Extended warranty (EW)

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I've noticed EWs are often discussed here. It looks like the lame stream media is finally getting a clue.
Don’t buy the extended warranty – ever <http://shopping.yahoo.com/blogs/digital-crave/don-t-buy-extended-warranty-ever-172056749.html ;_ylt=Ak3vt8O.bvj7WoqY0HXTpMKs0NUE;_ylu=X3oDMTJsM3NzZzU2BG1pdANIQ01PTCBvbiBhcnRpY2xlIHJpZ2h0IHJhaWwEcGtnA2lkLTMxMzQzMDcEcG9zAzEEc2VjA01lZGlhQkNhcm91c2VsTWl4ZWRIQ00EdmVyAzc-;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z>
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I agree it's almost never a good idea to buy an extended warranty. But there are exceptions. A few years ago I bought a Kitchenaid double over on Ebay. It was a floor model, never used. But still, I was worried about any warranty issues, if KA would cover it, etc. SquareTrade had a 3 year warranty for like $75 or so and I bought it. Fortunately it's worked perfectly. I got a $3000 oven for $1300, so figured the $75 was worth it.
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On 03/22/2013 08:49 AM, CRNG wrote:

<http://shopping.yahoo.com/blogs/digital-crave/don-t-buy-extended-warranty-ever-172056749.html ;_ylt=Ak3vt8O.bvj7WoqY0HXTpMKs0NUE;_ylu=X3oDMTJsM3NzZzU2BG1pdANIQ01PTCBvbiBhcnRpY2xlIHJpZ2h0IHJhaWwEcGtnA2lkLTMxMzQzMDcEcG9zAzEEc2VjA01lZGlhQkNhcm91c2VsTWl4ZWRIQ00EdmVyAzc-;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z>

Eh, I *didn't* buy an EW for my BMW 335i... but I think I would actually understand if someone did, just in case something major fails like the turbos.
That said, in 99.44% of the instances, you are absolutely right. An EW on a $1000 piece of consumer electronics that's going to be obsolete in 3 years anyway is silly.
nate
--
replace "roosters" with "cox" to reply.
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wrote:

ANob21lBHB0A3NlY3Rpb25z>

Well...not always. Some years ago I bought a 21" KDS CRT monitor at Best Buy. It was close to 500 bucks. They offered a 3 year EW for $25. Replacement, not wait for it to be repaired. No-brainer to me. I bought it, and the monitor failed a month before the EW expired. Carried it in and it was replaced with a brand new Samsung. I did have to show the sales manager in the contract where it showed "immediate replacement." For the Samsung they now wanted $125 for the same warranty. I passed. About 4 years ago I bought a GE washer at Sears. My wife was set on that washer, but I didn't like the failure rate and tales of woe about going to the laundrymat while it was being fixed that I saw on the Sears reviews. Paid about $250 for an EW, with REPLACEMENT. The thing has gone past the warranty with no issues, so you can say I wasted the money. The way I look at it is I paid 22 cents a day for peace of mind about never going to the laundrymat. I bought a 2-year 24k bumper-to-bumper on a used Celebrity with 31k on the clock. Got that at "cost" due when I financed due to the salesman having unintentionally misled me that it was still under factory warranty. $550. I got more than that back with just a few issues. That EW retailed at $1100 - about 20% the cost of the car - and would have been a slight loser financially, but a winner with "peace of mind.." Note the huge markup. They ate that because I was going to walk. Now, just last week, I bought a 2003 Impala with 49k miles on it. The dealer offered a 5 year 60k powertrains warranty for $1504. It's a solid GM endorsed warranty that will be honored. Adds 19% to the cost of the car. I bought it. Won't bore you with what I know about that powertrains, but I know enough that I figure the 82 cents a day I'm paying is worth the "peace of mind" I'm buying with my main car. For small stuff EW's seldom work. I don't even listen to the pitch unless I'm spending about 5 bills. For big ticket items, or items you need replaced NOW, they can work well. The bottom line is "some" EW's work costwise. Some are stupidly priced. It's insurance. You shouldn't expect to collect on insurance. You have it for "peace of mind" or because it's legally required. If it's not legally required, and it doesn't provide "peace of mind," don't buy it.
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On Fri, 22 Mar 2013 14:46:18 -0500, Vic Smith

Ah, now when you are buying "peace of mind", the price is trivial. Good for you.
But then, to many people, a $1000 purchase is trivial and paying $250 for an EW is not needed. Good for them.
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On Fri, 22 Mar 2013 14:46:18 -0500, Vic Smith

Retraction. Though the dealership has a good rep, and I'm pretty sure the would squeeze the warrantee company hard, it's not "GM endorsed." It's a Fidelity Carefree Car Care Warrantee. Not a GM backed extended warrantee like the one I had put to good use on my Celebrity 22 years ago. Anyway, I actually read the warrantee contract after I posted the above. First off, it cost $1804, not $1504.. Thing is, I remember seeing $1504 specifically when I pushed the finance guy to just give me the total warrantee cost when he was giving me different finance monthly payments with different terms and different warrantee plans. I didn't care about the financing. I already knew it was 5% simple interest with Chase, no prepay penalty, and that it would be paid off early. I wanted to know the powertrain warranty cost. He wrote it on a piece of scrap paper he never let go of. Of course he kept that, but I remember $1504 because I did a daily cost calc in my head. You can figure that out. I can't prove it. Anyway, I signed that with all the other paperwork without reading anything. My bad. The extra 3 bills pissed me off, and my "peace of mind" suffered. Suffered enough that I went on the internet and looked for complaints. There were plenty, and I read my contract thoroughly and found way too many loopholes. My "peace of mind" disappeared. I canceled the warrantee today. State law says max charge for cancellation within 30 days is $50. So I wasted $50. But I feel better, and once again have "peace of mind."
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On Tue, 26 Mar 2013 17:10:17 -0500, Vic Smith

Good for you. Maybe I'm just lucky, but I can only recall one car in the past 20 years that had more than $1500 in repairs. If I put aside that warranty money, I'd have a good chunk of the car paid when I buy the next one.
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I haven't spent that amount on any one repair either. But I know people who have. But the thing most people who buy these warranties fail to compute, is that the warranty only covers certain items and explicitly excludes a lot of other things. So, you could still have an expensive repair bill and it may not be covered. Which is why I think if you take a self insurance approach to it, you're better off. If you keep the $1500 you have it and you can use it for any major repair.
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On Wed, 27 Mar 2013 05:08:23 -0700 (PDT), " snipped-for-privacy@optonline.net"

In the lean years, we had little savings, but still did not waste money on warranties. Fact is, I've spent little on appliance repair over 47 years of home ownership. While I don't have a special account for repairs, there is enough in savings to cover repair or replacement of any home appliance and major repairs to the car. The last two though, I traded before the warranty ran out.
As pointed out already, electronics have come down in price so it is easier to replace in a few years, but you are paying for a service contract that is based on price today.
Insurance companies, nice folks that they are, when done caring about you, they still want to make a profit. Add up the cost of extended warranties on every appliance you have and see if you still want to buy them. Quite a sum that you save.
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<http://shopping.yahoo.com/blogs/digital-crave/don-t-buy-extended-warranty-ever-172056749.html ;_ylt=Ak3vt8O.bvj7WoqY0HXTpMKs0NUE;_ylu=X3oDMTJsM3NzZzU2BG1pdANIQ01PTCBvbiBhcnRpY2xlIHJpZ2h0IHJhaWwEcGtnA2lkLTMxMzQzMDcEcG9zAzEEc2VjA01lZGlhQkNhcm91c2VsTWl4ZWRIQ00EdmVyAzc-;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z> If you had been paying attention, you would know that the "lame stream media" has been telling us that for years.
Most times, when you hear someone advocating for those warranties, they are selling them.
--
Dan Espen

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In the case of hot water heaters, the manufacturer will encourage the plumbing companies that sell it's heaters to offer an extended warranty.
That's because they know that it's seldom that anything goes wrong with their heaters during that first three years, and so it's not exactly a "gamble" to warranty the heater for that extra time.
--
nestork


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nestork wrote:

I bought a mouse pad at Best Buy. The clerk offered me an extended warranty for only a quarter.
I passed.
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the first 3 years when it comes with a 6 or even 9 year warranty?
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On Fri, 22 Mar 2013 20:52:29 -0400, snipped-for-privacy@snyder.on.ca wrote:

Labor?
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On Mar 22, 6:52 pm, snipped-for-privacy@snyder.on.ca wrote:

The manufacturer's warranty usually only covers the item itself. The labor to install/replace it is not covered. Extended warranties sometimes cover both parts and labor. One has to read it to know what it actually covers. The labor often costs more than the item. For instant, the thermostat on the defrost coil of a refrigerator....... The part is $8, the house call is $75, as an example.....
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Another classic trick is they will try to sell you the 3 yr extended warranty on a product. It covers you for 3 yrs, but that's counting from today. The product typically has a one year warranty to begin with. So, people think they are buying 3 years, but in reality, they are buying only 2.
I just thought of another place an extended warranty makes sense. Dehumdifiers that get a lot of use. It seems everyone agrees that these just don't last these days. A friend of mine bought one a couple years ago and in trying to negotiate the price, the sales manager wanted to bundle in an extended warranty. I don't remember the details, but bundled in, it was a good deal. The unit failed during the warranty and they replaced it. He wound up having to pay another $40, because that model was no longer made and the ones they had were slightly larger. That's another example of what happens when you go to make a claim. But it was still a good deal, because the new one would have cost 2.5 times what the extended warranty plus the $40 cost. He just walked in with the old one and walked out with a new one.
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On Sat, 23 Mar 2013 04:43:38 -0700 (PDT), Robert

Many "extended warranties" only cover the parts too.
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On Mar 23, 12:42 pm, snipped-for-privacy@snyder.on.ca wrote:

Actually, the cost of a part like a defrost thermostat, a VERY likely failure, is about the same for a $300 or a $2000 fridge. Of course, if one doesn't know how to remove a screw, slip off the old therm, slip in the new one, and replace the screw, the $75 is a good deal.
My point was that the "labor" and "house call" may not be covered under the warranty. It's a good idea to check for "parts AND labor" and "carry-in" versus "house calls", if one is considering a warranty coverage.
For those of us that can use the internet to order parts, and have the knowledge to do the repair, a warranty may not be worth it.
On the other hand, things like laptop computers and HDTV sets which are fairly complex to replace the parts into, even if one knows exactly what's wrong, may give cause for buying a warranty.
It just depends ..... on who you are... and what you want to buy...
OHH !! And pay by credit card. Often that extends the warranty automatically by a year ..
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On Sun, 24 Mar 2013 10:44:35 -0700 (PDT), Robert

warranty on, $199 cell phones and $200 laptops are not.
Some stores will sell you a 2 or 5 year REPLACEMENT warranty which will give you a new equivalent device in replacement if your device fails. That can be a decent deal, depending on the device and the cost of the coverage. Again, not worth it on a $100 device that is likely to outlast the warranty - mabee worth while on a $500 or more device that is prone to failure - particularly if DAMAGE is also covered.
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On 3/22/2013 6:49 AM, CRNG wrote:

<http://shopping.yahoo.com/blogs/digital-crave/don-t-buy-extended-warranty-ever-172056749.html ;_ylt=Ak3vt8O.bvj7WoqY0HXTpMKs0NUE;_ylu=X3oDMTJsM3NzZzU2BG1pdANIQ01PTCBvbiBhcnRpY2xlIHJpZ2h0IHJhaWwEcGtnA2lkLTMxMzQzMDcEcG9zAzEEc2VjA01lZGlhQkNhcm91c2VsTWl4ZWRIQ00EdmVyAzc-;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z>

Years ago, a friend of mine who had a temper and a bad habit of throwing the family's cordless phone against the wall after every four or five calls bought the extended warranty from Circuit City. I don't recall the exact number of phones the retailer replaced but it was more than 10 before they cut him off. ^_^
TDD
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