Extended warranty??

About two years ago I bought a video recorder. I paid about $200 for it on sale. Now in the mail, I get an offer telling me my original warranty is about up and I can buy a 5 year protection plan for only $147.
How nice of them. I can pay almost as much as I did for the recorder for what is likely a very restricted insurance plan that likely only is going to cover me for three additional years.
Typical of what is offered and sold every day to consumers.
While there are times and extended warranty may be a good investment, most of the time it is not.
The next time someone offers you one, just say no. Put the money in the back.
--
Joseph E. Meehan

26 + 6 = 1 It's Irish Math
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http://clarkhoward.com/library/tips/extended_warranties.html
Joseph Meehan wrote:

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Jo wrote:

His example was even worse than mine.
As I have believed for a long time, just say no when someone wants to sell you an extended warrantee. They are making money on it, not you.
--
Joseph E. Meehan

26 + 6 = 1 It's Irish Math
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99% of the time I'd agree. I did buy an extended warrenty for my riding mower years ago. 3-years, they come and get it. I beat the sh*t out of that mower (5 acreas of mowing... most of it horse pasture). They replaced a bunch of stuff over the 3 years.
Joseph Meehan wrote:

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jim snipped-for-privacy@NOSPAMyahoo.com says...

Yes, generalities may be wrong sometimes. ;-)
I seldom buy extended warranties. But sometimes they're too good to pass up. I recently bought a new fridge with an ice maker/dispenser. The store offered a 5-year warranty for $90 that included "3 strikes lemon protection". On the 3rd repair of ANY kind over 5 years, they replace the fridge with a new one of the same or equivalent model. Just ONE repair would cost at least $90. It's a good deal, even if I never have a problem.
Rick
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On a big screen HD tv from Apex, got a 5 year extended warranty for $50. Only concern is if the company behind the warranty goes out of business but it is a big retailer and that has happened before and they paid for the repairs in those cases.
says...

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My wife bought an extended warranty on a $60 DVD player. I almost killed her.
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it
is
the
in the past 20 years, (and passed up) the cost would be in the thousands of dollars easily. In the same period I've paid out less than a couple hundred dollars for repairs on these items. I'm thousands ahead. It's pretty sad when you have to insure against a $100 loss.
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You'd get better return to invest in a stock fund, instead of putting the money in the back of the VCR. Banks only paying about 3% now days.
--

Christopher A. Young
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