Comments on: Are Extended Product Warranties Worth The Money?

By: Car Warranty

Car Warranty — Thu, 26 Jan 2012 16:08:00 +0000

I find that third parties offer similar warranties for less than the dealers. And as long as the car warranty covers what needs to be covered, and is accepted at repair shops, a third party dealer is just as much of an option as a dealership!

By: honest4sure

honest4sure — Mon, 24 Jan 2011 03:28:46 +0000

Most retailers fire people for doing that – it’s called “packing” the service contract by reducing the profit on the product. Your right, the pressure to sell the service contracts sometimes manifests itself this way. Funny thing, you can still cancel the service contract and save additional money.

By: honest4sure

honest4sure — Mon, 24 Jan 2011 03:25:45 +0000

If you actually look at what Best Buy charges – for instance – $220 on an under $500 laptop for “2″ years (one addtional on top of mfr and years 1&2 for damage) you just might conclude that not only is this absurd, but a total ripoff.

By: honest4sure

honest4sure — Sat, 22 Jan 2011 04:32:59 +0000

You have much better odds at the blackjack table. Save all you money and you’re way ahead of the game. Most of the big box service contracts are priced for two parties to benefit: the retailer and the plan administrator. Sales people offer them because they are forced to by their managers. Cashiers the same and generally they don’t know better. Service plan sales pitches are chock full of half-truths, lies and deceptions (check the website). Does Best But really respect you, the customer, when they offer you a laptop service plan with damage and battery coverage for only 1 year on top of the manufacturer for $220 on a $479 laptop? Really? Does the length of the plan have anything to do with the life of the product? Never. Product failure rates (excluding you damaging it) are very low for most electronics – check Consumer Reports brand reliability. Is that “replacement plan” for year 2 only really significant? What’s so special about year 2 in the product life cycle? As stated elsewhere, your Amex and some other credit cards give you a year 2 warranty for free. Make a rational decision and don’t let the sweet talk of anyone sway you.

By: JuliaA

JuliaA — Fri, 29 Jan 2010 18:37:11 +0000

the only things i buy warranties on are laptop computers–so many little things can go wrong, and i’ve made good use of my warranties.

most others are just too expensive compared to the cost of what you’re buying, like you mentioned.

By: best car warranty plan | Car Dealer Warranty

best car warranty plan | Car Dealer Warranty — Fri, 29 Jan 2010 01:05:36 +0000

[...] Are Extended Product Warranties Worth The Money? [...]

By: Buying A New Computer Tips | The Home Business Archive

Buying A New Computer Tips | The Home Business Archive — Thu, 28 Jan 2010 09:19:20 +0000

[...] Are Extended Product Warranties Worth The Money? On the other hand, if you are purchasing a laptop computer for $1800 and the extended warranty is $150, the warranty may in fact be worth buying. A computer is a piece of equipment that has many parts that can cease working for one … [...]

By: Kristin @ Making Cents Out of Life

Kristin @ Making Cents Out of Life — Tue, 26 Jan 2010 08:30:25 +0000

To be honest, we’ve never bought a lot of things in our 5 years of marriage that were expensive enough to warrant buying an extended warranty. Sorry I couldn’t word that any other way. We did buy an extended warranty on our first 42″ HDTV, because we’d heard conflicting arguments on the pros and cons of the warranies and couldn’t afford to buy another one if it crapped out within 2 years *or later but we’re just SOL if that happens*. We really actually shouldn’t have, and should have just paid for the repair, because we got a year from the store where we bought the TV anyway and they are already $150 less than we paid for the darn thing a year ago. So it was a live and learn experience that I wouldn’t repeat. When I bought my netbook, we were offered the warranty but as somebody else said it was almost as much as the computer (especially as it was only $125 on clearance!).

My dad pretty much taught me to take care of what I have, and usually that’s enough to get a long life out of things. Plus he can repair almost anything, and what he can’t my husband can. Chances are, you’re overpaying by at least 50% to fix a problem a $20 part would suffice.

Again, we’ve never bought many big ticket items because I’m disabled but things don’t last forever. Get your normal wear and tear but take care of your stuff and you can usually extend the life of something easily enough. Extended warranties make saense to me when it comes to cars that get a lot of use, but not much else.

By: Mac

Mac — Tue, 26 Jan 2010 03:38:54 +0000

I agree completely. However, a lot of retail & online vendors now partner with a 3rd party warranty company, so if the store goes out of business, you’re still safe…assuming that 3rd party doesn’t as well!
Personally, I always avoid ‘em.

By: Lauren

Lauren — Mon, 25 Jan 2010 23:35:03 +0000

The only times I have gotten an extended warranty are for my computers and once for an IPod. My last computer started having problems after the regular warranty had run out. Luckily I was able to get it fixed because of the extended warranty. Because of that experience I got a extended warranty for my current computer.

I got an extended warranty of my first IPod. I’m glad I did because it to died after the Apple warranty had run out. Luckily I was able to get a refund for the amount because they no longer made my model of Ipod. That being said, I didn’t get an extended warranty for my current Ipod.

By: Robert

Robert — Mon, 25 Jan 2010 22:38:17 +0000

My hero Clark Howard says that extended warranties are NEVER a good deal, especially with retailers going out of business left and right. The warranty is no good if the company goes belly up.

By: jeccica simpson

jeccica simpson — Mon, 25 Jan 2010 20:14:38 +0000

Yeah, I have never bought extended warranties, I think its another sales pitch in my opinion, but its like auto insurance, if you get into an accident and dont have it your out of luck and out of pocket. I am lucky, I have a husband that is Jack of all trades, can fix everything. But for people who dont, I really feel for, cause you dont get anything if it never breaks down and usually it happens after the warranty expires, funny how you hear that always happens! HA HA HA!!

By: DG

DG — Sun, 24 Jan 2010 07:54:51 +0000

I don’t think they are worth it for every electronic luxury. However, on some items they are good such as new digital cameras and especially laptops (had a positive experience with this)

By: gina

gina — Sat, 23 Jan 2010 14:59:06 +0000

I used to buy the warranties on big ticket items, only to find that they have expired long before I have had a problem. Definitely not worth the money. Save the money you would have used for warranties!

By: Mac

Mac — Sat, 23 Jan 2010 14:42:23 +0000

I made the mistake of buying a warranty for a monitor once many years ago…what a waste of money. It’s never worth it for electronics, because they go down in price so quickly. Plus, most credit cards double the manufacturer warranty anyways, so you usually get 2 years warranty for free.

By: robyn

robyn — Fri, 22 Jan 2010 20:55:05 +0000

I’ve had varied experiences with warranties. Got an extended warranty on my hd tv and when a part went out got prompt in home service that would have been very spendy. I have extended coverage on my 2008 honda, but bought it through my credit union at a savings. I’ve observed some of the hassles regarding laptop warranties and wonder if the hassle is worth it.

By: Michael Haltman

Michael Haltman — Fri, 22 Jan 2010 10:49:06 +0000

Great advice!

By: Elizabeth I

Elizabeth I — Fri, 22 Jan 2010 06:47:49 +0000

Shop at Williams Sonoma for kitchen products. You can return anything that breaks (aside from Jura Capresso coffee makers, to my knowledge). I have found that kitchen gadgets do break (I have gone through 3 Beaba’s $150 each and I am on my third bread maker). It is worth it to pay a bit more to shop there.

By: Sean

Sean — Fri, 22 Jan 2010 03:16:29 +0000

I did end up buying AppleCare for my mac laptop, and I have to say so far it has come in handy a few times. I have been able to bring in my laptop to an Apple Store and within about 10 minutes walk out with a fixed machine. I had a problem with my webcam and Apple sent me a box overnight, I sent my machine to them overnight and had it back the next business day. I think it has paid for itself.

All that said, I wouldn’t recommend extended warranties for many products. I used to work at Best Buy and we could get anything in the store for 5% over cost including the extended warranties. Let me say that the extended warranties were usually a fraction of the cost. Basically, this is a very high margin product for most retailers. Most people never use them and if they do, the cost to use them is small or they don’t qualify. If you buy a plan, make sure it will cover what you expect and that it is a reasonable price. Otherwise, just save up some extra for problems down the road just in case.

By: mhaltman

mhaltman — Thu, 21 Jan 2010 19:30:56 +0000

On the other hand I take cell phone insurance which will replace my phone if it is not only lost, but broken as well which has come in handy on multiple occasions.