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It Depends upon the Quality of the Product
by Rippsarus - 12/6/07 4:10 PM In reply to: Extended Warranty.........are they worth it???? by jraggieWether or not to purchase an extended warranty depends upon the quality of the product and the reputation of the company that makes it. The better the quality the least likely the need for an extended warranty, both because the quality minded companies make products with minimum issues, and they usually back up the products with service guarantees. If the product is poorly made, and you buy the warranty then it may be worth it. But in such a case if you have to replace it multiple times because of poor quality, is it still worth it? If the product is not of high quality, then you will probably be replacing it either way. So why buy cheap products in the first place?
Fraction of Price
by jymmsom - 12/6/07 4:21 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI tend to judge whether or not to get a warranty based on a fraction of the cost. If it's 10% of what I'm paying, worth the security. However, the other day when purchasing a HDTV- circuit city wanted 25% of the cost of the TV for a warranty. Playing the odds I strongly doubt that a manufacturer would market a set that has a 1 in 4 chance of failing. I think looking it as fraction of the cost versus probability of it failing is a good way of making the decision. Also most products will fail very quickly or not for awhile, so use it as much as possible before the store return policy expires.
Personally the only warranty type that has saved me money has been for laptops. Replacement software and replacement CD drives have come in handy on several occasions. Though even then the one year is more useful than the longer ones since you can figure that the laptop wouldn't be worth the cost of a four year warranty after four years. Would be a better idea to put the extra money aside and buy a new laptop down the road.
-dislexic
it's useless !
by ehsanhd - 12/6/07 4:24 PM In reply to: Extended Warranty.........are they worth it???? by jraggiewell normaly when you buy something it has 1 year of waranty. simply i think that something which is good doesn't have to go to reperation even after several years so getting the extended waranty is useless, kind of waste of money
but if you're not sure about the brand well it's worthit, better to lose your money after 1 year 
No Brainer
by lsochia - 12/6/07 4:50 PM In reply to: Extended Warranty.........are they worth it???? by jraggieOK, it's a combination of how long you expect to use the product and how many physical moving parts there are in the product, add those both up and if they exceed the mfg. warrenty by a great amount like x5 then you may actually save money with the extended warrenty.
You, of course, also have to take into account the cost of the extended warrenty.
Like everything else...educate yourself
by Quintz71 - 12/6/07 5:36 PM In reply to: No Brainer by lsochiaTo begin with I will admit that I sell service contracts for recreational items with financing, been doing this for 6yrs.
This is what I have found and do.
1. remember that not everything is 100% reliable. There is always situations that either due to human error or material defect you will end up with a break down. And don't think a product is all bad because it's failed you once and you took it back and changed it for something else... NOTHING IS 100%. (This is why I always check places like C-net for not only their reviews, but all of the user reviews).
2. The price of a service contract/ ext warranty should pay for itself in one breakdown. And figure in the cost of not just the parts, but also labor, taxes and other fees that can come up (like the company that I work for will pay for towing, hoist & lift out for boats and even hotel/meals if you are in a RV).Plus the service contracts I've had and used have paid for the food I lost when a refrigerator quit on me with no questions or need of reciepts. I've also had a service guy come to my house to replace a mother board on my 2yr old laptop (these would not have been paid under the manufacture's warranty in writing). Then look at your deductable, no deductible is the best, but usually it's between $25-$50 dollars. And be expected to pay for any troubleshooting at first, but a reputable company will reimburse you if the problem was not user damage/neglet or just common use (but sometimes common use can be paid).
3. Check where the repairs are done. Best is to be able to have the repairs done locally to you. If you have to ship it to a facility, check to see if you have to pay for shipping & handling and if so, will they reimburse you for it.
4. How will the repairs be paid for. The best programs should not make you pay for everything up front then pay you back later. Again, expect to pay for troubleshooting, but for the repairs itself should be done by the underwriter of you service contract and then you get reibursed. Check to see how they are paid too, it should be done with a credit card directly from the underwriter to the repair facility.
5. If you buy a service contract... don't forget that you have it and use it!!! I have heard alot of customers tell me that "I've bought those before but never used it" then to find out later that the reason they are buying the new item, thier old item could've been repaired with a service contract. For me, the first sign of a problem there should be a toll free number to call for advise.
So after all this... whew!!.. I sell service contracts, I buy service contracts, and I use service contracts, but I do not buy everyone that I come across by reading all the terms of the agreement.
Buy Them Carefully
by asegal - 12/6/07 5:12 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI habve bought 2 extended warranties. The first time, I wasted my money. The 2nd time I bought it for a video camera at best buy. It was a "bumper to bumper" warranty, with a replacement policy.
I had 3 problems with the camera, and they fixed it, no problem
(just the wait for it to come back).
What really bugs me is if you buy a small item for a few bucks,
you go to checkout, and they ask you if you want to buy the extended warranty for the same price as the item cost to purchase.
Think about it carefully, weigh the price and read the contract carefully.
Many of these are like home warranties, or 3rd party car warranties. They have a billion outs. Do not feel pressured. You can normally buy the EW after your initial purchase - go home, think about it without the sales pressure.
yes
by pkarirose - 12/6/07 6:28 PM In reply to: Extended Warranty.........are they worth it???? by jraggieyes if the purchase is a major one that u won't change for at least 4 years.
Also have u ever noticed how everything breaks down when your warranty's run out!!!
i had 2 years xtd warranty on fridge got 4 year one on laptop.
but u should always say it too expensive and u don't really want it at that price u will always get offered a discount or they throw something in for free.
As a rule, no
by RaptorBait - 12/6/07 6:39 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI've found that the extended warranties/service agreements are largely a waste of money, and on that, I agree with ConsumerReports. But, I do have an exception to that rule: Laptops.
The reason one should consider the warranties for laptops is a matter of heat and damage. If you travel frequently, you will likely put some damage on your unit within the first year or two. Additionally, as the average person won't use a cooling unit addition, the heat will take its toll on the parts. But I know this from personal experience with a major manufacturer who fulfilled their warranty on a unit that has gone bad 4 times in 3 years.
Still, make very certain what kind of warranty you are getting, and what product you are buying. If it is a reputable product, you shouldn't need the warranty. For most products, if you factor in the interest on your credit card that the warranty will cost, it makes it even less worthwhile.
not worth it
by ddd456456 - 12/6/07 6:40 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI'm sure most consumers take great care in the item where they spend a load of money. I agree with most of the responses in that the extended warranty usually covers things that are less likely to go wrong or manufacture problems. The stories I've heard from people who have bought them, gave them the run around where most people peter out. By the time something goes, it's usually some years in. In this case, the buyer usually wants to get a brand new item. Or they loose the receipt to prove they purchased it there or the receipt was printed on those thermal papers that decay overnight.
I say nay to extended warranties and yay to taking care of stuff and just buying when you're finished enjoying it.
Almost never worth it
by aronhalt1 - 12/6/07 6:41 PM In reply to: Extended Warranty.........are they worth it???? by jraggieThink about it. Statistically, if it was worth the money, the company selling the insurance would lose money because they would pay more out than they took in.
The only difference between this an Slot Machines in Las Vegas is that there is no legal limit to how much the insurance company can steal from you.
The only way for this to work out in you favor is if you know more about the reliability of the product than the company selling the insurance and the insurance predictions are wrong. None of us know more than the insurance company.
I honestly believe that these Insurance scams (for consumer goods) should be illegal. The only time that Insurance should be allowed is when the product is a requirement (house car), and loosing the product will bankrupt your family if you have to buy it again. Another example of "good" insurance is medical insurance.
Insurance is for saving yourself from financial hardship when the unexpected happens...not to replace toys for free when they fail or when you drop them in the toilet.
With that being said, I can only see one more reason to buy insurance on a consumer product, and that is for peace of mind. It is hard to put a price on this and different people have different risk tolerances. To each his own.
One experience I had
by guardian1935 - 12/6/07 6:49 PM In reply to: Extended Warranty.........are they worth it???? by jraggieA few years ago, I bought my first digital camera at an online store. I had called their 800 number, because at that time, I didn't feel comfortable giving out credit card information online. After I bought the camera, the salesman was really pushy about selling me an extended warranty. He started at $150 for it, which was half the price of the camera! Long story short, we dickered about the cost of the warranty for a good five minutes. Finally, he said, exasperatedly, "Well, how much do you WANT to pay for it?" I said, "Twenty-five dollars." He said, " I tell you what, I'll settle for $35.00." I said, "Done!" It was a full warranty, covering everything no matter how it happened. Five months later, while enjoying Thanksgiving dinner at my oldest daughter's house, someone accidently knocked it off the kitchen counter onto the hard, tile floor. It shattered the battery door on the camera. I sent the camera off to the repair site, and in about 10 days, I had it back good as new. The $35 was far less than what I would have had to pay without it. However, this is one of the very few times an extended warranty has paid for itself in our experience. It's a 'c___ shoot, at best."
kinda worth it
by schmoopee2000 - 12/6/07 6:53 PM In reply to: Extended Warranty.........are they worth it???? by jraggieI've had many extended warranties that have gone unused. But then the other ones got used a few times. I think they work with TV and washers; things that need maintenance on occasion. But on something like a digital camera where the technology changes so fast that you can buy a new one cheaper than it would cost to fix it. I Think it depends on how much the item costs and how long you want to have it (no one buys a washer every 2 years, but some ppl buy computer every 2 years).
Funny saleguys
by aronhalt1 - 12/6/07 7:12 PM In reply to: Extended Warranty.........are they worth it???? by jraggieA guy I know a work will walk out on the spot if offered insurance.
What is the last thing you want to hear when you are about to slide a card for a $2000 TV? Try this:
"Well these Plasma TV's are very expensive when they fail and that gas they have in them leaks some time (Myth by the way). We see lots of people wishing they bought the insurance. Trust me....this product is a real lemon, you better get the insurance."
Extended Warranties are usually not worth it
by countmattula - 12/6/07 7:31 PM In reply to: Extended Warranty.........are they worth it???? by jraggieYou gotta read the fine print. People sometimes feel that extended warranties protect you in all cases... but in reality most don't. For example, an extended warranty on a PSP doesn't cover the screen being cracked or other things that could occur by accidentally dropping it. The thing to consider is this: If an extended warranty only extends the length of time of a manufacturers warranty, its not worth it... if it extends the protection (i.e. covering extra damages) then it would be worth it. It's usually a better bet to find a reliable manufacturer with a good track record then rely on a warranty.
Toyota Sequoia warranty $1067, worth it but it took 4 years
by robe3160 - 12/6/07 7:56 PM In reply to: Extended Warranty.........are they worth it???? by jraggieWe bought the extended warranty with our Toyota - in was inexpensive comparied to all the other costs of the truck... rolling out the door at $46K - whats another $1K.
In the end it has paid off - but we have taken care of the vehicle pretty well its whole life. If you consider the time value of the money - maybe it wasn't a good value - but it does keep me from worrying about the Engine and Transmission much...
Just bought a Mercedes recently - its warranty is $3800 - that one is making me think twice.
On almost all electronics - I pretty much skip the warranty.
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