Home audio & video forum: Extended Warranty.........are they worth it????

Applecare for Ipod and Macbook Pro is the best investment you can make. The Genius Bar has serviced every Ipod my family has owned. Anytime something goes wrong they are there to replace it. The Macbook Pro service has also been excellent. Aside from the yearly tune-up, they are there to replace, usually without question, things like the optical drive or the battery. Appointments are made on line, and service is done at the Apple Stores, which in New York is very convenient. Waiting time is usually at a minimum, and you are usually in and out in less than one half hour. I have been more than satisfied with Apple's service and have found this to be a good if not great investment for these products.

I always recommended NOT buying extended warranties - they are almost PURE profit for the sellers. But often these are backed by a third party. In four cases, my purchase was WELL justified!
Years ago, I was driving my 1986 Ford Escort GT on the highway, when I saw a fan belt go tumbling away in front of me - and all my engine warning lights went on. I took the car to a dealer and found out that the alternator housing had cracked, the bearings had seized up, and the serpentine belt had melted through. When the Service Manager brought me the bill for almost $300, I remember how his face fell when I said, "Oh, but I have an extended warranty". When he brought me back an invoice with $0 on the bottom line (and looked really pissed off!) I was very happy with my purchase!

More recently, we bought a Frigidaire MONSTER sized refrigerator and got the extended warranty cheap as I got the employee discount. 2 years later we went through a series of FOUR repairs to the ice maker ending in a full replacement of the logic board - at NO charge.

I also had a Sony A/V receiver replaced at no charge, and a Samsung LCD monitor replaced at NO charge.

Rip-off? I used to think so, but if the price is resonable, I'll take the extended warranty now!

I typically do not buy extended warranties. However that being said the ones I have bought into have worked out pretty well. My Sony KDS R50XBR1 50" TV needed service after 1yr 4months. A new bulb & light engine assembly according to the tech that came by the house would have set me back about $1000. Wow ! Covered my expenses & then some and I still got 3+ years on the warrantee. Thank you C.C. for selling me this. The tech said he goes through about 20 bulbs & 6 light engine per week (wonder if ne meant per month) He felt all projection TV's (DLP, LCOS, etc) suffer from the same problems (bulbs & light engines) Still sounds like a lot of breakdowns. Think my next TV might be a new LCD in the future after the warrantee expires. Since this is a AV forum I won't mention my 1yr 6month Amana refrigerator from Sears w/extended warrantee. Saved me $700 for a new compressor. Or my reconditioned Brother laser/fax from Comp USA which they refunded the full amount after the 3rd attemped fix. Sweet. After all these issues I still will be very judicious in the purchase of extended warranteees. Hmmmm...I need a new stove. If it is one of those high tech electronic controlled ones I might buy an extended warrantee. Everything seems to have IC chips in them now days. I wish stuff would just work sometimes...Ya know ?

If you are buying a computer and you are NOT technically savvy, you should invest in the Service and Support plan. Manufacturers often have Limited One Year Warrantees and you could wind up paying out of your pocket for repairs or support... If you can repair your OWN computer, you have to ask yourself, how much is the Extended Warantee and how much is the Cost of Replacing things that usually fail... If your computer is an ALL-IN-ONE (Like a Sony or some HP units) you are going to want to repair this unit, because you lose the Monitor as well as the CPU. In the case of LAPTOPS, its Usually a good idea to get an extended warantee if you are buying a higher priced unit. Laptops will last LONGER than desktops, as they become Obsolete only when they no longer can provide the TASK you purchased them for in the first place. So, since a Laptop will be with you for at LEAST 3 years, there is a chance for a Hard Drive Failure. On some laptops its easy to replace the drive and on others its a real challange.. Do your homework. Again, it depends on who you are. A Laptop repair out of warantee is gonna be an expensive ordeal... Other Products, well, a rule of thumb I usually use is if the cost of a 3 year Service/Replacment Plan is more than 33% of the cost of the item, I don't buy them... If its 20% or less, its a good gamble on a complex item, one that is not obsoleted in 2 years... So, if its on that MP3 Player, I am probably gonna buy a NEWER Model after a year or so anyhow....

So, it depends on who you are and how much it costs...

I recently had a positive experience with an extended warranty. I purchased a laptop about 3 years ago and opted to pay the extra $200 for an extended warranty. While I owned it, I had to send it to the manufacturer once and I had to carry it in to the store to be repaired 4 separate times. Per the no lemon policy offered by the store, I had it replaced a few days ago. Without having to pay a dime, I got twice the computer I had before, another 3 year warranty (with accidental protection) and a store credit for the difference between what I originally paid and the merchandise/services I got upon replacement. These extended warranties offered by retail stores get a lot of bad press, but I have become a believer in them. I think they are worthwhile (especially if you are able to get some sort of accidental protection) for high dollar items such as computers and TV's. It's like purchasing car insurance...you may rarely if ever need to use it (all the while feeling as if you are throwing away money), but when the time comes to use it, having it can make a big difference in how much money has to come out of your pocket when its all said and done.

I have purchased them and used it for a desktop and laptop at different times and with different companies. Was given an upgrade with desktop by company bought desktop from because extended warrenty company wentout of business. The other company ended up on laptop honoring warrantying laptop had 3 year warranty. In 2 years had in shop 3 times for same video complaint so after third time used Texas Lemon Law and received new Laptop at no cost.

I don't buy them, never have, never well, and I've purchased computers, for music production Etc.

Considering how quickly electronic merchandise becomes obsolete, and considering how the "downward" trend in pricing still seems to be present, why would I buy a warranty that costs a fair fraction of a new item a couple of years out.

More specifically. If I really did happen to buy a computer that went kablooy at 3yrs. old, do I really want it repaired, considering how the technology has improved.

The notion that they cover all sorts of mishaps, like dropping or losing them - well that depends on the policy. That's not a given.

For a cell phone where losing one can be quite easy, it makes sense,

I have better things to spend my money on than paying for the oppty to cover a manufacturer's butt and buy insurance to cover whatever may happen, but mostly to cover merchandise that is supposed to continue working as long as it's not abused, but somehow breaks or ceases to function regardless.

They are NOT cheap anymore.

It's funny how people will moan and groan about paying tax on something, even though those taxes pay for a host of services as a society, but think nothing even smile when they are "offered" the oppty to cover a manufacturer's poor workmanship.

Hey maybe that's what the Gov't. should do, instead of calling taxes - taxes, they should start making it optional "in case your house burns down" "in case you get sick" Then people will probably gladly double the amount they paid and smile vs. when the Gov't. called it a simple worthless tax.

Extended warranty - a sucker is born every minute -- and the fact that 1 in 1000 happens to make use of it, doesn't make the other 999 any less fools.

And for those few who did happen to benefit from one of these policies, how many times have you purchased one and NOT used it. Quick add it all up - gee enough to have bought new outright anything that you may have had repaired under the policy - hah sucker. LOL

I'm quite comfortable opening up my desktop tower, attaching an anti-static strap and removing/installing components, etc. However, this was not the case with a tightly-constructed laptop, with which I had no previous home-repair/upgrading experience. When I decided to buy my HP Pavilion dv9000 laptop last year during the annual "Boxing Week" sales, I decided that I wanted expert help/replacement guarantees available to me beyond the basic manufacturer's warranty.

When I purchased my laptop, I expected that I would be taking it with me on the road, etc, which would subject the PC to more than the usual wear-and-tear that a desktop would have to deal with over its projected lifespan. I waited for laptops with dual-core processors (would handle upgrade to Windows Vista) to become affordable and the norm in the retail market. I do not expect to be replacing my laptop any sooner than three-four years, so a manufacturer's warranty, plus a three-year extended warranty seemed to fit the bill in my case. My laptop is almost one year old at this point, and no problems to date. (cross my fingers; my car unexpectedly cost me enough this month.)

That's my $0.02 worth on this issue. Comments, anyone?

Best Regards,

Rick Gill
Kingston ON Canada

I purchased a few of these when young, but after a couple of lessons learned years ago at the desks of the "Our Warranty Does Not Cover that Item" managers, I have not since purchased any, and find it easy to cut off the salesperson with a firm "no!" in the middle of their dissembling close, which you described so well.

I'd say no for the most part.
I've had an extended warranty once that didn't cover my broken remote control for my TV.
I've heard other stories from friends about having a warranty that covers everything except what is broken.

However when I sold my TV a couple of years ago, It still had another years worth of warranty left which helped me to get a better resale price.

There is always the Murhy's Law thing too. If you buy a warranty, chances are you won't you won't need it. If you don't get the warranty, you're doomed.
Who is this Murphy anyway?

I normally only buy extended warranties on more expensive items or irtems that are more likely to need repairs. I had an extended warranty on my RV that I collected way more in benefits than payments, same as my dental insurance. On my last laptop the extended warranty has taken care of two repairs including a replacement motherboard plus a replacement battery (the battery alone was about equal to the cost of the warranty!) At the same time I have not collected on my life insurance since I haven't died yet. But that doesn't meant it was a rig off. At the same time, when I bought a digital coamera on sale for $99 I didn't buy a warranty because after the manufacture's one year, I would probably raather replace it.

My experience with extended warranties is mostly related to automobiles. If a manufacturer puts a warranty of 100,000 miles on a vehicle, they do not expect to have a problem during this period. If a manufacturer puts a warranty of only 30,000 miles on a vehicle, the reason behind it is they will lose their shirt paying for expensive repairs that likely will begin to occur after the 30,000 miles. No manufacturer can afford to absorb the charges associated with the high cost of service today and stay in business.

I don't believe that Consumers Report has ever suggested an extended warranty on any kind of purchase.

I bought a fax machine at staples it was a unit with a price tag of $80.00. The 1 year extended warranty (after the manufacturers free full first year) was $5.00. I bought that warranty

I bought a home entertainment center (DVD with dolby 5.1 and 6 speakers) for $289.00. The 3 year extended warranty (after the manufacturers free full first year)was $39.00 I bought that warranty.
When the 4th year was almost up I was offered an additional 3 years extension on that warranty for just $633.00. WATCH OUT In the last 4 years DVD prices have fallen. Why would anyone pay $633.00 to insure an already 4 year old unit that they could probably buy brand new today for about $211.00

Extended warranties are an item that really requires a little bit of intelegence and a lot of will power.

Most appliances fail naturally in the first year and are covered free by the manufacturers warranty. The appliance manufacturers plan on bringing in three times the revenue in warranties than they would bring in from service charges, even at the $92.00 per hour charges. with so many warranties out there, it is to their advantage to manufacture a highly reliable unit which will not require service. Odds are in your favor that your device will not break down in the first few years after the original warrant expires.

If you have a hostile environment that is likely to cause unnatural damage to your devices, it might be worth purchasing a warranty WHICH WILL COVER DAMAGE DUE TO ABUSE. READ THE FINE PRINT.

Shop carefully and read the fine print. I recall a case where a friend bought a car and paid nearly $4,000 for an extended warranty. A few months after purchasing the car it was involved in a minor fender bender $560.00 for a little body work and paint. There was a $500.00 deductable so her insurance saved her $60.00. The claim for that accident was evidence that the car had been in an accident and the $4,000.00 warranty which was already paid for was void. READ THE FINE PRINT

Bought an extended warranty when purchased a Mercedes. Stupid move? NOT! Glad I did it. Things started to fall apart after the 4 years warranty was up. It could have cost me triple the extended warranty amount to pay for them.

As a rule, I do not buy extended warranty. I think if you buy that for every thing you purchased, you will be the loser overall. The MBZ story was just a fluke.

Having a buying history of 67 year and anything a man would want should be good enough to lay a foundation whether extended warranties are worth the price.

Generally and 99.9% of the time NO; a waste of money.
I've only bought (2) two extended warranties in my life. One was for a LCD monitor (so dirt cheap I had a gut feeling which turned out to be true - and was repaired).
The other, I bought a DELL Laptop 1 yr full warranty $40.00 But I didn't buy it to cover just the Laptop but the technical service behind it.

If I had bought extended warranties on most of my large ticket item, being ex-CPA, I roughly figure I'd have $96,000.00 less in my retirement.
If the money were placed in savings, instead spending the extra, the compounding & Present Value would give you a nice nest egg. So save instead of spending it on a most probable useless warranty -- but there are exceptions -- know your product, the maker and research reliability.