Community weekly poll: Are extended warranties worth it?
- 12/5/07 2:21 PM
Are extended warranties worth it? USUALLY...NO, BUT.....
by Shoooott - 12/6/07 2:25 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I recently bought a 26" RCA LCD HDTV. I got a great deal on it from TigerDirect. $299; but it was refurbished. It came with a 90 day warranty from manufacturer and 30 day from the store. At first I thought I got it for only $300. Am I gonna pay 1/6 more for an extended warranty. I left the store without buying it. I went home and thought about ti a couple days and decided to go back and add it on. (They gave me 30 days after purchase to purchase the warranty) I'm glad I did. Nothing's wrong with my LCD HDTV, but i've got better peace of mind. And since it was refurbished it's a little extra protection.
Are extended warranties worth it?
by llwhite - 12/6/07 2:25 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I have purchased and used extended warranties on 2 digital cameras. I was pleased both times. I also got a 5 year extended warranty on my $3000+ plasma TV. However, you can get much cheaper extended coverage with Buyer's Advantage and riders on your home insurance policy. "Buyer's Advantage" extended warranties coverage cost about $100 a year and covers most purchases for 2 to 4 years after the manufacturers warranty. Most home owners policies will cover loss or damage to an item if you buy a rider for that specific item.
Extended Warranties worth it? It Depends
by jeff359w - 12/6/07 2:32 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
The only time I look at extended warranties is if I am paying $1000 or more for a product. Big ticket items it makes sense to get an extended warranty. Even though standard warranties include parts, they often do not include labor costs for installation of a faulty part.
Considering what some places charge for labor (by the hour or 1/2 hour), one part replacement could have paid for the extended warranty (this is providing of course the extended warranty covers labor costs).
If it does not include labor costs, then it probably isn't worth it to me.
My two cents worth...
jeff
jeff359w@verizon.net
West Lafayette, Indiana
Not me.
by MrTommy - 12/6/07 3:26 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
The first problem I have is how the salesperson praises the product like it came from Heaven. Once you say you'll buy it, all of a sudden you NEED an extended warranty because it might quit working. Now which is it? Good or bad?
In the past, I've purchased extended warranties and never used them. So I'm already behind on this one. Now I just don't bother. It's pure profit for them and always a loss for me.
Depends on Warranty Cost
by smjohnson - 12/6/07 4:14 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I find the vast majoirty of them to be rip offs. I think I have bought two of them in my life. Most of them are priced at or beyond what a service call would be, and they have so many exclusions it is ridiculous. Every so often, one will come along with reasonable coverage and price. Then I consider it. Those offers are few and far between
Hidden markup
by sdpate - 12/6/07 4:28 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
The extended warranties are the hidden markup on discounted consumer electronics. We all shop price and give the savings back. I used to sell them and they are very profitable - on cars, TV's, computers, everything.
Buy them if you want it but realize who's making the money.
Depends on quality of item
by shanedr - 12/6/07 4:35 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
If the item has a high failure rate or if it is extremely expensive I will consider an extended warranty. But for the vast majority of items under $1000 I feel they are a waste of money.
With all due respect . . .
by org72c10 - 12/6/07 4:46 AM In reply to: Depends on quality of item by shanedr. . . why would I consider purchasing a product I know has a high failure rate?
Because some products are made only by 1 place
by Dr. Zoltar - 12/6/07 12:39 PM In reply to: With all due respect . . . by org72c10Because sometimes all products on the market are all made by one or two places. For instance, all freezers are made by two companies no matter what label they have on their door.
Usually not worth it because . . .
by org72c10 - 12/6/07 4:42 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
. . . all warranties are designed to be of benefit to the one granting it, not neccessarily the consumer. They are profiting on your fear of product failure. Make no mistake, they do their research. They will base the cost of the program on the reliability of the product as a whole. They're not in the business to lose money.
Until recently I would, as a rule, not purchase an extended warranty. This is because I carefully research the products I purchase. Of course this in itself is no guarantee but you can learn a lot from the experiences of others.
While a washer or dryer is a major item I usually don't go top end. I don't usually go bottom end either but I try to avoid all the fancy gadgetry. When I've had problems with them they are usually to the point where paying to have them repaired even if the parts are covered isn't worth the time and inconvenience. That or the cost of the repair is about the cost of the extension . . . only I didn't have to fork out the money up front.
That having been said, I was helping my son purchase a used vehicle a few months back and we were hit with the same question. My first reaction was: "No, we don't need that." But I decided to hear what they had to say. The program provided coverage of both parts and labor of all items except normal wear items. It is good for 3 years regardless of mileage. It added about $1000 to the loan of the vehicle. We decided to go with it.
Was that a wise decision? It seemed so at the time. It is, as has been said, an insurance policy. But it was also one of those 'last minute', 'not thought through', 'have to decide now' decisions. Thinking on it later I realized unless you can pay for it in cash up front, you are adding a great deal of interest into the loan that makes the overall cost of the insurance much more than what it appears. If it's a reputable vehicle make it probably isn't worth it. If he has to replace a transmission, it'll pay for itself at that time. If I had to do it over again I would say "no". Because all I'm doing is paying in advance for something that 'might' happen. Why worry about crossing a bridge I may never encounter?
An extended warranty can offer peace of mind. But, if I have to pay to have someone 'come in', or for the 'labor' or have to pay to send the item for the repairs . . . it's usually not enough to justify the cost of the coverage. Add to that the fact that we live in a world where most consumer items are by design disposable, by the time a potential failure occurs your usually ready for something different or something better has come along, as in the case of computers.
Bottom line: I hate paying for an unexpected repair. But I hate more paying for one that hasn't and may never happen. If you want safe coverage, discipline yourself to create a separate operating fund that sets aside the same amount they expect upfront in that coverage. If you encounter the problem, you have that set aside to use. If you never encounter the problem . . . you've saved your money and still had the peace of mind desired as well.
Seldom or never
by Irelands child - 12/6/07 5:02 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Home electronic equipment - never. Most have at least a complete year full warrantee with an extended period of time for significant parts. Generally once the "burn in" periods of more or less 24 hours, i.e. TVs, computers and the like are over, these components will usually last for many years.
Expensive cameras are the exception to this rule of mine as they do get bumped around and are subject to changing climatic conditions. I buy the 5 year MACK warrantee for my Nikon cameras.
Automobiles - not a bad idea for todays computerized vehicles - regardless of the fact that the emissions/computer controls have been mandated for 50,000 miles by Uncle Sam.
Extended warranties worth it?
by EmjaY - 12/6/07 5:52 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Generally I would say no, they are not worth it. I have taken out a few over the years, but only once has it paid off and that was for a £30 electric shaver ($60), so I gave up buying them.
The value of extended warranties
by Derek R - 12/6/07 6:28 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
When I'm offered an extended warranty I say "So you don't expect this item to have a trouble free five years, if that's the case I will have to reconsider the purchese tf this item" Then sit back and watch them squirm. An extended warranty means to me that the maufacturer can get away with producing poor quality items. Those with confidence in their product, like Dyson, offer a five year parts and labour gaurantee as standard. You also need to be aware that in store waranties can be very expensive. I have recently bought fve NEFF products to a value of £4500. Comet wanted £100 for a warranty on one product, the manufacturers cost was £190 for all five items, so be very careful that you get the best value
One time payoff
by gerryh423 - 12/6/07 6:31 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Most of the time I do not buy the extended warranty because they are not worth it. Why take a chance on extending the life of some piece of electronics that it already outdated in a year when the price of a new one is usually less than I paid for the old one? The one time I thought it was a good deal was on my rear projection HDTV. They said it included the annual bulb replacement for three years. The first bulb replacement paid for the warranty cost and I've had two more since then -- definitely a good deal.
My take on the exteded warranty...
by BillyT2003 - 12/6/07 7:34 AM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I will usually purchase the extended warranty for any item $500 or over. Those are the items I want to protect. If I purchase a $50 DVD player from Radio Shack for my nephew who just moved out on his own, I will not buy the warranty. Anything less than $500 for me - is expendable and if it breaks, I'll just run out and get a new one.
So, I'd recommend picking a price point which you would consider no longer expendable. (Like I said for me that was $500.) If an item is less than that price, do not buy the extended warranty on it. If it is that prive exactly or over, then buy the extended warranty on it.
Having said that, it is still important to get all of the details. If it is a manufacturer's warranty, it is probably worth the price they are selling it for. If it is not, then it might not be. You need to know what is covered versus what is not covered. What is the procedure to get coverage. What might deny you coverage. Etc. Then, weigh those details against the price of the extended warranty itself. Ask the salesperson a million questions and read what you can about it. If you're holding up the checkout line, then let the other people move ahead of you while you consider purchasing the extended warranty. The retailer wil work with you - it's their job to. If you are in a rush, then ask the retailer if you can make the decision later when you have more time and if you can take detailed information regarding the extended warranty home with you to help you decide. If they refuse, then consider purchasing the item somewhere else.
You are the customer. You are in control of the transaction. If they really want your business, they will work with you and if they don't then ...
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