine I'm the person who lightning strikes twice...) you probably will see two or three repairs on most computers over the coarse of three years. And if your prone to accidents, accidental damage warranties are also available . Most other thing are not ever worth repairing after the manufactures warranty expires.
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