Extended Warranties - Yes or No

[nicenycdick]

The companies that provide extended warranties make a lot of money. Most people are not aware that, in most cases, the warranty is not provided by the manufacturer or the store, but by an independent warranty provider. These companies are basically insurance companies. They analyze the probability of a product breaking based upon past statistics and base their cost for the coverage on that algorithm. Believe me, they pad it plenty, which means that it is extremely likely that you will never recover your cost for such warranties over time and multiple purchases. Of course, you may benefit on any individual purchase, but I prefer to go with the odds...which is why Las Vegas has no attraction for me, I guess.

 

[kenny233]

I do not purchase extended warranties. If I am making a big purchase, I look at the quality of the product and the manufacturer warranty. Some companies are known for standing behind their products, and are great about providing service and making it easy for the customer. If I find out about a company that is troublesome to obtain service from, I will choose another manufacturer.

On a personal blurb: If I am purchasing something mechanical, I study it before the purchase to see if I will be able to repair it myself should it break. The last car I bought, I chose because it looked easier to service than the other brands I was considering. I have done maintenance and repairs myself on it, and saved money by not purchasing a new car. I enjoy mechanics, and usually end up with things longer than most people because I have repaired them myself. I have successfully repaired electronics a few times, but I am not well-practiced in their repair. I know this mentality is not mainstream, but it fits me perfectly, as I have always worked on things.

 

[vince]

I have insurance against dropping my photographic equipment. The digital stuff is too expensive and too fragile.

Insurance is stacked against the buyer and in most cases, I don't think it's worth it in the long run. If you are careful about what you buy you probably don't need it. I've never had a major piece of electronics break down.

For example, I have a very expensive Miele washing machine. One reason I bought it is that it will last forever and it will be the least expensive machine over the years. I've installed dozens of them in our building projects because they just don't break down and we've never had an issue with one in over twenty years. An extended warranty would be a waste of money. If I was buying Maytag or Siemens, then it might make sense.

With cars I buy models that don't depreciate very much and sell them off when the warranty is finished.

 

[OhWiseOne]

I should have made this a poll. But it appears the overwhelming choice is no for the most part.

 

[MASSIVEPKGO_CHUCK]

I've never purchased one for my ratty little soon to be lease up on it cellphone; not with the features IT HAS. Now,when they ofer me the upgrade to a better phone, then yeah.

At work, we don't have extended warranties, there's extended protection plans, basically it'll do almost one better than the manufacturer's warranty, plus no cost to repair.

 

[NCbear]

but do not purchase another 2006 Mazda

advice to NCBear
(who should buy extended warranties on washing machines :wink

Yeah, I would've been happier if those problems hadn't happened--but it's a midsize hatchback with a stick that gets 31 mpg on the highway, handles rather well for an FWD car (particularly over 80), and has carried a full-sized dryer back home from Lowe's with the hatch closed.

Plus, it's never left me stranded; even when the clutch failed, it brought me home and then to the dealer the next day.

NCbear (who is ticked off because Mazda made a reasonably economical, highly useful, and even moderately reliable midsized hatchback sedan for the US market and then, after failing to publicize it at all, blamed its poor sales on US customers' wants/needs [i.e., "they all want SUVs," even in the face of the resurgent hatchback and small-wagon craze] . . . and pulled it from the US market, thus preventing me from having the chance to buy the newer, improved version )

 

[Remington]

Certain items, like cell phones and TVs, sure.

Most things, nope.

 

[Mem]

No.

 

[Incocknito]

I don't but I would advise people to on large electronics, anything over about £300 as people said. Things like especially the old PS3's which would ALL break within 1-2 years, in which a 3 year warranty keeps you covered.

Also some televisions maybe. I'm a bit torn about having insurance on my mobile phone. Might cancel as I could probably just buy the same phone new for the price of the insurance (yearly cost of insurance).

But my phone has been freezing up recently a lot so not sure what to do.

 

[798686]

I don't but I would advise people to on large electronics, anything over about £300 as people said. Things like especially the old PS3's which would ALL break within 1-2 years, in which a 3 year warranty keeps you covered.

Also some televisions maybe. I'm a bit torn about having insurance on my mobile phone. Might cancel as I could probably just buy the same phone new for the price of the insurance (yearly cost of insurance).

But my phone has been freezing up recently a lot so not sure what to do.

Microwave it? Worked with the PS3. :wink::biggrin1:

 

[LookingCurious]

Generally, no.

What most people forget (or don't know) is that many credit cards (namely VISA cards) offer extended warranty protection , for free. Whenever I make a big purchase I just use a Visa card that is registered with their Visa Product Protection service.

In the rare instance where I do need to purchase an extended warranty (mostly for electronics) I'd go with SquareTrade. They are VERY good at getting you a new product (or cash) very fast.

But I never (NEVER) purchase extended warranties that you are usually offered at the point of sale. They are almost always a bad idea (and a rip off).