Warranties (again)
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
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June 1st, 2005 at 6:39 am
You should not buy a warranty on goods that cost around $100.00 today. Tomorrow those items will be considerably less than what you paid. And nobody reads the fine print on those warranties and most want you to bring the thing in for service. Extended warranties are just another way for businesses to make money — extra money — from consumers.
June 1st, 2005 at 8:55 am
Well said! Thank you
–c8j
June 2nd, 2005 at 7:24 pm
There is one big problem with warranties on consumer electronics stuff. The sellers know exactly the risk they are insuring, but the consumers don’t. Anytime this happens, we pay through the nose. My opinion is never to buy extended warranties on consumer electronics. I remember buying a fancy digital camcorder 3 years ago. It was $1600 then. Now, you can buy a much better product for $600. Good thing I didn’t pay a $200 extended warranty.