Extended Warranties: Yes or No?
Wed Dec 12, 2007 9:49PM EST
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So you're shopping last minute and decide to be extra generous and buy the big-screen HDTV, or maybe the DSLR camera I've wanted for a long time...oops, sorry. That's not meant for you.
In the excitement of the moment, the store clerk begins to rattle off the extended warranty options he recommends for purchases like yours. Of course he does; that's how the store makes money on electronics that keep falling in price. Should you bite?
The short answer: no. Consumer advocates have long said most warranties are not worth the peace of mind they supposedly bring. You're buying an insurance policy to cover repair costs should the item break after the manufacturer's warranty ends. But Consumer Reports and PC World say tests of hundreds of products indicate more are reliable and fairly durable every year. And if they should need repair, the cost is often on par with what you've paid for the warranty, according to Consumer Reports.
You're better off spending the time researching which brands and models have performed best in consumer tests than spending extra dollars in a gamble that the one you choose will have problems.
When plasma and LCD HDTVs were new and the prices were sky high, Consumer Reports recommended opting for extended warranties because the technology was untested and the TVs cost so much. But the prices have dropped, and Consumer Reports' latest reader survey finds that in the last three years, HDTV owners report few problems with their TV sets.
So CR now recommends saying no to TV warranties. (The magazine makes one exception, advising consideration of extended warranties on rear-projection TVs, which are three times more likely to need repairs than other TVs.)
Meanwhile, J.D. Power & Associates' 2007 Major Home Appliance Survey of white goods such as dishwashers, ovens, and washers/dryers finds most so reliable that no warranties are recommended on those purchases either. In the first two years of ownership, one-tenth of owners report problems with their appliances. And most of those problems can be fixed by reading the manual or seeking help on the web.
This holiday season, your best bet may be to do what CR Senior Editor Tod Marks recommends: Put the money you would have spent on an added warranty in the bank so that you'll have it in case you need to repair your latest electronics purchase.
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547 Posted by arthur5454 on Thu Sep 3, 2009 2:58PM EDT Report Abuse
Yes, I agreed what you said. But to some electrical products that being used everyday and undergo alot of wear and tear an extended may do good. To some limited warrenty, do see properly how it covered. Some may covered with service but not parts.
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548 Posted by mrfilter2you on Thu Sep 3, 2009 7:27PM EDT Report Abuse
Ok...I don't know why these folks think the extended service plan is a bad idea. I bought a 50" DLP RCA from best buy and it broke 3 times in just over a year. The repair man from the Geek squad said you would have to be a fool to buy a new large screen TV these days without the service plan. He explained that the technology was still to new and the bugs still have not been worked out. each of my repairs cost around $500.00 and all delt with the HDMI input. All I acn say is thank God I didn't listen to consumer reports. I sometimes wonder who's side they are really on.
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549 Posted by ashfinger on Thu Sep 3, 2009 2:58PM EDT Report Abuse
I can't believe all of these people who have had so many things break on them. Some of these folks are either corporate shills, extremely unlucky or really hard on their stuff. Okay, let me break this down for everyone: Over the past 20 years or so, I have bought at least $40,000 worth of electronics equipment and appliances. In my experience, extended warranties cannot be had for less than 20% of the cost of the covered item. Supposing I had covered all of my purchases, it would have cost me $8000, by this estimate. In all of that time, here is what has broken or stopped working on me: 2 TVs - both 7+ yrs old (ext warranty would not have covered) 1 DVD player - 8 yrs old (same) Clothes washer - 5 yrs old - Water Level control broke - cost to repair myself (including shipping of part) $25 mp3 player - 3 yrs old - ext warranty not an option because it was given to me by retailer as an apology for bad service - harddrive failed (it was an early mp3 model) Car - Transmission went - actually had ext warranty which covered the $1500 repair - warranty cost $1500 - broke even. Other than little things like toasters and stuff like that, nothing major has really broken on me until it was well past even the extended warrenty coverage date. If I had covered everything, I would be out $8000 extra with nothing to show for it. That's why I don't get the extended warranties...it just doesn't add up to good value. I've heard many horror stories about companies not standing by the warranties even when you buy them. Many times, what the salespeople tell you is covered...isn't. Usually, they won't even show you the terms of the contract during the sales pitch. By the way, salespeople at Best Buy and Circuit City may not work for commission, but they are definitely pressured (at risk of losing their jobs) to sell them as often as possible. Google it...you'll find plenty of testiments to that fact. I went into Circuit City the other day to look at Digital Camcorders. The salesperson encouraged me to cover a $450 camcorder with a 2 yr "no fault" warranty...the cost? $300. Who in their right minds would pay an additional 2/3 of the price of an item in order to insure that you will be able to use it? Heck, in 2 years you can buy a new, better camera for less than that. Take my word for it...think for yourself...think logically...don't just buy into whatever stories the salesperson is trying to run by you. Research your purchases ahead of time and check consumer feedback to make sure that a particular product is not prone to problems. Most of the time, if something is going to break, it will do it in the first 90 days. Don't pay for repairs and replacements in advance...that's all these warraties are...advance payments on replacements.
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550 Posted by sook_me_wood on Thu Sep 3, 2009 9:33PM EDT Report Abuse
with the money i saved NOT buying an extended warranty, i purchased a spell checker. maybe some of these posters should do the same.
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551 Posted by surem_03 on Wed Dec 26, 2007 8:54AM EST Report Abuse
Ok i see your point. But what do i do when i didn't get the extended plan and it's break within the year. Then what i found that some warranty are useful. Especially the one that cover physical damage.
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552 Posted by sorten@ameritech.net on Thu Sep 3, 2009 9:33PM EDT Report Abuse
Small electronics like Lap Top computers, Ipods, cell phones, small cameras need the kind of extended warranty that covers accidental damage like dropping them or spilling something on them. Get one for these things
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553 Posted by gbraxton_99 on Thu Sep 3, 2009 4:06PM EDT Report Abuse
I buy the extended warrenty on all of my digital camera purchases. I didn't on the first one and when it was dropped, it make for an ugly paperwiight. I've had my Panasonic DVD recorder replaced due to problems that Circuit City repair service could not repair. Other than the inconvenience of not having my DVD Recorder for several days I feel the extended warrenty was worth it.
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554 Posted by r_dasher on Thu Sep 3, 2009 8:59PM EDT Report Abuse
When it comes to laptops extended warranties can be a good thing. However, be sure to read the fine print. In Dec 2004 I bought $1000.00 laptop from Frys and bought a three year extended warranty. Earlier this year in June they could not repair my laptop and replaced it. However, the laptop they replaced it with was inferior to mine and the fine print said it was up to their discretion and they replaced it with the cheapest one they had. So I hgave mixed feelings about warranties. Danged if you do and danged if you don't RJ
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555 Posted by jags21kg on Thu Sep 3, 2009 4:27PM EDT Report Abuse
working at best buy customer service it's honestly hard to say.. I'd say TVs is really a personal decision I've seen it work out, and not work out for people. however, as far as cameras only get the accidental coverage, don't waste your money on just the technical one for only like 10 dollars cheaper, ALWAYS get it on xbox 360s.. and computers if your going to get the warranty get the ACCIDENTAL coverage. More or less with items on the go people come in with cracked LCD screens than actual problems. Check what the warranties cover first.
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556 Posted by scotsinkilts on Thu Sep 3, 2009 9:08PM EDT Report Abuse
I got an extended plan on my laptop from Best Buy and boy am I glad I did! I've had to bring it in 4 times for repairs (next time and they just give me a new one). The last time was so expensive if I had paid, it almost would have been cheaper for them to give me a new one. Long story short, it might be worth it to get one on a laptop unless you know someone good w/ computers who can put in a new LCD screen when yours fries so bad that all you get are spots and stripes.
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557 Posted by dawg_em_out on Thu Sep 3, 2009 3:38PM EDT Report Abuse
I think that if someone offers me an $80 plan (Home Depot) on a $800 fridge for 5 years, that breaks down to less than $20 a year to protect a $800 investment...I'll take it any day...if you are willing to spend 1500 on a tv, I feel you should be willing to spend a few extra to make sure you can enjoy it for at least 4-5 years if given the chance. As long as I use one out of 3 plans, they all seem worth it..as much as it costs to fix these things...
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558 Posted by foleydagoalie on Thu Sep 3, 2009 4:01PM EDT Report Abuse
STOP LISTENING TO SALES PEOPLE. Extended Warranties work for people with the worst luck in the world. I spent $300 on an extended warranty for my new plasma TV at Best Buy. After the first month there was terrible screen burn. I called Best buy for the security that they promised me and they said,"Our policy doesn't cover screen burn." to which I replied. "Your warranty doesn't cover the #1 problem with plasma TV's?" Don't be fooled, the electronic stores could sell you their electronics at cost and still make a lot of money if they sell you their worthless warranties.
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559 Posted by amberheinz on Thu Sep 3, 2009 2:52PM EDT Report Abuse
Back in NOvember 2006 I bought a Toshiba 42hp66 Plasma tv from Sears with the extended warranty. I think it cost me $350 dollars for 3 years. Well once a year they come to my house and clean and adjust. Which I have used, I noticed red pixels on the screen when I change the channels. They told me its the panel and it needs replacing. THe panel cost $3800 plus labor. WHich I dont understand considering the tv is not worth that much. I will not complain since I bought the extended warranty.
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560 Posted by andres6 on Thu Sep 3, 2009 2:53PM EDT Report Abuse
The thing is, if your buying cheaper products like RCA, Toshiba, and other bargain basement companies, then your just paying for the difference with an extended warranty. Why not use that wasted extended warranty money (and time and loss of use costs) on a good company that makes bullet proof products like Sony for TV's, Denon for DVD players and receivers, HK for receivers, Polk Audio for speakers, ect. Pay the extra money up front for well built high quality products, and you'll almost never need to worry about warranties at all. Same goes for cars, stick to Honda or Toyota and warranties become obsolete. The thing is, if you think your breaking even when you spend $1,500 on an extended warranty, then 4 years later get a $1,500 repair covered by the extened warranty, you're not!! Not even close to breaking even. For one, you've lost the $1,500 for 4 years! You've lost interest and investment income on that money for four years. It's called opportunity cost!
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546 Posted by laurynjade79 on Thu Sep 3, 2009 4:57PM EDT Report Abuse
You know... very interesting topic. My husband and I bought a LCD tv about 3 years ago. Just last week, the darn thing wouldn't turn on. Wouldn't you know it, we bought the extended warranty..... Now we've got a new tv :) So, don't listen to the hype.. I was skeptical to purchase such a pricey warranty.... If you're spending a pretty penny for a tv, you might as well buy a warranty.