Community weekly poll: Are extended warranties worth it?
- 12/5/07 2:21 PM
They ARE a rip-off!
by LBond314 - 12/6/07 1:09 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
And nobody is better at ripping you off than "Best Buy." I am going to admit right here in an open forum that I was STUPID enough to fall for their lies on three separate occasions and then getting totally ripped-off each time. Yet each time, the salesperson would explain how the last warranty I purchased SHOULD have been handled and how it was truly anomalous - and how it would NEVER happen again like that. What a crock. They have yet to honor any of their warranties and will do anything to wriggle out of them. They will tell you that a little scratch over by the carrier handle of the digital camera you bought a three year warranty for is a clear sign of user abuse and thus voids the warranty. They will tell you that the person who sold you the last warranty is the one who LIED about what it does and does not cover in spite of what the document itself clearly states. DO NOT buy an extended warranty from "Best" Buy.
Only for...
by samusgravity - 12/6/07 1:11 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Certain things!
Expensive: YES
Cheap: NO
It just depends on the item.
Samusgravity
Ditto
by Dango517 - 12/6/07 8:10 PM In reply to: Only for... by samusgravityI agree.
Extended Warrenties...It depends!
by djcobp - 12/6/07 1:21 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I will always buy one when i get a car. It has paid off many times over. I'd get one with anything that is high priced and new...like Plasma TV's. They have a rep for breaking down. Basically, my best advice is do you homework first. If it's something electronic that is expensive to fix and has a bad rep for breaking down, buy it. If not, take your chances. A good way to do your homework is go to comsumersreport.com and check on the reliability of what you are buying. It's also great for knowing which brand to buy. Which one holds up the best.
How do you do at the Blackjack table?
by bcmiami - 12/6/07 2:20 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Extended warranties are like going to the blackjack table in Las Vegas. They are a gamble but the odds are the best in the house. Remember though, the house still comes out ahead long term.
As far as I'm concerned, you can't make a broad general statement on extended warranties. Every one is different, every one has different terms & different costs. If you decide to buy one, be sure you know what you are buying. Read the small print. Best Buys ripped me off on an extended warranty by using small print on the back of the sales slip to dishonor their warranty on a 1 day old computer. Gareway on the other hand replaced my old laptop 3 days before the 4th year of a 4 year extended warranty expired & they told me that I still had 3 days on my warranty when I thought it had expired.
I bought a 60" TV, bought the extended warranty for several hundred dollars & never used it. I now have a chance to renew it but even though the TV is 4 years older, I won't renew because I can replace the TV for about half of what I paid when I purchased it so the warranty is no longer cost effective.
My approach to extended warranties is to study every situation carefully before I decide whether or not to buy one.
bcmiami
Extended Service Plans are good but only on certain items.
by :--) - 12/6/07 4:21 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Hey,
I am one of those guys who sells extended service plans and I'm the guy who has to sometimes repair returned items. So when it comes down to what to buy an ESP on, I have a strong opinion on what to buy it on. These are things I think an ESP is good for:
1. First and foremost are PDA's, Pocket PC's all those handheld devices. These are the most troublesome devices i encounter. It seems like every Pocket PC i sell gets returned. They always have battery issues or some other hardware problem. So when looking at one of these devices a service plan is definetly a good thing to have. GPS units are much the same.
2. Cheap computers like Acer, Compaq and cisnet for example are computers that i always strongly suggest a service plan for. These brands in general put lower grade products into the machines that are much more likely to break down. I've seen the most problems come from these brands. If you don't want to spend the money on a service plan then go with HP.
3. On laptops warranty is a bit tougher to decide. I won't go into detail but my opinion is that you shouldn't get a service plan for a laptop unless your going to get an accidental plan as well. I don't care how exspensive it is. You can drop it if you want and get a new one. Make something up if they ask you what happened. They can't really do much about it.
4. Never buy warranty on a printer unless its more than $200. Your wasting your money otherwise because you can buy a printer for dirt cheap these days.
5. For iPods, if you have a case for one then don't bother with a ESP you probably won't need it. But I my self don't have a case for my iPod and have damaged it. In this case I wish I had bought an ESP.
6. Most other items you don't need an ESP for.
7. As well if buying a video card do not buy warranty because almost always you can get lifetime warranty if you registerd your card online. I got free lifetime warranty with the purchase of my Nvidia graphics card.
Thats about all I can say at this time. i hope this helps.
Pocket PC's are that bad?
by Decimiller - 12/6/07 7:41 PM In reply to: Extended Service Plans are good but only on certain items. by :--)It would be nice to know what brand of product you're selling. I've had three Pocket PC's that have been out outdated by technology but still running strong. And they've taken a beating; throw them in the back pack which is tossed when we've reached camp, very unceremoniously. Then there was the time the Jordana slipped out of my pocket as I flushed. It dried out in a week and I still use it regularly...after I cleaned it off first. 
Extended Warranties
by Douglas Cobb - 12/6/07 4:29 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
Ask yourself if the purchase is worth it to you ro add the additional cost on to it and in most cases it is not I have had sales people tey to sell me Extended warranties on Cheap DVD players and Computers even most items which are big ticket items like a car aren't worth the added price because if it is gonna go bonkers early it most likely will do so during your normal warranty period and likely if it can be found that it failed due to abuse I don't care how many warraties chances are they will try to squeeze out of it waranties and Insurance all types of Insurance is loaded in the Insurance companies favor if it weren't they would no longert provide it.
extended warranties - reply
by bcmiami - 12/6/07 9:14 PM In reply to: Extended Warranties by Douglas CobbI have to disagree with you on cars. If you drive 25k to 30k or more miles a year as do I, my experience shows they do pay. Every one of my cars, which I drive until they hit 150K miles or more, even the one on my Kia that has a 100K drivr train factory warranty, has paid for itself several times over. They have covered A/C compressors, water pumps, radiators, power windows power locks, wiring & other items on various cars that I have owned over the years. Most of them were cars in the Buick class car or above including several Mercedes. So on cars give them a serious look.
Bob
Extended warranties
by Blgsbp - 12/6/07 7:18 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
These are very profitable for for the guarantor. That is evident by the fact they go to some effort to sell them. It's profitable to them it is because they know the exposure and price it above that amount.
If you want the peace of mind you buy the insurance. If you are adventurous keep your money and take the risk. Financially the odds favor the latter.
Very, very profitable.
by Decimiller - 12/6/07 7:25 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
The cost of an extended warranty is extremely rewarding to the retailer and of little value to the consumer. If product failure is an issue that warrants the purchase of an extended warranty then the product shouldn't be purchased. I purchased an extended warranty once and that will be the last. It was not an extended warranty by the manufacturer of the product but some 'fly by night' outfit that probably was out of business before the warranty expired. All repairs or replacements had to be channeled through them. If you need it tomorrow it's not going to be there and when it’s my equipment a month from next Thursday is not acceptable. Did I mention that by the time the equipment might need the warranty it will be of greater value to purchase new with the latest technology? The money saved on the warranty will make a sizeable down payment on the new hardware.
Maybe yes; maybe no
by geofbrewer - 12/6/07 7:40 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
It depends in part on price and the availability of someone repairing the item should it break. So many items we purchase today are considered consumables. Repairing versus replacing is just simply not cost effective, even when you can find someone capable of performing the repairs. Cameras for instance. Most cameras can be repaired but finding someone who can and will fix them leads to a search for that person and their company. Unless you live in a major metropolitan area, you're going to be shipping it off and all that that entails. No offense to most folks, but you may think you live in or near a major metropolitan area until you try to get a camera repaired.
Usually No!
by jka1946 - 12/6/07 8:06 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
My ex-wife used to sell service agreements (aka "extended warranties") at Sears. This was several years ago, but I'm sure things have not changed. The sales people got a cut from each warranty sold. That being said, you know that they are going to use high pressure sales pitches to get you to buy the warranty. In most cases retailers make more from the extended warranty than they do from the product. My ex told me to never buy an extended warranty. This is really important when buying electronic products, as they usually are outdated before the manufacturers warranty is up anyway. If you do buy one please study the fine print. You may find out that many things are not covered. A lot of these extended warraties have a lot of "ifs,ands,and buts" in them.
Profit! Oh Dear
by bcmiami - 12/6/07 9:26 PM In reply to: Usually No! by jka1946Folx,
we live in a capitalist country. Goods & services are sold with the idea that the seller will make a profit. Sure the sales person gets part of the cost. So does everyone else involved in supplying it. Would you work for free?
The problem with ESP's is not that someone gets paid for selling it, the problem is that sometimes they are not legitimate in what they offer. The supplier of the esp will hide things in small print, on the backof sales slips, anywhere where the consumer can miss it. This is what Best Buys just did to me. I wasn't careful enough when I bought it.
Is it a gamble? Sure. so are other types of insurance.
If you buy an ESP be careful! Know what you're buying before you decide to buy it.
Caveat Emptor!
Bob
It's a crap shoot
by lostinspace_sa - 12/6/07 8:37 PM In reply to: Are extended warranties worth it? by Lee Koo (ADMIN)
I own an automotive repair shop. I buy extended warranties even on vehicles that I purchase. Because even at wholesale, having to purchase a new engine would be pretty hurtful. Worst case scenario I know but I see what repair costs can be like. So I also purchase extended warranties on major appliances for the same reason. Worst case can be a real bite to the budget so I factor in the warranty before the purchase so I get what I want and the protection that I want as well.
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