Home audio & video: Extended Warranty.........are they worth it????
No good at Best Buy
by KeithRich - 12/6/07 12:43 PM In reply to: Extended Warranty.........are they worth it???? by jraggieLearned my lesson at Best Buy. Bought the extended warranty and had to invoke it at 12 months. Replacement lasted only 35 days. The extended had terminated when I brought it in even though it was for 36 months!!! Big waste of money pushed by scam artists.
Consider Usage
by c|net Reader - 12/6/07 12:50 PM In reply to: Extended Warranty.........are they worth it???? by jraggieWhen considering an extended warranty, consider your usage. If you will use a device more than is normal, and your usage does not disqualify you from coverage, it just might be worthwhile to get the extended warranty.
I have a very large family, so an extended warranty on a washing machine and a dishwasher is sensible. However, we don't use electronics any more than others -- though we may have more devices -- so extended warranties are not so obviously good for such electronics.
Yes-Ext. Warranty
by helene_okc - 12/6/07 12:58 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI bought a Brother BW Laser printer a year ago. DSuring tax season it ran fantastic, then about May 07, it was, shutting down my computer every time I went to print. I paid little over a $100, so did not take out warranty. IF I had I would not have had to pay for another Brother HL2070 in Oct 07, now I have 2 yrs, and usually do take out warranties. BUT, first, check what the return policy is. IF it is a large item, who pays for the shipping? Like all insurance, I get a replacement.
Your choice, I say NO!
by Papaof2 - 12/6/07 1:00 PM In reply to: Extended Warranty.........are they worth it???? by jraggieAs stated several times, there are a lot of things to consider. On the whole I choose to buy products from reputable manufacturers and say "No" to any extended warranty. Electronics are pretty considerate componenets. They either fail short term or last quite awhile if treated correctly. (surge suppressors where needed, correctly connected, etc) Reputable manufacturers in my experience will go overboard to protect their reputations when there is an "iffy" issue with regard to thier warranty.
One suggestion when dealing with a salesperson trying to sell you a warranty. Use an anology they can relate to. I purchased an inkjet printer for $120. The salesperson insisted on me purchasing an extended warranty for $39.95. I stated the manufacturer's warranty was one year. By that time this printer would be antiquated I could probably buy something twice as good for less. It's the current nature of the industry. Then I asked him, "If you bought a new car for $24,000 and your salesman offered you an extended warranty for $6,000, would you go for it?" He replied, "$6000!! Are you nuts! Of course not!" "Well", I said, "that equates to 25% of the purchase price, exactly the same as you're trying to get me to do." He dropped the issue without further pressure.
One time I made an exception to this rule of mine and that was with a business purchase. Running multiple desktops and depending on a server for our business, I did purchase an extended and very inclusive plan. The difference here being that I need these units to function constantly to survive, need repairs done ASAP in case of failure, and can write off the expense. But for home and personal puchases, I feel one chosen repair (vs replacement) would still be less than having extended warranties for everything I buy. I'll take my chances.
warrantees: the disconnect between employee & employer
by infoanalysis - 12/6/07 1:18 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI often notice that when I buy a product that offers a warrnatee the salesman goes into a more agressive mode when it comes to the warrantee. It is clear that regardless of the benefit to you, the benfits are great for them since they can simply replace the article for wholesale cost or they are quite adept at fixing the common problems that arrise. This of course does not intepret into a a crummy deal for you since if the thing does go kaput you usually are happy you did have the warrantee.
However, what I have found with items bought at deep discount places like Wallmart and Harbour Frieght, they are more then willing to allow a return on the item inorder to avoid a pesky cog in the wheel making an issue out of things( this is because they get the stuff so cheap it is simply easier to shut you up then to waste energy and goodwill over a petty transaction. As for fixing things like washing machines. I did once have to call a seriveman for a big fee, but once he was here I asked him if he moonlighted and he quoted me a figure that was a fraction of the hourly rate charged by the dealer. Finally coming from a sales background in copiers I remember that if you make an inquiry for a service plan after the same call, they sometimes will allow you to start one in leiu of that service call. It is all in the way that the dispatcher or service technician makes his commission. Usually they will make zilch for taking a service call but they are often encouraged to sell contracts with a financial insentive. An astute employee will know how to work the system so that they get a contract and you don't get nailed for an astronomical hourly fee - which quite often exceeds the expense of the entire contract for a single call. The reason for this is obvious the collective birds in a hand are worth the upfront revenue over the chance event of a service call.
I find that it is almost never the warrnatee that is the issue it is learning how to work the system within your provider make sure that you seperate the company from the idividual employees you will be amazed at the difference between the two and how accomodating theemployees usually are at cutting you a deal ( I am sure that it may have something to do with them getting underpaid and often a little contemputous of the management.) Just remember dealers etc are always trying to figure out ways to get more money from you why not see what you can do to challenge their own greed let their agents help you in your quest- you would amazed how helpful they will be.
Depsite what many people sway about losing the hometown feeling of private shops, the big retailers with this disconnect between agent and dealer goes a long way to getting you better service than the mom and pop shop. I can remember trying to return things to Howie Rosenberg's hardware store and going through hell to get a refund for a .50 bolt that was the wrong size. I used to try to go in on friday afternoon since I knew he was eager to run off and celebrate the sabboth rather then argue over .50 with me.
Absolutely
by Duende1 - 12/6/07 1:26 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI once bought a $950 54 inch projection TV along with the extended warranty. After about the six months the TV developed a blue haze around some characters on a few channels. I called the store and they said a repair man would come out to look at it. A few days later I was told the TV was obsolete and they were refunding me the cost of the TV and I could keep the TV. We still have it and use it.
Last year I took my digital camera to Florida. It is a small unit and I put it in my pocket. The camera rubbed against my car keys and scratched the screen. Even though it was only cosmetic SONY replaced the screen. A few years before that I had my video camera on the beach and the kids kicked sand on it, it was cleaned under the service agreement.
Dell recently pretty much rebuilt my 4 year old laptop computer. The LCD screen, processor and motherboard were replaced in my home with no hassle. DELPI replaced my SKIFi with a SKIFi2.
These warranties are a good buy and a must.
It all depends--THERE IS NO ONE SINGLE ANSWER
by walsh84 - 12/6/07 1:49 PM In reply to: Extended Warranty.........are they worth it???? by jraggieAs someone who was an executive in an insurance group for 20 years before becoming a professor of finance (including such things as warranties), I have a solution that is the best way to approach the problems. Remember first that most people buy fire insurance on their houses, but a tiny number actually have a fire. Of course I did, and we had a fire that cost over $50,000 in damages.
Insurance or warranties are to protect against something you DON'T WNAT TO HAPPEN, SO DON'T FEEL BAD IF IT DOESN'T--CONSIDER YOURSELF LUCKY.
Second, whether you should or not depends on your attitude towards risk v. safety, or how "lucky" you think you are. It does NOT DEPEND ON INCOME. If you buy "it", then what is important is how VITAL it is to your life. It is one thing to consider a warranty on a TV and quite another to consider one an item that you will suffer sever consequences without. A water heater, or furnace might be examples. If one goes off, and you are a little short at the time, it would be very comfortable to simply call someone and have it fixed or replaced quickly. Convenience can be a second reason. How BADLY WOULD YOU FEEL HAVING TO DO WITH OUT IT EVEN THOUGH IT ISN'T A THREAT AND CAN YOU AFFORD IT--AS OPPOSED TO ITEMS IN CATEGORY ONE.
LAST, and very important, what is the reputation of the warranty issuer (who many NOT be the store of your purchase). This is hard to figure out, but others who have bought there, and the store's reputation can help.
Yes and Maybe
by bradykp - 12/6/07 2:10 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI worked at circuit city around 8-10 years ago. best buy had the same types of warranty as circuit city that time. basically, they were worth it on things that the company can write off if returned. these included dvd players, cd players, some stereo equipment (not receivers), and other small ticket items.
the bigger ticket items like TVs, receivers, computers - they all had to at least attempt to repair them before they replace them.
when i worked there, i would buy the warranty on the dvd players, cordless phones, etc. when the period was about over, i'd bring it in and tell them it wasn't working. 99% of the time, i got a replacement that was worth the original purchase price (part of the agreement - dunno if it still is written that way or if it's a depreciated amount).
i bought the warranty on my LCD because it cost $250 on a $2,500 television. you can often use the warranty as a negotiation tool, since they want to sell it so badly. i basically wanted best buy to price match B&H (a local NYC retailer). they said they don't normally match B&H (cause they have ridiculously low prices), but i mentioned the extended warranty and they had no problem with it.
the warrant would have cost me $400 on the best buy purchase price, but they reduced it the $700 to match B&H, and i only paid $250 for the warranty.
for an LCD screen, this is worth it. if any pixelation occurs, they'll try to fix it, but won't be able to, and i'll get a brand new TV worth $2,500. you can be sure in a year or so i'll be calling for service, just to try and get a replacement. who cares if it's not actually broken? try and use the warranty as much as you can, and you might get a free upgrade!
i wouldn't buy it on a computer though, because it's usually easier to do it yourself (if you have the knowledge) or at least find someone (a friend, a kid's friend) that does have the knowledge and you can probably pay $10 or buy them a beer to look at it. computers are very easy to fix now and the components are very inexpensive in my opinion.
Sometimes - but usually not.
by YField - 12/6/07 2:12 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI did get my moneys worth when my HP laptop just quit. As it was my first laptop I bought into the extended warranty sales speach and since my motherboard failed the month after the factory warranty expired, it was a bargain. However, most of the time I think these warranties are a waste of money.
A huge moneymaker
by tradergeorge - 12/6/07 2:31 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI worked electronics retail for a while and we were instructed to really push extended warranties. They were a great revenue source and in many cases we made more on the warranty than we did on the item.
In my 40+ years of experience with electronics of all types, I have discovered one common theme. Electronic components have their highest failure rate almost immediately after being put into service. If they last through that initial "burn-in" period, they tend to last almost forever. Therefore, most failures are going to occur while the manufacturers warranty is in effect. This is a bit hyperbolic, but you get my point.
In general, I think extended warranties are a bad buy for the above reason. There are a couple of cases where I would recommend them. If the item is from a non-mainstream manufacturer, the warranty might get you quicker service than you would otherwise have access to. If you are a total non-tech type, you might be willing to pay for the peace of mind, whatever the cost.
Is it worth it?
by crude4u - 12/6/07 2:31 PM In reply to: Extended Warranty.........are they worth it???? by jraggieWith most of us, when we go in to purchase an appliance we are looking for the "best deal". Invariably we are stuck between the one we want and the one we can afford. Then we get to the check out line and they want to tack on another $30-$60 for the ext. warranty. I've started asking myself, "can I afford the warranty?" If the answer is yes then I go back and look at what the price was one the one I wanted. Many times it's within the price of the one I could afford plus the ext. warranty. If I purchase the item with a platinum credit card I have an automatic extended warranty depending on the credit card. It's worth a phone call before you go shopping for just about any big ticket item, whether it's a frig or big screen plasma, to call your credit card company and ask them what their policy is on extended warranties for items purchased with their credit cards. Terms and warranties vary from card to card. American Express Platinum doubles the warranty period for free. (Except for the cost of your annual fee). But if you're already paying for it why not use it.
Check all the credit cards you carry. Take an hour and call each customer service number on the the card and ask them "point blank", "What's your policy for extending the warranty on items I purchase with my card?" If they don't know always ask for a supervisor. Write down the person you spoke to, what they said and if it sounds too good to be true, ask them to fax or email you the details of the warranty.
Over the years I've saved myself several hundreds of dollars and a lot of aggravation.
notice from Circuit City about extending warranty service
by riflemanss - 12/6/07 2:48 PM In reply to: Extended Warranty.........are they worth it???? by jraggieThis is NOT wholly in alignment with whether extended warranties are worth it or not. But Circuit City just mailed me a form to apply for an extended warranty on a HP A1700N. I decided that I had better get a small problem serviced on it. The earphone jack in the front plays Stereo but the back port doesn't. I took the computer to Circuit City and Lo and Behold, they told me they are NOT a service center for HP's even though they sell HP's. I told Cliff, the service man, that service is the reason I buy computer from computer oriented stores, and if Circuit City can't help me get this computer fixed, I knew another store within sight that will help me with computers I buy there. Circuit City just lost another customer, and I will write to Circuit City headquarters exactly how I feel about the corporations computer service policy, it stinks. BestBuy has always gone the mile or 2 with me, even with a Sony I bought from Circuit City 3 years ago. They asked no questions,
Reimbursed at end of Ext. Warr.
by Exertainment Evangelist - 12/6/07 3:03 PM In reply to: Extended Warranty.........are they worth it???? by jraggieThe ones I've usually gone with (for high-ticket electronics usually) are the warranties where at the end of the warranty, if I haven't used it, I get reimbursed 50% of the warranty. The challenge is to be organized and mark it down, so you can collect on that because they aren't going to remind you usually.
You're paying for peace of mind, just like life insurance. You want it in case you need it, but you hope you don't have to use it, so this partial reimbursement of unused warranties is the best attempt at having it both ways.
If you end up needing it, you will appreciate it!
by jfordorl - 12/6/07 3:20 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI have bought 3 year extended warranties on both of my computers from NEW of Florida (Sam's Club). In both cases I ended up using them, within the 4 years (initial 1st year by the mfgr, then 3 more under extended warranty). I can tell you that many people never need to use them as statistically only about 2% of electronic items fail within the warranty period, but I am a 'power user' and depend on my computers, so I am glad I got them. Now a shameless plug for Sam's Club warranties. You can buy your products anywhere you choose and have 30 days to take your receipt to Sam's Club and purchase either a 1 year or 3 year extension to the manufacturers warranty. You avoid the preasures put on you to buy 'right now - before you leave' at the store of purchase, plus you pay less than half of what you probably would at the place of purchase.
It all a crap shoot
by ripper1a - 12/6/07 3:57 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI bought a Dell laptop and after the MFG warranty was over the piece self distructed, first the battery and then the connection between the keyboard and the display. The laptop should have lasted beyond thier 90 day warranty.
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