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Part-by-Part Extended Warranty Torture | 53 comments (53 topical) | Post A Comment
Extended Warranties[ Reply to This ] (none / 0) (#1)
by Anonymous User on Fri Nov 16, 2007 at 04:58:53 AM PDT

In spite of what many people think, extended warranties are NEVER a good deal for the purchaser. In most cases, as much as half of the extended warranty sales price goes to the salesman that sucked you in, and the balance is such a pittance you should not expect to get anything in return anyway. If you really appreciate the salesmans effort, TIP him, you will both be happier! Then take the balance of what you would have paid for the warranty, and put it away for a replacement when the day comes that you need one. You will be much happier with a new component, than a repaired one, and based upon the progression of technology it will most likely be a much better component, and more reliable.

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Extended Warrantees[ Parent | Reply to This ] (none / 0) (#9)
by byelen on Fri Nov 16, 2007 at 07:43:42 AM PDT

Whether or not an extended warrantee is worth while really depends on the cost of the original item, as well as how well the warantee is serviced. Three years ago, the charitable organization I volunteer with purchased a Toshiba laptop and extended warrantee for a student we had awarded a scholarship to. After 1 1/2 years, the laptop's display "went south". CompUSA had a new display installed. Six months later, it started giving BSOD's w/out warning, gradually to the point where the laptop was unusable. CompUSA had the motherboard replaced, and no other problems arose. I can't state if this was a policy of "throwing parts", or if the need for a new display and motherboard was arrived at through proper diagnostic proceedures. I Can say that the student was treated with respect at the store, and was not given any "hurdles" over the repairs.

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It's not about one item, it's about many[ Parent | Reply to This ] (none / 0) (#17)
by Anonymous User on Fri Nov 16, 2007 at 10:54:31 AM PDT

If you look at an extended warranty in the context of actually having to use it on a single item, it makes sense. But if you look at the failure rates on pricey items, over time it never makes sense mathematically. You will save more money in the long term if you never buy an extended warranty, even if you have to pay repair or replacement costs out of pocket. If it were any other way, it would not make financial sense for retailers to offer extended warranties.

If you worry about repair and replacement costs, try this: Every time you are tempted by an extended warranty offer, don't do pay for it. Instead, take 20% of the cost of the extended warranty and put it aside in a repair fund. I guarantee you that over time you will be paying more into the fund than you are taking out for repairs.

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Extended Warranties[ Parent | Reply to This ] (none / 0) (#19)
by John V on Fri Nov 16, 2007 at 12:30:35 PM PDT

Statistically, extended warranties never make economic sense for the consumer. As another reader pointed out, if extended warranties made economic sense for the consumer, they would almost necessarily NOT make economic sense for the seller. The warranties would probably be too expensive for the retailers to offer in the first place. I never purchase extended warranties for that reason. When I am occasionally pressured by a retailer to purchase an extended warranty, my standard response usually silences the pitchman immediately: "If I truly thought that I would need an extended warranty for this product, then maybe I shouldn't be buying this product in the first place." After all, telling a customer that they are going to need an extended warranty is really just another way of saying that the product will probably break as soon as the standard warranty expires.

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Part-by-Part Extended Warranty Torture | 53 comments (53 topical) | Post A Comment
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