Home audio & video: Extended Warranty.........are they worth it????
Good Extended warranty story
by toddhager - 12/5/07 11:51 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI bought an extended warranty from a big box store. Since I work in the electronics manufacturing industry I know that it's a roll of the dice if you don't know who manufactured your high dollar high tech electronics. Much of today's electronic consumer goods are assembled by contract electronic manufacturers. Often several brand names are put together in the same building. But that's another post. So, I wasn't sure on this particular 32" LCD and bought the extended warranty. Sure enough, just before the end of the manufacture's warranty ends the tuner went out taking all the right side inputs with it. A technician came to the house, diagnosed the problem and attempted to order the part. Well this must have been a common problem because there were no more parts to be had. He filled out the paper work and told me to return the set to their store and get a new one. Well, that set is no longer manufactured. So, I got an instore credit for the purchase price of the set. I shouldn't have to tell anyone here that prices have been falling drastically on TVs lately so, I ended up with a set that when I initially looked for a set would have cost twice as much. In fact I recall the day I bought the set that broke and the sales kid was continously trying to drag me up the price scale since I mentioned the brand of all my previous TVs. I just wasn't ready to buy same size, same resolution at twice the price just for the name. In the end though I got the name at the bargain price.
It's a crap shoot for me...
by Eldomador1 - 12/5/07 11:52 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI have had some big ticket items that never paid off. One from Montomgery Wards; and then they bellied up. And the other from Comp USA, they closed all there Southern California stores. When my laptop had problems, I was out of luck. I had to resovle the issue on my own.
Just once has an Extended Warranty paid off for me. It was in the last year of a 4 yr plan that I bought for my Sony Handy Cam. The ejection mechanisim broke. I got it fixed fairly quickly. But had I not had the warranty, it would have cost me over $300.00 to get it fixed.
SO... now I am more apt to say NO, save the money and fix it or replace it myself. The Money that would have gone for the warranty is better off in a bank account with all the other warranty money. Then when one item breaks, consider yourself self insured and fix it or replace it at your discretion. Most items are pretty reliable and really don't break, unless you are negligent. Self insured is the way to go!!!
These things are a rip off!
by russkeller - 12/5/07 11:59 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI used to always get these extended warrenties based on the murphy's law. If i didn't get it, it's sure to break. Well after a few instances where things did break down... Once of which included the extended warrenty I got for my X's car. Turns out the lying SoB's don't actually cover ANYTHING.
AVOID WARRENTIES! It's a scam.
warranties
by mulletman69 - 12/6/07 12:18 AM In reply to: These things are a rip off! by russkellerthe extended plan for tractors and **** that home depot has is good, they offer an extended warranty on pretty much everything, and 99% of the time its total ********, but if its a tractor, buy the warranty, the extended warranty not only covers you 4 years after the manufacturers, but it actually covers more **** than the manufacturers one does... plus they will come and pick it up at your house
Don't buy insurance unless you really need it
by jcbowen - 12/6/07 12:43 AM In reply to: Extended Warranty.........are they worth it???? by jraggieNever forget the bottom line is that insurance companies make a profit. They always take in more than they pay out. So, on average and over time, you are going to pay insurance companies more than they ever pay you back for losses. Of course, just like the lottery, a small number of people have a major loss and make money on the insurance companies. But just like with the lottery, they are a tiny minority.
My personal strategy is simply to only buy insurance to cover those potential losses that I absolutely could not afford to sustain. So I carry insurance on my home, my health, my car and my life (I'm married with children). In each case this this insurance protects my family against a potentially catastrophic financial loss. Odds are the insurers are making money on me, and I'm happy to pay them for this kind of protection.
But give them money to protect me against the loss of a few hundred (or even a few thousand) over a new tech toy or appliance? It just doesn't make sense. Even if the policy is a good and reasonably priced one (which it certainly won't be if you buy it at the check-out counter) it's still a losing bet. Why make it?
Not at all
by lukelead - 12/6/07 12:45 AM In reply to: Extended Warranty.........are they worth it???? by jraggieExtended warranty worths only in case you think to keep that item for long time: this usually does not apply to new tech gadgets. When i bought my first plasma tv one year ago i was asked about extended warranty but i denied, infact after all latest improvements in technology I'm already considering to replace it with a new one (whilst my previous Sony tube worked for over 10 years without any problem ...).
Salesmen of tech shops know that very well, that extended warranty is a benefit for them only
Luke
We always buy but never used them.....useless!!
by mmaghari - 12/6/07 12:46 AM In reply to: Extended Warranty.........are they worth it???? by jraggieMy husband always buys one especially for this tech. equipments. But so far he never used it. When I bought my treadmill from Sears, I also bought one on the spot. The salesperson told me that I can have it refunded if I changed my mind. I did changed my mind after talking to a friend that buying it is a bad idea. I called back the salesperson who sold me the warranty and asked if I could refund the warranty. She makes it hard for me, passing me to one person to another, until I got pissed-off and put the phone down. In my opinion, it's a waste of money and it encourages the manufacturers and sellers to sell you an inferior product, since they now a majority of their customers will buy an extended warranty anyway. So they get off the hook and they pass the cost to their customers. I think this extended warranty thing should be regulated. It seems to get overrated.
Extended Warranty.........are they worth it????
by Michael Yeo - 12/6/07 12:47 AM In reply to: Extended Warranty.........are they worth it???? by jraggieMy view on whether to pay extra SGD 100 plus for example a '5 years Extended Warranty' would depend on the price of the product, whether the product can oly be repaired by the manufacturer, what are the items covered and who indemnifies the extended warranty.
If the cost of the product is over SGD1000 and the 'Extended Warranty' covers transport, labour, replacement of faulty component/s with original and assuming that if the fault could not be repaired and covers one to one replacement, I would pay for the extended warranty.
This was what I have encountered with one of my household electrical products which I purchased for SGD3,000.00 and the 'Extended Warranty'
which covers the above mentioned. When a fault occurs, I contacted the seller who will then send their technical personnel to rectify/replace the faulty part/s.
On completion, the technical personnel showed me the replacement of the faulty parts and the work done were recorded in the company's
'Work Done' sheet which I signed on it.
If I have not purchased the Extended Warranty, the one time repair/replacement of the faulty component including transport and labour cost more than the amount that I paid for the Extended Warranty.
But for relatively cheap items, I would not take up the Extended Warranty.
Extended Warranty.........are they worth it????
by michael.w.newman - 12/6/07 12:48 AM In reply to: Extended Warranty.........are they worth it???? by jraggieJust tell the salesperson that if the product is that bad, perhaps you no longer wish to buy it and walk out the shop.
Extended warranties
by dan1000 - 12/6/07 12:49 AM In reply to: Extended Warranty.........are they worth it???? by jraggieMy recent experiences tell me to tell you...yes and no. It depends on the company you are dealing with and what their main purpose is. On one hand I had an extended warranty on my apple G4 notebook. I sent it in near the end of 3 years with a couple of issues. They fixed every issue and replaced half of the case because it was dented. In this case it was well worth it. On the other hand I did the same for a Konica digital camera but it was not sponsored by the manufacturer. When I called in to get it serviced I was told my particular problem was not covered. So I have an 8MP digital brick because of a bent prong on the CF receptacle. So maybe if the warranty is from the company that made the product then it might be worth it but if you are dealing with a warranty company then probably not.
For Some Items It's a Definite YES
by grymlyn - 12/6/07 12:52 AM In reply to: Extended Warranty.........are they worth it???? by jraggieI don't usually purchase extended warranties but for some reason I decided to purchase it when I bought my son's PS2. Turned out to be a lifesaver. During the three years the warranty covered it we returned his PS2 twice. I also bought a craputer in 2003 and for some odd reason purchased the warranty again. Boy am I glad I did, it's turned out to be a lifesaver. Feb. 2005 my flat panel monitor quit working, I took it back to Best Buy and they replaced it with a new monitor in about a week. I renewed the warranty for an additional 3yrs for $150.00. June 2006 I can't burn a CD and the drive doesn't recognize it even has a CD in it. A few months later I starting having serious problems with my computer and it won't let me restore. I take it back to Best Buy and learn I have bad sectors on my hard drive and I need a new CDRW drive. Again, these items are replaced at no additional charge and I have my computer back in a few days. Two weeks ago I try to turn on my computer and no power. I try a couple of other outlets and decide it's the computer. Once again it's back to Best Buy visiting the Geek Squad who by now are become old friends with my tower. They call me the following day to let me know the motherboard and power supply need to be replaced at no additional charge. It will take a couple of weeks, but I can survive that. The technician also lets me know that under the No Lemon Policy if my tower requires one more repair they will replace the tower with a new one at no additional charge. The bad news is that I will get a more technologically advanced computer that is as close to what I have as possible. I'm not knowledgeable about the internal workings of a computer and I have been so grateful for my Personal Service Plan with Best Buy. I've never had any problem when I have returned any of the items. They just replace or repair it and I'm on my way. I don't advise purchasing warranty plans for all items but for game consoles and computers you I highly recommend them. If you don't use it you're out a small amount of money. If you do need it you have saved yourself a big headache and some cash.
In a word -- NO!
by john3347 - 12/6/07 12:57 AM In reply to: Extended Warranty.........are they worth it???? by jraggieThink of everything you have bought that had an extended warranty available for it then think of how much you would have spent, or did spend, for all these extended warranties. Now total up your lifetime collections on these extended warranties. (Don't include any warranty adjustments that were made to you by the manufacturer's original warranty that was included with the item. Only include the adjustments made through the extra cost extended warranties.) Almost all failures are going to occur during the manufacturer's original warranty period if a failure occurs. If you placed the price of the extended warranty into a savings account at your bank every time a salesperson offered you an extra-cost extended warranty, you would very soon have a sizable chunk of change that you could use to buy another electronic toy that you otherwise would not have had the money to buy. Extended warranties are a HUGE profit item that the warranty company and the retailer share at your expense. Their total payouts are a VERY small percentage of the premiums that they collect.
It is true that you may collect more money in any given warranty adjustment than you spent for the extended warranty on that item, but when you include all the extended warranties you bought and didn't use you are in DEEP RED INK!!!!!
Never
by mgrandell - 12/6/07 1:25 AM In reply to: Extended Warranty.........are they worth it???? by jraggieI never buy the extended warranty. If the product fails before i think it should, i either return it to the store or write the manufacturer and tell them to make it right. Extended warranties are a rip-off. The product should be good enough to perform without insurance. If not, then the manufacturer should improve the product.
Warranties - a waste of time?
by Trish Shields - 12/6/07 1:34 AM In reply to: Extended Warranty.........are they worth it???? by jraggieI think it depends on the item and who you are dealing with. For example, I was given a hard-sell when I purchased a used car. 'Buy the extra piece of mind', they said. 'You know you'll use it', they wheedled. I shelled out an extra thousand dollars for a warranty and while I did need it I was unable to use it because it apparently didn't cover whatever went wrong on my van. And there were numerous things. I should have known better because the dealership had a bad reputation before new buyers took over. Seems the name changed but the bad dealings didn't. Always have a mechanic look the vehicle warranty over before you purchase it. If the dealership won't let you have some time to think about it or have someone give it a look over then it isn't worth the paper it's written on. Just my opinion but it's been tried and true.
I've also had numerous warranties on electronics over the years. And while I've never had to use most of them - probably 80% - there have been those times when I was sure glad I'd purchased one. I make it a habit of getting an extended warranty if I'm buying electronics for my kids. Chances are, it'll have problems before the year is up just from the wear and tear the constant use will cause.
As I said, it depends on what the product is and who you are dealing with. Name brands should have extra warranties purchased. It's been my experience that the product you've never heard of before will be a bugger to get warranty coverage in the first place - don't waste your money. Do an online search - if the support is in Indonesia and you are expected to send your item back out of pocket in order to have it fixed then it might be safer to simply go with a big name instead. I always buy locally or from a large store for just this reason - if something goes wrong with it (with or without an extended warranty) I want to satisfaction of dealing with someone in person rather than long distance via email or telephone.
Extended Warranty
by daglow - 12/6/07 1:34 AM In reply to: Extended Warranty.........are they worth it???? by jraggieExtended warranties are worth it if:
1. You don't know how to fix it yourself.
2. It is something you need and use regularly.
3. The cost out of pocket to replace it far exceeds the warranty.
A few things to look out for in warranties:
1. In home or on site--some have a specific day and time that they can come out or they send the nearest 16 year old to fix it.
2. The bring in warranty that is ambiguous about when your equipment will be repaired - nothing should take longer than 6 weeks.
A little advice: There are unscrupulous companies out there, try to buy as close to you as possible. 'Cause if you need to be face to face with them it would be better to drive or walk than to book a flight.
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