Extended Warranty.........are they worth it????
by jraggie - 12/5/07 2:44 AM
What's everyones opinion on the subject of purchasing extended warranties?
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by: jraggie December 5, 2007 2:44 AM PST
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It all depends
There's so many factors:
-The kind of product,
-The cost ratio,
-The TYPE OF COVERAGE (some don't cover squat, but others are out right replacemnet policies),
-The store it's bought from (anyone who watches the TV show "Chuck" knows what store Buy More is modeled after--poison).
Once stores that are corporations whose stockholders demand performance start to rely on this insurance money to boost their bottom line, then you must walk carefully as a consumer. To them it is like a bad drug addiction that would kill them were they to quit cold turkey.
I've bought quite a few and used several to great advantage. Others went never being used. But overall,I'm sure I'm ahead of the game. I've not bought extended warranties on items that I later wished I had.
Look, if it only extends the manufacturer's warranty, then it likely isn't a good deal unless the price is cheap. If it goes over and above the manufacturer's warranty, then it could likely be a good deal on things with moving parts sepecially.
Grace and Peace,
A former retail A/V salesman
I purchased extended warranties on my Gas Grill [stainles] and also
on a weedblower/vacum [both from Sears]. Since I only use the grill now and then, the last time I used was a good 8 months after purchase, after spending a day cleaning after use and now liking the results, I called Sears and an agent came to see the grill, ordered all new internal parts[I'm happy]. The weed blower started smoking and lost power and although the warranty was not in effect it helped in obtaining a new unit. Some years ago my water heater went bad after
almost 10 yrs. the warranty got me a new one at no cost.
I buy warranties depending on the item purchased, how often used and likelyhood of failure.
Some of the warranties have really helped me out. I bought a warranty for like $50 on a $600 stereo receiver for my car...3 years later the stereo went out and Best Buy let me pick a brand new $600 stereo off the shelf...I would've been out $600 if I didn't buy that warranty. Another time I bought an expensive radar detector...it broke..best buy let me pick out a brand new model off the shelf..I would've been out $200 if I didn't buy that $25 warranty.
I bought an extended warranty on a Nikon camera. After sending it in to service three times (required) for the same problem they gave me a $700.00 credit,and bought another camera. I am sold on the warranties.
I always get the extended warranty for my computers because something always seems to go wrong with hardware after 18 months which would be when the regular warranty is not in effect.
I once got the extended warranty for a Sony digital camera and when I got the warranty and read it, I fell over. The camera originally came with a 90 day warranty and the extended warranty did not kick in until 1 year from the date of purchase which meant that it would not be covered for 9 months. The second problem is that it would not cover commercial use and I bought the camera to use for commercial use. These restrictions were not stated up front.
Whenever I buy hardware and get the "why you need the extended warranty pitch" I tell the salesperson that if the system is so delicate and prone to failure that I shouldn't be buying it and I start to walk out. Suddenly the salesperson decides that the extended warranty is not really necessary.
Bank the Warranty cost
What I do is find out the cost of the warranty and put the money in the bank... the few times i've had to get a repair the bank account has more than enough funds to pay for the repair
only if it is a big ticket item.
yes and no
If it's a laptop or proprietary device like anything from Apple then yes it's worth it. I had to use my extended warranty on my Dell laptop twice. (The Inspiron 51x line are overpowered and overheat).
If it's a desktop computer and not Apple then it's not worth it all because desktops are so easy and cheap to fix. I don't know about the new fandangled tv's though, in fact probably no one knows because they haven't been around long enough to see if they have lasting power like the old solid state tube devices do.
Remember that many things are covered (less deductible of course) by your car and home insurance policies as well.
In addition.. Many Gold and Platinum credit cards offer coverages as well. I remember having to call up my CC company once and invoke the "accidental clause" after I slipped on some tax paperwork and my laptop broke my fall. Regardless, if the CC will extend the manufacturer's warranty, by ...., then that may be good enough for the average person.
You have to look at the entire package (does it include battery replacement) and consider what extended benefits your credit card may offer (some double the manufacturer's warranty). Generally I only consider extended warranties for things that may get highly stressed during "normal" wear and tear. Fragile looking cell phones may, in fact, be fragile. Electronices, especially for youth, that have headphone connectors can benefit from extended warranties (those connectors take a torque). Stereos and desktop computers - definitely not - if they survive the initial warranties they'll probably live forever (of course there will be exceptions).
point blank, the extended warranty is beyond the manufacturers warranty
if an item is going to fail, it will fail immediately,not five years and one day down the way
ensure the retailer will back up the product in addition to the manufacturer
if the retailer wont without their extended care, dont buy from them
in addition, beyond the manufacturers factory warranty, in the case of failure, do you really want it repaired, or are you goin to upgrade to the newer model?
i say make it easy on yourself, just buy it at costco, no hassels just drop it on the counter (have your reciept) get refunded in full and buy the newer model
everybody comes to the answerman
extended warranties--not a chance
My feeling is, if it's that poor a quality that something is apt to go wrong with it in the first year, then I'll look for something a bit better to start with.
Extended warranties, to me, seem to cover exactly what the regular manufacturer's warranty covers, price included in the box. the EW is an extra layer of nuthin'.
It gets so ridiculous. A few weeks ago I bought a steam iron which had been taken out of production and thus reduced in the store to $13.97. The clerk offered me a warranty on it and I looked at her. The EW would have cost more than the purchase price, and then she explained that it would cover replacement of the iron with the same model. Um, excuse me, there are no more of this 'same model'.
EW is just a fancy term for gambling that your new freezer will break down before the warranty runs out, and do you really want an appliance that's that much of a risk?
Are they wouth it?, absolutely not. If you were to have it on one product then why not have it on all of your appliances. Then if you do, instead, why not put all the money aside and be your own extended warranty provider with the money you have set aside for that purpose. ...Mel
Ext. Warranty - the win-win scenario for the educated buyer
An Extended Warranty offers the sales person a commission on the sale, which may be a good reward if he's negotiated a great price for you on the item that you desire.
Just a thought to consider...
How much would you pay for peace of mind?
If you're curious about this, try an experiment. For a year, turn down any extended warranties. But every time you buy something where an extended warranty is an option, make a note of how much the warranty cost, and keep a tally of the total. Similarly, every time something you bought during that year breaks and either needs to be replaced or needs to be repaired, subtract that cost from the tally you've been keeping.
I know what the average result will be, because plenty of consumer groups have done tests like this before me: on average, you will spend lots and lots of money that will never be recouped in saved repair/replacement costs.
That said, it's not like you're purchasing nothing: you're purchasing some peace of mind. You don't have to feel like you're making a gamble on that new item. And when we're talking about something big, that might be worth it. When I bought my new iMac, I finally had to admit that I was willing to pay $300 not to worry about it for three years every time something little went wrong.
So: be honest with yourself, know exactly what you're buying, and don't make decisions based upon superstition.
I don't usually buy the extended warranty unless I'm buying a really big ticket item. If it will be a burden to replace, then I consider it. Honestly though, I've never be in a position to put my extended warranties to good use.
as luck would have it....
Most of the time when I have purchased an extended warranty I find when I try to use it for some reason the problem I am having with the product is excluded. OR as in the instance of a certain computer company that shall remain nameless FIRST you have to do your own trouble shooting THEN then send a tech with the replacement part.
I'm still ambivalent about them, but item cost is important.
I once bought an IBM Thinkpad A21E, which only came with a standard one year warrantee. After 18 months, the motherboard died, and the replacement cost was around 6 or 7 hundred bucks. Considering I paid about a grand for it, I went for a new T23 with a 3 year warranty. That damn thing is still running, albeit horribly slowly, after five years. When I bought my Macbook Pro, I wasn't about to take another chance, due to the significant cost of replacing it should it fail after a year. On the other hand, if it only cost about a grand or less, I might have felt differently, depending on my gambling instinct at the moment. Seems almost nobody gives three year warranties for free anymore, and I have the feeling it's not because the equipment is less reliable, but because it enables them to cut their costs a bit, and then make it back and more on the extension. Probably makes good business sense for them, since so many vendors do that now, but it sucks for the consumer. It doesn't exactly inspire confidence in either their hardware reliability, or their integrity, but that's how the game seems to be played these days.
by moralityjustice - 12/5/07 5:48 PM
For me, any computer priced 1200+ is worth the three year-Next Business Day service package. I'm a student, so I haven't owned too many computers. But for my Dell desktop, over the course of three yars, had a LCD monitor, fans, hard drive, dvd burner, and keyboard replaced. For my Gateway laptop, so far, over the course of 1.5 years, the hard drive, cooling fan and heat sink, and latches have been replaced. After talking with your tech support rep for an hour, they priority ship the parts, within 2-3 days, they come and replace it, which has been pretty handy and hassle free.
I too bought a warranty
by Dan Filice - 12/31/07 12:56 PM
I just ordered the Sony SXRD TV which Sony just stopped making. After reading many websites about the TV, it received stellar reviews but I found out that projection bulbs do burn out and worse, the light engine goes out. The warranty I purchased covers the bulbs and if the TV dies and there are no parts available, the warranty will give me a new TV or credit for the same. To me, this allows a little peace of mind.
Worth it for the seller, not so much for the buyer
Most electronics will fail in the first 100 hours of use which means its covered under the manufacturer's warranty. Beyond that, it's unlikely that the warranty will pay for itself. However, there are exceptions, notably Apple's extended warranty Apple Care. For computers it extends by 2 years the 1 year warranty and allows you full access to tech support. They actually do a very good job and though it's not cheap, it most certainly isn't a rip off. The other notable exception is for cars. A good extended warranty can be valuable if you plan on keeping you new car way past the basic warranty. Unfortunately, many of the after market insurers can be dicey. And, if you're in CA, make certain that whomever you buy from is licensed to sell in CA. You can check the California Insurance commission to find out.
If the salesman, as you say, blindsides me with the extended warranty speech, I ask him, "So, you're trying to sell me an unreliable product? Perhaps I should take my business elsewhere."
waste of money
First of all, isn't an extended warranty a version of insurance where you are insuring yourself against failure of your device.
First of all your manufacturer's warranty is free with the product and protects you during its most vulnerable period.
If your think there's a high liklihood that this item is going to break, surely you should choose another brand!
Insurance is a way of spreading risk among many when the loss is too great to bear individually - the insurance co. takes a cut. Is this device so expensive that you cannot afford to fix it if it breaks? Collectively 10 and $20 for extended warranties on 15 items you own would pay for the one that breaks without having to pay the middleman.
Finally - the ex warr is a cash cow for the sellers, an impulse item. More than likely when it comes to this item breaking in high-tech stuff, you'll want a newer, more up to date gizmo, or perhaps you'll have forgotten the paperwork or even just forgot.
I say just say NO! or as I do, look the guy in the eye and say, is this item going to break, because if it is I don't want it!
I used to think they were not worth it but with the RoHS lead free solder causing reduced reliability I now would recommend it.
For me NO!
The reason I say that is that of all the high ticket items I've been asked to buy the "insurance" and haven't, I feel I've easily saved enough money by NOT buying it, to buy a new item should one crap out on me.
I would have spent a fortune to buy extended warranties on all these items.
Things on my list over 25 years are that haven't required work:
Washing machine 2x
Cameras - several (35mm & Digi Cams, point & shoot and SLR for both)
HP Desktop PC
Items out of warranty needing repair:
Water softener 6 years old: spent $125.00 to repair (2004)
Dishwasher: $98.00 to fix (1992)
Do you Buy Quality?
I do my homework and spend a few extra bucks for higher quality, in any product. This tilts the insurance risk in my favor, and the munfacturer usually has a better warranty anyway (because they know their return rate is low).
If you buy purely on price, then add in the cost of insurance, you could have bought the higher quality product in the first place.
This is what I do, and how I turn that "blind side" question off.
"depending on where" is the perfect statement here
depending on where might seems logical but also... depending on what... I am currently working in retail and also is a consumer, therefore i always put this in mind when i am talking to my clients.
from my experience, i will leave out where i work so not to advertise, i see different types of warranty. there is the replacement warranty and the reparation warranty, in which the first is worthwhile.
replacement warranty lets you exchange (and even recredit the amount of the purchase) when a product fails. therefore, you wont have to wait for the product to be sent somewhere to be repair, you would actually get a new one.
in most cases, the reparation warranty are for products that are above a certain price range. but in some cases, they might make an exception and exchange the defective product... but that is only based on the product itself.
if you are planning on purchasing something expensive... well over the 200$ range... look around for the warranty option also... prices tend to vary a great deal (personal case: 150$ warranty on laptop and 500$ warranty on same product from 2 different store)
Save your money
Many years ago I decided to put the cost of the extended warranty into a savings account to self-insure myself against problems. I have saved thousands of dollars in premiums and only needed to pay out one time for a repair and shipping charges.
It works best when you do it yourself!
Get extended warranty for FREE! Just do this...
Pay for the entire purchase with your credit card, that's right check your credit card terms for extra benefits. I purchased a 42" Toshiba plasma hdtv and at month 14 it went out. So I checked my credit card benefits section and low and behold anything purchased entirely with the card had a one year extended warranty. I called the benefits enhancement department, they gave me a claim # and used an authorized service center to make the repair in my home and was reimbursed the total bill. My $2500.00 plasma set was repaired at a cost of $1898.00. They paid for the entire bill and I didn't even have to bring the set in. In case anyone was wondering no there was no balance on the card I had paid for it with the card and just paid the card balance off when I got the set home. Check your card benefits section to see if there is this benefit included at no charge. Mine was a Buy.com visa
Is an extended warranty worth?
It is an insurance program. How do you view insurance programs? If you never need to use them, then you can rationalize that you could have invested the money and made gain. However, if you have ever had to use it, it was very valuable.
My daughter had a 3yr warranty on a HP laptop and 2 months before the last year was up, she had major problems with the computer. Having put in a motherboard, keyboard, HD and CD drive, BestBuy decided the best thing was a new comparable computer, so she ended up with a 2008 Toshiba laptop. Was the $199.95 worth. Darn tooting?
You decide how the warranty (insurance) program works for you. I hope never to use the insurance on my 2008 vehicle, but I know that if I do need it, it is there and is an asset.
With laptop, the low-profile adds a heat element not found in desktops and one MAY highly benefit from an extended warranty for that purpose. Laptops are portable, subject to shocks and bumps making the extended warranty an asset. Parts for a laptop are more expensive because of technological problems of making small parts with large properties - 120G HD 1/3 as thick as in a desktop, making the extended warranty an asset.
You decide - use it once and you pat yourself on the back. Never you use it, you can say it was still a good investment against chance. Whatever - the stores know that what they save from customers never using the warranty can and will be used on things like what happened to my daughter. It cost them a motherboard, HD and CD drive, keyboard and then, finally, a new 2008 laptop computer. It is a risk for the stores also, possibly in their favor, yes, but - there is always a BUT to the equation.