Stay Away from Extended Warranties, says Consumer Reports

[Carl Reid]

I only purchase extended warranties on expensive items... I paid about $2k for my tv and got a 5 year in-home repair/replacement extended warranty for $80... So I have relative piece of mind on my purchase... and the warranty was cheap enough that I don't feel ripped off if I never have to use it....

On the other hand I went into CC and they were offerring me an extended warranty on a $20 paper shredder.... which (big shock) I declined....

[SlumpBuster]

CC offered me an extended warranty on a $10 Bob Segar CD for $0.99. No joke.

The problem with the Consumer Reports analysis is one of numbers. They look at a sampling of say a 1000 puchases and only 10 need to use the extended warranty, so they say its not worth it. Well, it was worth it to the 10 with failed products. I'm not buying a 1000 extended warranties, though. If I buy 4 and only use one, I just destroyed the Consumer Report percentage. If I use none, then I am only out the premium paid.

[Dusty Chalk]

...only 10 need to use the extended warranty, so they say its not worth it. Well, it was worth it to the 10 with failed products...

Did you not read the part about the repair costing the same as the warranty? So, no, it was about the same to the 10 who needed it, and money not well spent for the 990 that didn't.

Me, I look at the dependability of the product. If it's crap -- well, that's not fair, because I probably wouldn't buy it.

[Groundbeef]

Did you not read the part about the repair costing the same as the warranty? So, no, it was about the same to the 10 who needed it, and money not well spent for the 990 that didn't.

Me, I look at the dependability of the product. If it's crap -- well, that's not fair, because I probably wouldn't buy it.

2 things here. The first point...that is AVERAGE repair cost. For example my extended warrenty on my HP laptop was $299. Now lets say I drop it and break the screen. The screen alone runs $850. Now thats not quite equal. I guess if the "Q" sticks and I need a new letter I am a loser on the deal.

Second point. How are you going to tell if a circuit board is going to go Kaput? Its not like an old car you can tinker with. Even the best made electrical devices can fail. I guess if you buy all of your tech toys 2 years late and have extensive repair histories for each model you are considering. But I would be willing to bet most of us dont have your massive compilation of data.

[Dusty Chalk]

Alright, so of those 10 people I was referring to, it was worth it for 5 of them. The other 5 got overcharged.

But I would be willing to bet most of us dont have your massive compilation of data.

That information is freely available on the internet.

[Groundbeef]

Alright, so of those 10 people I was referring to, it was worth it for 5 of them. The other 5 got overcharged.That information is freely available on the internet.

Go back and re-read my post. If you are buying absolute cutting edge, new electronics, there ISN"T going to be data or repair history. It was a bit sarcastic. The point is, with NEW electronics, it is difficult to tell what the future will bring. If you are buying an older TV or computer you may have a better chance of knowing possible problems.

[Dusty Chalk]

Go back and re-read my post. It was a bit sarcastic.

Yeah, I figured that -- welcome to my sense of humor.

If you are buying absolute cutting edge, new electronics, there ISN"T going to be data or repair history.

You can base it on the manufacturer. It's not completely flying blind. I don't care if it's completely cutting edge, would you buy a Maxtor hard drive without an extended warranty? Heck, I wouldn't buy one period. That's what I meant by freely available information to everybody.

Would you buy an extended warranty for a Plextor? I think it would be unnecessary, given their history, even if it's a completely new product.

That sort of thing.