Posted by Doug Jacobs on 02/02/07 23:39

Aaron J. Bossig <linkvb06@spammerswillbeexecuted.ptd.net> wrote:

> I'm sorry, but I just don't understand this logic. Why is an item a
> bad deal simply because the seller makes money off of it? That's what
> sellers are supposed to do. The real question is, does the service
> sold provide enough value for what the customer paid for it?

In many cases, the warranties don't provide a whole lot.

> There are some items for which an extended warranty is a given: Laptop
> computers and high-end TVs. The chances of something going wrong are
> fairly high, and the cost of repair/replacement makes the initial
> warranty purchase a more practical alternative. Other items, such as
> desktop PCs, mp3 players, and yes, DVD players, are less likely to be
> serviced, and usually I'd advise getting the warranty only if the price
> is exceptionally cheap.

Even for these high-cost items, you should always be aware of what the MFG's
warranty covers. In some cases, the so-called "extended" warranty adds
nothing beyond what the MFG's warranty does.

As for electronics, if the item manages to work for the first month you
use it, chances are it's OK and not going to have any problems beyond
normal wear&tear (which isn't covered.) Hopefully you did some research
into the product's reliability and chose one that tended to have a low
occurence of repairs. The extended warranties tend to only cover things
like a manufacturing defect - which would most likely have become apparent
during your initial uses of the product. Also, if it turned out to be a
manfuacturing defect requiring a recall, the shipping parts and labor are
paid for by the manufacturer anyways.

> Extended warranties are neither good nor bad, it's just a matter of
> what you get out of the deal.

True, but in many cases, the extended warranty program offered by many
stores isn't a good a deal.

Now, I recently bought a large screen TV from a smaller store and did buy
their extended warranty mainly because it includes one free bulb change -
which would normally cost almost as much as the warranty plan in the first
place. Their warranty plan also offers a number of consumer-friendly
options - mainly because the store wants to keep you coming back
repeatedly for all your AV needs.

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