Canadian Personal Finance Blog

The real “mug’s game” for extended warranties and add on warranties (and please remember this is my opinion, so decide for yourself), is for electronic components and computers. Electronics I know some things about (not a lot, but enough), but computers, I do know.

As with all warranties, figure out how much the warranty costs, ask how much a typical repair might be, find out if what the standard warranty is on the device, find out whether your CREDIT CARD extends that warranty, and then figure out how likely it is that you will need this repair? Find out the VALUE of this warranty to YOU.

Example #1: I bought my daughter an RCA MP3 CD player for about $50.00 or so (at a large Electronics store) and they asked me if I wanted to pay $10 to extend the warranty for 2 years. I looked at the RCA web site, and I think the warranty from them is 1 year. What is going to break on this thing? I have NO idea, but I said, NO, I think I guessed right.

Example #2: Bought a VCR for $99, again $20 to extend the warranty another 2 years. Sony’s warranty has got to be a year (I should check, but it is my guess). To get a repair service to even LOOK at an electronics device is $85.00 (at least), but if this thing breaks, I’ll just buy another one! I said NO again (again, your mileage may vary).

Look for value even in warranties!

Tomorrow, Computers! –C8j