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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67 Posted by focus90210 on Thu Sep 3, 2009 4:01PM EDT Report Abuse
I think that you really need to weigh the options. Most times I give a quick "no" as well, but when I purchased my Vizio 50" plasma at Sam's club, I really went over the options. Vizio has a great warranty for the first year, everything is 100% covered in home. By upgrading my Sam's membership to a plus, and purchasing the 3yr extended, you get a fourth year free. Best thing, it doesn't start until manufacture warranty expires. So, for $198, I have a 5 year 100% covered warranty. Oh, yes, the staff at Sam's suggested upgrading the membership, then "return" the upgrade. Anything that you purchase while a Plus member stays in effect. I hope that I never need it, but the 5yr peace of mind is worth every penny!
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68 Posted by sunseamist4u@sbcglobal.net on Thu Sep 3, 2009 9:48PM EDT Report Abuse
I do not buy extended warranties because whatever electronics you buy become obsolete within a few years. It's a waste of money.
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69 Posted by robertvgreene on Thu Sep 3, 2009 8:45PM EDT Report Abuse
I bought a 46" Samsung LCD and purchased the 3 year warranty. That warranty just save me $2000 as the panel went out and had to be replaced. A good investment for $300.
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70 Posted by buttpounder00 on Thu Sep 3, 2009 3:15PM EDT Report Abuse
I work at Best Buy, and this article is garbage. If you think that you are being smart by doing what some moron that wrote an article for consumer reports wrote, then go ahead, interupt me and act like a moron. I will just laugh at you when you bring me your TV or computer when it is messed up! ----- happens....that is what the consumer reports guy forgot to tell you!
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71 Posted by paul_e_18901 on Thu Sep 3, 2009 8:03PM EDT Report Abuse
Interesting and I agree that extended warrenties are a waste of $$. I am curious bout one thing though. Who in full possession of common sense would ever pay 2,3, 4 or 5 grand for a TV which is to used as a TV? Why?
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72 Posted by lme2002 on Thu Sep 3, 2009 6:55PM EDT Report Abuse
I wanted to comment back to samcclain... You are right, but the topic im sure was electronics... and NO dont buy the extended warranty. My sister in law and her boyfriend just bought a flat panel LCD HDTV for 2200 and then dropped another 800 for the warranty.... crazy dumb!!! I never buy the warranty and my things never need to be repaired... plus most run out before there would ever be a problem... i say save your money!
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73 Posted by inbusiness4good on Thu Sep 3, 2009 4:23PM EDT Report Abuse
this is from the last island on Hawaii, Kauai. Service is a premium here, as it is in many places outside of cities. On call service time can run days away, and 100's of dollars. Different in metro areas. We recommend this site(a Self Help Computer Support Center) so that you can make this decision, based on actual experience. This especially applied to computers, and perhaps to large format entertainment centers, where computer parts are more pervasive. http://www.kauaikeepsakes.com/artists4peace/
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74 Posted by tumblebug34 on Thu Sep 3, 2009 10:23PM EDT Report Abuse
why buy a extended warranty? The dern price of things are high enough!
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75 Posted by mrtaxx on Thu Sep 3, 2009 7:28PM EDT Report Abuse
My 2 personal experiences: Bought 2 Sony 42 inch Plasma TV's in 2004 , one died right after the warrantee expired (the other one is rarely used, maybe once a week and it still works). I'm currently looking for a new LCD TV and probably will buy a 5 year extended warrantee even though the warrantee costs 30% of the value of the price of the TV. I've had a Sears Refrigerator for 18 years and have paid $275 on average for a 3 year warrantee (total cost of date $1550, the Refigerator originally cost $1,000, to replace it today $1,250), the repair man has been here twice in 18 years, both times it was the ice maker, so in this case the warrantee was not worth it. Keep in mind that many credit cards double the original manufacturers warrantee.
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76 Posted by mangahari on Thu Sep 3, 2009 7:05PM EDT Report Abuse
My kitchen came with 7 top of the line appliances from GE (monogram series)- not by my choice, though. Within 18 months, I had problems (not those that could be fixed by reading the manuals) with the refrigerator, oven, dishwashers (2) and microwave oven. It took the GE repair person 7 visits to fix the dishwashers!! The extended warranties saved me big bucks. And even now these appliances don't function optimally as they are supposed to. I believe that GE makes appliances that last just until after the one year warranty runs out!!
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77 Posted by jimmyd73@ameritech.net on Thu Sep 3, 2009 4:35PM EDT Report Abuse
First of all don,t listen to consumers report, I bought a 5 megapixel camera at Best Buy almost 4 years ago . I bought the 4 year service plan , 3 days before my 4 years was up it stopped working, not only did they give me another camera but it was an 8 megapixel, I have had computer work done free because of extended warranties. I buy all my electronics with service plans and I have had to use them, nothing is infallable. When we bought are new refrigerator my wife would not buy the 5 year plan and wouldn,t you know it the ice maker does not shut it self off when full and we end up having ice all over the freezer if we forget to shut it off manually, any idea what repairman cheges just to show up at your front door??
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78 Posted by millipedesteve on Thu Sep 3, 2009 7:20PM EDT Report Abuse
Having worked at Best Buy, I can tell you the extended warranties or service plans are pitched to every customer with the assumption that only 10% will actually get used. There are very specific circumstances that the extended warranty will be valid. Make sure to have the sales person explain what ISN'T covered. I lost more warranty sales after informing to the customer that only with normal usage would the service plan be usable. If you leave your camera in your car overnight and it fogs up your screen, or you take your camera in the rain and it gets water in it, or if your child drops it, you are out of luck and have to buy a new one. Also find out if the extended service plan will roll over onto the new product should the current one need to be replaced because of malfunction. Most do not and you will find yourself buying the service plan all over again for a product that just got replaced. Save yourself the money and do exactly what this article suggests. Research the product and read user reviews before purchasing an item. If you find less than 10% negative reviews or poor quality complaints, feel safe purchasing it without the extended warranty.
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79 Posted by flower_garden_2006 on Thu Sep 3, 2009 4:01PM EDT Report Abuse
I buy extended warranties on certain items. Murphys Law always works against me - for me, it is cheaper to spend a few extra dollars now, feel secure in knowing it will be repaired, or replaced, then to be stuck with a pile of junk. (As per one poster here stated). Read the fine print on the manufactures warranty, and decide if 100.00 or 150.00 is worth the price verses maybe having to replace the item. Keep in mind, if it is electronic, those parts go out dated in no time, so fixing it may not be an option if the item is 2 yrs. old. I hate to spend good hard earned money then turn around only to find out I can't get the replacement part for the item. That is where an extended warranty is nice for me - repair or replaced. No extended warranty, buyer beware - no matter how good the company name or quality. I have seen brand new good name companies products fail. Think to yourself, if this item goes bad in 1 or 2 yrs, will I be able to afford to repair or maybe replace it, or is the warranty worth the extra money.
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80 Posted by bowlinguysdad on Thu Sep 3, 2009 3:11PM EDT Report Abuse
I would agree except for laptops. I have found them to be very useful on laptops.
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81 Posted by maddogdiego on Thu Sep 3, 2009 7:02PM EDT Report Abuse
ABSOLUTELY buy extended warranty on these two devices: Digital SLRS and expensive Apple laptops ($2000). The warranties only cost 10% above purchase price (AppleCare can be purchased on eBay from resellers). Getting that DSLR fixed is very expensive. I'm a pro photographer.
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82 Posted by elliehobbs1290 on Thu Sep 3, 2009 3:53PM EDT Report Abuse
About the only thing I'd really recommend an extended warranty on would be an MP3 player (and really, only if it cost a fair amount of money, like an iPod). I've had 3 iPods since I received my 40 gb model 2 years ago. Since then, I've been through 4 hard drive malfunctions, and because of the extended warranty, I've had 2 replacements. I probably wouldn't have been willing to pay to replace the hard drive on my own, thus I'd recommend the extended warranty on MP3 players.
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83 Posted by bparadise211 on Sun Dec 16, 2007 2:30PM EST Report Abuse
On applecare... laptops are easy to be broken and the batteries are also covered... so It makes sense to have the battery replaces before the coverage ends...
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84 Posted by startrance on Thu Sep 3, 2009 9:39PM EDT Report Abuse
There are so many electronic products now I would think a person needs to research his product choices then buy an extended warranty for items prone to failure.
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85 Posted by cookiecndy on Thu Sep 3, 2009 3:29PM EDT Report Abuse
I does depend on the item, and with fast changing technology, it's not worth holding on to some items for years anyway. Make sure of the wording in the warranty; my husband bought a computer and the extended warranty. But when it broke, they claimed it was "abused" and that was not covered under warranty. He treated that laptop like a fine piece of china.
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66 Posted by blakersnaker16 on Thu Sep 3, 2009 3:09PM EDT Report Abuse
As a salesman who works for one of the big box electronic retailers, warranty plans are all about peace of mind. If the warranty is a good value, why not buy it? I'm not an advocate for all protection plans; I myself would only consider warranties on big ticket items, just because like yeabaybay82, I don't want to be stuck with a 2000 dollar hunk of junk; because what the article doesn't talk about is the average cost of an lcd or plasma tv repair, which if you take into account labor and parts would probably cost in between 300-600 bones depending on the problem; which is the cost of the majority of plans anyway. Oh, and most plans cover parts, labor, shipping and or in home service. Also, if you buy plans, sheck out extra for the accidental plans if it is offered on a product; you get a replacement or refund much faster this way.