Community weekly poll: Are extended warranties worth it?
- 12/5/07 2:21 PM
It is a simple numbers game.
by nurdled - 12/5/07 10:03 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Just like going to Las Vegas, the odds are always on the houses side.If the providers of the extended warraties always had to pay out on every piece of equipment they would go broke. They know what the odds are of a particular item going bad during the duration of the extended warranty period. You as the consumer beat the odds when ever you actually "use" the extended warranty.
The big question is....how lucky do you feel?
Best Buy warranty service is the worst
by pineygecko - 12/5/07 10:30 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
After 5 months I'm maybe going to get a replacement for for my Sony 55" in HDTV. The main service department is inept; their repair outlet rediculous. If you have to deal with a
Best Buy warranty go directly to the store even this is not what you're supposed to do. Yes, I suppose it was worth it although we lost a lot of money in the exchange and I didn't get the flat screen I wanted unless we paid higher. The frustration has been awful--we'll see in the next few days how it turns out...
warranties??????????? - How many you all got?
by Dialisys - 12/5/07 10:34 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Can you keep track of all your warranties? - I cant!
They are there to cash in on people like you - those who forget where they put there receipts, warranty papers, and those who fail to read the fine print!
Over the last 50 years _ I have only used warranty 5 times - and that was to replace 5 transmissions in my 1989 Dodge Caravan - needless to say - I am off Dodge products - Btw - in 1994 I scrapped the van! - couldnt bring myself to sell it to anyone - so what was my warranty worth??????
Shove the warranties where the sun dont shine - it aint worth it!!!!
forgot something!
by Dialisys - 12/5/07 10:41 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
btw - all the time we consumers buy ext warraties - we are giving manufacturers licence to sell sub-standard product - If everyone refused them - what would happen to there bottom lines!!!
They got us over a barrel!! - on this!
Are extended warranties worth it?
by Doc_sean - 12/5/07 11:04 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
No, not really. Good example (a very good one) is my father, who used to be a warrenty salesman for at one time for the whole state of N.J. for a good couple of years, before his partner walked off with HIS company, but that is another story. Pop used to say "there is NO good warrenty of any kind, they are designed to just take your money." "Now on the other hand, the manufacture'r has there own warrenty that works very well that YOU don't have to pay extra, and that one works." I usally follow this rule of thumb...If a salesman asks if I want this so-called extra warrenty...I tell them no. If they get pushy about it then I hit them with this line. "Is your product That shoddy that you have to sell extra insurance to service it, then I guess there's no 'up' for you today." The stuned look on their face when I put down the product and walk away.
Doc_sean
Treadmills!
by Dialisys - 12/5/07 11:04 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I have to make comment again - sorry readers!
Treadmills seem to be a repeat topic here in this series of threads regarding warranties!
My experience has been, - that all - most tread mills (home used) are crap! - and warranties here is a real joke!
The answer - is: Go to a gym and break their machines! - Its a lot cheaper and a great social break from your home routine! - saves space, Hydro and, tho there are more people in a gym, than your own home - less interuptions!!!!
Definitely worth it from a certain price range
by GrefTek - 12/5/07 11:43 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I've bought extended warranties for some items I deem vulnerable, save computer electronics (this stuff devaluates in your hands!) and usually for a period of 3-5 years (depending on the item).
Granted a lot of times all you get is some piece of mind but I think in several occasions the fee for the extended warranty was more than worth it. Considering the cost of having stuff shipped for repair, having someone look at it and replacement parts it is definitely cheaper to get the extra warranty. It saved me a hefty bill for my Home Cinema Set, a stereo and 2 of my discmans.
I would advise people to read the fine print, though. Some stores really use it just for some extra bucks and will try to weasel their way out of the contract. It's a good way of selecting which stores you buy your electronics.
Depends on not only the product but the amt of use expected
by wiz2525 - 12/5/07 11:47 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Before I got my Treo, I bought my PDAs at Circuit City, and always bought the extended warranty, predominantly because I used it daily at work and I would not enjoy having to shell out what it would cost for a replacement. Another added advantage in this approach was that due to the short lifespan of any given model when the unit would become flakey (and they all become flakey after a lot of use) the exact same unit very possibly will no longer be available...
That is how I kept upgrading for usually merely the cost of the difference between what my present model would cost IF IT WERE AVAILABLE and the current cost of whichever upgrade model I was interested in. THAT was the true hidden value of insuring via extended warranty for me. Your mileage, however, may vary.
Don't tar all extended "warranties" with the same brush
by Yak_Twentytwo - 12/6/07 12:01 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
One thing stores are doing to offer more value to the customer is to add additional benefits to their contracts. As an example, one store I've worked for offers things such as a toll free help number and coverage that improves upon the manufacturer's standards. In the case of computers it can be very highly recommended, depending on what the store will cover. More and more of them contract out with service shops in your own community and can give the consumer not only a warranty service but also a technical support service.
It is a little too judgemental to tar all of these services with a single brush. The fact is that extended warranties are as diverse in what they offer as are the stores that offer them. Another store I've worked for offered nothing but parts and labour service, and only after the manufacturer's warranty expired. This is totally unlike the technical contract I described above, and yet they are often mistaken as being the same thing by customers. In the end the consumer should look at what exactly is being offered rather than saying "yes" or "no" to every service offered to him or her. So my advice will always be to listen to what is being offered, but you have to make the choice whether it is valuable or not.
Sound Reasoning
by dtky2k7 - 12/6/07 12:02 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Its funny that this topic came up, because as of last week my HP laptop screen just gave out JUST 3 DAYS before the manufacturers warranty ran out. Lucky me.
So why then am i AGAINST the extended warranty??? Is it because i expect to always be lucky? no, its because i found out that with most things they are really unneeded. For big appliances, If taken care of properly, they should last the 3 years that the extended warranty usually lasts. And many times way longer. Plus when you take into account the price of the extended 3+year warranties they dont justify the cost. THIS IS WHERE IT GETS REALLY INTERESTING,
Me and my friend got on a verizon cell phone partner plan, he got the insurance- i didnt. Every single time my phone broke i took it in and it got replaced FOR FREE (3 time during our 2 year plan). The 2 times he brought his in- 1st time he had to pay the $50 deductible, and the second time they told him it wasnt covered and he had to buy a new one. DONT ASK ME... I found that if i didnt pay for the insurance, it was always fixed for free, and my friend had to pay. If they dont supply you a phone you can not be expected to pay for a plan. Call customer service, and ask to speak to a manager. That always works for me. Comany managers are all about customer service, where local repairman Bob or cashier Jody just wants a paycheck.
Are extended warranties worth it - HECK NO!
by Wolfie2k5 - 12/6/07 12:31 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Case in point:
A client of a colleague of mine bought himself a computer at Fry's Electronics. He also got a 5 year extended warranty.
Now, while he DID eventually get some satisfaction out of the situation, it was CLEARLY not worth the effort.
For 4 years, the computer did it's thing, running his business. For some reason, all of a sudden, he could no longer see his network. My friend is a freelance consultant. He took a look at the situation but because there was the extended warranty, they took the computer back to Fried. They were told they would have a diagnosis in 48 hours. In the mean time, they got a loaner computer.
They took the loaner into the shop, loaded the data that was backed up from the defective one.
Six weeks later... (Yes, that's right, SIX WEEKS LATER), they got a call from Fried's support department saying the computer was fixed. The 48 hours had come and gone and no information was available about the computer. They got the data backed up from the loaner, got it back to it's original state and picked up the "fixed" computer.
They restored the data and attempted to plug the box into the network - it didn't work. Another trip to Fried. Another promise of a diagnosis in 48 hours, and another SIX weeks later - they got the computer back. Still not able to see a network.
So my friend, the consultant dug a bit deeper. He tried a number of NICs he had laying around - and while they were able to be installed, NONE of them functioned as expected. A USB based NIC, however, was able to see the network.
A call to Compaq's tech support identified the problem as the motherboard being defective. The PCI bus was no longer working properly. The fix would require a new motherboard.
Well... The computer was still under the extended warranty. They brought the box back to Fried, told the tech what was wrong with it, and there was yet another promise of a diagnosis in 48 hours and yet another 6 week delay.
This time, however, my friend had to call Fried for information on the computer - and this time around, they were about to throw it out as they'd lost the guy's phone number - and had no means to get ahold of him.
They went and picked up the computer. Looking at the repair order, they noted a new NIC was installed on the card - no new motherboard. They argued a bit and the tech said that the NIC tested as working using the loopback plug. They were asked if they bothered testing the NIC by plugging it into a real network to see if it can see anything besides itself. They were unconvincingly assured that it wasn't necessary. Since the NIC was able to see itself, it should see everything else.
They took the box back, tested it and lo and behold, it STILL wasn't working. (Imagine that...) Yet another trip to Fried. Yet another promise of a 48 hour turnaround on the diagnosis... Yet another SIX weeks waiting for the computer's return. This time Fried called and had them pick up the box.
Of course, they hadn't bothered to fix it. So.. it was back to Fried for yet another 48 hour promise broken, yet another SIX weeks...
A quick note - The fine print in the contract for the extended warranty states that if you bring the device in for the same problem 5 times, they have to give him a new one.
The last 6 week delay came and went - and they called Fried to find out what happened to the computer. It would seem somehow, they managed to lose it entirely. They couldn't find hide nor hair of the computer in their records - so... they had to give him a new one. Not that they had any other alternative - that was the 5th time they brought the computer in with the same issue.
The bottom line of this: Getting satisfaction took him OVER 6 MONTHS, with 10 trips to Fry's - each trip taking an average of 2 - 3 HOURS. That's not counting the time required to back up and restore the guy's data and programs. And let's not forget the loss of hair from dealing with idiot techs who think they know better than anyone else because they work at Fried and you don't.
The simplest fix would have been to NOT buy the extended warranty, and when the motherboard died would have been to go out and buy a new one, with a new CPU and some RAM for a couple of hundred dollars and have been DONE with it. Yes, they did get a replacement but it took 30 odd weeks, lots of downtime and more headaches than it's worth. So is it worth dealing with it? If it's a home system, and it's not used for a business - it MIGHT be worth it. Provided, of course, you're willing to stay the course and deal with the boneheads. If you're computer's used for work and you NEED your computer up and running, then no. It's not worth the extra money.
certainly not
by thegolfer1 - 12/6/07 12:37 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
There are insurance companies that offer cover for all household items, inc. pc's,laptops,tv's and all the boring stuff e.g. washing machines etc, all on one policy and this covers for anything less than 10 years old. So if you've got one of these policies you never have to bother with those sometimes dubious "extended warranties".
Think about it if they were a consumer positive advantage...
by lassean1 - 12/6/07 1:24 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Ask yourself if they were really an advantage why would retailers offer the warranties or even sometimes push them. This is a case of you are damned if you do and damned if you don't.
Extended warranties
by graememacfothaidh - 12/6/07 1:35 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
1. They CAN be a rip-off in that the amount you pay is often excessive. The Sales person does get a bonus for selling you the extended warranty.
2. If it is an American firm DO NOT buy it as you can't legally negotiate with them abroad as US business methods are the pits, as they know you are foreign and can't sue them if anything goes wrong.
3. Ensure, if like me you reside in the UK, that you don't buy an item from a firm in Europe as the same thing applies as to US goods.
3. Only buy if the firm has a registered UK address and that you have purchasing legal protection. Graeme.
Product Confidence
by DickyDum - 12/6/07 2:11 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I rarely go for extended warranty's except on major items like washing machines etc where a high cost is involved. I feel that if manufacturers have confidence in their products they should give an additional warranty in the purchase price.Where there is a constant push to purchase additional guarantee what faith does this give in the product.
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