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Are Extended Warranties Worth It?

Psyclone Brian

Psyclone Brian

Well-Known Member
Apr 11, 2006
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42°00'50"N 93°
We've all been there. No sooner do you agree to buy an item, than the salesperson immediately tries to get you to purchase an extended warrantee, as well.

Digital Cameras - Flat-Screen TVs - Vacuum Cleaners - Washers/Dryers - Laptops/computers - Lifetime Warranties - Credit Cards' Protection - Other Long-term Warranties...

Any success stories?
 
I am a salesman at Lowe's and usually yes they are worth it. I sell alot of tools and countless times people bring them back in because they either have broken down on them or "it didnt work the way they wanted it to" which is their excuse for using it for what they needed it for and returning it. I always ask if they would like the extended warranty because it is a very good deal. At Lowe's they not only have the manufacturer's warranty but Lowe's protects it after the manufacturers has expired. In the end it is nice because by the time the tool has started going bad, the warranty you purchased is starting to kick in and your "protected"
 
Psyclone Brian said:
We've all been there. No sooner do you agree to buy an item, than the salesperson immediately tries to get you to purchase an extended warrantee, as well.

Digital Cameras - Flat-Screen TVs - Vacuum Cleaners - Washers/Dryers - Laptops/computers - Lifetime Warranties - Credit Cards' Protection - Other Long-term Warranties...

Any success stories?
Click to expand...

Businesses wouldn't offer them if they didn't make money off them. In most cases, you are better off passing on the extended warranty.
 
Almost never are they worth it.

The vast majority of time, if an item fails it will be under the manufacturer's warranty. If it doesn't fail during that time, it probably won't (at least until it would be out of an extended warranty period as well).

I can't think of anything that I would purchase an extended warranty on. You're just throwing your money away. I feel the same way about cell phone insurance as well.
 
Have only purchased extended warranties on stuff the kids abuse, like phones, ipods, etc. Otherwise, I am a believer that if it breaks before I think it should, I complain to the company and/or better business bureau and never buy a product that is manufactured by this company again.
 
jumbopackage said:
Almost never are they worth it.

The vast majority of time, if an item fails it will be under the manufacturer's warranty. If it doesn't fail during that time, it probably won't (at least until it would be out of an extended warranty period as well).

I can't think of anything that I would purchase an extended warranty on. You're just throwing your money away. I feel the same way about cell phone insurance as well.
Click to expand...

While I agree with the extended warranty, I personally disagree about the cell phone insurance. I'm a huge klutz, and have had to use my cell insurance three different times. None of them were covered by the manufacturer's warranty, and all of them were several months out from being eligible for the "every 2" upgrade. I'd much rather spend the $3/month and a $50 co-pay than to spend $500 on a replacement phone. That's what works for me, though.
 
Buy with a Visa and you usually get an additional year beyond the manufacture's warranty. I always pass on paying for an extended warranty for all the same reasons mentioned.
 
From my experience, computers- yes, cell phones possibly, and cars iffy. The rest probably not.
 
I bought the extended warranty once, for a computer I bought from Best Buy. Just before the warranty expired, my CPU fan died and my CPU and motherboard fried. Got them both replaced for free.

I've never bought an extended warranty otherwise, and have never needed one.
 
Psyclone Brian said:
We've all been there. No sooner do you agree to buy an item, than the salesperson immediately tries to get you to purchase an extended warrantee, as well.

Digital Cameras - Flat-Screen TVs - Vacuum Cleaners - Washers/Dryers - Laptops/computers - Lifetime Warranties - Credit Cards' Protection - Other Long-term Warranties...

Any success stories?
Click to expand...

No. Buy with your American Express card and it extends the warranty of the product you purchase up to one year. Great value. Extended warranties are a profit center for business.

https://www212.americanexpress.com/...CRD&name=buyersassurance_ccsg_faq&type=intfaq
 
Angie said:
While I agree with the extended warranty, I personally disagree about the cell phone insurance. I'm a huge klutz, and have had to use my cell insurance three different times. None of them were covered by the manufacturer's warranty, and all of them were several months out from being eligible for the "every 2" upgrade. I'd much rather spend the $3/month and a $50 co-pay than to spend $500 on a replacement phone. That's what works for me, though.
Click to expand...

Depends on the phone, I guess. Most smartphones these days have a 100 dollar deductible. And even then, there are some things that insurance companies won't even pay for.

I've replaced at least a half dozen mostly expensive phones and only had to pay once (75 bucks). Even when you do have to pay, you can generally get a refurb phone for way less than list, or go shopping on craigslist/ebay for a used one that some technogeek is dumping to buy the latest phone.

It might help that I'm on Sprint (premier) and can get a new phone every year, but I've just never seen the value proposition in it. I guess I've never had to fork out list price for a new one, so that might temper my enthusiasm.
 
This was just on one of those morning shows

this morning. Some expert basically said they are not worth it unless you are the type to your abuse your stuff. Laptops are an exception since they have a high rate of problems in the first 3 years.
 
if it was worth it to you, they wouldn't offer it... most companies aren't in the business of losing money
 
I always figure if you have to buy one, you probably haven't spent enough time researching what the "best" product to buy in that category. Shouldn't need one of these if you've bought something of good quality.

I have a buddy who's an engineer who likes to buy them on cars(he likes buying GM). He seems to think he's at least broken even doing it. Can't say it would have paid on any car I've bought.

I did get one on a work fax machine once. I did have some issues with it and spent a lot of time talking to a tech who got things fixed and was no cost to me. Probably a break even deal.

On cell phones, I always keep my old one so if I fry or lose my new one(that's never happened), can use the old one until my contract is up.

I tend to avoid them like the plauge. I think they're mostly money makers for the sale people.
 
Normally I would say no to extended warranties but there are two instances that made me think differently, one bad experience, one good one.

bad experience: Happened with a refrigerator. Compressor went out and because I didn't get the extended warranty the seller told me that I'd have to go through the manufacturer who took there sweet time. I was without a fridge for well over a month before the compressor finally arrived.

good experience: Bought a big screen tv from Best Buy and the guy who sold it to me (and truthfully was someone I trusted) flat out insisted I get the warranty. Reluctantly I did and thankfully so. Shortly after a year the tv blew out and I was able to get it fixed right away. It also happened a second time which was taken care of as well. Saved me hundreds of dollars.
 
I am very glad I spent the money on an extended warranty for my washing machine, worth every penny. Two years ago, they replaced the pump for no charge, and I just had an issue with the door and "boot" inside the machine. I ended up getting a brand new washing machine vs. having the old one repaired. The warranty company sent me a check, and I went out and bought a new washing machine. The only expense I paid was to have the old machine hauled away. If I didn't have the extended warranty, I would have easily put more in repairs than the machine was worth. I paid around $200 for the warranty upfront for a four year warranty, which extended out the total years to five, since I only had the machine for four years, it cost me $50/year or $4.17/month.

I also had an extended warranty on my refridgerator (builder of my house paid for) and covered a couple issues with the ice maker outside the normal warranty period.

I don't buy them for everything I own, but on certain items that I don't consider as disposable (washer/dryer/fridge/big screen TV), I take a look to see if it's worth it or not.
 
I guess it also depends on the price of the item...
If it's going to crap out on you in a short period of time. Kind of makes you wonder if the repair is about the same price as replacing whatever it is that broke.
 
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